Product life cycle of Marriot international

-Marriot international 

·       Introduction

Marriott International, Inc. is based in Bethesda, Maryland, USA, and encompasses a portfolio of more than 7,500 properties in 30 leading hotel brands spanning 132 countries and territories. Its heritage can be traced to a root beer stand opened in Washington, D.C., in 1927 by J. Willard and Alice S. Marriott. Marriott International is an equal opportunity employer committed to hiring a diverse workforce and sustaining an inclusive culture. Marriott International does not discriminate on the basis of disability, veteran status or any other basis protected under federal, state or local laws.

 Growth

Comparing % year on year top-line growth in the second quarter , Marriott International Inc grew on the lower pace than the % rise in Hotels & Tourism industry, but beating the % growth in the Services sector. Comparing second quarter sales growth, both Hotels &. MAR's Revenue Growth by Quarter and Year. Marriott International Inc achieved in the second quarter, above Company average Revenue improvement of % year on year, to $ 5, millions. Looking into second quarter results within Hotels & Tourism industry 8 other companies have.

·       Maturity

Given the assumptions for its three-year plan, the company could produce the following results:
- Diluted earnings per share of $7.65 to $8.50 by 2021, a compound growth rate of 11 to 15 percent over 2018 adjusted results;
- Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) increasing by 6 to 9 percent compounded, with net income increasing by 5 to 8 percent compounded, each compared to adjusted results in 2018;
- Cash available for shareholders could total $9.5 to $11 billion for the three years (2019 through 2021);
- Shareholders could see $1.9 to $2 billion in dividends, assuming a continued 30 percent payout ratio, and $7.6 to $9 billion in share repurchases over the three-year period.

Marriott’s growing pipeline of new hotels is fueled by the strong profitability of its hotels, the broad selection of powerful brands available for development, its rich loyalty program, lower costs from the company’s meaningful scale, and the strong confidence of its owners and franchisees. The company will disclose that 70 percent of its portfolio of open and signed pipeline projects is held by owners with multiple Marriott properties, and roughly one-third is held by owners with ten or more Marriott branded hotels. Marriott’s development pipeline reflects an increasing number of legacy-Starwood branded hotels. Since the merger date, the pipeline of legacy-Starwood brands has increased nearly 25 percent to represent nearly one-third of the legacy-Starwood portfolio’s system size.

The company will also discuss its success improving the Sheraton brand. With more than 155,000 rooms, Sheraton is the company’s most geographically diverse brand and the company’s third largest brand globally measured in both rooms and fees. The brand contributes significantly to Marriott’s overall scale and effectively reduces costs for all the hotels in Marriott’s worldwide system

·       Decline

• Third quarter 2020 comparable systemwide constant dollar RevPAR declined 65.9 percent worldwide, 65.4 percent in North America and 67.4 percent outside North America, compared to the 2019 third quarter;
• Third quarter reported diluted EPS total $0.31, compared to reported diluted EPS of $1.16 in the year-ago quarter. Third quarter adjusted diluted EPS total $0.06, compared to third quarter 2019 adjusted diluted EPS of $1.47. Third quarter 2020 impairment charges related to COVID-19 impacted reported and adjusted diluted EPS by $0.07;

Third quarter reported net income total $100 million, compared to reported net income of $387 million in the year-ago quarter. Third quarter adjusted net income total $20 million, compared to third quarter 2019 adjusted net income

• of $488 million. Third quarter 2020 impairment charges related to COVID-19 impacted reported and adjusted net income by $24 million after-tax;
• Adjusted EBITDA total $327 million in the 2020 third quarter, compared to third quarter 2019 adjusted EBITDA of $901 million;
• The company added more than 19,000 rooms globally during the third quarter, including roughly 1,400 rooms converted from competitor brands and approximately 7,600 rooms in international markets. Net rooms grew 3.8 percent from the year-ago quarter;
• At quarter-end, Marriott’s worldwide development pipeline total nearly 2,900 hotels and more than 496,000 rooms, including roughly 25,000 rooms approved, but not yet subject to signed contracts. Approximately 228,000 rooms in the pipeline were under construction as of the end of the third quarter;
• As of the end of the third quarter, the company’s net liquidity total approximately $5.1 billion, representing roughly $1.5 billion in available cash balances, and $3.6 billion of unused borrowing capacity under its revolving credit facility, less $30 million of commercial paper outstanding.

( note :- data is taken from various sources  )