Marriott is planning to open 1,700 hotels within the next three years and expects to have between 275,000 and 295,000 new rooms by 2021.
The aggressive growth forecast was announced by Marriott International President and CEO Arne Sorenson at a shareholder meetings this week.
“Starwood has made us a more formidable competitor, providing a more valuable loyalty program, brands with strong appeal to loyalty members and owners, talented associates, terrific locations, particularly in the fast-growing Asia Pacific region, significant cost synergies and meaningful scale,” Sorenson said in a statement.
Marriott sees its new rooms adding US$400 million in fee revenue in 2021 and about $700 million annually once all of the rooms are operational.
“Our new three-year plan, with Starwood fully integrated, demonstrates how our fee-based, asset-light business model generates even stronger and more sustainable cash flows. This allows us to invest profitably in our core business at high rates of return and also return significant amounts of capital to shareholders,” said Leeny Oberg, Marriott’s executive vice president and chief financial officer.
“Our proven business model combined with opportunities to leverage our significant scale from the Starwood acquisition uniquely position us for additional shareholder value creation.”