BETHESDA (dpa-AFX) - Marriott International (MAR) announced the company's three-year growth plan, which includes opening approximately one hotel every 14 hours around the world. The company plans to accelerate its growth, adding 285,000 to 300,000 rooms worldwide by 2019, which could yield a record $675 million in annual stabilized fees. In addition, non-property related franchise fees, largely credit card branding fees, should increase by $100 million during the three years.
In its three-year growth plan, Marriott assumes RevPAR growth of 1 to 3 percent compounded annually through 2019. Over the next three years, the company expects: earnings per share of $5.25 to $5.80 by 2019, a compound growth rate of 17 to 21 percent over 2016 combined results; adjusted EBITDA increasing by 7 to 10 percent compounded, excluding the impact of asset sales, with net income increasing by 11 to 14 percent compounded, each compared to combined results in 2016. The cash available for shareholders could total $8.3 to $9.3 billion for the three years. The company said its shareholders could see $1.4 to $1.5 billion in dividends, assuming a continued 30 percent payout ratio, and $6.9 to $7.8 billion in share repurchases over the three-year period.
Leeny Oberg, Marriott International executive vice president and chief financial officer, stated: 'We remain focused on growing our superior brand portfolio through signing long-term, high quality contracts with minimal investment. We expect to deliver significant free cash flow and sustained earnings growth as we expand our footprint strategically around the world. Our integration plans are on track and we are excited about the potential we see for additional benefits still being developed and not included in today's plan.'
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