From one hotel in Amsterdam in 1975, to a portfolio of 1,300 properties in 80 countries and territories in 2025AMSTERDAM, May 27, 2025 /PRNewswire/ -- Marriott International, Inc. today celebrates the 50th anniversary of the Amsterdam Marriott Hotel, the company's first hotel in Europe and outside of North America.From a single Marriott Hotel in 1975, the company has grown tremendously in the Europe, Middle East and Africa (EMEA) region over the past 50 years. Today, Marriott has over 1,300 properties, 29 d ...

Group 1 - Marriott Vacations is a significant player in the timeshare industry, competing with Hilton Grand Vacations and Travel + Leisure [1] - Unlike its competitors, Marriott Vacations has experienced a notable boom in its business [1]

Core Viewpoint - Marriott International, Inc. has increased its quarterly dividend, reflecting strong cash flow and earnings growth, while maintaining an incremental capital allocation strategy to enhance shareholder value [1][3]. Financial Performance - The board approved a quarterly dividend payout of 67 cents per share, a 6.3% increase from the previous 63 cents, translating to an annual payout of $2.68 per share [2]. - As of March 31, 2025, Marriott's cash and cash equivalents rose to $546 million from $448 million at the end of 2024, while short-term obligations decreased to $959 million from $1.31 billion [4]. - Year-to-date through April 29, 2025, the company returned $1.2 billion to shareholders through dividends and share repurchases, including the repurchase of 3.9 million shares worth $1 billion [5]. Strategic Initiatives - Marriott's dividend hike is supported by strong cash flow generation in Q1 2025, driven by increased travel demand and a fee-driven business model [3]. - The company expects to return approximately $4 billion to shareholders in 2025, after capital expenditures of $355 million for the citizenM acquisition [5]. - Moving forward, Marriott's strategic initiatives, diversified global portfolio, and loyalty program are anticipated to support growth amid macroeconomic uncertainties [8]. Stock Performance - Marriott's stock has gained 15.4% in the past month, outperforming the Zacks Hotels and Motels industry's growth of 13.6% [6].

Core Points - Marriott International, Inc. declared a quarterly cash dividend of 67 cents per share, reflecting earnings growth and strong cash generation [1] - The dividend is payable on June 30, 2025, to shareholders of record as of May 23, 2025 [1] Company Overview - Marriott International is based in Bethesda, Maryland, and operates nearly 9,500 properties across more than 30 brands in 144 countries and territories [2] - The company engages in operating, franchising, and licensing various lodging properties, including hotels, residential, and timeshare [2] - Marriott offers the Marriott Bonvoy® travel platform, which is highly awarded [2]

Financial Data and Key Metrics Changes - The company reported its first quarter 2025 earnings recently, indicating ongoing positive trends in financial performance [9]. Business Line Data and Key Metrics Changes - Specific business line performance metrics were not detailed in the provided content, but the company emphasized the integration of AI to enhance operations and guest experiences, which may impact various business lines positively [12]. Market Data and Key Metrics Changes - No specific market data or key metrics changes were mentioned in the provided content. Company Strategy and Development Direction and Industry Competition - The company is focused on leveraging AI to improve operational efficiency and guest personalization while maintaining a high-touch service model [12][13]. - The board is actively overseeing technology trends, including AI, to align with strategic plans and address emerging opportunities and risks [11]. Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of geopolitical and economic stability for business operations, emphasizing a commitment to working with government leaders for positive outcomes [14]. - The company is dedicated to combating human trafficking and has implemented extensive training programs for associates, showcasing a commitment to social responsibility [15][16]. Other Important Information - The company has not transitioned to a cashless model across its portfolio, continuing to accept various payment methods [18]. Q&A Session Summary Question: What are the board's plans for profits downstream of AI? - The board is focused on overseeing technology trends, including AI, and is optimistic about its potential to enhance business operations [11]. Question: Is democracy good for business? - Management stated that geopolitical and economic stability is beneficial for economies and the company's operations [14]. Question: What practical steps is Marriott taking to combat human trafficking? - The company has trained over 1,500,000 associates to recognize signs of human trafficking and has implemented policies for responsible sourcing [15][16]. Question: Why did Marriott go cashless? - The company clarified that it has not gone cashless and continues to accept various payment methods [18]. No further questions were submitted [19].

Core Insights - Marriott International, Inc. demonstrates resilience in performance despite macroeconomic uncertainties and changing travel perceptions [1] - The company's diversified business portfolio and improved metrics are identified as core strengths [1] - High financial leverage poses a potential concern for the company [1] Company Performance - Marriott has managed to deliver decent performance amid challenging economic conditions [1] - The company benefits from a well-diversified business model, which contributes to its stability [1] Financial Considerations - The company must remain cautious regarding its high financial leverage, which could impact future performance [1]

Group 1 - Marriott International, Inc. reported mixed Q1 '25 results, with lowered guidance indicating potential future declines in growth numbers [1] - The expectation is that the worst financial performance is yet to come for the company [1] Group 2 - The analysis suggests a long-term investment horizon of 5-10 years, focusing on a balanced portfolio of growth, value, and dividend-paying stocks [1]

Revenue Performance - In Q1 2025, worldwide RevPAR increased by 4.1%, driven by ADR growth of 2.9% and occupancy improvement of 0.7 percentage points compared to Q1 2024[51]. - In the U.S. & Canada, RevPAR rose by 3.3% in Q1 2025, primarily due to strong demand from group customers[52]. - Internationally, RevPAR grew by 5.9% in Q1 2025, with APEC showing the highest growth at 10.9%[53]. - In Greater China, RevPAR decreased by 1.6% in Q1 2025, primarily due to a 2.7% decline in ADR amid lower domestic demand[53]. Property and Development - The total number of properties increased to 9,463 with 1,718,542 rooms by the end of Q1 2025, reflecting a net addition of approximately 12,200 rooms[56]. - The development pipeline includes approximately 3,800 properties and over 587,000 rooms, with 42% under construction or conversion[58]. - The company expects full-year 2025 net rooms growth to approach 5%, including the citizenM brand acquisition[58]. Revenue Breakdown - Fee revenues for Q1 2025 totaled $1,275 million, a 5% increase from $1,210 million in Q1 2024, with base management fees rising by 4%[64]. - Franchise fees increased by 8% to $746 million in Q1 2025, attributed to higher RevPAR and unit growth[65]. - Owned, leased, and other revenue reached $361 million in Q1 2025, a 1% increase from $357 million in Q1 2024[66]. - Cost reimbursement revenue increased by $222 million, or 5%, from $4,433 million in Q1 2024 to $4,655 million in Q1 2025[67]. - Segment net fee revenues in the U.S. & Canada rose by $24 million, or 4%, from $665 million in Q1 2024 to $689 million in Q1 2025[74]. Financial Position - Total cash, cash equivalents, and restricted cash increased by $121 million to $546 million at March 31, 2025, primarily due to long-term debt issuances[80]. - Capital and technology expenditures for Q1 2025 were $135 million, up from $109 million in Q1 2024, with full-year expectations between $1,355 million and $1,455 million[82]. - Share repurchases totaled 2.8 million shares for $0.8 billion in Q1 2025, with a year-to-date total of 3.9 million shares for $1.0 billion[84]. - Provision for income taxes decreased by $64 million, or 39%, from $163 million in Q1 2024 to $99 million in Q1 2025[72]. - Interest expense increased by $29 million, or 18%, from $163 million in Q1 2024 to $192 million in Q1 2025, primarily due to higher debt balances[71]. - Segment profit in the U.S. & Canada grew by $19 million, or 3%, from $625 million in Q1 2024 to $644 million in Q1 2025[74]. - The ratio of current assets to current liabilities was 0.5 to 1.0 at the end of Q1 2025, indicating significant borrowing capacity under the Credit Facility[81]. - The company expects to continue returning cash to stockholders through share repurchases and cash dividends[85].

Core Insights - Marriott International, Inc. reported first-quarter 2025 results with adjusted earnings exceeding estimates while revenues fell short, indicating a mixed performance despite year-over-year growth [1][3]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were $2.32, surpassing the Zacks Consensus Estimate of $2.27, and up from $2.13 in the prior-year quarter [3]. - Quarterly revenues reached $6,263 million, slightly below the consensus mark of $6,275 million, but represented a 5% increase year-over-year [3]. - Base management and franchise fees were $325 million and $746 million, respectively, reflecting year-over-year increases of 4% and 8% [4]. - Incentive management fees decreased by 2% to $204 million compared to $209 million in the prior-year quarter [4]. Operational Metrics - RevPAR for worldwide comparable system-wide properties increased by 5.2% year-over-year, supported by a 3.4% rise in average daily rate (ADR) and a 1.2% increase in occupancy [5]. - Comparable system-wide RevPAR in the Asia Pacific (excluding China) rose by 10.6% year-over-year, while Greater China experienced a decline of 2.1% [5][6]. - Total expenses decreased by 4% year-over-year to $5.31 billion, attributed to a decline in reimbursed expenses [6]. Development and Growth - The company achieved a record of over 34,000 room signings in Q1 2025, with nearly two-thirds in international markets, and conversions accounted for about one-third of new signings and openings [2]. - As of the end of Q1, Marriott's development pipeline included 3,808 hotels, with 1,447 properties and over 244,000 rooms under construction [9]. Future Outlook - For Q2 2025, management anticipates gross fee revenues between $1.38 billion and $1.39 billion, with adjusted EBITDA expected to range from $1.37 billion to $1.39 billion [10]. - The company projects worldwide system-wide RevPAR growth of 1.5-3.5% year-over-year for 2025, a revision from the previous estimate of 2-4% [10]. - For the full year 2025, gross fee revenues are expected to be between $5.37 billion and $5.48 billion, with adjusted EBITDA projected between $5.3 billion and $5.4 billion [11].

Core Insights - Marriott International reported $6.26 billion in revenue for Q1 2025, a year-over-year increase of 4.8% [1] - The EPS for the same period was $2.32, compared to $2.13 a year ago, with a surprise of +2.20% against the consensus estimate of $2.27 [1] Financial Performance Metrics - Revenue from owned/leased rooms was 14,312, slightly above the average estimate of 14,214 [4] - Managed rooms totaled 567,896, below the estimated 587,915 [4] - Franchised rooms reached 1,120,634, exceeding the estimate of 1,102,261 [4] - REVPAR growth rate was 4.1%, surpassing the average estimate of 2.7% [4] - Gross fee revenues were $1.28 billion, above the estimate of $1.25 billion, reflecting a +5.4% change year-over-year [4] - Net fee revenues were $1.25 billion, compared to the average estimate of $1.23 billion, marking a +5.1% year-over-year change [4] - Franchise fees amounted to $746 million, exceeding the estimate of $727.37 million, with an +8.4% year-over-year change [4] - Base management fees were $325 million, slightly above the average estimate of $319.23 million, representing a +3.8% change year-over-year [4] Stock Performance - Marriott shares returned +15.9% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]