Marriott International Inc. is set to pitch its three-year growth plan, involving the launch of over 1,700 hotels globally, to institutional investors and security analysts, with hopes to return between $9.5 billion and $11 billion to shareholders from 2019 through 2021.
The hotelier expects to add between 275,000 to 295,000 rooms by 2021 to its 478,000-room pipeline, from which roughly 214,000 rooms are already under construction. Marriott anticipates that new room openings during this period will lead to $400 million in fee revenue in 2021 and $700 million annually when stabilized.
Additionally, the company said its growth plan "assumes, but does not forecast," an increase in comparable hotel revenue per available room of 1% and 3%, compounded annually. Assuming the three-year plan is successful, Marriott may register compound growth of 11% to 15% in EPS over 2018 adjusted results, to between $7.65 and $8.50 by 2021.
Adjusted EBITDA may rise 6% to 9%, while net income increasing 5% to 8% compounded, compared to adjusted results in 2018. Additionally, shareholders could receive $1.9 billion to $2 billion in dividends, provided there continues to be a 30% payout ratio, and $7.6 billion to $9 billion in share repurchases over the three-year period.