MAR Q4 2022 Earnings

Call Details

• Call Title: Marriott International Q4 2022 Earnings Call
• Date: February 14, 2023 at 1:00 PM UTC
• Management Team:
  • Tony Capuano (President and Chief Executive Officer)
  • Leeny Oberg (Chief Financial Officer and Executive Vice President, Business Operations)
  • Jackie Burka (Senior Vice President, Investor Relations)
  • Betsy Dahm (Vice President of Investor Relations)

Call Summary

Financial Performance

• Global REVPAR versus 2019 was up 5% in the fourth quarter and up 7% in December.
• Fourth quarter occupancy was down five percentage points versus 2019 while ADR was up 13% versus 2019.
• Gross fees in the fourth quarter totaled $1.1B, and incentive management fees reached $186M in the quarter.
• Gross fees rose 16% and adjusted EBITDA climbed 21% versus the 2019 fourth quarter on an adjusted basis.
• Net cash provided by operating activities for 2022 totaled $2.4B, which was double 2021 levels.
• Full-year 2022 results produced record fees, adjusted EBITDA, and adjusted EPS despite Omicron headwinds earlier in the year.

Guidance

• First quarter 2023 global REVPAR was anticipated to increase 30% to 32% year-over-year with U.S. and Canada up 25% to 27% and international up 47% to 49%.
• Full-year 2023 REVPAR guidance was provided as ranges of up 5% to 9% in the U.S. and Canada, up 12% to 18% internationally, and up 6% to 11% globally versus 2022.
• The sensitivity of a 1% change in full-year 2023 REVPAR versus 2022 was estimated to be around $40M to $45M of REVPAR-related fees.
• Total fees for 2023 were expected to rise between 6% and 12% with non-REVPAR-related fees anticipated to grow 4% to 7%.
• G&A expense for 2023 was forecast at $915M to $935M representing an annual increase of 3% to 5% but still below 2019 levels.
• Full-year adjusted EBITDA was expected to increase 5% to 12% and adjusted EPS was expected to rise 8% to 18% above 2022.