Marriott Worldwide, Inc. reported second quarter 2024 outcomes. Highlights embody:
- Second quarter 2024 comparable systemwide fixed greenback RevPAR elevated 4.9 p.c worldwide, 3.9 p.c in the US and Canada, and seven.4 p.c in worldwide markets, in comparison with the 2023 second quarter;
- Second quarter reported diluted EPS totaled $2.69, in comparison with reported diluted EPS of $2.38 within the year-ago quarter. Second quarter adjusted diluted EPS totaled $2.50, in comparison with second quarter 2023 adjusted diluted EPS of $2.26;
- Second quarter reported web revenue totaled $772 million, in comparison with reported web revenue of $726 million within the year-ago quarter. Second quarter adjusted web revenue totaled $716 million, in comparison with second quarter 2023 adjusted web revenue of $690 million;
- Adjusted EBITDA totaled $1,324 million within the 2024 second quarter, in comparison with second quarter 2023 adjusted EBITDA of $1,219 million;
- The corporate added roughly 15,500 web rooms through the quarter;
- On the finish of the quarter, Marriott’s worldwide improvement pipeline totaled roughly 3,500 properties and greater than 559,000 rooms, together with roughly 33,000 pipeline rooms accredited, however not but topic to signed contracts. Over 209,000 rooms within the pipeline have been below development as of the top of the second quarter;
- Marriott repurchased 1 million shares of widespread inventory for $1.0 billion within the second quarter. Yr so far via July 29, the corporate has returned $2.8 billion to shareholders via dividends and share repurchases.
Anthony Capuano, president and CEO, mentioned, “Marriott reported robust second quarter outcomes, with web rooms up 6 p.c yr over yr and worldwide RevPAR progress of almost 5 p.c, as customers continued to prioritize journey. Worldwide RevPAR elevated greater than 7 p.c, with Asia Pacific excluding China main the way in which, posting a formidable 13 p.c RevPAR improve from the year-ago quarter.
“In the US and Canada, second quarter RevPAR grew almost 4 p.c, with all buyer segments rising versus the prior-year quarter. Group RevPAR rose almost 10 p.c yr over yr, with each price and occupancy rising within the mid-single digits.
“With a membership base of over 210 million members and rising, Marriott Bonvoy is a key aggressive benefit. We stay targeted on enhancing the loyalty program’s advantages and discovering new methods to have interaction with our members each on and off-property. In June, we introduced a collaboration with Starbucks. The variety of members who’ve linked their accounts is already nicely exceeding our expectations.
“Proprietor choice for our manufacturers stays robust. We signed almost 31,000 rooms within the quarter, 75 p.c of which have been in worldwide markets. Our momentum round conversions continued, accounting for 37 p.c of room additions within the quarter. We proceed to develop our industry-leading international portfolio, and our expectation for web rooms progress stays at 5.5 to six p.c for full yr 2024.
“With our stable monetary outcomes and powerful money technology, we have now already returned $2.8 billion to shareholders year-to-date via July 29. We count on to return roughly $4.3 billion to our shareholders in 2024 via share repurchases and dividends.”
Second Quarter 2024 Outcomes
Base administration and franchise charges totaled $1,148 million within the 2024 second quarter, a 9 p.c improve in comparison with base administration and franchise charges of $1,057 million within the year-ago quarter. The rise is primarily attributable to RevPAR will increase and unit progress. Non-RevPAR-related franchise charges within the 2024 second quarter totaled $234 million, in comparison with $206 million within the year-ago quarter. The rise was largely pushed by a ten p.c improve in co-branded bank card charges, in addition to $13 million of upper residential branding charges.
Incentive administration charges totaled $195 million within the 2024 second quarter, in comparison with $193 million within the 2023 second quarter, and have been impacted by weaker ends in Larger China, in addition to unfavorable overseas trade. Managed resorts in worldwide markets contributed greater than 60 p.c of the motivation charges earned within the quarter.
Owned, leased, and different income, web of direct bills, totaled $99 million within the 2024 second quarter, in comparison with $103 million within the year-ago quarter.
Common, administrative, and different bills for the 2024 second quarter totaled $248 million, in comparison with $240 million within the year-ago quarter.
Curiosity expense, web, totaled $164 million within the 2024 second quarter, in comparison with $141 million within the year-ago quarter. The rise was largely as a result of greater curiosity expense related to greater debt balances.
Marriott’s reported working revenue totaled $1,195 million within the 2024 second quarter, in comparison with 2023 second quarter reported working revenue of $1,096 million. Reported web revenue totaled $772 million within the 2024 second quarter, in comparison with 2023 second quarter reported web revenue of $726 million. Reported diluted earnings per share (EPS) totaled $2.69 within the quarter, in comparison with reported diluted EPS of $2.38 within the year-ago quarter.
Adjusted working revenue within the 2024 second quarter totaled $1,120 million, in comparison with 2023 second quarter adjusted working revenue of $1,043 million. Second quarter 2024 adjusted web revenue totaled $716 million, in comparison with 2023 second quarter adjusted web revenue of $690 million. Adjusted diluted EPS within the 2024 second quarter totaled $2.50, in comparison with adjusted diluted EPS of $2.26 within the year-ago quarter.
Adjusted outcomes excluded price reimbursement income, reimbursed bills, merger-related prices, and different bills.
Adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) totaled $1,324 million within the 2024 second quarter, in comparison with second quarter 2023 adjusted EBITDA of $1,219 million.
Chosen Efficiency Info
The corporate added roughly 15,500 web rooms through the quarter.
On the finish of the quarter, Marriott’s international system totaled almost 9,000 properties, with roughly 1,659,000 rooms.
On the finish of the quarter, the corporate’s worldwide improvement pipeline totaled 3,509 properties with greater than 559,000 rooms, together with 208 properties with roughly 33,000 rooms accredited for improvement, however not but topic to signed contracts. The quarter-end pipeline included 1,127 properties with over 209,000 rooms below development. Fifty-seven p.c of rooms within the quarter-end pipeline are in worldwide markets.
Within the 2024 second quarter, worldwide RevPAR elevated 4.9 p.c (a 4.0 p.c improve utilizing precise {dollars}) in comparison with the 2023 second quarter. RevPAR in the US and Canada elevated 3.9 p.c (a 3.9 p.c improve utilizing precise {dollars}), and RevPAR in worldwide markets elevated 7.4 p.c (a 4.2 p.c improve utilizing precise {dollars}).
Stability Sheet & Widespread Inventory
On the finish of the quarter, Marriott’s complete debt was $13.1 billion and money and equivalents totaled $0.3 billion, in comparison with $11.9 billion in debt and $0.3 billion of money and equivalents at year-end 2023.
Yr so far via July 29, the corporate has repurchased 10.4 million shares for $2.5 billion.
Firm Outlook
The corporate’s up to date outlook features a narrowing of the RevPAR progress vary for full yr 2024, primarily on account of a weaker working surroundings in Larger China, in addition to marginally softer expectations in the US and Canada.
