Afrigather - Second quarter 2024 comparable systemwide fixed greenback RevPAR elevated 4.9 % worldwide, 3.9 % within the U.S. & Canada, and seven.4 % in worldwide markets, in comparison with the 2023 second quarter;
- Second quarter reported diluted EPS totaled $2.69, in comparison with reported diluted EPS of $2.38 within the year-ago quarter. Second quarter adjusted diluted EPS totaled $2.50, in comparison with second quarter 2023 adjusted diluted EPS of $2.26;
- Second quarter reported internet revenue totaled $772 million, in comparison with reported internet revenue of $726 million within the year-ago quarter. Second quarter adjusted internet revenue totaled $716 million, in comparison with second quarter 2023 adjusted internet revenue of $690 million;
- Adjusted EBITDA totaled $1,324 million within the 2024 second quarter, in comparison with second quarter 2023 adjusted EBITDA of $1,219 million;
- The corporate added roughly 15,500 internet rooms through the quarter;
- On the finish of the quarter, Marriott’s worldwide improvement pipeline totaled roughly 3,500 properties and greater than 559,000 rooms, together with roughly 33,000 pipeline rooms permitted, however not but topic to signed contracts. Over 209,000 rooms within the pipeline had been beneath building as of the top of the second quarter;
- Marriott repurchased 1 million shares of frequent inventory for $1.0 billion within the second quarter. 12 months so far by means of July 29, the corporate has returned $2.8 billion to shareholders by means of dividends and share repurchases.
View the abstract of quarterly highlights.
Marriott Worldwide, Inc. (Nasdaq: MAR) right this moment reported second quarter 2024 outcomes.
Anthony Capuano, President and Chief Govt Officer, mentioned, “Marriott reported sturdy second quarter outcomes, with internet rooms up 6 % 12 months over 12 months and worldwide RevPAR[1] progress of practically 5 %, as shoppers continued to prioritize journey. Worldwide RevPAR elevated greater than 7 %, with Asia Pacific excluding China main the way in which, posting a powerful 13 % RevPAR enhance from the year-ago quarter.
“Within the U.S. & Canada, second quarter RevPAR grew practically 4 %, with all buyer segments rising versus the prior 12 months quarter. Group RevPAR rose practically 10 % 12 months over 12 months, with each fee and occupancy rising within the mid-single digits.
“With a membership base of over 210 million members and rising, Marriott Bonvoy is a key aggressive benefit. We stay centered on enhancing the loyalty program’s advantages and discovering new methods to have interaction with our members each on and off property. In June, we introduced a collaboration with Starbucks. The variety of members who’ve linked their accounts is already nicely exceeding our expectations.
“Proprietor desire for our manufacturers stays sturdy. We signed practically 31,000 rooms within the quarter, 75 % of which had been in worldwide markets. Our momentum round conversions continued, accounting for 37 % of room additions within the quarter. We proceed to increase our trade main world portfolio, and our expectation for internet rooms progress stays at 5.5 to six % for full 12 months 2024.
“With our strong monetary outcomes and robust money era, we have now already returned $2.8 billion to shareholders year-to-date by means of July 29. We count on to return roughly $4.3 billion to our shareholders in 2024 by means of share repurchases and dividends.”
Second Quarter 2024 Outcomes
Base administration and franchise charges totaled $1,148 million within the 2024 second quarter, a 9 % enhance in comparison with base administration and franchise charges of $1,057 million within the year-ago quarter. The rise is primarily attributable to RevPAR will increase and unit progress. Non-RevPAR-related franchise charges within the 2024 second quarter totaled $234 million, in comparison with $206 million within the year-ago quarter. The rise was largely pushed by a ten % enhance in co-branded bank card charges, in addition to $13 million of upper residential branding charges.
Incentive administration charges totaled $195 million within the 2024 second quarter, in comparison with $193 million within the 2023 second quarter, and had been impacted by weaker ends in Higher China, in addition to unfavorable overseas trade. Managed inns in worldwide markets contributed greater than 60 % of the inducement charges earned within the quarter.
Owned, leased, and different income, internet of direct bills, totaled $99 million within the 2024 second quarter, in comparison with $103 million within the year-ago quarter.
Normal, administrative, and different bills for the 2024 second quarter totaled $248 million, in comparison with $240 million within the year-ago quarter.
Curiosity expense, internet, totaled $164 million within the 2024 second quarter, in comparison with $141 million within the year-ago quarter. The rise was largely on account of increased curiosity expense related to increased debt balances.
Marriott’s reported working revenue totaled $1,195 million within the 2024 second quarter, in comparison with 2023 second quarter reported working revenue of$1,096 million. Reported internet revenue totaled $772 million within the 2024 second quarter, in comparison with 2023 second quarter reported internet revenue of $726 million. Reported diluted earnings per share (EPS) totaled $2.69 within the quarter, in comparison with reported diluted EPS of $2.38 within the year-ago quarter.
Adjusted working revenue within the 2024 second quarter totaled $1,120 million, in comparison with 2023 second quarter adjusted working revenue of $1,043 million. Second quarter 2024 adjusted internet revenue totaled $716 million, in comparison with 2023 second quarter adjusted internet revenue of $690 million. Adjusted diluted EPS within the 2024 second quarter totaled $2.50, in comparison with adjusted diluted EPS of $2.26 within the year-ago quarter.
Adjusted outcomes excluded value reimbursement income, reimbursed bills and merger-related expenses and different bills. See web page A-3 and web page A-11 of the press launch schedules for the calculation of adjusted outcomes and the style during which the adjusted measures are decided on this press launch.
Adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) totaled $1,324 million within the 2024 second quarter, in comparison with second quarter 2023 adjusted EBITDA of $1,219 million. See web page A-11 of the press launch schedules for the adjusted EBITDA calculation.
Chosen Efficiency Info
The corporate added roughly 15,500 internet rooms through the quarter.
On the finish of the quarter, Marriott’s world system totaled practically 9,000 properties, with roughly 1,659,000 rooms.
On the finish of the quarter, the corporate’s worldwide improvement pipeline totaled 3,509 properties with greater than 559,000 rooms, together with 208 properties with roughly 33,000rooms permitted for improvement, however not but topic to signed contracts. The quarter-end pipeline included 1,127 properties with over 209,000 rooms beneath building. Fifty-seven % of rooms within the quarter-end pipeline are in worldwide markets.
Within the 2024 second quarter, worldwide RevPAR elevated 4.9 % (a 4.0 % enhance utilizing precise {dollars}) in comparison with the 2023 second quarter. RevPAR within the U.S. & Canada elevated 3.9 % (a 3.9 % enhance utilizing precise {dollars}), and RevPAR in worldwide markets elevated 7.4 % (a 4.2 % enhance utilizing precise {dollars}).
Stability Sheet & Frequent Inventory
On the finish of the quarter, Marriott’s whole debt was $13.1 billion and money and equivalents totaled $0.3 billion, in comparison with $11.9 billion in debt and $0.3 billion of money and equivalents at year-end 2023.
12 months so far by means of July 29, the corporate has repurchased 10.4 million shares for $2.5 billion.
Firm Outlook
The corporate’s up to date outlook features a narrowing of the RevPAR progress vary for full 12 months 2024, primarily because of a weaker working surroundings in Higher China, in addition to marginally softer expectations within the U.S. & Canada.
1See web page A-12 and web page A-13 of the press launch schedules for the adjusted EBITDA calculations.
2Adjusted EBITDA andAdjusted EPS – diluted for third quarter and full 12 months 2024 don’t embody value reimbursement income, reimbursed bills, merger-related expenses and different bills, or any asset gross sales that will happen through the 12 months, every of which the corporate can’t forecast with ample accuracy and with out unreasonable efforts, and which can be vital.
3Assumes the extent of capital return to shareholders famous above.
4Consists of capital and know-how expenditures, mortgage advances, contract acquisition prices, and different investing actions.
5Elements within the buy of the Sheraton Grand Chicago and underlying land for $500 million, $200 million of which is included in funding spending. Assumes the extent of funding spending famous above and that no asset gross sales happen through the 12 months.
Marriott Worldwide, Inc. (Nasdaq: MAR) will conduct its quarterly earnings evaluation for the funding neighborhood and information media on Wednesday, July 31, 2024, at 8:30 a.m. Jap Time (ET). The convention name will probably be webcast concurrently through Marriott’s investor relations web site at http://www.marriott.com/investor, click on on “Occasions & Shows” and click on on the quarterly convention name hyperlink. A replay will probably be out there at that very same web site till July 31, 2025.
The phone dial-in quantity for the convention name is US Toll Free: 800-274-8461, or World: +1 203-518-9843. The convention ID is MAR2Q24. A phone replay of the convention name will probably be out there from 1:00 p.m. ET, Wednesday, July 31, 2024, till 8:00 p.m. ET, Wednesday, August 7, 2024. To entry the replay, name US Toll Free: 800-695-1564 or World: +1 402-530-9025.
[1] All occupancy, Common Day by day Fee (ADR) and Income Per Obtainable Room (RevPAR) statistics and estimates are systemwide fixed greenback. Except in any other case acknowledged, all modifications confer with year-over-year modifications for the comparable interval. Occupancy, ADR and RevPAR comparisons between 2024 and 2023 replicate properties which might be comparable in each years.
Click on right here for Q2 2024 Press Launch Schedules, together with non-GAAP reconciliations and explanations.
NOTE ON FORWARD-LOOKING STATEMENTS
All statements on this press launch and the accompanying schedules are made as of July 31, 2024. We undertake no obligation to publicly replace or revise these statements, whether or not because of new info, future occasions or in any other case. This press launch and the accompanying schedules comprise “forward-looking statements” inside the that means of federal securities legal guidelines, together with statements associated to our RevPAR, rooms progress and different monetary metric estimates, outlook and assumptions; shareholder returns; our Marriott Bonvoy program; our improvement pipeline; proprietor desire for our manufacturers; and comparable statements regarding anticipated future occasions and expectations that aren’t historic information. We warning you that these statements aren’t ensures of future efficiency and are topic to quite a few evolving dangers and uncertainties that we might not be capable of precisely predict or assess, together with the chance components that we describe in our Securities and Change Fee filings, together with our most up-to-date Annual Report on Kind 10-Okay or Quarterly Report on Kind 10-Q. Any of those components may trigger precise outcomes to vary materially from the expectations we specific or indicate on this press launch.
About Marriott Worldwide
Marriott Worldwide, Inc. (Nasdaq: MAR) relies in Bethesda, Maryland, USA, and encompasses a portfolio of practically 8,900 properties throughout greater than 30 main manufacturers in 141 nations and territories. Marriott operates and franchises inns and licenses trip possession resorts all around the globe. The corporate presents Marriott Bonvoy®, its extremely awarded journey program. For extra info, please go to our web site at www.marriott.com. As well as, join with us on Fb and @MarriottIntl on X and Instagram.
About Marriott Bonvoy®
Marriott Bonvoy’s extraordinary portfolio presents famend hospitality in essentially the most memorable locations on this planet, with 31 manufacturers which might be tailor-made to each sort of journey. From The Ritz-Carlton and St. Regis to W Accommodations and extra, Marriott Bonvoy has extra luxurious choices than another journey program. Members can earn factors for stays at inns and resorts, together with all-inclusive resorts and premium residence leases, and thru on a regular basis purchases with co-branded bank cards. Members can redeem their factors for experiences together with future stays, Marriott Bonvoy Moments™, or by means of companions for luxurious merchandise from Marriott Bonvoy Boutiques®. To enroll without cost or for extra details about Marriott Bonvoy, go to marriottbonvoy.com.
