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Marriott Q4 Earnings & Revenues Beat Estimates, RevPAR Rise Y/Y
MARMarriott International(MAR) ZACKS·2025-02-11 16:51

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,surpassingtheZacksConsensusEstimateof2.45, surpassing the Zacks Consensus Estimate of 2.38, while the prior-year quarter's adjusted EPS was 3.57[5].−Quarterlyrevenuesreached3.57 [5]. - Quarterly revenues reached 6.42 billion, beating the consensus mark of 6.39billion,reflectinga56.39 billion, reflecting a 5% year-over-year increase [5]. - Total revenues for 2024 amounted to 25.1 billion, up from 23.7billionin2023,whileadjustedEBITDAfortheyearwas23.7 billion in 2023, while adjusted EBITDA for the year was 4.98 billion compared to 4.7billioninthepreviousyear[13].RevenueBreakdown−Revenuesfrombasemanagementandfranchisefeeswere4.7 billion in the previous year [13]. Revenue Breakdown - Revenues from base management and franchise fees were 333 million and 795million,representingyear−over−yearincreasesof4795 million, representing year-over-year increases of 4% and 13%, respectively [6]. - Incentive management fees decreased by 6% to 206 million from 218millionintheprior−yearquarter[6].RevPARandMargins−Worldwidecomparablesystem−wideRevPARincreasedby5218 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 13.6billioninthepriorquarter,whilecashandcashequivalentsincreasedto13.6 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 350million[11].Outlook−ForQ12025,managementanticipatesgrossfeerevenuesbetween350 million [11]. Outlook - For Q1 2025, management anticipates gross fee revenues between 1.24 billion and 1.26billion,withadjustedEBITDAexpectedtobebetween1.26 billion, with adjusted EBITDA expected to be between 1.17 billion and 1.2billion[14].−Forthefullyear2025,Marriottreduceditsgrossfeerevenueexpectationsto1.2 billion [14]. - For the full year 2025, Marriott reduced its gross fee revenue expectations to 5.37-5.48billionandprojectedadjustedEBITDAbetween5.48 billion and projected adjusted EBITDA between 5.3 billion and $5.43 billion [15].