MAR Q1 2024 Earnings

Call Details

• Call Title: Marriott International Q1 2024 Earnings Call
• Date: May 1, 2024 at 12:30 PM UTC
• Management Team:
  • Jackie Burka (Senior Vice President, Investor Relations)
  • Tony Capuano (President and Chief Executive Officer)
  • Leeny Oberg (Chief Financial Officer and Executive Vice President, Development)
  • Betsy Dahm (Vice President of Investor Relations)

Call Summary

Financial Performance

• First quarter global RevPAR rose 4.2% year-over-year on a system-wide constant-currency basis.
• U.S. and Canada RevPAR increased 1.5% year-over-year, with March negatively impacted by Easter timing by roughly 300 basis points.
• International RevPAR increased 11% year-over-year, led by APEC at 16.5%, CALA at nearly 12%, EMEA at 10%, and Greater China at 6%.
• First quarter total gross fee revenues rose 7% year-over-year to $1.21B, driven by higher REBFAR, rooms growth, and a 10% increase in cobranded and credit card fees.
• First quarter adjusted EBITDA grew 4% year-over-year to $1.14B on higher fee revenue and international IMF strength.
• Incentive management fees (IMFs) rose 4% to $209M in the quarter and were a primary driver of upside versus prior expectations.

Guidance

• Full-year 2024 global RevPAR guidance remains unchanged at 3% to 5% year-over-year, while Q2 RevPAR is expected to grow 4% to 5% year-over-year.
• The company revised regional expectations with higher RevPAR in APEC, EMEA, and CALA, and lower RevPAR in the U.S. and Canada and Greater China versus prior commentary.
• Full-year gross fees are expected to rise 7% to 9% to $5.2B to $5.3B, with non-RevPAR-related fees expected to rise 9% to 10%.
• Full-year adjusted EBITDA is now expected to rise 7% to 9% to $5.0B to $5.1B, and adjusted EPS is now expected to be $9.31 to $9.65.
• The sensitivity to a 1% change in full-year 2024 RevPAR versus 2023 is estimated at about $50M to $60M of RevPAR-related fees.
• Second-quarter fee growth is expected in the 7% to 8% range and owned, leased, and other revenues net of expenses are anticipated to be lower than the prior year due to a few favorable 2023 items.