How did Marriott's revenue performance compare to the previous year?

Marriott International saw a substantial increase in revenue, with Gross Fee Revenues rising by 39% to $1,133 million in the first quarter of 2023 compared to $815 million in the same period of 2022. Net fee revenues also increased by 41% to $1,112 million. This growth was driven by higher RevPAR, unit growth, and increased incentive management fees due to improved hotel profitability.

What is the outlook for Marriott's global room growth?

Marriott expects full-year 2023 total gross rooms growth of approximately 5.5% and net rooms growth of 4.0% to 4.5%. The company's development pipeline remains robust with approximately 502,000 hotel rooms at the end of the first quarter, with over half of these rooms located outside the U.S. & Canada.

How is Marriott managing its debt and liquidity?

Marriott maintains a strong liquidity position supported by a $4.5 billion revolving credit facility and access to capital markets. While long-term debt increased due to Senior Notes issuances, the company's leverage ratios remain within the covenants of its credit facility. Marriott's long-term financial objectives include optimizing its debt maturity profile and maintaining diversified financing sources. The company expects cash generated from operations, along with its credit facility and capital markets access, to be adequate for its liquidity needs.

What are the potential financial impacts of the Starwood Data Security Incident?

Marriott acknowledges the ongoing legal proceedings and government investigations related to the Starwood Data Security Incident. While the company has accrued for an estimated loss contingency deemed not material to the financial statements, it is unable to reasonably estimate the range of total possible financial impact beyond amounts already recorded. The company expects to incur significant future expenses related to this incident, primarily for legal proceedings and regulatory investigations, though it does not believe it will impact its long-term financial health.

MAR 10-Q Quarterly Report Q1 FY2023 — Revenue, Net Income, EPS

Summary

Marriott International Inc. reported a strong first quarter in 2023, demonstrating significant recovery and growth compared to the prior year. Net income more than doubled year-over-year, reaching $757 million, or $2.43 per diluted share, driven by robust fee revenue growth. This performance was underpinned by a substantial increase in worldwide RevPAR (Revenue per Available Room) of 34.3%, fueled by both improved occupancy and average daily rates across all segments, including a particularly strong rebound in international markets. The company's asset-light business model continues to be a key driver, with gross fee revenues rising 39% to $1,133 million. This growth was supported by expanding room additions and a healthy development pipeline. Marriott also returned significant capital to shareholders through share repurchases totaling $1.1 billion and paid a quarterly dividend, signaling confidence in its ongoing financial strength and future prospects. The acquisition of the City Express brand portfolio in May 2023 further signals strategic expansion.

Financial Highlights

45 data points

Beta

Revenue

$5.62B

Net Income

$757.00M

0.1% Net Margin

EPS (Diluted)

$2.43

Total Assets

$24.86B

Cash & Equivalents

$554.00M

Free Cash Flow

$792.00M

Financial Statements

Beta

Revenue	$5.62B
Operating Expenses	$4.66B
Operating Income	$951.00M
Interest Expense	$126.00M
Net Income	$757.00M
EPS (Basic)	$2.44
EPS (Diluted)	$2.43
Shares Outstanding (Basic)	309.60M
Shares Outstanding (Diluted)	311.00M

Key Highlights

1Net income surged to $757 million for Q1 2023, a significant increase from $377 million in Q1 2022, with diluted EPS at $2.43.
2Worldwide RevPAR increased by a strong 34.3% year-over-year, driven by an 11.2 percentage point increase in occupancy and an 11.3% rise in Average Daily Rate (ADR).
3Gross fee revenues grew by 39% to $1,133 million, reflecting strong performance in base management fees, franchise fees, and particularly incentive management fees.
4The company actively returned capital to shareholders, repurchasing $1.1 billion of common stock and paying a quarterly dividend of $0.40 per share.
5Marriott's global hotel system expanded, adding 79 properties (11,015 rooms) in the quarter, with a development pipeline of approximately 502,000 rooms.
6The company completed the acquisition of the City Express brand portfolio on May 1, 2023, adding approximately 150 properties in Latin America.
7Interest expense increased by 35% to $126 million, primarily due to higher average debt balances from recent Senior Notes issuances.

MARRIOTT INTERNATIONAL INC /MD/ Quarterly Report for Q1 Ended Mar 31, 2023

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions