10-QPeriod: Q1 FY2022

MARRIOTT INTERNATIONAL INC /MD/ Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 4, 2022For Securities:MAR

Summary

Marriott International Inc. reported a strong first quarter for 2022, demonstrating a significant rebound from the previous year. Net income surged to $377 million, a substantial improvement from a net loss of $11 million in the same period of 2021. This turnaround was driven by a robust recovery in lodging demand, particularly in leisure travel, which led to an 85% increase in net fee revenues to $791 million. The company experienced widespread RevPAR (Revenue Per Available Room) growth across all segments, with worldwide RevPAR up 96.5% compared to Q1 2021 and approaching pre-pandemic (2019) levels. This recovery was supported by strong Average Daily Rates (ADR) exceeding 2019 levels in certain markets. Marriott also announced the resumption of its quarterly cash dividend, signaling confidence in its financial health and future prospects, and expects to resume share repurchases later in 2022.

Financial Highlights

44 data points
Beta

Revenue

$4.20B

Net Income

$377.00M

9.0% Net Margin

EPS (Diluted)

$1.14

Total Assets

$25.24B

Cash & Equivalents

$1.04B

Free Cash Flow

$349.00M

Financial Statements
Beta
Revenue$4.20B
Operating Expenses$3.64B
Operating Income$558.00M
Interest Expense$93.00M
Net Income$377.00M
EPS (Basic)$1.15
EPS (Diluted)$1.14
Shares Outstanding (Basic)328.30M
Shares Outstanding (Diluted)330.00M

Key Highlights

  • 1Net income dramatically improved from a loss of $11 million in Q1 2021 to a profit of $377 million in Q1 2022.
  • 2Net fee revenues grew by an impressive 85% year-over-year, reaching $791 million, fueled by the recovery in lodging demand.
  • 3Worldwide RevPAR increased by 96.5% compared to the prior year, with ADR exceeding 2019 levels in some markets.
  • 4System-wide properties grew by 3% globally to 8,048 properties (1.49 million rooms) by the end of Q1 2022.
  • 5The company declared a $0.30 per share quarterly cash dividend, resuming dividend payments after a period of suspension.
  • 6Marriott expects full-year 2022 total gross rooms growth to approach 5.0% and net rooms growth of 3.5% to 4.0%.

Frequently Asked Questions

The primary driver was the significant recovery in global lodging demand, particularly leisure travel, following the impacts of COVID-19. This led to substantial increases in RevPAR, ADR, and occupancy across all segments, boosting fee revenues.

Yes, Marriott's Board of Directors declared a quarterly cash dividend of $0.30 per share in May 2022, marking a resumption of shareholder returns. The company also anticipates resuming share repurchases later in 2022, contingent on continued demand recovery and leverage ratios.

Marriott continues to expand its global footprint. By the end of Q1 2022, the company had 8,048 properties (1.49 million rooms) and a development pipeline of over 489,000 rooms, with a significant portion located outside the U.S. & Canada. They expect full-year net rooms growth of 3.5% to 4.0%.

While recovering, the company notes that COVID-19 continues to have a material impact, with ongoing labor shortages being a challenge in certain markets. The Starwood data security incident also continues to result in legal proceedings and regulatory investigations, although Marriott does not believe it will impact its long-term financial health.