Marriott Projects 15% To 20% Growth In Adj. EPS Over Three-Year Period

(RTTNews) - Marriott International, Inc. (MAR) presented the company's three-year financial model through 2025. As per the assumptions in its three-year model, adjusted earnings per share could rise 25 to 29 percent year-over-year in 2023 and at a 10 to 15 percent two-year CAGR to reach $10.10 to $11.45 in 2025. Adjusted EBITDA could rise 18 to 21 percent year-over-year in 2023 and at a 7 to 10 percent two-year CAGR to reach $5.2 to $5.7 billion in 2025. Total gross fee revenues are projected to rise 16 to 18 percent year-over-year in 2023 and at a 6.5 to 9.5 percent two-year CAGR to reach $5.4 to $5.8 billion in 2025. Marriott shareholders could see $1.9 to $2.0 billion in dividends, assuming a 25 percent payout ratio, and $9.8 to $11.6 billion in share repurchases, for total shareholder returns of $11.7 to $13.6 billion over the three-year period.

Marriott plans to add 230,000 to 270,000 net rooms over three years, expanding its global portfolio to nearly 1.8 million rooms by year-end 2025. This represents a three-year CAGR for net rooms of 5.0 to 5.5 percent.

Marriott reiterated its 2023 outlook given in August.