10-QPeriod: Q1 FY2021

MARRIOTT INTERNATIONAL INC /MD/ Quarterly Report for Q1 Ended Mar 31, 2021

Filed May 10, 2021For Securities:MAR

Summary

Marriott International reported a net loss of $11 million ($0.03 per diluted share) for the first quarter of 2021, a significant shift from the $31 million net income ($0.09 per diluted share) in the same period of 2020. This downturn is primarily attributed to the ongoing impact of the COVID-19 pandemic on global travel and lodging demand. Total revenues saw a substantial decrease, with net fee revenues down 29% year-over-year, reflecting lower base management and franchise fees. The company's liquidity remains a focus, with efforts to preserve financial flexibility including the suspension of share repurchases and dividends, and managing debt maturities. Despite the challenges, Marriott noted improvements in global demand compared to the lows of early 2020, with particular strength in leisure travel and recovery in China.

Financial Highlights

41 data points
Beta

Revenue

$2.32B

Net Income

-$11.00M

-0.5% Net Margin

EPS (Diluted)

$-0.03

Total Assets

$24.37B

Cash & Equivalents

$628.00M

Free Cash Flow

-$3.00M

Financial Statements
Beta
Revenue$2.32B
Operating Expenses$2.23B
Operating Income$84.00M
Interest Expense$107.00M
Net Income-$11.00M
EPS (Basic)$-0.03
EPS (Diluted)$-0.03
Shares Outstanding (Basic)326.70M
Shares Outstanding (Diluted)326.70M

Key Highlights

  • 1Net loss of $11 million in Q1 2021, compared to a net income of $31 million in Q1 2020, largely due to COVID-19 impacts.
  • 2Total revenues declined significantly, with net fee revenues down 29% to $428 million, driven by lower RevPAR.
  • 3Comparable systemwide RevPAR declined 46% year-over-year, but showed sequential improvement, with Greater China leading the recovery.
  • 4The company issued $1.1 billion in senior notes to strengthen its liquidity position.
  • 5Marriott International ended the quarter with $642 million in cash, cash equivalents, and restricted cash.
  • 6Share repurchases and dividends remain suspended as the company prioritizes financial flexibility.
  • 7System growth continues, with 7,662 properties and over 1.4 million rooms at the end of Q1 2021.

Frequently Asked Questions

Marriott International reported a net loss of $11 million, or a loss of $0.03 per diluted share, for the first quarter of 2021. This compares to a net income of $31 million, or $0.09 per diluted share, for the first quarter of 2020. The decline was primarily driven by the continued impact of the COVID-19 pandemic on travel demand.

COVID-19 significantly impacted Marriott's revenues. Net fee revenues decreased by 29% to $428 million in Q1 2021 compared to $604 million in Q1 2020. This was largely due to a 46% decline in comparable systemwide RevPAR, reflecting lower occupancy and average daily rates across most regions.

Marriott International ended the first quarter of 2021 with $642 million in cash, cash equivalents, and restricted cash. The company issued $1.1 billion in senior notes during the quarter to bolster its liquidity. Share repurchases and dividends remain suspended to preserve financial flexibility.

Marriott noted that global demand continues to improve compared to the low points of early 2020, with strong leisure demand and recovery in regions like Greater China. While business transient and group demand are recovering more slowly, the company anticipates continued recovery as vaccination programs progress and travel restrictions ease. However, COVID-19 is expected to continue to materially impact future results for an unpredictable period.