Marriott Global Reports Q3 2024 Results

Marriott Global, Inc. reported third-quarter 2024 outcomes. Highlights include:

• Third quarter 2024 related systemwide constant dollar RevPAR elevated 3 percent worldwide, 2.1 percent in the United States and Canada, and 5.4 percent in world markets, when put next with the 2023 third quarter;
• Third quarter reported diluted EPS totaled $2.07, when put next with reported diluted EPS of $2.51 in the year-previously quarter. Third quarter adjusted diluted EPS totaled $2.26, when put next with third quarter 2023 adjusted diluted EPS of $2.11;
• Third quarter reported win earnings totaled $584 million, when put next with reported win earnings of $752 million in the year-previously quarter. Third quarter adjusted win earnings totaled $638 million, when put next with third quarter 2023 adjusted win earnings of $634 million;
• Adjusted EBITDA totaled $1,229 million in the 2024 third quarter, when put next with third quarter 2023 adjusted EBITDA of $1,142 million;
• The corporate added roughly 16,000 win rooms all during the quarter;
• At the cease of the quarter, Marriott’s worldwide construction pipeline totaled approximately 3,800 properties and 585,000 rooms, in conjunction with roughly 34,000 pipeline rooms permitted, but no longer yet enviornment to signed contracts. Extra than 220,000 rooms in the pipeline were below construction as of the cease of the third quarter;
• Marriott repurchased 4.5 million shares of standard stock for $1.0 billion in the third quarter. 300 and sixty five days to this point through October 31, 2024, the company has returned $3.9 billion to shareholders through dividends and allotment repurchases.

Anthony Capuano, president and CEO, stated, “Marriott had one more solid quarter, highlighted by solid win rooms and rate development, sturdy construction job, and a 3 percent manufacture bigger in world RevPAR. Third-quarter world RevPAR rose 5.4 percent, led by meaningful positive aspects in APEC and EMEA with resilient home and unpleasant-border ask, as successfully as solid ADR development. RevPAR in the United States and Canada elevated bigger than 2 percent when put next with the year-previously quarter, with ADR up 2.3 percent.

“Team remained the standout customer segment, with world neighborhood RevPAR rising 10 percent in the quarter and on stagger to upward thrust 8 percent for chunky year 2024. RevPAR for the industry transient segment persisted to grow wisely in the quarter, while leisure transient RevPAR modified into once flat year over year, but quiet successfully ahead of pre-pandemic ranges.

“Given the breadth and depth of our portfolio and the meaningful advantages we carry to owners and franchisees, ask for our manufacturers remains solid. By the first three quarters of 2024, we signed over 95,000 natural rooms, bigger than half of of that are open air the United States and Canada. Extra than 40 percent of signed rooms are conversions, the put we continue to maintain a bunch of momentum, namely with multi-unit alternatives.

“Obtain rooms grew almost 6 percent over the closing four quarters, and our construction pipeline reached a file 585,000 rooms on the cease of September. Our teams live keenly centered on rising our alternate-leading world portfolio, and we now build a query to chunky-year 2024 win rooms development to be around 6.5 percent.

“Our industry momentum is very best, and we continue to evolve our industry to augment our a huge series of world development alternatives. To that cease, we maintain now got undertaken a comprehensive initiative to make stronger our effectiveness and efficiency across the company. At this point all through, we build a query to this initiative to yield $80 million to $90 million of annual overall and administrative price reductions initiating in 2025. As successfully as, we build a query to this work to carry price financial savings to our owners and franchisees.

“With our asset-light industry mannequin producing meaningful cash and our solid financial performance, we returned $3.7 billion to shareholders through allotment repurchases and dividends in the first 9 months of the year, and now build a query to to shut approximately $4.4 billion for the chunky year 2024.”

Third Quarter 2024 Results

Infamous administration and franchise costs totaled $1,124 million in the 2024 third quarter, a 7 percent manufacture bigger when put next with pass administration and franchise costs of $1,054 million in the year-previously quarter. The manufacture bigger is basically attributable to RevPAR will increase and unit development, as successfully as bigger residential and co-branded bank card costs.

Incentive administration costs totaled $159 million in the 2024 third quarter, an 11 percent manufacture bigger when put next with $143 million in the 2023 third quarter. Managed accommodations in world markets contributed roughly 70 percent of the incentive costs earned in the quarter.

General, administrative, and other bills for the 2024 third quarter totaled $276 million, when put next with $239 million in the year-previously quarter. The year-over-year exchange largely reflects a $19 million working guarantee reserve for a U.S. hotel, which modified into once negotiated in connection with the company’s acquisition of Starwood, and an $11 million litigation reserve.

Interest expense, win, totaled $168 million in the 2024 third quarter, when put next with $139 million in the year-previously quarter. The manufacture bigger modified into once largely due to bigger passion expense related with bigger debt balances.

Marriott’s reported working earnings totaled $944 million in the 2024 third quarter, when put next with 2023 third quarter reported working earnings of $1,099 million. Reported win earnings totaled $584 million in the 2024 third quarter, when put next with 2023 third quarter reported win earnings of $752 million. Reported diluted earnings per allotment (EPS) totaled $2.07 in the quarter, when put next with reported diluted EPS of $2.51 in the year-previously quarter.

Adjusted working earnings in the 2024 third quarter totaled $1,017 million, when put next with 2023 third quarter adjusted working earnings of $959 million. Third-quarter 2024 adjusted win earnings totaled $638 million, when put next with 2023 third-quarter adjusted win earnings of $634 million. Adjusted diluted EPS in the 2024 third quarter totaled $2.26, when put next with adjusted diluted EPS of $2.11 in the year-previously quarter.

Adjusted outcomes excluded price reimbursement earnings, reimbursed bills, and restructuring and merger-related bills.

Adjusted earnings sooner than passion, taxes, depreciation, and amortization (EBITDA) totaled $1,229 million in the 2024 third quarter, when put next with third quarter 2023 adjusted EBITDA of $1,142 million.

Chosen Performance Records

The corporate added roughly 16,000 win rooms all during the quarter.

At the cease of the quarter, Marriott’s world draw totaled almost 9,100 properties, with roughly 1,675,000 rooms.

At the cease of the quarter, the company’s worldwide construction pipeline totaled 3,802 properties with approximately 585,000 rooms, in conjunction with 232 properties with roughly 34,000 rooms permitted for construction, but no longer yet enviornment to signed contracts. The quarter-cease pipeline incorporated 1,320 properties with bigger than 220,000 rooms below construction. Fifty-six percent of rooms in the quarter-cease pipeline are in world markets.

In the 2024 third quarter, worldwide RevPAR elevated 3 percent (a 2.3 percent manufacture bigger using precise dollars) when put next with the 2023 third quarter. RevPAR in the United States and Canada elevated 2.1 percent (a 1.9 percent manufacture bigger using precise dollars), and RevPAR in world markets elevated 5.4 percent (a 3.3 percent manufacture bigger using precise dollars).

Steadiness Sheet & Linked outdated Inventory

At the cease of the quarter, Marriott’s total debt modified into once $13.6 billion and cash and equivalents totaled $0.4 billion, when put next with $11.9 billion in debt and $0.3 billion of cash and equivalents at year-cease 2023.

300 and sixty five days to this point through October 31, 2024, the company has repurchased 14.2 million shares for $3.4 billion.

In the third quarter, the company issued $500 million of Series PP Senior Notes due in 2030 with a 4.80 percent passion rate coupon and $1.0 billion of Series QQ Senior Notes due in 2035 with a 5.35 percent passion rate coupon.