MAR Q2 2023 Earnings

Call Details

• Call Title: Marriott International Q2 2023 Earnings Call
• Date: August 1, 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 Development)
  • Betsy Dahm (Vice President of Investor Relations)

Call Summary

Financial Performance

• Worldwide REVPAR rose 13.5% year-over-year in Q2 2023 versus Q2 2022.
• Worldwide occupancy reached 72% in Q2 2023, which was five percentage points higher than the year-ago quarter.
• Global ADR grew 6% year-over-year in Q2 2023, with leisure transient ADR and room nights each up 5% yielding 10% leisure revenue growth.
• International REVPAR increased 39% year-over-year in Q2 2023, driven by Greater China where REVPAR more than doubled versus Q2 2022.
• U.S. and Canada REVPAR grew 6% year-over-year in Q2 2023, with occupancy at 74% and ADR up 4%.
• Adjusted EBITDA (non-GAAP) reached a record $1.2B in Q2 2023, which was up 20% year-over-year.

Guidance

• Company raised full-year 2023 guidance to expect global REVPAR growth of 12% to 14%.
• Full-year 2023 REVPAR guidance assumes U.S. and Canada growth of 7% to 9% and international growth of 28% to 30%.
• Total fees are expected to rise 16% to 18% for full-year 2023, with the non-REVPAR-related component increasing 4% to 7%.
• Full-year 2023 G&A is expected to be $915M to $935M, representing a 3% to 5% increase versus prior year.
• Full-year adjusted EBITDA is expected to increase 18% to 21% in 2023, and adjusted EPF is expected to rise 25% to 29%.
• Company expects to return $4.1B to $4.5B to shareholders in 2023 assuming $900M to $1.0B of investment spending that includes the $100M Citi Express acquisition.