Core Points - Marriott International, Inc. declared a quarterly cash dividend of 63 cents per share of common stock, payable on March 31, 2025, to shareholders of record as of February 27, 2025 [1] Company Overview - Marriott International is based in Bethesda, Maryland, and operates a portfolio of over 9,300 properties across more than 30 leading brands in 144 countries and territories [2] - The company operates, franchises, and licenses various lodging properties, including hotels, residential, and timeshare properties globally [2] - Marriott offers the Marriott Bonvoy® travel platform, which is highly awarded [2]

Key TakeawaysMarriott International executives said on a conference call Tuesday that business travel has mostly returned to pre-pandemic levels—though not at the beginning of the week."Monday, Tuesday, Wednesday are still the nights whose occupancy has not recovered while the other nights of the week are actually higher occupancy than we had pre-COVID," CFO Leeny Oberg said.Marriott's Q4 results topped analysts' estimates, but its shares slipped as it issued a soft outlook for room growth and profit Busine ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Property and Development - As of year-end 2024, the company operated 9,361 properties with a total of 1,706,331 rooms across 144 countries and territories, and has nearly 3,800 hotels (over 577,000 rooms) in its development pipeline[15] - The company reported 2,032 company-operated properties, totaling 586,201 rooms, which includes properties under long-term management agreements[21] - The brand portfolio includes over 30 brand names categorized into four quality tiers: Luxury, Premium, Select, and Midscale, with expectations to open additional properties under new brands in 2025[17] - The U.S. & Canada segment accounted for a significant portion of the total properties, with 6,235 properties and 1,043,224 rooms[20] - The company anticipates continued growth in its development pipeline, with expectations for new brands and offerings to enhance market presence[15] - At year-end 2024, the company had 7,192 franchised, licensed, and other properties, totaling 1,104,446 rooms and timeshare units[28] Business Strategy and Market Presence - The company emphasizes a focus on franchising and licensing, owning or leasing less than 1% of its lodging properties[15] - The company plans to continue expanding its market presence through strategic initiatives, including potential acquisitions and new technology developments[15] - The company’s Loyalty Program is central to its business strategy, encompassing over 30 brands and generating substantial repeat business[31] - In 2024, 72% of U.S. hotel room nights and 65% of global hotel room nights were booked by Loyalty Program members[32] - The company has approximately 17% share of the U.S. hotel market and a 4% share of the hotel market outside the U.S. based on the number of rooms[40] Financial Performance - Net income for 2024 was $2,375 million, a decrease of 22.9% from $3,083 million in 2023[218] - Total revenues increased to $25,100 million in 2024, up 5.8% from $23,713 million in 2023[216] - Net fee revenues rose to $5,067 million, reflecting an increase of 7% compared to $4,736 million in 2023[216] - Earnings per share (diluted) decreased to $8.33 in 2024 from $10.18 in 2023, a decline of 18.1%[216] - Comprehensive income for 2024 was $1,959 million, down from $3,165 million in 2023, representing a decrease of 38.0%[218] - Cash provided by operating activities was $2,749 million, a decrease of 13.2% from $3,170 million in 2023[223] - Long-term debt increased to $13,138 million in 2024, up from $11,320 million in 2023, an increase of 16.1%[221] - The company repurchased $3,761 million in treasury stock during 2024, compared to $3,953 million in 2023[225] Operational Efficiency and Risks - The company aims to enhance operational efficiency and effectiveness through comprehensive initiatives, including anticipated cost reductions[13] - Future performance is subject to various risks and uncertainties, as outlined in the risk factors section of the report[13] - The company faces operational risks from potential premature terminations of agreements with hotel owners, which could adversely impact financial performance[62] - Economic conditions, including pandemics and geopolitical events, have historically affected the company's financial results and growth potential[60] - Compliance with complex and frequently changing laws and regulations is crucial, as failures could lead to increased costs and reputational damage[67] Sustainability and Social Responsibility - The company has set near-term and long-term science-based emissions reduction targets, verified by the Science Based Targets initiative in 2024[54] - The company’s sustainability strategy includes designing resource-efficient hotels and increasing the use of renewable energy[53] - The company has a commitment to pay equity, conducting annual audits and making adjustments as needed[50] Cybersecurity and Data Protection - The company incurred a $52 million monetary payment as part of the resolution with the AG Offices related to the Data Security Incident[93] - The company has experienced numerous lawsuits and investigations due to the Data Security Incident, which could lead to further financial liabilities[93] - Management resources are heavily allocated to address issues stemming from the Data Security Incident, affecting overall operational efficiency[94] - The company has enhanced security measures but acknowledges that these may not fully eliminate risks associated with cybersecurity incidents[95] - Future changes in privacy and data security laws could increase operating costs and litigation exposure, adversely affecting business operations[97] Marketing and Brand Management - The company’s marketing strategies focus on building awareness, increasing demand, and promoting the Loyalty Program[37] - The Loyalty Program is crucial for business, facing competition that could affect member acquisition and retention[79] Accounting and Financial Reporting - The Company's internal control over financial reporting was assessed as effective as of December 31, 2024, based on the COSO criteria[188] - The independent auditor issued an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of December 31, 2024[192] - The consolidated financial statements present fairly the financial position of the Company at December 31, 2024, and 2023, in conformity with U.S. generally accepted accounting principles[201] - The complexity of accounting for the Loyalty Program involves significant judgment in estimating the standalone selling price per point and breakage of points[209] Legal and Regulatory Compliance - The company operates under various global regulations affecting employment practices, consumer protection, and data privacy, among others[56] - The company is subject to intellectual property claims, which could result in significant legal costs and impact business operations[68] - The company evaluates legal contingencies and records an accrual when it is probable that a liability has been incurred, with revisions made based on changes in facts and circumstances[283]

Core Insights - Marriott International, Inc. reported strong fourth-quarter 2024 results, with adjusted earnings and revenues exceeding expectations, although the bottom line declined year over year [1][5]. Financial Performance - Adjusted earnings per share (EPS) for Q4 2024 were $2.45, surpassing the Zacks Consensus Estimate of $2.38, while the prior-year quarter's adjusted EPS was $3.57 [5]. - Quarterly revenues reached $6.42 billion, beating the consensus mark of $6.39 billion, reflecting a 5% year-over-year increase [5]. - Total revenues for 2024 amounted to $25.1 billion, up from $23.7 billion in 2023, while adjusted EBITDA for the year was $4.98 billion compared to $4.7 billion in the previous year [13]. Revenue Breakdown - Revenues from base management and franchise fees were $333 million and $795 million, representing year-over-year increases of 4% and 13%, respectively [6]. - Incentive management fees decreased by 6% to $206 million from $218 million in the prior-year quarter [6]. RevPAR and Margins - Worldwide comparable system-wide RevPAR increased by 5% year over year, supported by a 3.2% rise in average daily rate (ADR) and a 1.2% increase in occupancy [7]. - In the Asia Pacific (excluding China), comparable system-wide RevPAR rose by 12.5%, with occupancy up 2.3% and ADR increasing by 9.1% [8]. Development and Expansion - The company signed a record number of new deals, with a development pipeline totaling 577,000 rooms, and conversions accounted for over one-third of signings [3][4]. - Marriott launched 28 Four Points Flex hotels in EMEA and APEC and introduced City Express by Marriott in the U.S. & Canada, expanding into outdoor lodging through partnerships [4]. Balance Sheet and Share Repurchase - As of the end of Q4, total debt was $14.4 billion, up from $13.6 billion in the prior quarter, while cash and cash equivalents increased to $0.4 billion [11]. - Year to date, the company repurchased 1.2 million shares worth $350 million [11]. Outlook - For Q1 2025, management anticipates gross fee revenues between $1.24 billion and $1.26 billion, with adjusted EBITDA expected to be between $1.17 billion and $1.2 billion [14]. - For the full year 2025, Marriott reduced its gross fee revenue expectations to $5.37-$5.48 billion and projected adjusted EBITDA between $5.3 billion and $5.43 billion [15].

Financial Data and Key Metrics Changes - For the full year 2024, Marriott achieved net rooms growth of 6.8% and global RevPAR rose over 4% [6] - Fourth quarter worldwide RevPAR increased by 5%, with ADR rising by 3% and occupancy increasing over 1 percentage point [7] - Fourth quarter total gross fee revenues grew by 7% to $1.3 billion, driven by higher RevPAR and room additions [23] - Fourth quarter adjusted EBITDA grew by 7% to $1.29 billion, with hotel-level profit margins rising by 110 basis points [25] - For the full year, gross fees and adjusted EBITDA both increased by 7% [26] Business Line Data and Key Metrics Changes - Leisure RevPAR, which comprises 44% of global room nights, had its strongest growth quarter of the year at 6% globally [11] - Business transient RevPAR rose by 3% globally, with solid gains in ADR [12] - Group RevPAR, which comprised 23% of room nights, rose by 3% in the quarter [12] - For the full year 2024, group RevPAR increased by 8%, while leisure and business transient both rose by 3% [13] Market Data and Key Metrics Changes - U.S. and Canada saw fourth quarter RevPAR growth of over 4%, primarily driven by higher ADR [8] - International RevPAR rose over 7% in the quarter, driven by a 4% rise in ADR and a 2 percentage point gain in occupancy [8] - APAC RevPAR increased by 12.5%, led by strong growth in Japan, India, and Thailand [9] - RevPAR in the EMEA region rose by 8%, with broad-based growth across the region [9] - RevPAR in Greater China declined by 2%, better than prior expectations [9] Company Strategy and Development Direction - The company plans to continue expanding its global portfolio, with a focus on conversions and new builds [14] - Marriott aims for net rooms growth of 4% to 5% in 2025, with a compound annual growth rate of 5% to 5.5% from 2022 to 2025 [27] - The company is enhancing its digital transformation, which is expected to improve customer engagement and operational efficiency [21][65] - Marriott is committed to maintaining its investment-grade rating while returning excess capital to shareholders [39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strong demand for travel and the company's performance in 2024 [6] - The company anticipates global RevPAR growth of 2% to 4% in 2025, with expectations for international regions to outperform the U.S. and Canada [28] - Management noted that the recovery of business transient travel is ongoing, with small- and medium-sized businesses recovering faster than large corporates [120] - The company remains cautious about the macroeconomic environment impacting leisure travel [108] Other Important Information - Marriott added over 31 million new members to its loyalty program, growing to nearly 228 million members by year-end [19] - The company plans to invest $1 billion to $1.1 billion in 2025, focusing on technology, owned lease portfolio renovations, and new unit contracts [36] - The company expects to see a decline in G&A expenses by 8% to 10% in 2025 [32] Q&A Session Summary Question: Update on cost transformation and efficiency program - Management indicated that the impact of the organizational changes is still early, but there is positive energy and enthusiasm from both internal teams and the owner/franchisee community [44][45] Question: Appetite for additional tuck-in acquisitions - Management stated that while they remain open to tuck-in acquisitions, the majority of growth will be organic [55] Question: Impact of political tensions on Canadian and Mexican travelers - Management noted that it is too early to see significant impacts, as U.S. and Canada travel is primarily driven by domestic travelers [58] Question: Insights on tech migration and its implementation - Management explained that the tech transformation will roll out over several quarters, enhancing efficiency and guest engagement [65] Question: Composition of RevPAR and expectations for 2025 - Management expects group RevPAR to lead growth in 2025, with a focus on ADR rather than occupancy [68] Question: Factors affecting gross fee growth - Management highlighted FX headwinds and lower residential brand fees as key factors impacting fee growth [71][72] Question: Unit growth expectations from conversions versus new construction - Management indicated that approximately 30% to 40% of unit growth in 2025 is expected to come from conversions [78] Question: Key money and its role in growth - Management confirmed that key money remains a valuable tool for driving growth, particularly in high-value tiers [101] Question: Recovery of business transient travel - Management noted that business transient travel has recovered to 2019 levels, with small- and medium-sized businesses leading the recovery [120] Question: Outlook for international RevPAR growth - Management indicated that international RevPAR is expected to outperform the U.S., driven by strong GDP growth in certain markets [151]

Key TakeawaysMarriott International gave weaker-than-expected guidance, and shares fell from their record closing high set yesterday.The hotelier's current-quarter profit and room-growth outlook were below analysts' forecasts.The news offset better-than-anticipated fourth-quarter earnings and revenue. Marriott International (MAR) shares fell 4% Tuesday as the hotel operator's guidance missed forecasts on slower room growth. The company sees current-quarter adjusted earnings per share (EPS) in the range of $ ...

Marriott International (MAR) reported $6.43 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 5.5%. EPS of $2.45 for the same period compares to $3.57 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $6.4 billion, representing a surprise of +0.46%. The company delivered an EPS surprise of +2.94%, with the consensus EPS estimate being $2.38.While investors scrutinize revenue and earnings changes year-over-year and how they compare wit ...

Marriott International delivers Q4 earnings beat, boosted by strong demand, despite facing regional and cost-related challenges.Lodging services giant Marriott International (MAR -4.49%) reported fourth-quarter and full-year 2024 earnings on Tuesday, Feb. 11, that exceeded analysts' consensus estimates. Adjusted EPS of $2.45 outperformed analysts' estimates of $2.39 while total revenue reached $6.43 billion, slightly higher than the anticipated $6.4 billion. The results suggest a positive overall quarter, d ...

Marriott International (MAR) came out with quarterly earnings of $2.45 per share, beating the Zacks Consensus Estimate of $2.38 per share. This compares to earnings of $3.57 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.94%. A quarter ago, it was expected that this hotel company would post earnings of $2.31 per share when it actually produced earnings of $2.26, delivering a surprise of -2.16%.Over the last four quarters, t ...