Marriott sees 2019 adjusted EPS $5.87-$5.90, consensus $6.02
Marriott expects 2019 comparable systemwide RevPAR on a constant dollar basis will increase roughly 1% in North America, roughly 2% outside North America, and roughly 1% worldwide. Marriott anticipates global net room additions of 5.0%-5.25% for full year 2019. It added, "The company expects full year 2019 gross fee revenues will total $3,809 million to $3,819 million, a 5 percent increase over 2018 gross fee revenues of $3,638 million, including $20 million of unfavorable foreign exchange. Full year 2019 estimated gross fee revenues include $400 million to $410 million of credit card branding fees, compared to $380 million for full year 2018. Marriott anticipates full year 2019 owned, leased, and other revenue, net of direct expenses, could total $289 million. This estimate reflects approximately $35 million of lower termination fees year-over-year. This outlook for full year 2019 reflects the sale of the St. Regis New York in the fourth quarter, but does not reflect any additional asset sales that may occur during the remainder of the year. The company expects full year 2019 general, administrative, and other expenses could total $921 million to $926 million, flat to down 1 percent from full year 2018 expenses of $927 million. Full year 2018 general, administrative, and other expenses included a $51 million expense for the company's supplemental investments in its workforce. The company anticipates full year 2019 diluted EPS could total $5.87 to $5.90, a 5 percent decline compared to 2018 adjusted diluted EPS of $6.21. Full year 2019 guidance includes the $9 million pre-tax ($0.02 per share) asset sale gain in gains and other income, net, recognized in the 2019 third quarter, but does not include any gain on the sale of the St. Regis New York. Full year adjusted 2018 results include $183 million pre-tax ($0.44 per share) of asset sale gains in gains and other income, net and $65 million pre-tax ($0.21 per share) of asset sale gains in equity in earnings. "