Marriott International(MAR)2025-02-11 17:50Property 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 3,083 million in 2023[218] - Total revenues increased to 23,713 million in 2023[216] - Net fee revenues rose to 4,736 million in 2023[216] - Earnings per share (diluted) decreased to 10.18 in 2023, a decline of 18.1%[216] - Comprehensive income for 2024 was 3,165 million in 2023, representing a decrease of 38.0%[218] - Cash provided by operating activities was 3,170 million in 2023[223] - Long-term debt increased to 11,320 million in 2023, an increase of 16.1%[221] - The company repurchased 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]