Marriott International(MAR) - 2025 Q1 - Quarterly Results

Financial Performance - Reported diluted EPS for Q1 2025 was $2.39, an increase from $1.93 in Q1 2024, while adjusted diluted EPS was $2.32 compared to $2.13 in the prior year[12][13] - Net income for Q1 2025 totaled $665 million, an 18% increase from $564 million in Q1 2024[12] - Total revenues for the three months ended March 31, 2025, were $6,263 million, an increase of 5% compared to $5,977 million for the same period in 2024[32] - Basic earnings per share increased by 24% to $2.40 for the three months ended March 31, 2025, compared to $1.94 for the same period in 2024[32] - Adjusted net income for the three months ended March 31, 2025, was $645 million, a 4% increase from $620 million in the same period of 2024[35] - Operating income for the three months ended March 31, 2025, was $948 million, an 8% increase from $876 million in the same period of 2024[32] - Adjusted EBITDA for Q1 2025 was $1,217 million, a 7% increase from $1,142 million in Q1 2024[15] - Estimated net income excluding certain items for Q2 2025 is projected to be between $706 million and $721 million, compared to $721 million in Q2 2024[57] - Adjusted EBITDA for Q2 2025 is estimated to be between $1,370 million and $1,390 million, reflecting a 3% increase over Q2 2024[57] - Estimated net income excluding certain items for the full year 2025 is projected to be between $2,757 million and $2,860 million, compared to $2,860 million in 2024[59] - Adjusted EBITDA for the full year 2025 is estimated to be between $5,285 million and $5,425 million, representing a 6% increase over 2024[59] Room Growth and Development - The company added approximately 12,200 net rooms in Q1 2025, representing a 4.6% growth year-over-year[4] - Marriott's worldwide development pipeline at the end of Q1 2025 included approximately 3,808 properties and over 587,000 rooms, a 7.4% increase year-over-year[4][17] - The company expects full-year 2025 net rooms growth to approach 5%, assuming the acquisition of citizenM closes before year-end[6] - As of March 31, 2025, Marriott International has a total of 9,463 properties and 1,718,542 rooms worldwide[38] - The company reported a total of 1,981 managed properties worldwide, with a total of 567,896 rooms as of March 31, 2025[37] Shareholder Returns - The company repurchased 2.8 million shares for $0.8 billion in Q1 2025, returning over $1.2 billion to shareholders year-to-date through April 29[4][20] Loyalty Program - The loyalty program membership grew to nearly 237 million members by the end of March 2025[7] Revenue and Fees - Franchise fees increased by 8% to $746 million for the three months ended March 31, 2025, compared to $688 million in the same period of 2024[32] - Cost reimbursement revenue increased by 5% to $4,655 million for the three months ended March 31, 2025, compared to $4,433 million in the same period of 2024[32] Regional Performance - In Q1 2025, worldwide RevPAR increased by 4.1%, with U.S. & Canada growing by 3.3% and international markets by 5.9%[4] - RevPAR for JW Marriott increased by 5.5% to $267.85, with occupancy rising 2.2 percentage points to 73.0%[46] - The Ritz-Carlton's RevPAR grew by 8.0% to $412.33, and occupancy improved by 2.7 percentage points to 69.0%[46] - Average Daily Rate (ADR) for the Caribbean & Latin America region rose by 7.6% to $348.58, with RevPAR increasing by 10.8% to $244.14[50] - The Greater China region experienced a RevPAR decline of 2.1% to $77.23, with ADR decreasing by 3.1% to $120.13[50] - Occupancy rates in Asia Pacific excluding China improved by 1.7 percentage points to 71.3%, with RevPAR increasing by 10.6% to $133.23[50] - Marriott's overall RevPAR for the US & Canada increased by 5.1% to $181.75, with occupancy rising by 1.2 percentage points to 67.2%[46] - The average daily rate for the Composite US & Canada Luxury segment increased by 2.6% to $495.55, with RevPAR up by 5.7% to $349.69[46] - Marriott's occupancy rate for the Worldwide segment improved by 1.2 percentage points to 67.3%, with a RevPAR increase of 5.2% to $146.49[50] Future Outlook - The updated outlook for Q2 2025 anticipates RevPAR growth of 1.5% to 2.5% and full-year growth of 1.5% to 3.5%[22] - The company plans to acquire the citizenM brand, expected to occur in the second half of 2025[57] Expenses and Projections - Interest expense for the full year 2025 is expected to remain at $816 million, consistent with 2024[59] - Provision for income taxes for Q2 2025 is estimated at $264 million, compared to $269 million in Q2 2024[57] - Stock-based compensation for the full year 2025 is projected to be $220 million, consistent with previous periods[59] - Depreciation and amortization for the full year 2025 is expected to be $200 million, unchanged from 2024[59] Performance Metrics - The company emphasizes the importance of Adjusted EBITDA as a meaningful indicator of operating performance, allowing for period-over-period comparisons[65]