Marriott plans to open more than 1,700 hotels by 2021
Marriott International is very bullish on its future.
The hotel chain on Monday ahead of its investor day announced an aggressive three-year plan to open more than 1,700 hotels worldwide and return up to $11 billion to shareholders.
Shares for the Bethesda, Maryland-based company popped on the news.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MAR | MARRIOTT INTERNATIONAL INC. | 281.65 | +2.11 | +0.75% |
However, the news comes after Marriott last month missed Wall Street estimates for the fourth-quarter. It also forecasted lower-than-expected full-year profit citing weak demand in North America—its largest market—as the reason.
Last year, Marriott disclosed it suffered a massive data breach that exposed the personal information of roughly 500 million of its guests. The hack was later linked to Chinese hackers, according to several reports. Marriott CEO Arne Sorenson later apologized for the breach before a U.S. Senate panel and vowed to protect against attacks in the future.
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Last week, The Wall Street Journal reported that activist investor Land & Building Investment Management LLC was seeking to get a seat on Marriott's board as it has become "displeased" with the company's purchase of Starwood Hotels & Resorts Worldwide in 2016. Additionally, sources told the outlet that the activist investor believes the hotel chain has too many brands under its portfolio.
Marriott's investor day is slated to start Monday in New York.