Summary
Marriott International, Inc. (MAR) reported a strong recovery in its third quarter and the first nine months of 2021, driven by a rebound in lodging demand, particularly leisure travel. Net income for the nine months ended September 30, 2021, was $631 million, a significant improvement from a net loss of $103 million in the same period of 2020. Revenues across all fee categories (base management, franchise, and incentive management) saw substantial year-over-year increases, reflecting higher RevPAR (Revenue Per Available Room) and unit growth. The company's operational performance is closely tied to the global lodging demand, which, while recovering, remains sensitive to factors like the COVID-19 Delta variant and the pace of business transient and group travel recovery. Despite the ongoing impact of the pandemic, Marriott has actively managed its financial position, including debt management and cost control measures. The company's liquidity remains adequate, supported by its credit facility and cash on hand, though share repurchases and dividends are suspended.
Financial Highlights
44 data points| Revenue | $3.95B |
| Operating Expenses | $3.40B |
| Operating Income | $545.00M |
| Interest Expense | $107.00M |
| Net Income | $220.00M |
| EPS (Basic) | $0.67 |
| EPS (Diluted) | $0.67 |
| Shares Outstanding (Basic) | 327.30M |
| Shares Outstanding (Diluted) | 329.30M |
Key Highlights
- 1Net income for the nine months ended September 30, 2021, was $631 million, a substantial turnaround from a net loss of $103 million in the prior year period.
- 2Gross fee revenues increased by 48% to $1,863 million for the first nine months of 2021 compared to $1,260 million in the same period of 2020, driven by strong performance in base management and franchise fees.
- 3Worldwide comparable systemwide RevPAR improved significantly, up 118.4% in Q3 2021 and 42.2% for the first nine months of 2021 compared to the prior year periods.
- 4The company's development pipeline remains robust with nearly 477,000 rooms in development at the end of Q3 2021.
- 5Marriott completed a tender offer to repurchase $1 billion of its Senior Notes, funded by a new $700 million Series II Notes issuance, demonstrating active debt management.
- 6Despite recovery, RevPAR for the nine months ended September 30, 2021, remained below pre-pandemic 2019 levels, declining 42.3% worldwide.
- 7The company suspended share repurchases and dividends, with plans to resume them when business conditions improve and credit facility covenants permit.