Marriott International Inc (NASDAQ:MAR) trod water in early Tuesday trade, after the hotel chain reported in-line earnings for its second quarter, while sales missed views.
Marriott's reported net income totaled $232 million in the 2019 second quarter, compared to 2018 second quarter reported net income of $667 million.
Second-quarter reported diluted EPS totaled $0.69, compared to $1.87 in the year-ago quarter. Q2 adjusted diluted EPS totaled $1.56, compared to second quarter 2018 adjusted diluted EPS of $1.73.
Reported and adjusted diluted EPS for the 2018 second quarter included $0.26 of asset sale gains;
Moreover, Q2 2019 comparable system-wide constant-dollar RevPAR rose 1.2% worldwide, 2.8% outside North America and 0.7% in North America.
The company added more than 16,000 rooms during the second quarter, including nearly 3,500 rooms converted from competitor brands and approximately 7,500 rooms in international markets.
At quarter-end, Marriott's worldwide development pipeline totaled roughly 2,900 hotels and more than 487,000 rooms, including approximately 40,000 rooms approved, but not yet subject to signed contracts. Roughly 213,000 pipeline rooms were under construction at the end of the second quarter.
Said CEO Arne Sorenson, "Our owners and franchisees continue to sign new hotel deals at a rapid pace. Our development pipeline increased 3% in the second quarter, reaching a record 487,000 rooms, including roughly 213,000 rooms under construction.
"Today, our pipeline includes five new all-inclusive resorts to be built over the next several years, which will be part of our newly-launched all-inclusive platform.
Shares gave back 18 cents to $130.16
