Marriot, the global hotel chain said it saw a 67% increase in net income for the first quarter of the year.
The result was achieved due to a major increase in franchising fees. Revenue for the quarter rose to USD365 million compared to USD219 million recorded same period 2016.
Diluted earnings per share (EPS) was USD0.94 in the quarter, an 11% increase from diluted EPS of USD0.85 in the year-ago quarter.
Base management and franchise fees totaled USD629 million in the 2017 first quarter, compared to USD422 million in the year-ago quarter. The year-over-year increase in these fees is primarily attributable to the Starwood acquisition, higher RevPAR, and unit growth.
First quarter worldwide incentive management fees increased to USD153 million, compared to USD101 million in the year-ago quarter. The year-over-year increase is primarily attributable to the Starwood acquisition.
Owned, leased, and other revenue, net of direct expenses, totaled USD81 million in the 2017 first quarter, compared to USD38 million in the year-ago quarter. The year-over-year increase is primarily attributable to the Starwood acquisition.
Depreciation, amortization, and other expenses totaled USD65 million in the first quarter, compared to USD31 million in the year-ago quarter. The year-over-year increase is primarily attributable to the Starwood acquisition, including the effect of purchase accounting.
Marriot said merger-related costs and charges totaled USD51 million in the first quarter, compared to USD8 million in the year-ago quarter. Included in the merger-related costs and charges are USD21 million of severance and retention costs, USD23 million of integration costs and USD7 million of transaction costs.
General, administrative, and other expenses for the 2017 first quarter totaled USD210 million, compared to USD155 million in the year-ago quarter. The year-over-year increase is primarily attributable to the Starwood acquisition, inclusive of general administrative cost savings from combined company synergies.
