Marriott International has reported full year management and franchise fee revenue totalled a record breaking US$1.4bn in 2007, up 17 percent over the previous year.
Marriott says worldwide systemwide comparable revenue per available room (revPAR) rose 7.6 percent and Average Daily Rates increased 7.5 percent, while occupancy remained strong at 73 percent.
Marriott chairman and chief executive JW Marriott Jr says 2007 was a terrific year for the company.
“We recently celebrated our 3,000th hotel in November, the JW Marriott Beijing, and we introduced two new brands, Edition and Nickelodeon, which position us well for the travellers of the future,” he says.
“With our owners and franchisees, we opened 31,000 rooms during the year and, despite a tight credit market, drove our pipeline of hotels under construction, awaiting conversion or approved for development to a record 125,000 rooms.
“Looking ahead, we’ve never been better positioned to tackle short-term economic challenges nor more optimistic about our long-term prospects.”
Marriott says he expects the company to continue to grow, despite uncertain economic conditions.
“Our strategy of managing and franchising hotels under solid, long-term agreements is proven.
“Over the years, we’ve shown that this business model results in profits that are less volatile than owning properties. And our brands’ strength continues to accelerate unit growth without significant capital investment by us,” Marriott says.
By Elizabeth Clifford-Marsh