10-QPeriod: Q1 FY2024

MARRIOTT INTERNATIONAL INC /MD/ Quarterly Report for Q1 Ended Mar 31, 2024

Filed May 1, 2024For Securities:MAR

Summary

Marriott International Inc. (MAR) reported its first-quarter 2024 results, demonstrating resilience and growth across its global portfolio. The company saw a 7% increase in gross fee revenues, reaching $1.21 billion, driven by solid performance in base management and franchise fees. Net income for the quarter was $564 million, or $1.93 per diluted share, a decrease from the prior year primarily due to a large tax reserve release in Q1 2023. Despite this, the underlying operational trends remain positive, with worldwide RevPAR up 4.2%, indicating strong demand and effective pricing strategies. The company's asset-light model continues to drive expansion, with system-wide rooms increasing by 6% year-over-year to over 1.64 million. The development pipeline remains robust, exceeding 547,000 rooms, with a significant portion under construction. Marriott also returned substantial capital to shareholders through $1.2 billion in share repurchases and $151 million in dividends paid during the quarter, underscoring its commitment to shareholder value. While facing some macroeconomic uncertainties and ongoing legal matters, Marriott's diversified geographic presence and strong brand portfolio position it for continued growth.

Financial Highlights

45 data points
Beta

Revenue

$5.98B

Net Income

$564.00M

9.4% Net Margin

EPS (Diluted)

$1.93

Total Assets

$25.76B

Cash & Equivalents

$429.00M

Free Cash Flow

$670.00M

Financial Statements
Beta
Revenue$5.98B
Operating Expenses$5.10B
Operating Income$876.00M
Interest Expense$163.00M
Net Income$564.00M
EPS (Basic)$1.94
EPS (Diluted)$1.93
Shares Outstanding (Basic)290.40M
Shares Outstanding (Diluted)291.60M

Key Highlights

  • 1Gross fee revenues increased by 7% to $1.21 billion in Q1 2024 compared to Q1 2023.
  • 2Net income decreased to $564 million ($1.93/share) from $757 million ($2.43/share) in Q1 2023, impacted by a prior year tax reserve release.
  • 3Worldwide RevPAR (Revenue per Available Room) increased by 4.2% year-over-year, with strong growth in international markets.
  • 4The company's property count grew 6% year-over-year to 8,861 properties (1.64 million rooms), with a development pipeline of over 547,000 rooms.
  • 5Marriott returned $1.35 billion to shareholders through $1.2 billion in share repurchases and $151 million in dividends paid in Q1 2024.
  • 6Long-term debt increased to $12.66 billion, with a significant issuance of new notes in February 2024.

Frequently Asked Questions

The decrease in net income from $757 million in Q1 2023 to $564 million in Q1 2024 was primarily due to a significant release of tax reserves in the prior year's first quarter ($103 million), which favorably impacted Q1 2023 results. Excluding this one-time event, the underlying operational performance shows continued strength.

Marriott is actively expanding its global footprint. The total number of properties increased by 6% year-over-year to 8,861, with over 1.64 million rooms. The development pipeline remains robust, with nearly 547,000 rooms approved or under construction, and over half of these are located outside the U.S. and Canada, indicating strong international growth potential.

Marriott is committed to returning capital to shareholders through a combination of share repurchases and dividends. In the first quarter of 2024, the company repurchased approximately $1.2 billion of its common stock and paid $151 million in dividends. The company expects to continue this strategy of returning cash to stockholders.

Marriott is involved in ongoing litigation and investigations related to the 2018 Starwood data security incident. While the company has accrued for an estimated loss contingency that is not material, it acknowledges that it is reasonably possible that losses could exceed recorded amounts due to the uncertainties surrounding these proceedings, including class certification, damages, and regulatory resolutions. However, the company does not believe this incident will impact its long-term financial health.