10-QPeriod: Q2 FY2024

MARRIOTT INTERNATIONAL INC /MD/ Quarterly Report for Q2 Ended Jun 30, 2024

Filed July 31, 2024For Securities:MAR

Summary

Marriott International Inc. reported solid financial results for the second quarter and first half of 2024, demonstrating continued growth and operational strength. Net income for the second quarter increased to $772 million from $726 million in the prior year, while diluted earnings per share rose to $2.69 from $2.38. Gross fee revenues saw a 7% increase for both the quarter and the year-to-date period, driven by strong performance in base management fees and franchise fees. The company's asset-light model continues to fuel growth, with a notable expansion in franchised and licensed properties and a robust development pipeline. Key financial metrics indicate positive trends, with worldwide RevPAR increasing by 4.9% for the second quarter and 4.5% for the first half, reflecting gains in both average daily rates and occupancy across most regions. The company maintained significant shareholder returns through dividends and share repurchases, underscoring its commitment to returning capital. While the company faces ongoing legal proceedings related to the 2018 data security incident, management believes these will not materially impact long-term financial health, though potential losses in excess of recorded amounts are possible.

Financial Highlights

43 data points
Beta

Revenue

$6.44B

Net Income

$772.00M

12.0% Net Margin

EPS (Diluted)

$2.69

Total Assets

$25.74B

Cash & Equivalents

$349.00M

Free Cash Flow

$647.00M

Financial Statements
Beta
Revenue$6.44B
Operating Expenses$5.24B
Operating Income$1.20B
Net Income$772.00M
EPS (Basic)$2.70
EPS (Diluted)$2.69
Shares Outstanding (Basic)285.80M
Shares Outstanding (Diluted)286.70M

Key Highlights

  • 1Net income for Q2 2024 was $772 million, up from $726 million in Q2 2023, with diluted EPS of $2.69, up from $2.38.
  • 2Gross fee revenues increased by 7% to $1,343 million in Q2 2024 and by 7% to $2,553 million for the first six months of 2024.
  • 3Worldwide RevPAR increased by 4.9% in Q2 2024 and 4.5% for the first half of 2024, driven by ADR and occupancy growth.
  • 4The company's property count grew by 4% year-over-year to 8,969 properties, with a 6% increase in rooms, totaling 1,658,659 rooms.
  • 5Marriott continued to return capital to shareholders, repurchasing $1.0 billion of common stock in Q2 2024 and paying a dividend of $0.63 per share.
  • 6The company's development pipeline remains strong, with approximately 3,500 hotels and over 559,000 rooms approved or under construction.
  • 7Interest expense increased by 24% in Q2 2024 due to higher debt balances from recent senior note issuances.

Frequently Asked Questions

For the second quarter of 2024, Marriott reported net income of $772 million, an increase from $726 million in the same quarter of 2023. Diluted earnings per share were $2.69, up from $2.38 in the prior year. Gross fee revenues grew by 7% to $1,343 million, and worldwide RevPAR increased by 4.9%.

Marriott's system continued to expand, with the total number of properties increasing by 4% to 8,969 as of June 30, 2024, compared to the prior year. The number of rooms under management also grew by 6% to approximately 1.66 million. The company expects full-year 2024 net room growth to be between 5.5% and 6.0%.

Marriott is committed to returning capital to shareholders through a combination of share repurchases and dividends. In the second quarter of 2024, the company repurchased approximately $1.0 billion of its common stock and paid a cash dividend of $0.63 per share. Management expects to continue this strategy.

Marriott is still involved in legal proceedings related to the 2018 Starwood data security incident. While the company has accrued for an estimated loss contingency that is not material, it is possible that additional monetary payments to regulators and litigants could exceed recorded amounts. The company is also proceeding with the purchase of the land underlying the Sheraton Grand Chicago for approximately $500 million, expected to close in Q4 2024.