Marriott Sets Quarterly Dividend: What Shareholders Need to Know

By Author

Published on February 11, 2024

Marriott International, Inc., a global leader in hospitality with a vast portfolio spanning nearly 8,800 properties across over 30 brands in 139 countries, has declared a quarterly cash dividend for its shareholders. In a recent announcement from its headquarters in Bethesda, Maryland, the company's board of directors confirmed a dividend of 52 cents per share of common stock.

This dividend is slated for payment on March 29, 2024, to shareholders who are on record by the close of business on February 22, 2024. This move underscores Marriott's commitment to providing value to its shareholders and confidence in the company's financial health and future prospects.

About Marriott International

Marriott International is not just about offering hotel and resort accommodations; it's about creating experiences. With a rich history and a dynamic portfolio that includes more than 30 leading brands, Marriott is a name synonymous with quality hospitality and innovative guest services. The company also operates Marriott Bonvoy®, an award-winning travel program that enriches the journey of its members.

For those looking to dive deeper into Marriott International's offerings or stay up-to-date with the latest company news, the official website (www.marriott.com) and the Marriott News Center (www.marriottnewscenter.com) are valuable resources. These platforms offer insights into Marriott's strategic direction, operational achievements, and contributions to the hospitality industry.

Additionally, Marriott encourages stakeholders, including investors and media, to engage with the brand through its social media channels on Facebook, X, and Instagram (@MarriottIntl), as well as to subscribe to updates via its investor relations and news center websites. While these online resources provide comprehensive information, they are intended for informational purposes and are not incorporated into official financial documents or press releases.

This dividend declaration not only highlights Marriott International's solid financial footing but also its dedication to maintaining a transparent and rewarding relationship with its investors and the broader community interested in the company's growth and success in the hospitality industry.

ITC Hotels Demerger Could Lead to Passive Outflow of USD 180 Million: Nuvama

By Nishang Narayan

Published on January 8, 2025

Following the demerger of ITC Hotels from its parent company, ITC Ltd., domestic brokerage firm Nuvama has predicted a passive outflow of approximately USD 180 million. This corporate action will have a notable impact on major indices such as Nifty50 and Sensex, with expected passive outflows of USD 110 million and USD 70 million, respectively.

Nuvama's analysis suggests that assuming ITC’s share price remains stable around INR 260 at the time of exclusion, the passive flow for Nifty50 will amount to USD 110 million (with a weight of 23 basis points), while Sensex will experience an outflow of USD 70 million (with a weight of 28 basis points).

A special price discovery session was held to adjust ITC’s share price, resulting in an INR 26 adjustment on NSE and INR 27 on BSE as the stock began trading ex-demerger on January 6. The demerger ratio of 1:10 (one share of ITC Hotels for every 10 shares of ITC Ltd.) has led to the valuation of ITC Hotels at approximately INR 260 on the Nifty50 indices and INR 270 on BSE indices.

Until ITC Hotels is officially listed separately, it will be treated as a "dummy entity" with a fixed price, and the stock will be held at this value temporarily. According to Nuvama, ITC Hotels is expected to be listed within the next 30-40 days. Following the listing, ITC Hotels will be removed from all NSE and BSE indices at its last traded price, effective at the opening on the listing date, with a three-day adjustment period. If the stock hits circuit limits, the exclusion will be postponed by two trading days for each occurrence.

Nuvama also noted that ITC Hotels may qualify for inclusion in the MSCI Global Small Cap Indexes, but this will only happen if the stock is listed within 20 working days after the record date of the demerger.

ITC Demerger: Special Session Held to Discover ITC Hotels Share Price

By Nishang Narayan

Published on January 7, 2025

In a landmark move, ITC Ltd has begun its long-awaited demerger of ITC Hotels, with BSE and NSE conducting special pre-open trading sessions today to facilitate price discovery for the hotel business. This strategic restructuring allows ITC Hotels to operate independently, focusing exclusively on hospitality.

During the session, ITC Hotels' share price will be computed using ITC Ltd's closing and adjusted prices, incorporating a 1:10 demerger ratio. Analysts predict the shares to list between ₹150 and ₹200, with some forecasts suggesting a range of ₹200 to ₹300 based on valuations and growth prospects.

As of today, ITC Ltd's 36 lakh shareholders will receive one ITC Hotels share for every 10 ITC shares held. While ITC Hotels shares won’t officially list yet, a dummy ticker will represent the stock on indices like Nifty and Sensex until formal listing in a few weeks.

ITC retains a 40% stake in the demerged entity, with the remaining 60% distributed among shareholders. Analysts from Ambit Capital and Nomura see this as a step toward value unlocking, with ITC Hotels poised to capitalize on India's luxury hospitality sector. Asset-light models and a pure-play focus will drive future growth and profitability.

ITC’s stock price is expected to adjust downward by ₹22–₹25 due to the demerger. Experts believe this could be a temporary dip, providing an opportunity for retail investors to accumulate shares of ITC Hotels. Meanwhile, ITC Ltd aims to sharpen its focus on its high-margin FMCG business, which has seen substantial EBITDA growth.

Nomura analyst Mihir P Shah remarked, "The demerger unlocks significant value, allowing ITC Hotels to access equity and debt markets for future growth while benefiting from India's luxury hospitality sector’s re-rating."

While ITC shares ended last week at ₹482 on the BSE, underperforming over the past year, this demerger sets the stage for a potential re-rating as ITC pivots toward a leaner business model with enhanced focus on profitability.

(Disclaimer: The views and opinions expressed by experts are their own and do not represent the views of Hospitality News India.)

ITC Increases Stake in Oberoi Group and Leela Mumbai Ahead of Hotel Arm Demerger

By Nishang Narayan

Published on December 20, 2024

In a strategic move ahead of the January 1, 2025, demerger of its hotel business, ITC has increased its stakes in two major players in the Indian hospitality industry. ITC has raised its shareholding in EIH Ltd, the parent company of Oberoi Hotels, to 16.13%, and in HLV Ltd, which owns The Leela Mumbai, to 8.11%.

As of September 2024, ITC held a 13.69% stake in EIH. By acquiring an additional 2.44%, equivalent to 1,52,32,129 equity shares, ITC now commands a 16.13% stake in the company. Similarly, ITC’s stake in HLV Ltd has increased from 7.58% to 8.11%, following the purchase of 34,60,829 equity shares.

In a regulatory filing, ITC announced, “...the company today has acquired 2.44 percent of the share capital (comprising 1,52,32,129 equity shares of INR 2 each) of EIH Ltd and 0.53 percent of the share capital (comprising 34,60,829 equity shares of INR 2 each) of HLV Ltd, from Russell Credit Ltd, a wholly owned subsidiary of the company.”

This move is seen as a part of ITC’s preparation for the demerger of its hotel business, ITC Hotels, from its parent group. The demerger, set to take effect from January 1, 2025, is expected to unlock greater value for ITC’s stakeholders and enhance its focus on core operations.

With the increased stakes, ITC is cementing its presence in the premium and luxury hospitality segments, strengthening its relationship with iconic brands like Oberoi Hotels and The Leela Mumbai.

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