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HomeHotelsMARRIOTT INTERNATIONAL REPORTS FIRST QUARTER 2024 RESULTS

MARRIOTT INTERNATIONAL REPORTS FIRST QUARTER 2024 RESULTS

  • First quarter 2024 comparable systemwide constant dollar RevPAR increased 4.2 percent worldwide, 1.5 percent in the U.S. & Canada, and 11.1 percent in international markets, compared to the 2023 first quarter;
  • First quarter reported diluted EPS totaled $1.93, compared to reported diluted EPS of $2.43 in the year-ago quarter. First quarter adjusted diluted EPS totaled $2.13, compared to first quarter 2023 adjusted diluted EPS of $2.09;
  • First quarter reported net income totaled $564 million, compared to reported net income of $757 million in the year-ago quarter. First quarter adjusted net income totaled $620 million, compared to first quarter 2023 adjusted net income of $648 million;
  • Adjusted EBITDA totaled $1,142 million in the 2024 first quarter, compared to first quarter 2023 adjusted EBITDA of $1,098 million;
  • The company added roughly 46,000 net rooms during the quarter, including approximately 37,000 rooms under its agreement with MGM Resorts International;
  • At the end of the quarter, Marriott’s worldwide development pipeline totaled over 3,400 properties and nearly 547,000 rooms, including roughly 27,000 pipeline rooms approved, but not yet subject to signed contracts. More than 202,000 rooms in the pipeline were under construction as of the end of the first quarter;
  • Marriott repurchased 4.8 million shares of common stock for $1.2 billion in the first quarter. Year to date through April 26, the company has returned $1.7 billion to shareholders through dividends and share repurchases.

For a summary of quarterly highlights, please visit: https://mgscloud.marriott.com/public/hostedfiles/mnc/infographics/2024/q1/20240430_q124_infographic.pdf

BETHESDA, Md., May 1, 2024 /PRNewswire/ — Marriott International, Inc. (Nasdaq: MAR) today reported first quarter 2024 results.

Anthony Capuano, President and Chief Executive Officer, said, “We were pleased with our results in the quarter, which included both excellent net rooms growth and cash generation. Worldwide RevPAR1 grew over 4 percent, with gains in both occupancy and ADR. Our international markets were particularly strong, posting RevPAR gains of 11 percent, led by nearly 17 percent year-over-year growth in Asia Pacific excluding China.

“In the U.S. & Canada, demand has normalized, with RevPAR increasing 1.5 percent. The group segment was the stand-out in the quarter. Group RevPAR in the region rose nearly 5 percent year-over-year, with growth in both rate and occupancy.

“In February we celebrated the fifth anniversary of Marriott Bonvoy, our powerful, award-winning travel and loyalty program. With our steadfast focus on growing our membership base and enhancing engagement with our members both on and off property, the program now boasts around 203 million global members and remains a key competitive advantage. 

“We are excited about the launch of MGM Collection with Marriott Bonvoy during the quarter, which added nearly 37,000 rooms to our system from our strategic agreement with MGM Resorts International.  We have seen outstanding initial booking pace and loyalty point redemptions across the collection.

“Our results in the first quarter highlight the resiliency of our asset-light business model and the strength of our brands.  We are raising our full year earnings guidance and now expect to return between $4.2 billion to $4.4 billion to shareholders in 2024.”

First Quarter 2024 Results
Base management and franchise fees totaled $1,001 million in the 2024 first quarter, a 7 percent increase compared to base management and franchise fees of $932 million in the year-ago quarter.  The increase is primarily attributable to RevPAR increases and unit growth. Non-RevPAR-related franchise fees in the 2024 first quarter totaled $208 million, compared to $197 million in the year-ago quarter. The increase was largely driven by a 10 percent increase in co-brand credit card fees, partially offset by lower residential branding fees.

Incentive management fees totaled $209 million in the 2024 first quarter, a 4 percent increase compared to $201 million in the 2023 first quarter. Managed hotels in international markets contributed nearly two-thirds of the incentive fees earned in the quarter.

Owned, leased, and other revenue, net of direct expenses, totaled $71 million in the 2024 first quarter, compared to $75 million in the year-ago quarter.

General, administrative, and other expenses for the 2024 first quarter totaled $261 million, compared to $202 million in the year-ago quarter. The year-over-year change largely reflects higher compensation and litigation expenses, as well as some unfavorable timing of expenses during 2024. The 2023 first quarter expenses included $20 million of favorable one-time items.

Interest expense, net, totaled $153 million in the 2024 first quarter, compared to $111 million in the year-ago quarter. The increase was largely due to higher interest expense associated with higher debt balances.

In the 2024 first quarter, the provision for income taxes totaled $163 million, a 22 percent effective rate, compared to $87 million, a 10 percent effective rate, in the year-ago quarter. The 2023 first quarter provision included a $103 million benefit primarily from the release of reserves due to the completion of a prior year tax audit.

Marriott’s reported operating income totaled $876 million in the 2024 first quarter, compared to 2023 first quarter reported operating income of $951 million. Reported net income totaled $564 million in the 2024 first quarter, compared to 2023 first quarter reported net income of $757 million. Reported diluted earnings per share (EPS) totaled $1.93 in the quarter, compared to reported diluted EPS of $2.43 in the year-ago quarter.

Adjusted operating income in the 2024 first quarter totaled $952 million, compared to 2023 first quarter adjusted operating income of $941 million. First quarter 2024 adjusted net income totaled $620 million, compared to 2023 first quarter adjusted net income of $648 million. Adjusted diluted EPS in the 2024 first quarter totaled $2.13, compared to adjusted diluted EPS of $2.09 in the year-ago quarter. The 2023 first quarter adjusted results excluded a special tax item of $100 million ($0.32 per share).

Adjusted results excluded cost reimbursement revenue, reimbursed expenses and merger-related charges and other expenses. See pages A-2 and A-8 of the press release schedules for the calculation of adjusted results and the manner in which the adjusted measures are determined in this press release.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $1,142 million in the 2024 first quarter, compared to first quarter 2023 adjusted EBITDA of $1,098 million. See page A-8 of the press release schedules for the adjusted EBITDA calculation.

Selected Performance Information
The company added roughly 46,000 net rooms during the quarter, including approximately 37,000 rooms from its agreement with MGM Resorts International.

At the end of the quarter, Marriott’s global system totaled nearly 8,900 properties, with more than 1,643,000 rooms.

At the end of the quarter, the company’s worldwide development pipeline totaled 3,419 properties with nearly 547,000 rooms, including 155 properties with roughly 27,000 rooms approved for development, but not yet subject to signed contracts. The quarter-end pipeline included 1,089 properties with more than 202,000 rooms under construction. Fifty-seven percent of rooms in the quarter-end pipeline are in international markets.

In the 2024 first quarter, worldwide RevPAR increased 4.2 percent (a 3.9 percent increase using actual dollars) compared to the 2023 first quarter.  RevPAR in the U.S. & Canada increased 1.5 percent (a 1.5 percent increase using actual dollars), and RevPAR in international markets increased 11.1 percent (a 9.8 percent increase using actual dollars).

Balance Sheet & Common Stock
At the end of the quarter, Marriott’s total debt was $12.7 billion and cash and equivalents totaled $0.4 billion, compared to $11.9 billion in debt and $0.3 billion of cash and equivalents at year-end 2023.

Year to date through April 26, the company has repurchased 6.2 million shares for $1.5 billion.

Company Outlook



Second Quarter 2024

vs Second Quarter 2023

Full Year 2024

vs Full Year 2023

Comparable systemwide constant $

RevPAR growth




Worldwide


4% to 5%

3% to 5%








Year-End 2024

vs Year-End 2023

Net rooms growth



5.5% to 6%





($ in millions, except EPS)


Second Quarter 2024

Full Year 2024

Gross fee revenues


$1,340 to $1,355

$5,180 to $5,280

Owned, leased, and other revenue, net of direct expenses


Approx. $90

$335 to $345

General, administrative, and other expenses


$258 to $253

$1,040 to $1,020

Adjusted EBITDA1,2


$1,295 to $1,315

$4,960 to $5,090

Adjusted EPS – diluted2,3


$2.43 to $2.48

$9.31 to $9.65

Investment spending4



$1,000 to $1,200

Capital return to shareholders5



$4,200 to $4,400


1 See pages A-9 and A-10 of the press release schedules for the adjusted EBITDA calculations.

2 Adjusted EBITDA and Adjusted EPS – diluted for second quarter and full year 2024 do not include cost reimbursement revenue, reimbursed expenses, merger-related charges and other expenses, or any asset sales that may occur during the year, each of which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant.

3 Assumes the level of capital return to shareholders noted above.

4 Includes capital and technology expenditures, loan advances, contract acquisition costs, and other investing activities. 

5 Factors in the purchase of the Sheraton Grand Chicago and underlying land for $500 million, $200 million of which is included in investment spending.  Assumes the level of investment spending noted above and that no asset sales occur during the year.

Marriott International, Inc. (Nasdaq: MAR) will conduct its quarterly earnings review for the investment community and news media on Wednesday, May 1, 2024, at 8:30 a.m. Eastern Time (ET).  The conference call will be webcast simultaneously via Marriott’s investor relations website at http://www.marriott.com/investor, click on “Events & Presentations” and click on the quarterly conference call link.  A replay will be available at that same website until May 1, 2025.

The telephone dial-in number for the conference call is US Toll Free: 800-274-8461, or Global: +1 203-518-9843. The conference ID is MAR1Q24.  A telephone replay of the conference call will be available from 1:00 p.m. ET, Wednesday, May 1, 2024, until 8:00 p.m. ET, Wednesday, May 8, 2024.  To access the replay, call US Toll Free: 800-839-3735 or Global: +1 402-220-2977.

Note on forward-looking statements:  All statements in this press release and the accompanying schedules are made as of May 1, 2024. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. This press release and the accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including statements related to our RevPAR, rooms growth and other financial metric estimates, outlook and assumptions; shareholder returns; our Marriott Bonvoy program; the resiliency of our asset-light business model; our development pipeline; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including the risk factors that we describe in our Securities and Exchange Commission filings, including our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release.

Marriott International, Inc. (Nasdaq: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of nearly 8,900 properties across more than 30 leading brands in 141 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company offers Marriott Bonvoy®, its highly awarded travel program.  For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.  In addition, connect with us on Facebook and @MarriottIntl on X and Instagram.

Marriott encourages investors, the media, and others interested in the company to review and subscribe to the information Marriott posts on its investor relations website at www.marriott.com/investor or Marriott’s news center website at www.marriottnewscenter.com, which may be material. The contents of these websites are not incorporated by reference into this press release or any report or document Marriott files with the SEC, and any references to the websites are intended to be inactive textual references only.

1 All occupancy, Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) statistics and estimates are systemwide constant dollar.  Unless otherwise stated, all changes refer to year-over-year changes for the comparable period. Occupancy, ADR and RevPAR comparisons between 2024 and 2023 reflect properties that are comparable in both years.

IRPR#1

Tables follow

MARRIOTT INTERNATIONAL, INC.

PRESS RELEASE SCHEDULES

TABLE OF CONTENTS

QUARTER 1, 2024



Consolidated Statements of Income – As Reported

A-1



Non-GAAP Financial Measures

A-2



Total Lodging Products by Ownership Type

A-3



Total Lodging Products by Tier

A-5



Key Lodging Statistics

A-6



Adjusted EBITDA

A-8



Adjusted EBITDA Forecast – Second Quarter 2024

A-9



Adjusted EBITDA Forecast – Full Year 2024

A-10



Explanation of Non-GAAP Financial and Performance Measures

A-11

 

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME – AS REPORTED

FIRST QUARTER 2024 AND 2023

($ in millions except per share amounts, unaudited)








As Reported


As Reported


Percent


Three Months Ended


Three Months Ended


Better/(Worse)


March 31, 2024


March 31, 2023


Reported 2024 vs. 2023

REVENUES






Base management fees

$                                      313


$                                      293


7

Franchise fees1

688


639


8

Incentive management fees

209


201


4

Gross Fee Revenues

1,210


1,133


7

Contract investment amortization2

(23)


(21)


(10)

Net Fee Revenues

1,187


1,112


7

Owned, leased, and other revenue3

357


356


Cost reimbursement revenue4

4,433


4,147


7

Total Revenues

5,977


5,615


6







OPERATING COSTS AND EXPENSES





Owned, leased, and other – direct5

286


281


(2)

Depreciation, amortization, and other6

45


44


(2)

General, administrative, and other7

261


202


(29)

Merger-related charges and other

8


1


(700)

Reimbursed expenses4

4,501


4,136


(9)

Total Expenses

5,101


4,664


(9)







OPERATING INCOME

876


951


(8)







Gains and other income, net8

4


3


33

Interest expense

(163)


(126)


(29)

Interest income

10


15


(33)

Equity in earnings9


1


(100)







INCOME BEFORE INCOME TAXES

727


844


(14)







Provision for income taxes

(163)


(87)


(87)







NET INCOME

$                                      564


$                                      757


(25)







EARNINGS PER SHARE






  Earnings per share – basic

$                                     1.94


$                                     2.44


(20)

  Earnings per share – diluted

$                                     1.93


$                                     2.43


(21)







Basic Shares

290.4


309.6



Diluted Shares

291.6


311.0









1 Franchise fees include fees from our franchise and license agreements, application and relicensing fees, timeshare and yacht fees, co-branded credit card fees, and residential branding fees.

2 Contract investment amortization includes amortization of capitalized costs to obtain management, franchise, and license contracts and any related impairments.

3 Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue.

4 Cost reimbursement revenue includes reimbursements from properties for property-level and centralized programs and services that we operate for the benefit of our hotel owners. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services.

5 Owned, leased, and other – direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses.

6 Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of capitalized costs incurred to acquire management, franchise, and license agreements, and any related impairments, accelerations, or write-offs.

7 General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses.

8 Gains and other income, net includes gains and losses on the sale of real estate, the sale of joint venture interests and other investments, and adjustments from other equity investments.

9 Equity in earnings include our equity in earnings or losses of unconsolidated equity method investments.

 

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

($ in millions except per share amounts)







The following table presents our reconciliations of Adjusted operating income, Adjusted operating income margin, Adjusted net income, and Adjusted
diluted earnings per share, to the most directly comparable GAAP measure. Adjusted total revenues is used in the determination of Adjusted operating
income margin.








Three Months Ended






Percent


March 31,


March 31,


Better/


2024


2023


(Worse)

Total revenues, as reported

$                     5,977


$                     5,615



Less: Cost reimbursement revenue

(4,433)


(4,147)



Adjusted total revenues**

1,544


1,468















Operating income, as reported

876


951



Less: Cost reimbursement revenue

(4,433)


(4,147)



Add: Reimbursed expenses

4,501


4,136



Add: Merger-related charges and other

8


1



Adjusted operating income**

952


941


1 %













Operating income margin

15 %


17 %



Adjusted operating income margin**

62 %


64 %















Net income, as reported

564


757



Less: Cost reimbursement revenue

(4,433)


(4,147)



Add: Reimbursed expenses

4,501


4,136



Add: Merger-related charges and other

8


1



Income tax effect of above adjustments

(20)


1



Less: Income tax special items


(100)



Adjusted net income**

$                         620


$                         648


(4) %







Diluted earnings per share, as reported

$                        1.93


$                        2.43



Adjusted diluted earnings per share**

$                        2.13


$                        2.09


2 %







** Denotes non-GAAP financial measures. Please see pages A-11 and A-12 for information about our reasons for providing these alternative financial measures and the limitations on their use.


 

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY OWNERSHIP TYPE

As of March 31, 2024









US & Canada

Total International1

Total Worldwide


Properties

Rooms

Properties

Rooms

Properties

Rooms

Managed

620

214,308

1,349

352,636

1,969

566,944

 Marriott Hotels

101

56,736

183

57,693

284

114,429

 Sheraton

26

20,869

182

61,235

208

82,104

 Courtyard

158

25,723

125

27,202

283

52,925

 Westin

41

22,670

77

23,402

118

46,072

 JW Marriott

23

13,189

74

26,494

97

39,683

 The Ritz-Carlton

41

12,354

75

17,848

116

30,202

 Renaissance

21

9,065

55

17,045

76

26,110

 Four Points

1

134

85

24,057

86

24,191

 Le Méridien

1

100

71

19,861

72

19,961

 W Hotels

23

6,516

42

11,800

65

18,316

 Residence Inn

72

11,713

9

1,116

81

12,829

 St. Regis

11

2,169

46

10,053

57

12,222

 Delta Hotels by Marriott

25

6,770

26

4,924

51

11,694

 Fairfield by Marriott

6

1,431

78

9,848

84

11,279

 Gaylord Hotels

6

10,220

6

10,220

 Aloft

2

505

44

9,696

46

10,201

 The Luxury Collection

6

2,296

38

7,678

44

9,974

 Autograph Collection

9

2,862

15

3,021

24

5,883

 Marriott Executive Apartments

35

5,011

35

5,011

 EDITION

5

1,379

14

2,779

19

4,158

 SpringHill Suites

24

4,080

24

4,080

 Element

3

810

14

2,803

17

3,613

 AC Hotels by Marriott

8

1,512

10

1,649

18

3,161

 Moxy

1

380

11

2,663

12

3,043

 Protea Hotels

23

2,824

23

2,824

 Tribute Portfolio

10

1,284

10

1,284

 TownePlace Suites

6

825

6

825

 Bulgari

7

650

7

650

 Owned/Leased

13

4,335

37

8,776

50

13,111

 Marriott Hotels

2

1,304

5

1,631

7

2,935

 Courtyard

7

987

4

894

11

1,881

 Sheraton

4

1,830

4

1,830

 W Hotels

2

779

2

665

4

1,444

 Westin

1

1,073

1

1,073

 Protea Hotels

5

912

5

912

 The Ritz-Carlton

2

550

2

550

 Renaissance

2

505

2

505

 JW Marriott

1

496

1

496

 The Luxury Collection

3

383

3

383

 Autograph Collection

5

361

5

361

 Residence Inn

1

192

1

140

2

332

 Tribute Portfolio

2

249

2

249

 St. Regis

1

160

1

160

 

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY OWNERSHIP TYPE

As of March 31, 2024









US & Canada

Total International1

Total Worldwide


Properties

Rooms

Properties

Rooms

Properties

Rooms

Franchised, Licensed, and Other

5,383

812,706

1,333

236,467

6,716

1,049,173

 Courtyard

904

120,934

121

22,328

1,025

143,262

 Fairfield by Marriott

1,154

108,704

62

10,640

1,216

119,344

 Residence Inn

791

94,354

33

4,368

824

98,722

 Marriott Hotels

231

73,738

67

19,385

298

93,123

 Sheraton

141

43,688

80

23,193

221

66,881

 SpringHill Suites

528

61,290

528

61,290

 Autograph Collection

148

32,999

134

26,519

282

59,518

 TownePlace Suites

502

50,708

502

50,708

 Westin

93

31,432

31

9,774

124

41,206

 Four Points

151

22,582

73

12,722

224

35,304

 AC Hotels by Marriott

112

18,289

106

15,636

218

33,925

 Aloft

161

23,140

26

4,966

187

28,106

 Renaissance

68

19,157

30

7,671

98

26,828

 MGM Collection with Marriott Bonvoy**

12

26,210

12

26,210

 Moxy

36

6,503

95

17,921

131

24,424

 Timeshare*

72

18,839

21

3,906

93

22,745

 Tribute Portfolio

69

13,698

42

5,259

111

18,957

 Delta Hotels by Marriott

67

14,960

17

3,985

84

18,945

 City Express by Marriott

150

17,431

150

17,431

 The Luxury Collection

12

7,045

54

9,869

66

16,914

 Le Méridien

24

5,389

22

5,748

46

11,137

 Element

81

10,833

2

269

83

11,102

 Design Hotels*

13

1,713

110

7,887

123

9,600

 JW Marriott

12

6,072

15

3,272

27

9,344

 Protea Hotels

33

2,748

33

2,748

 The Ritz-Carlton

1

429

1

429

 W Hotels

1

246

1

246

 Marriott Executive Apartments

3

242

3

242

 Bulgari

2

161

2

161

 The Ritz-Carlton Yacht Collection*

1

149

1

149

 Apartments by Marriott Bonvoy

1

107

1

107

 Four Points Express

1

65

1

65

Residences

69

7,410

57

6,534

126

13,944

 The Ritz-Carlton Residences

41

4,569

18

1,644

59

6,213

 St. Regis Residences

10

1,198

13

1,777

23

2,975

 W Residences

10

1,092

7

549

17

1,641

 Marriott Hotels Residences

4

981

4

981

 Westin Residences

3

266

2

353

5

619

 Bulgari Residences

5

519

5

519

 Sheraton Residences

3

472

3

472

 The Luxury Collection Residences

1

91

3

115

4

206

 Renaissance Residences

1

112

1

112

 EDITION Residences

3

82

3

82

 JW Marriott Residences

1

62

1

62

 Le Méridien Residences

1

62

1

62

Grand Total

6,085

1,038,759

2,776

604,413

8,861

1,643,172


1 “International” refers to: (i) Europe, Middle East & Africa,  (ii) Greater China, (iii) Asia Pacific excluding China, and (iv) Caribbean & Latin America.

* Timeshare, Design Hotels, and The Ritz-Carlton Yacht Collection counts are included in this table by geographical location. For external reporting purposes, these offerings are captured within “Unallocated corporate and other.”

** Excludes four MGM Collection with Marriott Bonvoy properties (two Autograph Collection, one Tribute Portfolio, and one The Luxury Collection) which are presented in “Franchised, Licensed and Other” within their respective brands.

In the above table, under Owned/Leased, The Luxury Collection, Autograph Collection and Tribute Portfolio include seven total properties that we acquired when we purchased Elegant Hotels Group plc in December 2019 which we currently intend to re-brand under such brands after the completion of planned renovations.

 

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY TIER

As of March 31, 2024









US & Canada

Total International1

Total Worldwide

Total Systemwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

Luxury

201

59,260

425

97,919

626

157,179

 JW Marriott

35

19,261

90

30,262

125

49,523

 JW Marriott Residences

1

62

1

62

 The Ritz-Carlton

42

12,783

77

18,398

119

31,181

 The Ritz-Carlton Residences

41

4,569

18

1,644

59

6,213

 The Ritz-Carlton Yacht Collection*

1

149

1

149

 The Luxury Collection

18

9,341

95

17,930

113

27,271

 The Luxury Collection Residences

1

91

3

115

4

206

 W Hotels

25

7,295

45

12,711

70

20,006

 W Residences

10

1,092

7

549

17

1,641

 St. Regis

11

2,169

47

10,213

58

12,382

 St. Regis Residences

10

1,198

13

1,777

23

2,975

 EDITION

5

1,379

14

2,779

19

4,158

 EDITION Residences

3

82

3

82

 Bulgari

9

811

9

811

 Bulgari Residences

5

519

5

519

Premium

1,103

395,031

1,219

309,690

2,322

704,721

 Marriott Hotels

334

131,778

255

78,709

589

210,487

 Marriott Hotels Residences

4

981

4

981

 Sheraton

167

64,557

266

86,258

433

150,815

 Sheraton Residences

3

472

3

472

 Westin

135

55,175

108

33,176

243

88,351

 Westin Residences

3

266

2

353

5

619

 Autograph Collection

157

35,861

154

29,901

311

65,762

 Renaissance

89

28,222

87

25,221

176

53,443

 Renaissance Residences

1

112

1

112

 Le Méridien

25

5,489

93

25,609

118

31,098

 Le Méridien Residences

1

62

1

62

 Delta Hotels by Marriott

92

21,730

43

8,909

135

30,639

 MGM Collection with Marriott Bonvoy**

12

26,210

12

26,210

 Tribute Portfolio

69

13,698

54

6,792

123

20,490

 Gaylord Hotels

6

10,220

6

10,220

 Design Hotels*

13

1,713

110

7,887

123

9,600

 Marriott Executive Apartments

38

5,253

38

5,253

 Apartments by Marriott Bonvoy

1

107

1

107

Select

4,709

565,629

960

175,402

5,669

741,031

 Courtyard

1,069

147,644

250

50,424

1,319

198,068

 Fairfield by Marriott

1,160

110,135

140

20,488

1,300

130,623

 Residence Inn

864

106,259

43

5,624

907

111,883

 SpringHill Suites

552

65,370

552

65,370

 Four Points

152

22,716

158

36,779

310

59,495

 TownePlace Suites

508

51,533

508

51,533

 Aloft

163

23,645

70

14,662

233

38,307

 AC Hotels by Marriott

120

19,801

116

17,285

236

37,086

 Moxy

37

6,883

106

20,584

143

27,467

 Element

84

11,643

16

3,072

100

14,715

 Protea Hotels

61

6,484

61

6,484

Midscale

151

17,496

151

17,496

 City Express by Marriott

150

17,431

150

17,431

 Four Points Express

1

65

1

65

 Timeshare*

72

18,839

21

3,906

93

22,745

Grand Total

6,085

1,038,759

2,776

604,413

8,861

1,643,172


1 “International” refers to: (i) Europe, Middle East & Africa, (ii) Greater China, (iii) Asia Pacific excluding China, and (iv) Caribbean & Latin America.

* Timeshare, Design Hotels, and The Ritz-Carlton Yacht Collection counts are included in this table by geographical location. For external reporting purposes, these offerings are captured within “Unallocated corporate and other.”

** Excludes four MGM Collection with Marriott Bonvoy properties (two Autograph Collection, one Tribute Portfolio, and one The Luxury Collection) which are presented within their respective brands.

In the above table, The Luxury Collection, Autograph Collection and Tribute Portfolio include seven total properties that we acquired when we purchased Elegant Hotels Group plc in December 2019 which we currently intend to re-brand under such brands after the completion of planned renovations.

 

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $















Comparable Company-Operated US & Canada Properties



Three Months Ended March 31, 2024 and March 31, 2023



REVPAR


Occupancy


Average Daily Rate

Brand


2024


vs. 2023


2024


vs. 2023


2024


vs. 2023

JW Marriott


$      261.98


3.3 %


71.2 %


0.6 %

pts.


$      368.20


2.4 %

The Ritz-Carlton


$      350.65


1.3 %


65.0 %


-0.1 %

pts.


$      539.57


1.4 %

W Hotels


$      188.44


-1.0 %


58.6 %


1.1 %

pts.


$      321.71


-2.9 %

Composite US & Canada Luxury1


$      313.60


1.2 %


67.4 %


0.7 %

pts.


$      465.13


0.1 %

Marriott Hotels


$      156.77


4.5 %


66.3 %


1.0 %

pts.


$      236.37


2.9 %

Sheraton


$      154.05


11.2 %


66.1 %


3.9 %

pts.


$      233.16


4.7 %

Westin


$      154.61


3.4 %


64.1 %


0.4 %

pts.


$      241.37


2.8 %

Composite US & Canada Premium2


$      154.31


4.2 %


65.7 %


0.7 %

pts.


$      235.04


3.1 %

US & Canada Full-Service3


$      188.09


3.1 %


66.0 %


0.7 %

pts.


$      284.86


2.0 %

Courtyard


$      101.57


0.0 %


62.0 %


-0.4 %

pts.


$      163.70


0.7 %

Residence Inn


$      143.38


-0.3 %


72.7 %


-2.0 %

pts.


$      197.17


2.5 %

Composite US & Canada Select4


$      116.51


0.4 %


65.9 %


-0.9 %

pts.


$      176.93


1.7 %

US & Canada – All5


$      170.75


2.6 %


66.0 %


0.3 %

pts.


$      258.76


2.1 %

 

Comparable Systemwide US & Canada Properties



Three Months Ended March 31, 2024 and March 31, 2023



REVPAR


Occupancy


Average Daily Rate

Brand


2024


vs. 2023


2024


vs. 2023


2024


vs. 2023

JW Marriott


$      248.38


2.7 %


71.2 %


-0.1 %

pts.


$      349.05


2.9 %

The Ritz-Carlton


$      342.68


1.2 %


64.7 %


0.1 %

pts.


$      529.45


1.1 %

W Hotels


$      188.44


-1.0 %


58.6 %


1.1 %

pts.


$      321.71


-2.9 %

Composite US & Canada Luxury1


$      288.81


1.0 %


67.6 %


0.4 %

pts.


$      427.14


0.4 %

Marriott Hotels


$      129.54


3.0 %


63.4 %


0.2 %

pts.


$      204.20


2.6 %

Sheraton


$      112.52


6.7 %


61.5 %


1.5 %

pts.


$      183.10


4.0 %

Westin


$      148.48


2.3 %


65.7 %


0.4 %

pts.


$      225.89


1.6 %

Composite US & Canada Premium2


$      132.20


3.1 %


63.5 %


0.6 %

pts.


$      208.05


2.2 %

US & Canada Full-Service3


$      149.61


2.7 %


64.0 %


0.6 %

pts.


$      233.78


1.8 %

Courtyard


$        98.88


-0.3 %


63.8 %


-1.2 %

pts.


$      155.11


1.5 %

Residence Inn


$      118.41


0.5 %


72.0 %


-1.0 %

pts.


$      164.47


1.9 %

Fairfield by Marriott


$        79.35


-0.8 %


62.8 %


-1.4 %

pts.


$      126.44


1.4 %

Composite US & Canada Select4


$        99.21


0.3 %


66.5 %


-0.8 %

pts.


$      149.15


1.6 %

US & Canada – All5


$      119.61


1.5 %


65.5 %


-0.3 %

pts.


$      182.63


1.9 %















1 Includes JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, and EDITION.

2 Includes Marriott Hotels, Sheraton, Westin, Renaissance, Autograph Collection, Delta Hotels by Marriott, and Gaylord Hotels.

  Systemwide also includes Le Méridien and Tribute Portfolio.

3 Includes Composite US & Canada Luxury and Composite US & Canada Premium.

4 Includes Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four Points, Aloft, Element,

  and AC Hotels by Marriott.  Systemwide also includes Moxy.

5 Includes US & Canada Full-Service and Composite US & Canada Select.

 

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $















Comparable Company-Operated International Properties



Three Months Ended March 31, 2024 and March 31, 2023



REVPAR


Occupancy


Average Daily Rate

Region


2024


vs. 2023


2024


vs. 2023


2024


vs. 2023

Europe


$      147.12


5.5 %


61.6 %


1.2 %

pts.


$      238.86


3.4 %

Middle East & Africa


$      146.26


12.2 %


70.3 %


3.4 %

pts.


$      207.97


6.9 %

Greater China


$        82.48


6.0 %


65.2 %


2.3 %

pts.


$      126.42


2.3 %

Asia Pacific excluding China


$      123.78


16.1 %


72.0 %


5.5 %

pts.


$      171.86


7.2 %

Caribbean & Latin America


$      221.29


9.6 %


68.0 %


2.0 %

pts.


$      325.25


6.4 %















International – All1


$      122.00


10.4 %


67.8 %


3.2 %

pts.


$      179.99


5.1 %















Worldwide2


$      142.87


6.3 %


67.0 %


2.0 %

pts.


$      213.20


3.2 %

 

Comparable Systemwide International Properties



Three Months Ended March 31, 2024 and March 31, 2023



REVPAR


Occupancy


Average Daily Rate

Region


2024


vs. 2023


2024


vs. 2023


2024


vs. 2023

Europe


$      105.64


7.6 %


59.0 %


3.5 %

pts.


$      179.02


1.2 %

Middle East & Africa


$      134.09


13.3 %


68.5 %


2.7 %

pts.


$      195.75


8.8 %

Greater China


$        76.87


6.0 %


64.4 %


2.3 %

pts.


$      119.33


2.2 %

Asia Pacific excluding China


$      123.02


16.5 %


71.3 %


5.1 %

pts.


$      172.51


8.2 %

Caribbean & Latin America


$      185.36


11.6 %


69.7 %


3.7 %

pts.


$      265.96


5.6 %















International – All1


$      114.88


11.1 %


65.9 %


3.4 %

pts.


$      174.24


5.3 %















Worldwide2


$      118.13


4.2 %


65.6 %


0.9 %

pts.


$      179.99


2.8 %


1 Includes Europe, Middle East & Africa, Greater China, Asia Pacific excluding China, and Caribbean & Latin America.

2 Includes US & Canada – All and International – All.

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA

($ in millions)



Fiscal Year 2024


First

Quarter

Net income, as reported

$         564

Cost reimbursement revenue

(4,433)

Reimbursed expenses

4,501

Interest expense

163

Interest expense from unconsolidated joint ventures

2

Provision for income taxes

163

Depreciation and amortization

45

Contract investment amortization

23

Depreciation and amortization classified in reimbursed expenses

48

Depreciation, amortization, and impairments from unconsolidated joint ventures

5

Stock-based compensation

53

Merger-related charges and other

8

Adjusted EBITDA **

$      1,142



Change from 2023 Adjusted EBITDA **

4 %

 


Fiscal Year 2023


First

Quarter


Second

Quarter


Third

Quarter


Fourth

Quarter


Total

Net income, as reported

$           757


$           726


$           752


$           848


$        3,083

Cost reimbursement revenue

(4,147)


(4,457)


(4,391)


(4,418)


(17,413)

Reimbursed expenses

4,136


4,366


4,238


4,684


17,424

Interest expense

126


140


146


153


565

Interest expense from unconsolidated joint ventures

1


1


3


1


6

Provision (benefit) for income taxes

87


238


237


(267)


295

Depreciation and amortization

44


48


46


51


189

Contract investment amortization

21


22


23


22


88

Depreciation and amortization classified in reimbursed expenses

31


38


39


51


159

Depreciation, amortization, and impairments from unconsolidated joint ventures

4


3


6


6


19

Stock-based compensation

37


56


54


58


205

Merger-related charges and other

1


38


13


8


60

Gain on asset dispositions



(24)



(24)

Adjusted EBITDA **

$        1,098


$        1,219


$        1,142


$        1,197


$        4,656


** Denotes non-GAAP financial measures. Please see pages A-11 and A-12 for information about our reasons for providing these alternative financial measures and the limitations on their use.

 

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

SECOND QUARTER 2024

($ in millions)








Range




Estimated
Second Quarter 2024


Second Quarter
2023

Net income excluding certain items 1

$         698


$         713



Interest expense

175


175



Interest expense from unconsolidated joint ventures

2


2



Provision for income taxes

245


250



Depreciation and amortization

45


45



Contract investment amortization

25


25



Depreciation and amortization classified in reimbursed expenses

44


44



Depreciation, amortization, and impairments from unconsolidated joint ventures

4


4



Stock-based compensation

57


57



Adjusted EBITDA **

$      1,295


$      1,315


$                         1,219







Increase over 2023 Adjusted EBITDA **

6 %


8 %




** Denotes non-GAAP financial measures. See pages A-11 and A-12 for information about our reasons for providing these alternative financial measures and the limitations on their use.



1

Guidance excludes cost reimbursement revenue, reimbursed expenses, and merger-related charges and other expenses, each of which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant, except for depreciation and amortization classified in reimbursed expenses, which is included in the caption “Depreciation and amortization classified in reimbursed expenses” above. Guidance does not reflect any asset sales that may occur during the year, which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant.

 

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

FULL YEAR  2024

($ in millions)








Range




Estimated
Full Year 2024


Full Year 2023

Net income excluding certain items 1

$      2,662


$      2,759



Interest expense

690


690



Interest expense from unconsolidated joint ventures

7


7



Provision for income taxes

897


930



Depreciation and amortization

180


180



Contract investment amortization

100


100



Depreciation and amortization classified in reimbursed expenses

186


186



Depreciation, amortization, and impairments from unconsolidated joint ventures

17


17



Stock-based compensation

221


221



Adjusted EBITDA **

$      4,960


$      5,090


$                        4,656







Increase over 2023 Adjusted EBITDA **

7 %


9 %




** Denotes non-GAAP financial measures. See pages A-11 and A-12 for information about our reasons for providing these alternative financial measures and the limitations on their use.



1

Guidance excludes cost reimbursement revenue, reimbursed expenses, and merger-related charges and other expenses, each of which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant, except for depreciation and amortization classified in reimbursed expenses, which is included in the caption “Depreciation and amortization classified in reimbursed expenses” above. Guidance does not reflect any asset sales that may occur during the year, which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant.

 

MARRIOTT INTERNATIONAL, INC.
EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES

In our press release and schedules, on the related conference call, and in the infographic made available in connection with our press release, we report certain financial measures that are not required by, or presented in accordance with, United States generally accepted accounting principles (GAAP). These non-GAAP financial measures are labeled as “adjusted” and/or identified with the symbol “**”. We discuss the manner in which the non-GAAP measures reported in this press release, schedules, and infographic are determined and management’s reasons for reporting these non-GAAP measures below, and the press release schedules reconcile each to the most directly comparable GAAP measures (with respect to the forward-looking non-GAAP measures, to the extent available without unreasonable efforts). Although management evaluates and presents these non-GAAP measures for the reasons described below, please be aware that these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for revenue, operating income, net income, earnings per share, or any other comparable operating measure prescribed by GAAP. In addition, we may calculate and/or present these non-GAAP financial measures differently than measures with the same or similar names that other companies report, and as a result, the non-GAAP measures we report may not be comparable to those reported by others.

Adjusted Operating Income and Adjusted Operating Income Margin. Adjusted operating income and Adjusted operating income margin exclude cost reimbursement revenue, reimbursed expenses, merger-related charges and other expenses, and certain non-cash impairment charges (when applicable). Adjusted operating income margin reflects Adjusted operating income divided by Adjusted total revenues. We believe that these are meaningful metrics because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.

Adjusted Net Income and Adjusted Diluted Earnings Per Share. Adjusted net income and Adjusted diluted earnings per share reflect our net income and diluted earnings per share excluding the impact of cost reimbursement revenue, reimbursed expenses, merger-related charges and other expenses, certain non-cash impairment charges (when applicable), and gains and losses on asset dispositions made by us or by our joint venture investees (when applicable). Additionally, Adjusted net income and Adjusted diluted earnings per share exclude the income tax effect of the above adjustments (calculated using an estimated tax rate applicable to each adjustment) and income tax special items, which in 2023 primarily related to the resolution of tax audits. We believe that these measures are meaningful indicators of our performance because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.

Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization (“Adjusted EBITDA”). Adjusted EBITDA reflects net income excluding the impact of the following items: cost reimbursement revenue and reimbursed expenses, interest expense, depreciation and amortization, provision (benefit) for income taxes, merger-related charges and other expenses, and stock-based compensation expense for all periods presented. When applicable, Adjusted EBITDA also excludes certain non-cash impairment charges and gains and losses on asset dispositions made by us or by our joint venture investees.

In our presentations of Adjusted operating income and Adjusted operating income margin, Adjusted net income and Adjusted diluted earnings per share, and Adjusted EBITDA, we exclude merger-related charges and other expenses as well as non-cash impairment charges (if above a specified threshold) related to our management and franchise contracts (if the impairment is non-routine), leases, equity investments, and other capitalized assets, which we record in the “Contract investment amortization,” “Depreciation, amortization, and other,” and “Equity in earnings” captions of our Condensed Consolidated Statements of Income (our “Income Statements”), to allow for period-over period comparisons of our ongoing operations before the impact of these items. We exclude cost reimbursement revenue and reimbursed expenses, which relate to property-level and centralized programs and services that we operate for the benefit of our property owners. We do not operate these programs and services to generate a profit over the long term, and accordingly, when we recover the costs that we incur for these programs and services from our property owners, we do not seek a mark-up. For property-level services, our owners typically reimburse us at the same time that we incur expenses. However, for centralized programs and services, our owners may reimburse us before or after we incur expenses, causing timing differences between the costs we incur and the related reimbursement from property owners in our operating and net income. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively. Because we do not retain any such profits or losses over time, we exclude the net impact when evaluating period-over-period changes in our operating results.

We believe that Adjusted EBITDA is a meaningful indicator of our operating performance because it permits period-over-period comparisons of our ongoing operations before these items. Our use of Adjusted EBITDA also facilitates comparison with results from other lodging companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels, and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. Our Adjusted EBITDA also excludes depreciation and amortization expense, which we report under “Depreciation, amortization, and other” as well as depreciation and amortization classified in “Contract investment amortization,” “Reimbursed expenses,” and “Equity in earnings” of our Income Statements, because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. Depreciation and amortization classified in “Reimbursed expenses” reflects depreciation and amortization of Marriott-owned assets, for which we receive cash from owners to reimburse the company for its investments made for the benefit of the system. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We exclude stock-based compensation expense in all periods presented to address the considerable variability among companies in recording compensation expense because companies use stock-based payment awards differently, both in the type and quantity of awards granted.

RevPAR. In addition to the foregoing non-GAAP financial measures, we present Revenue per Available Room (“RevPAR”) as a performance measure. We believe RevPAR is a meaningful indicator of our performance because it measures the period-over-period change in room revenues for comparable properties. RevPAR relates to property level revenue and may not be comparable to similarly titled measures, such as revenues, and should not be viewed as necessarily correlating with our fee revenue. We calculate RevPAR by dividing room sales (recorded in local currency) for comparable properties by room nights available for the period. We present growth in comparative RevPAR on a constant dollar basis, which we calculate by applying exchange rates for the current period to each period presented. We believe constant dollar analysis provides valuable information regarding our properties’ performance as it removes currency fluctuations from the presentation of such results.

We define our comparable properties as our properties that were open and operating under one of our hotel brands since the beginning of the last full calendar year (since January 1, 2023 for the current period) and have not, in either the current or previous year: (1) undergone significant room or public space renovations or expansions, (2) been converted between company-operated and franchised, or (3) sustained substantial property damage or business interruption. Our comparable properties also exclude MGM Collection with Marriott Bonvoy, Design Hotels, The Ritz-Carlton Yacht Collection, and timeshare properties.

Non-RevPAR Related Franchise Fees. In this press release, we also discuss non-RevPAR related franchise fees, which include co-branded credit card, timeshare and yacht fees, residential branding fees, franchise application and relicensing fees, and certain other non-hotel  licensing fees.

SOURCE Marriott International, Inc.



Originally published at https://www.prnewswire.com/news-releases/marriott-international-reports-first-quarter-2024-results-302132474.html
Images courtesy of https://pixabay.com

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