Marriott targets RevPAR growth of 1%-3% over next three years
In its three-year growth plan, the company expects to earn $675M in stabilized fees from hotel rooms added to its system in 2017 through 2019. In addition, non-property related franchise fees, largely credit card branding fees, should increase by $100M during the three years. The plan assumes, but does not forecast RevPAR growth of 1% to 3% compounded annually through 2019. "We are more optimistic than ever about our future," said Arne Sorenson, Marriott International president and CEO. "Marriott has made a significant leap forward in distribution and scale with its once-in-a-generation acquisition of Starwood. With global travel estimated to increase at a 7 percent compounded rate over the next 10 years and international trips expected to top 1.8 billion by 2030, Marriott is well positioned to benefit given its strong global footprint now in 122 countries and territories and an unmatched portfolio of 30 lodging brands."