Marriott Has 634,000 Rooms Waiting to Open, and Prices Are Still Climbing

Marriott International reported third-quarter results on November 2 showing global revenue per available room up 6.5 percent. Growth was 7.4 percent in the U.S. and Canada and 4.4 percent internationally, and quarterly net income was $794 million.

The company added roughly 20,100 net rooms during the quarter and says its development pipeline has reached a record of more than 4,200 properties and 634,000 rooms. CEO Anthony Capuano said growth reflected stronger room rates, occupancy and the company’s global distribution capabilities.

RevPAR rising means travelers are paying more per room on average, or hotels are fuller, or both. Marriott operates mostly through management and franchise agreements, earning fees and benefiting from its loyalty program, so the numbers say as much about brand power as about demand.

For travelers, the pipeline hints at more choice in secondary cities and resort destinations over the next few years, while the revenue figures suggest rates have not softened. Industry commentary notes that independent hotels increasingly compete against loyalty-driven brands, which are gaining more of the growth.

Sources: eTurboNews, Marriott News Center