Marriott’s (NYSE: MAR) aggressive expansion strategy resulted in a US$42 million increase in the company’s net income, reaching US$244 million 4Q16, up 20 percent from US$202 million in 4Q15.
The strong alliance between Marriott and Starwood added more than 68,000 rooms of which 1,000 rooms were converted from competitors and 31,000 rooms were in the international market. Marriott’s development pipeline by the end of 2016 increased by more than 420,000 rooms.
“Our strategy of managing and franchising hotels under solid, long-term agreements is proven,” said Arne M. Sorenson, President and CEO of Marriott International. Over the years, we have shown that this business model delivers meaning.”
Mariott’s franchise and base management fees brought in over US$564 million in 4Q16, US$201 million more than 4Q15.
Marriott announced In November 2016 that it would have four new projects in Mexico: The Westin Puebla, Aloft Puebla, AC Hotel by Marriott Monterrey and Renaissance Cancun.
Looking ahead to 1Q17, Marriot expects that its total fee revenue to reach between US$740 -750 million, reflecting US$6million of unfavorable foreign exchange rates.
Read Marriott’s 4Q16 Earnings Report Here