MAR Q1 2023 Earnings

Call Details

• Call Title: Marriott International Q1 2023 Earnings Call
• Date: May 2, 2023 at 12:30 PM UTC
• Management Team:
  • Jackie Burka (Senior Vice President, Investor Relations)
  • Tony Capuano (Chief Executive Officer)
  • Leeny Oberg (Chief Financial Officer and Executive Vice President, Developments)
  • Betsy Dahm (Vice President of Investor Relations)

Call Summary

Financial Performance

• Global RevPAR rose 34% versus 2022 for the first quarter.
• Worldwide occupancy reached 65%, which was 11 percentage points higher than the year-ago quarter.
• Global ADR increased 11% year over year in the quarter.
• U.S. and Canada RevPAR grew 26% year over year, with occupancy at 66% and ADR up 10%.
• International RevPAR rose 63% year over year with ADR up 16% and occupancy at 64%.
• Total gross fee revenues were $1.1B, nearly 40% above the prior year quarter.
• Incentive management fees nearly doubled year over year to $201M and topped Q1 2019 by 23%.
• Adjusted EBITDA was approximately $1.1B, a new quarterly record.
• Net cash provided by operating activities was around $890M in the quarter, and over $1.2B was returned to shareholders through March.

Guidance

• Full-year global RevPAR is guided to rise 10% to 13% for 2023.
• U.S. and Canada RevPAR guidance is 6% to 9% for the full year.
• International RevPAR guidance is 22% to 25% for the full year.
• Total fees are expected to increase 13% to 16% for the full year, with non-RevPAR-related fees up 4% to 7%.
• Full-year adjusted EBITDA is expected to increase between 13% and 18% versus 2022.
• Adjusted EPS is expected to increase 19% to 26% above 2022.
• G&A expense is expected to be $915M to $935M for the year, a 3% to 5% annual increase but still below 2019 levels.
• The high end of the guidance assumes steady global conditions, while the low end assumes a meaningful economic softening with worldwide RevPAR roughly flat in H2 versus 2022.