How did Marriott's fee revenues perform in the reported period?

Marriott reported strong growth in fee revenues. Gross fee revenues increased by 12% to $951 million for the three months ended June 30, 2018, and by 12% to $1,796 million for the six months ended June 30, 2018. This growth was primarily driven by increases in base management fees, franchise fees (boosted by co-brand credit card agreements), and incentive management fees, reflecting higher RevPAR and unit growth.

What is the company's outlook on growth and system expansion?

Marriott is continuing to expand its global footprint. In the first half of 2018, the company added 242 properties, representing 38,192 rooms, while 45 properties exited the system. The company had approximately 466,000 rooms in its development pipeline at the end of the second quarter of 2018, with nearly half of these rooms located outside of North America.

How did the Tax Cuts and Jobs Act of 2017 affect Marriott's financial results?

The Tax Cuts and Jobs Act of 2017 had a significant impact, primarily by reducing the U.S. federal corporate tax rate. For the second quarter of 2018, the provision for income taxes decreased by $41 million, largely due to the tax rate reduction. For the first half of 2018, the provision for income taxes decreased by $60 million, also primarily due to the reduced U.S. federal tax rate. The company noted that its accounting for the full impact of the Act was still in progress and could be refined.

What is the current status of Marriott's share repurchase program?

Marriott continued its share repurchase program, buying back 6.2 million shares of common stock in the second quarter of 2018. As of June 30, 2018, approximately 20.4 million shares remained available for repurchase under Board-approved authorizations, indicating ongoing confidence in returning capital to shareholders.

MAR 10-Q Quarterly Report Q2 FY2018 — Revenue, Net Income, EPS

Summary

Marriott International Inc. reported solid financial results for the second quarter and first half of 2018, demonstrating continued growth in its core fee-based businesses. Net income increased significantly year-over-year, driven by strong performance in base, franchise, and incentive management fees, reflecting both RevPAR growth and unit expansion across its global portfolio. The company's asset-light strategy continues to be a key driver of its financial health, with a strong emphasis on managing and franchising properties rather than owning them. This strategy, coupled with effective cost management and synergies from the Starwood integration, contributed to improved operating income and profitability. Marriott's commitment to returning capital to shareholders is evident through its share repurchase program and consistent dividend payments, signaling confidence in its ongoing business model and future prospects.

Financial Highlights

46 data points

Beta

Revenue

$5.41B

Net Income

$667.00M

0.1% Net Margin

EPS (Diluted)

$1.87

Total Assets

$23.84B

Cash & Equivalents

$366.00M

Free Cash Flow

$130.00M

Financial Statements

Beta

Revenue	$5.41B
Operating Expenses	$4.59B
Operating Income	$818.00M
Interest Expense	$85.00M
Net Income	$667.00M
EPS (Basic)	$1.89
EPS (Diluted)	$1.87
Shares Outstanding (Basic)	353.40M
Shares Outstanding (Diluted)	357.30M

Key Highlights

1Net income for the six months ended June 30, 2018, was $1,008 million, a substantial increase from $860 million in the prior year period.
2Gross fee revenues increased by 12% to $951 million for the three months ended June 30, 2018, and by 12% to $1,796 million for the six months ended June 30, 2018, driven by strong performance in base, franchise, and incentive management fees.
3Comparable worldwide systemwide RevPAR increased by 3.8% for the three months ended June 30, 2018, indicating healthy demand for Marriott's brands.
4The company added 242 properties (38,192 rooms) in the first half of 2018, contributing to its global system growth.
5Diluted earnings per share increased to $1.71 for the three months ended June 30, 2018, from $1.28 in the prior year period.
6Marriott declared and paid cash dividends totaling $0.74 per share for the first half of 2018, an increase from $0.63 in the prior year period.
7The company continues to benefit from synergies related to the Starwood acquisition, contributing to administrative cost savings.

MARRIOTT INTERNATIONAL INC /MD/ Quarterly Report for Q2 Ended Jun 30, 2018

Summary

Financial Highlights

Key Highlights

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