Marriott International(MAR) - 2024 Q3 - Quarterly Results

Financial Performance - Third quarter 2024 comparable systemwide constant dollar RevPAR increased 3.0% worldwide, 2.1% in the U.S. & Canada, and 5.4% in international markets compared to the 2023 third quarter[1] - Third quarter reported net income totaled $584 million, compared to $752 million in the year-ago quarter, while adjusted net income was $638 million, up from $634 million in Q3 2023[1] - Adjusted EBITDA for Q3 2024 totaled $1,229 million, compared to $1,142 million in Q3 2023[1] - Total revenues for Q3 2024 increased by 6% to $6.255 billion compared to $5.928 billion in Q3 2023[32] - Net income for Q3 2024 decreased by 22% to $584 million from $752 million in Q3 2023[32] - Gross fee revenues grew by 7% to $1.283 billion in Q3 2024, up from $1.197 billion in Q3 2023[32] - Adjusted operating income for Q3 2024 increased by 6% to $1.017 billion compared to $959 million in Q3 2023[35] - Year-to-date total revenues for 2024 increased by 6% to $18.671 billion from $17.618 billion in 2023[33] - Adjusted diluted earnings per share for Q3 2024 rose by 7% to $2.26 from $2.11 in Q3 2023[35] - Franchise fees increased by 9% to $812 million in Q3 2024, up from $748 million in Q3 2023[32] - Cost reimbursement revenue grew by 5% to $4.617 billion in Q3 2024 from $4.391 billion in Q3 2023[32] - Adjusted net income for Q3 2024 was $638 million, a 1% increase from $634 million in Q3 2023[35] - Year-to-date net income for 2024 decreased by 14% to $1.920 billion from $2.235 billion in 2023[33] - Adjusted EBITDA for the first quarter of 2024 is $1,142 million, a 4% increase from 2023[53] - Adjusted EBITDA for the second quarter of 2024 is $1,324 million, a 9% increase from 2023[53] - Adjusted EBITDA for the third quarter of 2024 is $1,229 million, an 8% increase from 2023[53] - Net income for the full year 2023 was $3,083 million, with Q4 contributing $848 million[54] - Adjusted EBITDA for 2023 was $4,656 million, with Q4 at $1,197 million[54] - Adjusted EBITDA forecast for Q4 2024 is estimated between $1,235 million and $1,265 million, representing a 3% to 6% increase over 2023[56] - Full-year 2024 Adjusted EBITDA is projected to be between $4,930 million and $4,960 million, a 6% to 7% increase compared to 2023[59] - Interest expense for 2023 totaled $565 million, with Q4 at $153 million[54] - Stock-based compensation for 2023 was $205 million, with Q4 at $58 million[54] - Depreciation and amortization for 2023 amounted to $189 million, with Q4 at $51 million[54] - Contract investment amortization for 2023 was $88 million, with Q4 at $22 million[54] - Reimbursed expenses for 2023 totaled $17,424 million, with Q4 at $4,684 million[54] - Cost reimbursement revenue for 2023 was $17,413 million, with Q4 at $4,418 million[54] Room and Property Statistics - The company added approximately 16,000 net rooms during the quarter, with a global development pipeline of 3,800 properties and 585,000 rooms, including 220,000 rooms under construction[1][19] - Total worldwide rooms managed by the company reached 572,731, with 1,999 properties globally[38] - Marriott Hotels has the highest number of worldwide rooms at 115,563, followed by Sheraton with 82,202 rooms[38] - Franchised, licensed, and other properties account for 1,074,361 rooms globally, with Courtyard leading at 146,105 rooms[39] - Fairfield by Marriott has the highest number of franchised rooms in the US & Canada at 109,712[39] - The Luxury Collection has 18,021 rooms globally, with 57 properties internationally[39] - MGM Collection with Marriott Bonvoy contributes 26,210 rooms, all located in the US & Canada[39] - Timeshare properties account for 22,750 rooms globally, with 72 properties in the US & Canada[39] - The Ritz-Carlton Residences have 6,548 rooms globally, with 43 properties in the US & Canada[39] - Total worldwide rooms across all categories reached 1,674,600, with 9,068 properties globally[39] - The Ritz-Carlton Yacht Collection has 377 rooms, with 2 properties internationally[39] - Total worldwide rooms across all properties reached 1,674,600, with 9,068 properties globally[40] RevPAR Performance - Global group RevPAR rose 10% in Q3 2024, with business transient RevPAR growing and leisure transient RevPAR flat year-over-year but above pre-pandemic levels[5] - JW Marriott's REVPAR increased by 4.6% to $196.53, with occupancy rising by 0.8 percentage points to 68.0%[41] - The Ritz-Carlton achieved a REVPAR of $313.99, up 2.9%, with occupancy increasing by 1.4 percentage points to 65.0%[41] - Marriott Hotels reported a REVPAR growth of 4.7% to $176.08, with occupancy at 73.1%[41] - Sheraton's REVPAR rose by 3.5% to $157.87, with occupancy up by 0.4 percentage points to 68.8%[41] - Westin's REVPAR increased by 4.0% to $179.99, with occupancy at 72.8%[41] - Courtyard's REVPAR grew by 1.9% to $115.31, with occupancy at 68.9%[41] - Residence Inn's REVPAR rose by 2.3% to $156.31, with occupancy reaching 79.4%[41] - Composite US & Canada Select REVPAR increased by 2.0% to $128.40, with occupancy at 72.5%[41] - US & Canada All REVPAR grew by 3.1% to $174.62, with occupancy at 71.1%[41] - JW Marriott's REVPAR for 2024 is $192.02, showing a 2.6% increase compared to 2023[42] - The Ritz-Carlton's REVPAR for 2024 is $316.26, with a 3.6% increase compared to 2023[42] - W Hotels' REVPAR for 2024 is $222.40, showing a slight 0.4% increase compared to 2023[42] - Marriott Hotels' REVPAR for 2024 is $148.62, with a 4.4% increase compared to 2023[42] - Sheraton's REVPAR for 2024 is $134.43, showing a 3.7% increase compared to 2023[42] - Westin's REVPAR for 2024 is $162.21, with a 3.5% increase compared to 2023[42] - Courtyard's REVPAR for 2024 is $118.76, showing no change compared to 2023[42] - Residence Inn's REVPAR for 2024 is $140.50, with a 1.6% increase compared to 2023[42] - Fairfield by Marriott's REVPAR for 2024 is $101.66, showing a slight 0.6% decrease compared to 2023[42] - US & Canada - All REVPAR for 2024 is $136.15, with a 2.1% increase compared to 2023[42] - Europe's REVPAR for 2024 is $265.98, showing a 9.2% increase compared to 2023[47] - Middle East & Africa's REVPAR for 2024 is $98.15, with a 7.2% increase compared to 2023[47] - Greater China's REVPAR for 2024 is $84.71, reflecting an 8.4% decrease compared to 2023[47] - Asia Pacific excluding China's REVPAR for 2024 is $115.85, up 8.9% compared to 2023[47] - Caribbean & Latin America's REVPAR for 2024 is $140.89, showing a 9.0% increase compared to 2023[47] - International - All REVPAR for 2024 is $120.81, with a 3.7% increase compared to 2023[47] - Worldwide REVPAR for 2024 is $143.66, up 3.4% compared to 2023[47] Shareholder Returns and Debt - Marriott repurchased 4.5 million shares of common stock for $1.0 billion in Q3 2024, with $3.9 billion returned to shareholders year-to-date through dividends and share repurchases[1] - Marriott's total debt at the end of Q3 2024 was $13.6 billion, with cash and equivalents of $0.4 billion, compared to $11.9 billion in debt and $0.3 billion in cash at year-end 2023[21] Growth and Cost Reduction Initiatives - The company expects full-year 2024 net rooms growth to be around 6.5%, with a comprehensive initiative expected to yield $80-90 million in annual cost reductions starting in 2025[7][8] - Base management and franchise fees totaled $1,124 million in Q3 2024, a 7% increase compared to $1,054 million in Q3 2023[9] - The company expects full-year 2024 adjusted EBITDA to be between $4,930 million and $4,960 million, with adjusted diluted EPS projected at $9.19 to $9.27[25]