Published Date : Jun 25, 2014
Leading hotel chain Marriott International Inc., has announced that it expects a revenue boost of over 10% thanks to its foray into the African markets and a palpable recovery in the global economy.
The company’s CEO Arne Sorenson said that the top line of existing hotels could witness a 4% to 5% growth, and among new hotels, this figure could be 4% to 5%. The revenue growth of these two figures combined is expected to be around 10%.
Marriott International owns other top-end hotel brands such as Renaissance and Ritz-Carlton. It is currently witnessing the benefits of an upward trend in business travel as well as leisure travel globally in the backdrop of an improving economy.
Sorenson said that by the end of 2020, individual cross border journeys could go up to 2 billion from being approximately 1.1. billion as of 2013. In 2013, Marriott reported a revenue increase of 8%, with earnings of USD 12.8 billion.
The company is looking to enhance its presence in Africa as well as the Middle East following its recent acquisition of Protea Hospitality Holdings, a firm based in Cape Town, in a USD 200 deal earlier in April 2013. With this acquisition, plans are afoot to set up nearly 50 new hotels in this region in three years. With this, the total number of hotels operated by Marriott will cross the 200 mark. Currently, there are 45 new hotels in the pipeline in Africa and the Middle East. While some of these will be constructed from scratch, others will be conversions. In the meanwhile, the largest hotel chain in the world, Hilton Worldwide Holdings Inc. is also looking to boost its presence in Africa.