Marriott International(US:MAR)2026-02-10 18:35Business Segments and Operations - The company operates in four reportable business segments: U.S. & Canada, EMEA, Greater China, and APEC, with Caribbean & Latin America results included in "Unallocated corporate and other" due to accounting criteria[15]. - The brand portfolio includes a total of 9,805 properties and 1,779,936 rooms across various quality tiers, with 1,065,108 rooms in the U.S. & Canada alone[20]. - The Luxury brand segment includes 130 properties and 50,891 rooms, while the Premium segment has 619 properties and 218,237 rooms[19]. - By year-end 2025, the company had 7,644 franchised, licensed, and other properties, totaling 1,183,513 rooms and timeshare units[24]. - The company operated 2,017 properties with 580,170 rooms at year-end 2025, which included properties under long-term management agreements[25]. Growth and Development - The company anticipates continued growth in its development pipeline, with expectations for room growth and capital expenditures to meet liquidity requirements[12]. - The company is exploring market expansion opportunities, particularly in emerging markets, to drive future growth[12]. - New product and technology developments are underway, aimed at enhancing guest experiences and operational efficiency[12]. Sustainability and Social Impact - The company has a strong focus on sustainability and social impact strategies, which are expected to enhance its market position[12]. - The company’s sustainability strategy focuses on integrating sustainable practices across energy, emissions, waste, and water management[51]. Loyalty Program - The company plans to expand its Loyalty Program, aiming to increase customer retention and engagement[12]. - Approximately 75% of U.S. hotel room nights and 68% of global hotel room nights were booked by Loyalty Program members in 2025[30]. - The company’s Loyalty Program is central to its business strategy, enhancing guest loyalty and generating repeat business[30]. - The company received fixed and variable amounts from co-branded credit card agreements, contributing to the funding of the Loyalty Program[31]. Financial Strategy and Capital Allocation - The company expects to continue share repurchases and dividend payments as part of its capital allocation strategy[12]. - The company has terminated its licensing agreement with Sonder Holdings Inc., indicating a strategic shift in its operational partnerships[20]. Market Share and Employment - The company has a 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[38]. - At year-end 2025, the company managed approximately 414,000 associates, including 148,000 directly employed by the company[42]. Risk Management - The company is exposed to market risks primarily from changes in interest rates and currency exchange rates, managing this exposure through derivative arrangements and credit granting policies[174]. - The average interest rate for fixed-rate notes receivable is 3.90%, while for floating-rate notes receivable it is 8.57%[176]. - The total fair value of fixed-rate debt is $13.828 billion, with an average interest rate of 4.49%[176]. - The total fair value of floating-rate debt is $2.404 billion, with an average interest rate of 4.76%[176]. - The company intends to offset gains and losses related to forward contracts with those related to cash and intercompany loan balances, resulting in negligible effects on earnings[175]. - Scheduled maturities for fixed-rate notes receivable total $18 million by 2030, with a fair value of $35 million[176]. - Scheduled maturities for floating-rate notes receivable total $126 million by 2030, with a fair value of $128 million[176]. - The company does not foresee significant changes in its exposure to fluctuations in interest rates or currency rates in the future[174]. - The company continues to have exposure to market risks to the extent they are not hedged[175]. - The total carrying amount of fixed-rate debt is $6.924 billion, with scheduled maturities extending to 2030[176]. Management Agreements and Pay Equity - The company’s management agreements typically last 20 to 30 years, with options for renewal, and include performance metrics for hotel owners[26]. - The company is committed to maintaining pay equity and conducts annual pay equity audits in the U.S.[48].