Marriott International, Inc. (MAR) reported fourth-quarter 2023 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same. The top and bottom lines increased on a year-over-year basis. The upside was backed by solid leisure demand and recovery in business transient and group demand. It also benefited from its fee-driven, asset-light business model.The company reported strength in The Marriott Bonvoy loyalty program, comprising 196 million members as of 2023-end. It expand ...

Key TakeawaysMarriott International Inc.'s fourth-quarter revenue missed estimates Tuesday as the post-pandemic travel boom eased.Marriott's North American revenue for the fourth quarter rose 3.3%, while international sales were up 17.4%.Marriott's current-quarter and full-year outlooks were below estimates.At midday Tuesday, Marriott stock was down about 6.3%.Marriott International Inc. (MAR) shares dropped Tuesday as the big hotel chain missed sales forecasts and gave weaker-than-expected guidance amid sl ...

Financial Data and Key Metrics - Global RevPAR increased by over 7% YoY in Q4 2023, driven by equal gains in ADR and occupancy [6] - Full-year global RevPAR rose nearly 15% in 2023, with net rooms growing by 4.7% [6] - Group revenues rose 9% globally and 7% in the US and Canada in Q4 2023 [7] - Leisure transient revenues in Q4 2023 were nearly 50% above the same quarter in 2019 [7] - Business transient revenues grew 7% globally and 3% in the US and Canada in Q4 2023 [8] - Marriott Bonvoy loyalty program reached over 196 million members by the end of 2023 [9] Business Line Data and Key Metrics - Group segment accounted for 23% of room nights in Q4 2023, with 2024 Group revenues pacing up nearly 13% globally and 11% in the US and Canada [7] - Leisure transient accounted for 44% of global room nights in Q4 2023, with global leisure transient revenues up 6% YoY [7][8] - Business transient contributed 33% of global room nights in Q4 2023, with demand from small and medium-sized corporates remaining robust [8] Market Data and Key Metrics - US and Canada RevPAR increased over 3% YoY in Q4 2023, while international RevPAR rose 17% [14] - Greater China RevPAR rose 81% in Q4 2023, driven by easy comparisons to COVID lockdowns in the year-ago quarter [14] - Asia Pacific RevPAR (excluding China) grew 13% in Q4 2023 [14] Company Strategy and Industry Competition - Marriott signed a record 891 organic management, franchise, and license agreements in 2023, representing approximately 164,000 rooms [10] - The company expects net rooms growth of 5.5% to 6% in 2024, including around 37,000 rooms from MGM [10] - Marriott is making significant progress in the high-growth mid-scale space, with over 300 potential deals under discussion in the US [11][12] - The company's luxury distribution is over 50% larger than its closest competitor, with record luxury signings in 2023 [12] Management Commentary on Operating Environment and Future Outlook - Demand for all types of travel remains strong, with the fundamentals for the industry described as outstanding [13] - For 2024, Marriott anticipates global RevPAR growth of 3% to 5%, with higher growth expected in international markets, particularly in Asia Pacific [19][20] - The company expects gross fees to rise 6% to 8% in 2024, driven by strong credit card and residential branding fee growth [20][21] Other Important Information - Marriott's digital channels, particularly the Marriott Bonvoy app, contributed 22% more room nights in 2023 than in the prior year [9] - The company's co-branded credit cards saw record global card member acquisitions in 2023, with card spend growing 11% [9] - Marriott expects to return between $4.1 billion and $4.3 billion in capital to shareholders in 2024 [23] Q&A Session Summary Question: MGM Transaction and Fee Contributions [26] - The MGM transaction will contribute modest G&A costs in Q1 2024, with business expected to ramp up over the year [27] Question: Development Environment and Construction Costs [31] - Marriott is seeing strong momentum in new build projects and conversions, with expectations of continued relief on interest rates in the back half of 2024 [32][34] - Construction costs have come down slightly, but the availability of debt for new construction remains a key focus [34] Question: Core Metrics and EPS Outlook [36] - The lower EPS outlook for 2024 is primarily due to a higher book tax rate and the impact of a large termination fee in 2023 [37] Question: Large Corporate Group Bookings [38] - Large corporate transient demand continues to lag pre-pandemic levels, but incremental growth is being seen quarter-over-quarter [39] - Group bookings for 2024 are pacing up 11% in the US and Canada, with 75% of expected group business already on the books [41] Question: SG&A Costs and Bad Debt [43] - Higher SG&A costs in Q4 2023 were due to timing issues, including a litigation reserve and performance-related compensation [44] Question: RevPAR and Unit Growth Guidance [45] - Marriott remains confident in its three-year net rooms CAGR of 5% to 5.5% from 2022 to 2025 [46] Question: Room Growth vs. Fee Growth [51] - The fundamental model of RevPAR plus fees continues to work well, with strong IMF growth expected in 2024 [52] Question: Mid-Scale Development and Owner Profile [69][81] - Marriott is enthusiastic about its mid-scale development, with strong demand and a mix of existing and new franchisees [72][82] Question: Credit Card Fee Growth [88] - Credit card fee growth in 2024 is expected to be driven primarily by new card sign-ups, with overall non-RevPAR fees expected to grow 9% to 10% [89][90] Question: Unit Growth Acceleration [92] - Marriott expects net rooms growth to accelerate in 2024, with conversions accounting for 30% of expected openings [96]

Marriott International (MAR) reported $6.1 billion in revenue for the quarter ended December 2023, representing a year-over-year increase of 2.9%. EPS of $3.57 for the same period compares to $1.96 a year ago.The reported revenue represents a surprise of -3.61% over the Zacks Consensus Estimate of $6.32 billion. With the consensus EPS estimate being $2.12, the EPS surprise was +68.40%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to ...

Marriott International (MAR) came out with quarterly earnings of $3.57 per share, beating the Zacks Consensus Estimate of $2.12 per share. This compares to earnings of $1.96 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 68.40%. A quarter ago, it was expected that this hotel company would post earnings of $2.10 per share when it actually produced earnings of $2.11, delivering a surprise of 0.48%.Over the last four quarters, t ...

Property and Brand Portfolio - At year-end 2023, the company operated 2,096 properties with a total of 589,078 rooms[12]. - The company had 6,563 franchised and licensed properties, totaling 994,354 rooms and timeshare units[17]. - The brand portfolio includes Classic and Distinctive brands, categorized into four quality tiers: Luxury, Premium, Select, and Midscale[19][20][21]. - The company reported a total of 121 JW Marriott properties with 48,430 rooms across various regions[23]. - The Ritz-Carlton brand had 113 properties and 31,179 rooms at year-end 2023[23]. - The Luxury Collection brand included 71 properties with a total of 23,428 rooms[23]. Business Structure and Strategy - The company plans to modify its segment structure starting Q1 2024, reporting four operating segments: U.S. & Canada, Europe, Middle East and Africa, Asia Pacific excluding China, and Greater China[11]. - The company has a long-term focus on management, franchising, and licensing, owning or leasing less than 1% of its lodging properties[10]. - The company’s management agreements typically span 20 to 30 years, with options for renewal[13]. - Marriott's growth strategy relies on attracting third-party owners and franchisees, with future arrangements potentially being less favorable due to competitive market conditions[55]. Customer Engagement and Loyalty - The company operates a loyalty program, Marriott Bonvoy, which is central to its marketing and customer engagement strategies[14]. - Over 60% of global room nights in 2023 were booked by Marriott Bonvoy members, indicating strong loyalty program engagement[26]. - Marriott operates 19 customer engagement centers globally, with 7 located in the U.S.[29]. - Marriott's loyalty program and co-branded credit cards create a diverse revenue stream, contributing significantly to the company's financial performance[27]. - The company has multi-year agreements for co-branded credit cards with JPMorgan Chase and American Express in the U.S.[27]. Financial Performance - In 2023, the company recognized $2,798 million in revenues previously deferred as of December 31, 2022, and had deferred revenue of $7,006 million associated with the Marriott Bonvoy guest loyalty program[178]. - The company reported general and administrative expenses of $1,011 million and reimbursed expenses of $17,424 million in 2023[180]. - Gross fee revenues increased to $4,824 million in 2023, up from $4,078 million in 2022, representing a growth of approximately 18.3%[182]. - Net fee revenues reached $4,736 million in 2023, compared to $3,989 million in 2022, marking an increase of about 18.7%[182]. - The company achieved operating income of $3,864 million in 2023, an increase from $3,462 million in 2022, reflecting a growth of approximately 11.6%[182]. - Net income for 2023 was $3,083 million, compared to $2,358 million in 2022, indicating a year-over-year increase of about 30.7%[182]. - Earnings per share (EPS) for 2023 were $10.23 (basic) and $10.18 (diluted), up from $7.27 and $7.24 in 2022, respectively[182]. - Comprehensive income for 2023 totaled $3,165 million, compared to $1,971 million in 2022, showing a significant increase[185]. Employment and Workforce - Approximately 411,000 associates were employed by Marriott at year-end 2023, including 148,000 directly employed by the company[35]. - Marriott's associate engagement scores exceeded the "Best Employer" external benchmark in 2023, reflecting strong employee satisfaction[37]. - The company aims to maintain its position as an employer of choice by targeting new labor pools and optimizing recruiting practices[36]. - In 2023, Marriott launched a new Leadership Framework to enhance leadership at all levels, integrating refreshed competencies into performance management and development programs[38]. - Marriott provides comprehensive compensation and benefits to U.S. associates, including health care, retirement savings, and employee stock purchase plans, while regularly evaluating competitiveness in global markets[39]. Sustainability and Social Responsibility - Marriott's sustainability strategy includes a commitment to set near-term and long-term science-based emissions reduction targets, aiming for net-zero greenhouse gas emissions by 2050[43]. - The company aims to reduce environmental impacts and enhance community resilience through its sustainability and social impact platform, Serve 360[42]. - The company has trained 1.2 million associates in human trafficking awareness from 2016 to 2023 and donated training programs to the broader lodging industry, with 1.6 million completions by non-Marriott individuals[44]. Risks and Challenges - The company is subject to various global regulations affecting employment practices, marketing, and data privacy, which could impact operations and financial results[56]. - Currency exchange rate fluctuations may significantly affect Marriott's financial results, as revenues and expenses are incurred in foreign currencies[57]. - Labor disputes and collective bargaining activities could disrupt operations and increase labor costs, adversely affecting the company's financial condition[60]. - The company is exposed to risks from extreme weather and climate change, which have previously led to declines in travel demand and increased operating costs[64]. - The company relies on franchisees and licensees for brand management, and any failure by these parties to adhere to brand standards could harm the company's reputation[59]. - The availability of capital for hotel development and refurbishment is crucial for the company’s growth, and constraints in capital markets could hinder this[69]. - The company’s owned and leased properties are subject to various risks, including market conditions and regulatory changes, which could adversely affect revenue[71]. - The company may face challenges in attracting and retaining associates, which could impact operations and guest satisfaction[63]. - The company’s development pipeline includes numerous hotels, but delays or cancellations could negatively affect growth prospects[73]. Financial Reporting and Compliance - The company's internal control over financial reporting was assessed as effective as of December 31, 2023[162]. - The independent auditor issued an unqualified opinion on the effectiveness of the company's internal control over financial reporting[165]. - The consolidated financial statements present fairly the financial position of the company at December 31, 2023, in conformity with U.S. GAAP[172]. - The company has maintained effective internal control over financial reporting in all material respects as of December 31, 2023[165]. - The report includes consolidated statements of income, comprehensive income, stockholders' equity, and cash flows for the three years ended December 31, 2023[172]. Tax and Regulatory Matters - The effective income tax rate for 2023 was 8.7%, significantly lower than 24.3% in 2022[266]. - Cash paid for income taxes in 2023 was $907 million, an increase from $476 million in 2022[267]. - The company made no provision for U.S. income taxes on certain undistributed earnings of non-U.S. subsidiaries, which could be subject to additional taxes if distributed[263].

CNBC's Jim Cramer on Friday prepared investors for next week on Wall Street, saying investors should pay attention as earnings season continues, with reports from companies including Shopify, Marriott and Wendy's.He also recommended researching retail stocks next week before the industry reports a slew of earnings results the week after."Next week seems busy, but, you know what, it's a classic interregnum — Google that — before we get to retail earnings," Cramer said. "Remember, those heavy earnings weeks a ...

BETHESDA, Md., Feb. 8, 2024 /PRNewswire/ -- Marriott International, Inc. (Nasdaq: MAR) today announced that its board of directors declared a quarterly cash dividend of 52 cents per share of common stock. The dividend is payable on March 29, 2024, to shareholders of record as of the close of business on February 22, 2024. Marriott International, Inc. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of nearly 8,800 properties across more than 30 leading brands in 139 countries a ...

Core Insights - The upcoming quarterly earnings report for Marriott International (MAR) is anticipated to show earnings of $2.12 per share, reflecting an 8.2% increase year-over-year, with revenues expected to reach $6.32 billion, a 6.8% increase from the previous year [1] Revenue Projections - Analysts project 'Revenues- Gross fee revenues' to be $1.21 billion, indicating a year-over-year increase of 7.4% [2] - 'Revenues- Net fee revenues' are forecasted to reach $1.19 billion, representing a 7.5% increase from the prior-year quarter [2] - 'Revenues- Owned, leased, and other revenue' is estimated at $389.78 million, suggesting a decline of 1.6% year-over-year [2] - 'Revenues- Franchise fees' are expected to be $702.02 million, indicating a 6.7% year-over-year increase [3] - 'Revenues- Incentive management fees' are projected at $196.20 million, reflecting a 5.5% increase year-over-year [3] - 'Revenues- Cost reimbursements' are estimated to be $4.74 billion, indicating a 7.3% increase from the year-ago quarter [3] - 'Revenues- Base management fees' are expected to reach $315.90 million, suggesting a 10.1% year-over-year increase [3] Growth Metrics - The 'Comparable Systemwide International Properties - Worldwide - REVPAR Growth Rate' is estimated to be 8.4%, a decrease from the previous year's figure of 28.8% [3] - The total number of 'Rooms - Total' is projected to reach 1,594,567, compared to 1,525,000 in the previous year [4] Stock Performance - Shares of Marriott have increased by 9.3% over the past month, outperforming the Zacks S&P 500 composite, which moved up by 6.5% [4]

Marriott International, Inc. (MAR) is scheduled to release fourth-quarter 2023 results on Feb 13, 2024, before the opening bell. In the previous quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 0.5%.Trend in Estimate RevisionThe Zacks Consensus Estimate for fourth-quarter bottom line is pegged at $2.12 per share, indicating growth of 8.2% from $1.96 reported in the year-ago quarter.For revenues, the consensus mark is pegged at $6.32 billion, suggesting growth of 6.8% from the prior- ...