Marriott Worldwide, Inc. reported third-quarter 2024 outcomes. Highlights embody:
- Third quarter 2024 comparable systemwide fixed greenback RevPAR elevated 3 p.c worldwide, 2.1 p.c in america and Canada, and 5.4 p.c in worldwide markets, in comparison with the 2023 third quarter;
- Third quarter reported diluted EPS totaled $2.07, in comparison with reported diluted EPS of $2.51 within the year-ago quarter. Third quarter adjusted diluted EPS totaled $2.26, in comparison with third quarter 2023 adjusted diluted EPS of $2.11;
- Third quarter reported web earnings totaled $584 million, in comparison with reported web earnings of $752 million within the year-ago quarter. Third quarter adjusted web earnings totaled $638 million, in comparison with third quarter 2023 adjusted web earnings of $634 million;
- Adjusted EBITDA totaled $1,229 million within the 2024 third quarter, in comparison with third quarter 2023 adjusted EBITDA of $1,142 million;
- The corporate added roughly 16,000 web rooms in the course of the quarter;
- On the finish of the quarter, Marriott’s worldwide improvement pipeline totaled roughly 3,800 properties and 585,000 rooms, together with roughly 34,000 pipeline rooms accepted, however not but topic to signed contracts. Greater than 220,000 rooms within the pipeline have been below building as of the top of the third quarter;
- Marriott repurchased 4.5 million shares of widespread inventory for $1.0 billion within the third quarter. 12 months to this point via October 31, 2024, the corporate has returned $3.9 billion to shareholders via dividends and share repurchases.
Anthony Capuano, president and CEO, stated, “Marriott had one other stable quarter, highlighted by sturdy web rooms and charge progress, sturdy improvement exercise, and a 3 p.c improve in world RevPAR. Third-quarter worldwide RevPAR rose 5.4 p.c, led by significant good points in APEC and EMEA with resilient home and cross-border demand, in addition to stable ADR progress. RevPAR in america and Canada elevated greater than 2 p.c in comparison with the year-ago quarter, with ADR up 2.3 p.c.
“Group remained the standout buyer phase, with world group RevPAR rising 10 p.c within the quarter and on tempo to rise 8 p.c for full yr 2024. RevPAR for the enterprise transient phase continued to develop properly within the quarter, whereas leisure transient RevPAR was flat yr over yr, however nonetheless effectively forward of pre-pandemic ranges.
“Given the breadth and depth of our portfolio and the significant advantages we ship to house owners and franchisees, demand for our manufacturers stays sturdy. By way of the primary three quarters of 2024, we signed over 95,000 natural rooms, greater than half of that are exterior america and Canada. Greater than 40 p.c of signed rooms are conversions, the place we proceed to have a whole lot of momentum, notably with multi-unit alternatives.
“Internet rooms grew practically 6 p.c over the past 4 quarters, and our improvement pipeline reached a report 585,000 rooms on the finish of September. Our groups stay keenly targeted on increasing our industry-leading world portfolio, and we now count on full-year 2024 web rooms progress to be round 6.5 p.c.
“Our enterprise momentum is great, and we proceed to evolve our enterprise to help our quite a few world progress alternatives. To that finish, we have now undertaken a complete initiative to reinforce our effectiveness and effectivity throughout the corporate. At this level within the course of, we count on this initiative to yield $80 million to $90 million of annual common and administrative price reductions starting in 2025. As well as, we count on this work to ship price financial savings to our house owners and franchisees.
“With our asset-light enterprise mannequin producing significant money and our stable monetary efficiency, we returned $3.7 billion to shareholders via share repurchases and dividends within the first 9 months of the yr, and now count on to return roughly $4.4 billion for the total yr 2024.”
Third Quarter 2024 Outcomes
Base administration and franchise charges totaled $1,124 million within the 2024 third quarter, a 7 p.c improve in comparison with base administration and franchise charges of $1,054 million within the year-ago quarter. The rise is primarily attributable to RevPAR will increase and unit progress, in addition to increased residential and co-branded bank card charges.
Incentive administration charges totaled $159 million within the 2024 third quarter, an 11 p.c improve in comparison with $143 million within the 2023 third quarter. Managed lodges in worldwide markets contributed roughly 70 p.c of the motivation charges earned within the quarter.
Basic, administrative, and different bills for the 2024 third quarter totaled $276 million, in comparison with $239 million within the year-ago quarter. The year-over-year change largely displays a $19 million working assure reserve for a U.S. lodge, which was negotiated in reference to the corporate’s acquisition of Starwood, and an $11 million litigation reserve.
Curiosity expense, web, totaled $168 million within the 2024 third quarter, in comparison with $139 million within the year-ago quarter. The rise was largely as a result of increased curiosity expense related to increased debt balances.
Marriott’s reported working earnings totaled $944 million within the 2024 third quarter, in comparison with 2023 third quarter reported working earnings of $1,099 million. Reported web earnings totaled $584 million within the 2024 third quarter, in comparison with 2023 third quarter reported web earnings of $752 million. Reported diluted earnings per share (EPS) totaled $2.07 within the quarter, in comparison with reported diluted EPS of $2.51 within the year-ago quarter.
Adjusted working earnings within the 2024 third quarter totaled $1,017 million, in comparison with 2023 third quarter adjusted working earnings of $959 million. Third-quarter 2024 adjusted web earnings totaled $638 million, in comparison with 2023 third-quarter adjusted web earnings of $634 million. Adjusted diluted EPS within the 2024 third quarter totaled $2.26, in comparison with adjusted diluted EPS of $2.11 within the year-ago quarter.
Adjusted outcomes excluded price reimbursement income, reimbursed bills, and restructuring and merger-related expenses.
Adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) totaled $1,229 million within the 2024 third quarter, in comparison with third quarter 2023 adjusted EBITDA of $1,142 million.
Chosen Efficiency Data
The corporate added roughly 16,000 web rooms in the course of the quarter.
On the finish of the quarter, Marriott’s world system totaled practically 9,100 properties, with roughly 1,675,000 rooms.
On the finish of the quarter, the corporate’s worldwide improvement pipeline totaled 3,802 properties with roughly 585,000 rooms, together with 232 properties with roughly 34,000 rooms accepted for improvement, however not but topic to signed contracts. The quarter-end pipeline included 1,320 properties with greater than 220,000 rooms below building. Fifty-six p.c of rooms within the quarter-end pipeline are in worldwide markets.
Within the 2024 third quarter, worldwide RevPAR elevated 3 p.c (a 2.3 p.c improve utilizing precise {dollars}) in comparison with the 2023 third quarter. RevPAR in america and Canada elevated 2.1 p.c (a 1.9 p.c improve utilizing precise {dollars}), and RevPAR in worldwide markets elevated 5.4 p.c (a 3.3 p.c improve utilizing precise {dollars}).
Stability Sheet & Widespread Inventory
On the finish of the quarter, Marriott’s whole debt was $13.6 billion and money and equivalents totaled $0.4 billion, in comparison with $11.9 billion in debt and $0.3 billion of money and equivalents at year-end 2023.
12 months to this point via October 31, 2024, the corporate has repurchased 14.2 million shares for $3.4 billion.
Within the third quarter, the corporate issued $500 million of Sequence PP Senior Notes due in 2030 with a 4.80 p.c rate of interest coupon and $1.0 billion of Sequence QQ Senior Notes due in 2035 with a 5.35 p.c rate of interest coupon.
