- Third quarter 2023 comparable systemwide constant dollar
RevPAR increased 8.8 percent worldwide, 4.3 percent
in the U.S. & Canada, and
21.8 percent in international markets, compared to
the 2022 third quarter;
- Third quarter reported diluted EPS totaled $2.51, compared to reported diluted EPS of
$1.94 in the year-ago quarter.
Third quarter adjusted diluted EPS totaled $2.11, compared to third quarter 2022
adjusted diluted EPS of $1.69;
- Third quarter reported net income totaled $752 million, compared to reported net income of
$630 million in the year-ago
quarter. Third quarter adjusted net income totaled
$634 million, compared to third
quarter 2022 adjusted net income of $551
million;
- Adjusted EBITDA totaled $1,142 million in
the 2023 third quarter, compared to third quarter 2022 adjusted
EBITDA of $985 million;
- The company added approximately 17,200 rooms globally
during the third quarter, including roughly 13,000 rooms in
international markets and more than 4,900 conversion
rooms;
- At the end of the quarter, Marriott's worldwide
development pipeline totaled more than 3,200 properties and nearly
557,000 rooms, including roughly 40,300 of pipeline rooms approved,
but not yet subject to signed contracts. Approximately
238,000 rooms in the pipeline were under construction as of the end
of the third quarter;
- Marriott repurchased 4.8 million shares of common stock
for $950 million during the third
quarter. Year to date through October
31, the company has returned $3.7
billion to shareholders through dividends and share
repurchases.
BETHESDA, Md., Nov. 2, 2023
/PRNewswire/ -- Marriott International, Inc. (NASDAQ: MAR) today
reported third quarter 2023 results.
Anthony Capuano, President and
Chief Executive Officer, said, "We are extremely pleased with our
results in the quarter. Worldwide
RevPAR[1] grew 9 percent year over year, reflecting
robust demand around the world. International RevPAR
increased 22 percent, with particular strength in Asia
Pacific. Both occupancy and rate contributed to global RevPAR
gains in the third quarter, and cross-border travel continued to
rise.
"In the U.S. & Canada,
RevPAR rose more than 4 percent, with many urban markets showing
outsized growth. Group and business transient saw mid-single
digit hotel revenue gains in the quarter, largely driven by rate
increases. Leisure transient demand in the region has also
remained solid, leading to 4 percent hotel revenue growth for the
segment compared to the year-ago quarter.
"Given the meaningful benefits we deliver to owners, demand for
our brands remains strong. Through the first three quarters
of 2023, we've signed more than 100,000 organic rooms, including
the MGM Resorts International deal, an impressive 60 percent
increase compared to the same period last year. Even with 5
percent net rooms growth in the last four quarters, our development
pipeline continues to grow. Of our record 557,000-room
pipeline, 43 percent is under construction.
"With continued momentum in our business around the world, we
are raising our full year 2023 worldwide RevPAR growth guidance to
14 to 15 percent year over year and expect to return $4.3 billion to $4.5
billion to shareholders through share repurchases and
dividends."
Third Quarter 2023 Results
Marriott's reported
operating income totaled $1,099
million in the 2023 third quarter, compared to 2022 third
quarter reported operating income of $958
million. Reported net income totaled $752 million in the 2023 third quarter, compared
to 2022 third quarter reported net income of $630 million. Reported diluted earnings per
share (EPS) totaled $2.51 in the
quarter, compared to reported diluted EPS of $1.94 in the year-ago quarter.
Adjusted operating income in the 2023 third quarter totaled
$959 million, compared to 2022 third
quarter adjusted operating income of $815
million. Third quarter 2023 adjusted net income
totaled $634 million, compared to
2022 third quarter adjusted net income of $551 million. Adjusted diluted EPS in the
2023 third quarter totaled $2.11,
compared to adjusted diluted EPS of $1.69 in the year-ago quarter. The 2023
third quarter adjusted results excluded a $24 million ($16
million after-tax and $0.05
per share) gain on the sale of a hotel in the Caribbean & Latin America (CALA) region. The 2022
third quarter adjusted results excluded special tax items of
$30 million ($0.09 per share) and a $2
million ($2 million after-tax
and $0.01 per share) gain on an
investee's property sale.
Adjusted results also excluded cost reimbursement revenue,
reimbursed expenses and merger-related charges and other
expenses. See pages A-3 and A-11 for the calculation of
adjusted results and the manner in which the adjusted measures are
determined in this press release.
Base management and franchise fees totaled $1,054 million in the 2023 third quarter, an 11
percent increase compared to base management and franchise fees of
$953 million in the year-ago
quarter. The increase is primarily attributable to RevPAR
increases and unit growth. Non-RevPAR-related franchise fees
in the 2023 third quarter totaled $208
million, an 8 percent increase compared to $192 million in the year-ago quarter, largely
driven by higher co-brand credit card fees.
Incentive management fees totaled $143
million in the 2023 third quarter, a 35 percent increase
compared to $106 million in the 2022
third quarter. Managed hotels in international markets
contributed 77 percent of the incentive fees earned in the
quarter.
Owned, leased, and other revenue, net of direct expenses,
totaled $70 million in the 2023 third
quarter, compared to $44 million in
the year-ago quarter. Results in the 2022 quarter included a
$19 million expense accrual related
to a portfolio of 12 leased hotels in the U.S. &
Canada.
General, administrative, and other expenses for the 2023 third
quarter totaled $239 million,
compared to $216 million in the
year-ago quarter. The year-over-year change largely reflects
higher staffing levels.
Gains and other income, net, totaled $28
million, compared to $3
million in the 2022 third quarter. Gains and other
income, net, in the 2023 third quarter primarily reflected a
$24 million gain associated with the
sale of a hotel in the CALA region.
Interest expense, net, totaled $139
million in the 2023 third quarter, compared to $93 million in the year-ago quarter. The
increase was largely due to higher interest expense associated with
higher debt balances.
Adjusted earnings before interest, taxes, depreciation, and
amortization (EBITDA) totaled $1,142
million in the 2023 third quarter, compared to third quarter
2022 adjusted EBITDA of $985
million. See page A-11 for the adjusted EBITDA
calculation.
Selected Performance Information
Marriott added 97
properties (17,192 rooms) to its worldwide lodging portfolio during
the 2023 third quarter, including roughly 13,000 rooms in
international markets and more than 4,900 conversion rooms.
Eleven properties (1,494 rooms) exited the system during the
quarter. At the end of the quarter, Marriott's global lodging
system totaled nearly 8,700 properties, with approximately
1,581,000 rooms.
At the end of the quarter, the company's worldwide development
pipeline totaled 3,239 properties with nearly 557,000 rooms,
including 242 properties with roughly 40,300 rooms approved for
development, but not yet subject to signed contracts. The pipeline
includes 1,081 properties with approximately 238,000 rooms under
construction, or 43 percent, including approximately 37,000 rooms
from the MGM deal.
In the 2023 third quarter, worldwide RevPAR increased 8.8
percent (an 8.7 percent increase using actual dollars) compared to
the 2022 third quarter. RevPAR in the U.S. & Canada increased 4.3 percent (a 4.2 percent
increase using actual dollars), and RevPAR in international markets
increased 21.8 percent (a 22.0 percent increase using actual
dollars).
Balance Sheet & Common Stock
At the end of the
quarter, Marriott's total debt was $11.8
billion and cash and equivalents totaled $0.7 billion, compared to $10.1 billion in debt and $0.5 billion of cash and equivalents at year-end
2022.
Year to date through October 31,
the company has repurchased 18.3 million shares for $3.3 billion.
In the third quarter, the company issued $450 million of Series LL Senior Notes due in
2026 with a 5.45 percent interest rate coupon and $700 million of Series MM Senior Notes due in
2028 with a 5.55 percent interest rate coupon.
Company Outlook
Marriott anticipates that the 37,000
rooms related to its deal with MGM will now be added to its
distribution in early 2024. As such, the company now expects
full year 2023 net rooms growth of 4.2 to 4.5 percent, higher than
its August 2, 2023 guidance when
excluding the MGM rooms.
|
Fourth Quarter 2023
vs Fourth Quarter 2022
|
Full Year 2023
vs Full Year 2022
|
|
Comparable systemwide constant
$
RevPAR growth
|
|
|
|
Worldwide
|
6% to 7.5%
|
14% to 15%
|
|
U.S. &
Canada
|
3% to 4%
|
8% to 9%
|
|
International
|
14% to 16%
|
31% to 32%
|
|
|
|
|
|
|
|
Year-End 2023
vs Year-End 2022
|
|
Net Rooms Growth
|
|
4.2% to 4.5%
|
|
($ in millions, except EPS)
|
Fourth Quarter 2023
|
Full Year 2023
|
Gross fee
revenues
|
$1,185 to
$1,215
|
$4,765 to
$4,795
|
Owned, leased, and
other revenue, net of direct expenses
|
$80 to $85
|
$328 to $333
|
General,
administrative, and other expenses
|
Approx. $255
|
Approx. $935
|
Adjusted
EBITDA1,2
|
$1,115 to
$1,150
|
$4,574 to
$4,609
|
Adjusted EPS –
diluted2,3
|
$2.04 to
$2.13
|
$8.50 to
$8.59
|
Investment
Spending4
|
|
$900 to $950
|
Capital Return to
Shareholders5
|
|
$4,300 to
$4,500
|
|
1See pages
A-12 and A-13 for the adjusted EBITDA calculations.
|
2Adjusted
EBITDA and Adjusted EPS – diluted for fourth quarter and full
year 2023 do not include cost reimbursement revenue, reimbursed
expenses, merger-related charges and other expenses, special tax
items, or any additional asset sales that may occur during the
year, each of which the company cannot forecast with sufficient
accuracy and without unreasonable efforts, and which may be
significant. Adjusted EPS – diluted for full year 2023
excludes a special tax item of $100 million and an asset sale gain
of $24 million reported in the first three quarters of 2023.
See page A-3 for the Adjusted EPS – diluted calculation for the
first three quarters of 2023.
|
3Assumes the
level of capital return to shareholders noted above.
|
4Investment
spending includes capital and technology expenditures, loan
advances, contract acquisition costs, and other investing
activities.
|
5 Assumes
the level of investment spending noted above and that no asset
sales occur during the remainder of the year.
|
Marriott International, Inc. (NASDAQ: MAR) will conduct its
quarterly earnings review for the investment community and news
media on Thursday, November 2, 2023,
at 8:00 a.m. Eastern Time (ET).
The conference call will be webcast simultaneously via Marriott's
investor relations website at http://www.marriott.com/investor,
click on "Events & Presentations" and click on the quarterly
conference call link. A replay will be available at that same
website until November 2, 2024.
The telephone dial-in number for the conference call is US Toll
Free: 800-579-2543, or Global: +1 785-424-1789. The conference ID
is MAR3Q23. A telephone replay of the conference call will be
available from 1:00 p.m. ET,
Thursday, November 2, 2023, until
8:00 p.m. ET, Thursday, November 9, 2023. To access the
replay, call US Toll Free: 800-839-1246 or Global: +1
402-220-0464.
Note on forward-looking statements: All statements
in this press release and the accompanying schedules are made as of
November 2, 2023. We undertake no
obligation to publicly update or revise these statements, whether
as a result of new information, future events or otherwise. This
press release and the accompanying schedules contain
"forward-looking statements" within the meaning of federal
securities laws, including statements related to our RevPAR, rooms
growth and other financial metric estimates, outlook and
assumptions; travel and lodging demand trends and expectations; our
development pipeline and growth expectations; and similar
statements concerning anticipated future events and expectations
that are not historical facts. We caution you that these statements
are not guarantees of future performance and are subject to
numerous evolving risks and uncertainties that we may not be able
to accurately predict or assess, including the risk factors that we
describe in our Securities and Exchange Commission filings,
including our most recent Annual Report on Form 10-K or Quarterly
Report on Form 10-Q. Any of these factors could cause actual
results to differ materially from the expectations we express or
imply in this press release.
Marriott International, Inc. (NASDAQ: MAR) is based in
Bethesda, Maryland, USA, and
encompasses a portfolio of nearly 8,700 properties across more than
30 leading brands in 139 countries and territories. Marriott
operates and franchises hotels and licenses vacation ownership
resorts all around the world. The company offers Marriott Bonvoy®,
its highly awarded travel program. For more information,
please visit our website at www.marriott.com, and for the latest
company news, visit www.marriottnewscenter.com. In addition,
connect with us on Facebook and @MarriottIntl on
X and Instagram.
Marriott encourages investors, the media, and others interested
in the company to review and subscribe to the information Marriott
posts on its investor relations website at
www.marriott.com/investor or Marriott's news center website at
www.marriottnewscenter.com, which may be material. The contents of
these websites are not incorporated by reference into this press
release or any report or document Marriott files with the SEC, and
any references to the websites are intended to be inactive textual
references only.
IRPR#1
Tables follow
1 All occupancy, Average Daily Rate (ADR) and RevPAR
statistics and estimates are systemwide constant dollar.
Unless otherwise stated, all changes refer to year-over-year
changes for the comparable period. Occupancy, ADR and RevPAR
comparisons between 2023 and 2022 reflect properties that are
comparable in both years.
MARRIOTT INTERNATIONAL, INC.
|
PRESS RELEASE SCHEDULES
|
TABLE OF CONTENTS
|
QUARTER 3, 2023
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|
Consolidated Statements
of Income - As Reported
|
|
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|
A-1
|
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|
|
Non-GAAP Financial
Measures
|
|
|
|
|
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|
|
A-3
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
Total Lodging Products
by Ownership Type
|
|
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|
|
A-4
|
|
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|
|
|
|
|
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|
|
Total Lodging Products
by Tier
|
|
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|
A-6
|
|
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Key Lodging
Statistics
|
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|
|
A-7
|
|
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|
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|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A-11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Forecast - Fourth Quarter 2023
|
|
|
|
|
|
|
|
|
|
|
|
A-12
|
|
|
|
|
|
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|
|
|
|
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|
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|
|
Adjusted EBITDA
Forecast - Full Year 2023
|
|
|
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|
A-13
|
|
|
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|
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|
|
|
|
|
|
Explanation of Non-GAAP
Financial and Performance Measures
|
|
|
|
|
|
|
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|
A-14
|
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|
MARRIOTT INTERNATIONAL, INC.
|
CONSOLIDATED STATEMENTS OF INCOME - AS
REPORTED
|
THIRD QUARTER 2023 AND 2022
|
(in millions except
per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
As Reported
|
|
Percent
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Better/(Worse)
|
|
|
September 30, 2023
|
|
September 30, 2022
|
|
Reported 2023 vs. 2022
|
REVENUES
|
|
|
|
|
|
|
Base management
fees
|
|
$
306
|
|
$
275
|
|
11
|
Franchise fees
1
|
|
748
|
|
678
|
|
10
|
Incentive management
fees
|
|
143
|
|
106
|
|
35
|
Gross Fee Revenues
|
|
1,197
|
|
1,059
|
|
13
|
Contract investment
amortization 2
|
|
(23)
|
|
(22)
|
|
(5)
|
Net Fee Revenues
|
|
1,174
|
|
1,037
|
|
13
|
Owned, leased, and
other revenue 3
|
|
363
|
|
345
|
|
5
|
Cost reimbursement
revenue 4
|
|
4,391
|
|
3,931
|
|
12
|
Total Revenues
|
|
5,928
|
|
5,313
|
|
12
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES
|
|
|
|
|
|
|
Owned, leased, and
other - direct 5
|
|
293
|
|
301
|
|
3
|
Depreciation,
amortization, and other 6
|
|
46
|
|
50
|
|
8
|
General,
administrative, and other 7
|
|
239
|
|
216
|
|
(11)
|
Merger-related charges
and other
|
|
13
|
|
2
|
|
(550)
|
Reimbursed expenses
4
|
|
4,238
|
|
3,786
|
|
(12)
|
Total Expenses
|
|
4,829
|
|
4,355
|
|
(11)
|
|
|
|
|
|
|
|
OPERATING INCOME
|
|
1,099
|
|
958
|
|
15
|
|
|
|
|
|
|
|
Gains and other income,
net 8
|
|
28
|
|
3
|
|
833
|
Interest
expense
|
|
(146)
|
|
(100)
|
|
(46)
|
Interest
income
|
|
7
|
|
7
|
|
-
|
Equity in earnings
9
|
|
1
|
|
1
|
|
-
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES
|
|
989
|
|
869
|
|
14
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
(237)
|
|
(239)
|
|
1
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
752
|
|
$
630
|
|
19
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
|
|
|
|
|
|
|
Earnings per
share - basic
|
|
$
2.52
|
|
$
1.94
|
|
30
|
Earnings per
share - diluted
|
|
$
2.51
|
|
$
1.94
|
|
29
|
|
|
|
|
|
|
|
Basic Shares
|
|
298.6
|
|
324.5
|
|
|
Diluted
Shares
|
|
300.1
|
|
325.7
|
|
|
|
|
|
|
1
|
Franchise fees include fees from our
franchise agreements, application and relicensing fees, timeshare
and yacht fees, co-branded credit card fees, and
|
|
|
|
residential branding
fees.
|
|
|
|
|
|
|
2
|
Contract investment amortization includes
amortization of capitalized costs to obtain contracts with our
owner and franchisee customers, and any related
|
|
|
|
impairments,
accelerations, or write-offs.
|
|
|
|
|
|
|
3
|
Owned, leased, and other revenue includes
revenue from the properties we own or lease, termination fees, and
other revenue.
|
|
|
|
|
4
|
Cost reimbursement revenue includes
reimbursements from properties for property-level and centralized
programs and services that we operate for the benefit of
|
|
|
|
our hotel owners.
Reimbursed expenses include costs incurred by Marriott for
certain property-level operating expenses and centralized programs
and services.
|
|
|
5
|
Owned, leased, and other - direct expenses
include operating expenses related to our owned or leased hotels,
including lease payments and pre-opening expenses.
|
|
|
6
|
Depreciation, amortization, and other
expenses include depreciation for fixed assets, amortization of
capitalized costs incurred to acquire management,
franchise,
|
|
|
|
and license agreements,
and any related impairments, accelerations, or
write-offs.
|
|
|
|
|
|
|
7
|
General, administrative, and other
expenses include our corporate and business segments overhead costs
and general expenses.
|
|
|
|
|
8
|
Gains and other income, net includes gains
and losses on the sale of real estate, the sale of joint venture
interests and other investments, and adjustments from
|
|
|
|
other equity
investments.
|
|
|
|
|
|
|
9
|
Equity in earnings include our equity in
earnings or losses of unconsolidated equity method
investments.
|
|
|
|
|
MARRIOTT
INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED
THIRD QUARTER YEAR-TO-DATE 2023 AND 2022
(in millions except per share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
As Reported
|
|
Percent
|
|
|
Nine Months Ended
|
|
Nine Months Ended
|
|
Better/(Worse)
|
|
|
September 30, 2023
|
|
September 30, 2022
|
|
Reported 2023 vs. 2022
|
REVENUES
|
|
|
|
|
|
|
Base management
fees
|
|
$
917
|
|
$
757
|
|
21
|
Franchise fees
1
|
|
2,126
|
|
1,847
|
|
15
|
Incentive management
fees
|
|
537
|
|
343
|
|
57
|
Gross Fee Revenues
|
|
3,580
|
|
2,947
|
|
21
|
Contract investment
amortization 2
|
|
(66)
|
|
(65)
|
|
(2)
|
Net Fee Revenues
|
|
3,514
|
|
2,882
|
|
22
|
Owned, leased, and
other revenue 3
|
|
1,109
|
|
971
|
|
14
|
Cost reimbursement
revenue 4
|
|
12,995
|
|
10,997
|
|
18
|
Total Revenues
|
|
17,618
|
|
14,850
|
|
19
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES
|
|
|
|
|
|
|
Owned, leased, and
other - direct 5
|
|
861
|
|
779
|
|
(11)
|
Depreciation,
amortization, and other 6
|
|
138
|
|
147
|
|
6
|
General,
administrative, and other 7
|
|
681
|
|
655
|
|
(4)
|
Merger-related charges
and other
|
|
52
|
|
11
|
|
(373)
|
Reimbursed expenses
4
|
|
12,740
|
|
10,792
|
|
(18)
|
Total Expenses
|
|
14,472
|
|
12,384
|
|
(17)
|
|
|
|
|
|
|
|
OPERATING INCOME
|
|
3,146
|
|
2,466
|
|
28
|
|
|
|
|
|
|
|
Gains and other income,
net 8
|
|
33
|
|
9
|
|
267
|
Interest
expense
|
|
(412)
|
|
(288)
|
|
(43)
|
Interest
income
|
|
21
|
|
18
|
|
17
|
Equity in earnings
9
|
|
9
|
|
18
|
|
(50)
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES
|
|
2,797
|
|
2,223
|
|
26
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
(562)
|
|
(538)
|
|
(4)
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
2,235
|
|
$
1,685
|
|
33
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
|
|
|
|
|
|
|
Earnings per
share - basic
|
|
$
7.36
|
|
$
5.15
|
|
43
|
Earnings per
share - diluted
|
|
$
7.32
|
|
$
5.13
|
|
43
|
|
|
|
|
|
|
|
Basic Shares
|
|
303.9
|
|
327.0
|
|
|
Diluted
Shares
|
|
305.3
|
|
328.4
|
|
|
|
|
|
|
1
|
Franchise fees include fees from our
franchise agreements, application and relicensing fees, timeshare
and yacht fees, co-branded credit card fees, and
|
|
|
|
residential branding
fees.
|
|
|
|
|
|
|
2
|
Contract investment amortization includes
amortization of capitalized costs to obtain contracts with our
owner and franchisee customers, and any related
|
|
|
|
impairments,
accelerations, or write-offs.
|
|
|
|
|
|
|
3
|
Owned, leased, and other revenue includes
revenue from the properties we own or lease, termination fees, and
other revenue.
|
|
|
|
|
4
|
Cost reimbursement revenue includes
reimbursements from properties for property-level and centralized
programs and services that we operate for the benefit of
|
|
|
|
our hotel owners.
Reimbursed expenses include costs incurred by Marriott for
certain property-level operating expenses and centralized programs
and services.
|
|
|
5
|
Owned, leased, and other - direct expenses
include operating expenses related to our owned or leased hotels,
including lease payments and pre-opening expenses.
|
|
|
6
|
Depreciation, amortization, and other
expenses include depreciation for fixed assets, amortization of
capitalized costs incurred to acquire management,
franchise,
|
|
|
|
and license agreements,
and any related impairments, accelerations, or
write-offs.
|
|
|
|
|
|
|
7
|
General, administrative, and other
expenses include our corporate and business segments overhead costs
and general expenses.
|
|
|
|
|
8
|
Gains and other income, net includes gains
and losses on the sale of real estate, the sale of joint venture
interests and other investments, and adjustments from
|
|
|
|
other equity
investments.
|
|
|
|
|
|
|
9
|
Equity in earnings include our equity in
earnings or losses of unconsolidated equity method
investments.
|
|
|
|
|
MARRIOTT INTERNATIONAL, INC.
|
NON-GAAP FINANCIAL MEASURES
|
(in millions except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
presents our reconciliations of Adjusted operating income, Adjusted
operating income margin, Adjusted net income, and Adjusted diluted
earnings per share, to the most
directly comparable GAAP measure. Adjusted total revenues is used
in the determination of Adjusted operating income
margin.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
|
|
|
|
|
Percent
|
|
|
|
|
|
Percent
|
|
September 30,
|
|
September 30,
|
|
Better/
|
|
September 30,
|
|
September 30,
|
|
Better/
|
|
2023
|
|
2022
|
|
(Worse)
|
|
2023
|
|
2022
|
|
(Worse)
|
Total revenues, as
reported
|
$
5,928
|
|
$
5,313
|
|
|
|
$
17,618
|
|
$
14,850
|
|
|
Less: Cost
reimbursement revenue
|
(4,391)
|
|
(3,931)
|
|
|
|
(12,995)
|
|
(10,997)
|
|
|
Add: Impairments
1
|
-
|
|
-
|
|
|
|
-
|
|
5
|
|
|
Adjusted total revenues
**
|
1,537
|
|
1,382
|
|
|
|
4,623
|
|
3,858
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income, as
reported
|
1,099
|
|
958
|
|
|
|
3,146
|
|
2,466
|
|
|
Less: Cost
reimbursement revenue
|
(4,391)
|
|
(3,931)
|
|
|
|
(12,995)
|
|
(10,997)
|
|
|
Add: Reimbursed
expenses
|
4,238
|
|
3,786
|
|
|
|
12,740
|
|
10,792
|
|
|
Add: Merger-related
charges and other
|
13
|
|
2
|
|
|
|
52
|
|
11
|
|
|
Add: Impairments
1
|
-
|
|
-
|
|
|
|
-
|
|
5
|
|
|
Adjusted operating income **
|
959
|
|
815
|
|
18 %
|
|
2,943
|
|
2,277
|
|
29 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income margin
|
19 %
|
|
18 %
|
|
|
|
18 %
|
|
17 %
|
|
|
Adjusted operating income margin
**
|
62 %
|
|
59 %
|
|
|
|
64 %
|
|
59 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as
reported
|
752
|
|
630
|
|
|
|
2,235
|
|
1,685
|
|
|
Less: Cost
reimbursement revenue
|
(4,391)
|
|
(3,931)
|
|
|
|
(12,995)
|
|
(10,997)
|
|
|
Add: Reimbursed
expenses
|
4,238
|
|
3,786
|
|
|
|
12,740
|
|
10,792
|
|
|
Add: Merger-related
charges and other
|
13
|
|
2
|
|
|
|
52
|
|
11
|
|
|
Add: Impairments
2
|
-
|
|
-
|
|
|
|
-
|
|
11
|
|
|
Less: Gains on
investees' property sales 3
|
-
|
|
(2)
|
|
|
|
-
|
|
(23)
|
|
|
Less: Gain on asset
dispositions 4
|
(24)
|
|
-
|
|
|
|
(24)
|
|
(2)
|
|
|
Income tax effect of
above adjustments
|
46
|
|
36
|
|
|
|
64
|
|
50
|
|
|
Less: Income tax
special items
|
-
|
|
30
|
|
|
|
(100)
|
|
30
|
|
|
Adjusted net income **
|
$
634
|
|
$
551
|
|
15 %
|
|
$
1,972
|
|
$
1,557
|
|
27 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share, as
reported
|
$
2.51
|
|
$
1.94
|
|
|
|
$
7.32
|
|
$
5.13
|
|
|
Adjusted diluted earnings per
share**
|
$
2.11
|
|
$
1.69
|
|
25 %
|
|
$
6.46
|
|
$
4.74
|
|
36 %
|
|
|
|
|
|
|
|
|
**
|
Denotes non-GAAP
financial measures. Please see pages A-14 and A-15 for information
about our reasons for providing these alternative financial
measures and the limitations on their use.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Nine months ended
September 30, 2022 includes impairment charges reported in Contract
investment amortization of $5 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Nine months ended
September 30, 2022 includes impairment charges reported in Contract
investment amortization of $5 million and Equity in earnings of $6
million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3
|
Gains on investees'
property sales reported in Equity in earnings.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
|
Gain on asset
dispositions reported in Gains and other income, net.
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT INTERNATIONAL, INC.
|
TOTAL LODGING PRODUCTS BY OWNERSHIP
TYPE
|
As of September 30, 2023
|
|
|
|
|
|
|
|
|
US & Canada
|
Total International
|
Total Worldwide
|
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Managed
|
629
|
215,952
|
1,410
|
358,039
|
2,039
|
573,991
|
Marriott
Hotels
|
102
|
56,990
|
179
|
56,334
|
281
|
113,324
|
Sheraton
|
26
|
20,869
|
185
|
62,318
|
211
|
83,187
|
Courtyard
|
164
|
26,628
|
120
|
25,552
|
284
|
52,180
|
Westin
|
40
|
21,862
|
82
|
25,271
|
122
|
47,133
|
JW
Marriott
|
23
|
13,189
|
73
|
25,893
|
96
|
39,082
|
The
Ritz-Carlton
|
40
|
12,154
|
75
|
17,832
|
115
|
29,986
|
Renaissance
|
23
|
10,245
|
55
|
17,545
|
78
|
27,790
|
Four
Points
|
1
|
134
|
85
|
23,839
|
86
|
23,973
|
Le
Méridien
|
1
|
100
|
73
|
20,180
|
74
|
20,280
|
W
Hotels
|
23
|
6,516
|
41
|
11,107
|
64
|
17,623
|
Residence
Inn
|
73
|
11,857
|
9
|
1,116
|
82
|
12,973
|
St.
Regis
|
11
|
2,169
|
44
|
9,880
|
55
|
12,049
|
Delta Hotels by
Marriott
|
25
|
6,770
|
27
|
5,052
|
52
|
11,822
|
Fairfield by
Marriott
|
6
|
1,431
|
74
|
9,207
|
80
|
10,638
|
Aloft
|
2
|
505
|
46
|
10,096
|
48
|
10,601
|
The Luxury
Collection
|
6
|
2,296
|
41
|
7,983
|
47
|
10,279
|
Gaylord
Hotels
|
6
|
10,220
|
—
|
—
|
6
|
10,220
|
AC Hotels by
Marriott
|
8
|
1,512
|
68
|
8,466
|
76
|
9,978
|
Autograph
Collection
|
9
|
2,870
|
24
|
3,569
|
33
|
6,439
|
Marriott
Executive Apartments
|
—
|
—
|
36
|
5,159
|
36
|
5,159
|
SpringHill
Suites
|
25
|
4,241
|
—
|
—
|
25
|
4,241
|
Element
|
3
|
810
|
15
|
3,132
|
18
|
3,942
|
EDITION
|
5
|
1,379
|
11
|
2,309
|
16
|
3,688
|
Protea
Hotels
|
—
|
—
|
24
|
2,901
|
24
|
2,901
|
Moxy
|
1
|
380
|
7
|
1,393
|
8
|
1,773
|
Tribute
Portfolio
|
—
|
—
|
9
|
1,251
|
9
|
1,251
|
TownePlace
Suites
|
6
|
825
|
—
|
—
|
6
|
825
|
Bulgari
|
—
|
—
|
7
|
654
|
7
|
654
|
Franchised
|
5,217
|
747,617
|
1,155
|
210,458
|
6,372
|
958,075
|
Courtyard
|
891
|
119,004
|
117
|
21,823
|
1,008
|
140,827
|
Fairfield by
Marriott
|
1,142
|
107,585
|
56
|
9,760
|
1,198
|
117,345
|
Residence
Inn
|
785
|
93,648
|
30
|
3,857
|
815
|
97,505
|
Marriott
Hotels
|
232
|
74,195
|
64
|
18,378
|
296
|
92,573
|
Sheraton
|
143
|
44,473
|
75
|
22,011
|
218
|
66,484
|
SpringHill
Suites
|
518
|
60,135
|
—
|
—
|
518
|
60,135
|
Autograph
Collection
|
143
|
28,022
|
117
|
24,778
|
260
|
52,800
|
TownePlace
Suites
|
491
|
49,725
|
—
|
—
|
491
|
49,725
|
Westin
|
92
|
31,078
|
28
|
8,253
|
120
|
39,331
|
Four
Points
|
154
|
23,323
|
66
|
10,995
|
220
|
34,318
|
Aloft
|
158
|
22,580
|
22
|
4,283
|
180
|
26,863
|
AC Hotels by
Marriott
|
107
|
17,616
|
50
|
8,882
|
157
|
26,498
|
Renaissance
|
65
|
18,286
|
30
|
7,671
|
95
|
25,957
|
Moxy
|
31
|
5,797
|
94
|
17,676
|
125
|
23,473
|
Delta Hotels by
Marriott
|
66
|
14,929
|
14
|
3,266
|
80
|
18,195
|
City Express by
Marriott
|
—
|
—
|
149
|
17,300
|
149
|
17,300
|
Tribute
Portfolio
|
60
|
9,762
|
35
|
4,140
|
95
|
13,902
|
The Luxury
Collection
|
11
|
3,112
|
52
|
9,588
|
63
|
12,700
|
Le
Méridien
|
25
|
5,749
|
21
|
5,488
|
46
|
11,237
|
Element
|
80
|
10,712
|
2
|
269
|
82
|
10,981
|
JW
Marriott
|
12
|
6,072
|
12
|
2,733
|
24
|
8,805
|
Design
Hotels
|
10
|
1,385
|
82
|
5,956
|
92
|
7,341
|
Protea
Hotels
|
—
|
—
|
34
|
2,802
|
34
|
2,802
|
The
Ritz-Carlton
|
1
|
429
|
—
|
—
|
1
|
429
|
W
Hotels
|
—
|
—
|
1
|
246
|
1
|
246
|
Bulgari
|
—
|
—
|
2
|
161
|
2
|
161
|
Marriott
Executive Apartments
|
—
|
—
|
2
|
142
|
2
|
142
|
MARRIOTT INTERNATIONAL, INC.
|
TOTAL LODGING PRODUCTS BY OWNERSHIP
TYPE
|
As of September 30, 2023
|
|
|
|
|
|
|
|
|
US & Canada
|
Total International
|
Total Worldwide
|
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Owned/Leased
|
14
|
4,656
|
37
|
8,776
|
51
|
13,432
|
Marriott
Hotels
|
2
|
1,308
|
5
|
1,631
|
7
|
2,939
|
Courtyard
|
7
|
987
|
4
|
894
|
11
|
1,881
|
Sheraton
|
—
|
—
|
4
|
1,830
|
4
|
1,830
|
W
Hotels
|
2
|
779
|
2
|
665
|
4
|
1,444
|
Westin
|
1
|
1,073
|
—
|
—
|
1
|
1,073
|
Protea
Hotels
|
—
|
—
|
5
|
912
|
5
|
912
|
Renaissance
|
1
|
317
|
2
|
505
|
3
|
822
|
The
Ritz-Carlton
|
—
|
—
|
2
|
550
|
2
|
550
|
JW
Marriott
|
—
|
—
|
1
|
496
|
1
|
496
|
The Luxury
Collection
|
—
|
—
|
3
|
383
|
3
|
383
|
Autograph
Collection
|
—
|
—
|
5
|
361
|
5
|
361
|
Residence
Inn
|
1
|
192
|
1
|
140
|
2
|
332
|
Tribute
Portfolio
|
—
|
—
|
2
|
249
|
2
|
249
|
St.
Regis
|
—
|
—
|
1
|
160
|
1
|
160
|
Residences
|
67
|
7,166
|
52
|
5,444
|
119
|
12,610
|
The Ritz-Carlton
Residences
|
40
|
4,437
|
17
|
1,502
|
57
|
5,939
|
St. Regis
Residences
|
10
|
1,198
|
12
|
1,628
|
22
|
2,826
|
W
Residences
|
10
|
1,092
|
7
|
547
|
17
|
1,639
|
Westin
Residences
|
3
|
266
|
2
|
353
|
5
|
619
|
Bulgari
Residences
|
—
|
—
|
5
|
519
|
5
|
519
|
Sheraton
Residences
|
—
|
—
|
3
|
472
|
3
|
472
|
Marriott Hotels
Residences
|
—
|
—
|
2
|
246
|
2
|
246
|
The Luxury
Collection Residences
|
1
|
91
|
3
|
115
|
4
|
206
|
EDITION
Residences
|
3
|
82
|
—
|
—
|
3
|
82
|
Le Méridien
Residences
|
—
|
—
|
1
|
62
|
1
|
62
|
Timeshare*
|
72
|
18,839
|
21
|
3,906
|
93
|
22,745
|
Yacht*
|
—
|
—
|
1
|
149
|
1
|
149
|
Grand Total
|
5,999
|
994,230
|
2,676
|
586,772
|
8,675
|
1,581,002
|
|
*Timeshare and Yacht
counts are included in this table by geographical location. For
external reporting purposes, these offerings are captured within
"Unallocated corporate and other."
|
In the above table, The
Luxury Collection, Autograph Collection and Tribute Portfolio
include seven total properties that we acquired when we purchased
Elegant Hotels Group plc in December 2019 which we currently intend
to re-brand under such brands after the completion of planned
renovations.
|
MARRIOTT INTERNATIONAL, INC.
|
TOTAL LODGING PRODUCTS BY TIER
|
As of September 30, 2023
|
|
|
|
|
|
|
|
|
US & Canada
|
Total International
|
Total Worldwide
|
Total Systemwide
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Luxury
|
198
|
54,995
|
412
|
94,951
|
610
|
149,946
|
JW
Marriott
|
35
|
19,261
|
86
|
29,122
|
121
|
48,383
|
The
Ritz-Carlton
|
41
|
12,583
|
77
|
18,382
|
118
|
30,965
|
The Ritz-Carlton
Residences
|
40
|
4,437
|
17
|
1,502
|
57
|
5,939
|
The Luxury
Collection
|
17
|
5,408
|
96
|
17,954
|
113
|
23,362
|
The Luxury
Collection Residences
|
1
|
91
|
3
|
115
|
4
|
206
|
W
Hotels
|
25
|
7,295
|
44
|
12,018
|
69
|
19,313
|
W
Residences
|
10
|
1,092
|
7
|
547
|
17
|
1,639
|
St.
Regis
|
11
|
2,169
|
45
|
10,040
|
56
|
12,209
|
St. Regis
Residences
|
10
|
1,198
|
12
|
1,628
|
22
|
2,826
|
EDITION
|
5
|
1,379
|
11
|
2,309
|
16
|
3,688
|
EDITION
Residences
|
3
|
82
|
—
|
—
|
3
|
82
|
Bulgari
|
—
|
—
|
9
|
815
|
9
|
815
|
Bulgari
Residences
|
—
|
—
|
5
|
519
|
5
|
519
|
Premium
|
1,075
|
360,769
|
1,164
|
302,471
|
2,239
|
663,240
|
Marriott
Hotels
|
336
|
132,493
|
248
|
76,343
|
584
|
208,836
|
Marriott Hotels
Residences
|
—
|
—
|
2
|
246
|
2
|
246
|
Sheraton
|
169
|
65,342
|
264
|
86,159
|
433
|
151,501
|
Sheraton
Residences
|
—
|
—
|
3
|
472
|
3
|
472
|
Westin
|
133
|
54,013
|
110
|
33,524
|
243
|
87,537
|
Westin
Residences
|
3
|
266
|
2
|
353
|
5
|
619
|
Autograph
Collection
|
152
|
30,892
|
146
|
28,708
|
298
|
59,600
|
Renaissance
|
89
|
28,848
|
87
|
25,721
|
176
|
54,569
|
Le
Méridien
|
26
|
5,849
|
94
|
25,668
|
120
|
31,517
|
Le Méridien
Residences
|
—
|
—
|
1
|
62
|
1
|
62
|
Delta Hotels by
Marriott
|
91
|
21,699
|
41
|
8,318
|
132
|
30,017
|
Tribute
Portfolio
|
60
|
9,762
|
46
|
5,640
|
106
|
15,402
|
Gaylord
Hotels
|
6
|
10,220
|
—
|
—
|
6
|
10,220
|
Design
Hotels
|
10
|
1,385
|
82
|
5,956
|
92
|
7,341
|
Marriott
Executive Apartments
|
—
|
—
|
38
|
5,301
|
38
|
5,301
|
Select
|
4,654
|
559,627
|
1,078
|
185,295
|
5,732
|
744,922
|
Courtyard
|
1,062
|
146,619
|
241
|
48,269
|
1,303
|
194,888
|
Fairfield by
Marriott
|
1,148
|
109,016
|
130
|
18,967
|
1,278
|
127,983
|
Residence
Inn
|
859
|
105,697
|
40
|
5,113
|
899
|
110,810
|
SpringHill
Suites
|
543
|
64,376
|
—
|
—
|
543
|
64,376
|
Four
Points
|
155
|
23,457
|
151
|
34,834
|
306
|
58,291
|
TownePlace
Suites
|
497
|
50,550
|
—
|
—
|
497
|
50,550
|
Aloft
|
160
|
23,085
|
68
|
14,379
|
228
|
37,464
|
AC Hotels by
Marriott
|
115
|
19,128
|
118
|
17,348
|
233
|
36,476
|
Moxy
|
32
|
6,177
|
101
|
19,069
|
133
|
25,246
|
City Express by
Marriott
|
—
|
—
|
149
|
17,300
|
149
|
17,300
|
Element
|
83
|
11,522
|
17
|
3,401
|
100
|
14,923
|
Protea
Hotels
|
—
|
—
|
63
|
6,615
|
63
|
6,615
|
Timeshare*
|
72
|
18,839
|
21
|
3,906
|
93
|
22,745
|
Yacht*
|
—
|
—
|
1
|
149
|
1
|
149
|
Grand Total
|
5,999
|
994,230
|
2,676
|
586,772
|
8,675
|
1,581,002
|
|
*Timeshare and Yacht
counts are included in this table by geographical location. For
external reporting purposes, these offerings are captured within
"Unallocated corporate and other."
|
In the above table, The
Luxury Collection, Autograph Collection and Tribute Portfolio
include seven total properties that we acquired when we purchased
Elegant Hotels Group plc in December 2019 which we currently intend
to re-brand under such brands after the completion of planned
renovations.
|
MARRIOTT INTERNATIONAL, INC.
|
KEY LODGING STATISTICS
|
In Constant $
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Company-Operated US & Canada
Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2023 and September
30, 2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily Rate
|
Brand
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
JW Marriott
|
|
$188.80
|
5.0 %
|
|
67.6 %
|
2.2 %
|
pts.
|
|
$279.35
|
1.5 %
|
The
Ritz-Carlton
|
|
$301.93
|
-1.4 %
|
|
64.1 %
|
-0.6 %
|
pts.
|
|
$471.29
|
-0.5 %
|
W Hotels
|
|
$218.78
|
5.4 %
|
|
70.9 %
|
5.2 %
|
pts.
|
|
$308.55
|
-2.4 %
|
Composite US & Canada
Luxury1
|
|
$253.41
|
1.8 %
|
|
67.3 %
|
1.4 %
|
pts.
|
|
$376.78
|
-0.3 %
|
Marriott
Hotels
|
|
$168.41
|
7.0 %
|
|
72.2 %
|
2.0 %
|
pts.
|
|
$233.38
|
4.1 %
|
Sheraton
|
|
$154.05
|
9.3 %
|
|
69.8 %
|
3.6 %
|
pts.
|
|
$220.76
|
3.7 %
|
Westin
|
|
$177.84
|
4.5 %
|
|
72.5 %
|
1.0 %
|
pts.
|
|
$245.18
|
3.0 %
|
Composite US & Canada
Premium2
|
|
$164.92
|
6.3 %
|
|
71.6 %
|
2.0 %
|
pts.
|
|
$230.28
|
3.4 %
|
US & Canada
Full-Service3
|
|
$184.04
|
4.9 %
|
|
70.7 %
|
1.8 %
|
pts.
|
|
$260.40
|
2.2 %
|
Courtyard
|
|
$111.09
|
2.4 %
|
|
68.0 %
|
-0.2 %
|
pts.
|
|
$163.30
|
2.8 %
|
Residence
Inn
|
|
$152.08
|
1.6 %
|
|
78.4 %
|
-0.9 %
|
pts.
|
|
$194.02
|
2.8 %
|
Composite US & Canada
Select4
|
|
$123.56
|
2.1 %
|
|
71.1 %
|
-0.4 %
|
pts.
|
|
$173.70
|
2.6 %
|
US & Canada -
All5
|
|
$169.46
|
4.4 %
|
|
70.8 %
|
1.3 %
|
pts.
|
|
$239.40
|
2.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Systemwide US & Canada
Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2023 and September
30, 2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily Rate
|
Brand
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
JW Marriott
|
|
$187.89
|
4.6 %
|
|
69.3 %
|
2.3 %
|
pts.
|
|
$271.02
|
1.2 %
|
The
Ritz-Carlton
|
|
$302.23
|
-1.2 %
|
|
64.8 %
|
-0.4 %
|
pts.
|
|
$466.59
|
-0.5 %
|
W Hotels
|
|
$218.78
|
5.4 %
|
|
70.9 %
|
5.2 %
|
pts.
|
|
$308.55
|
-2.4 %
|
Composite US & Canada
Luxury1
|
|
$241.80
|
2.0 %
|
|
68.3 %
|
1.5 %
|
pts.
|
|
$353.80
|
-0.2 %
|
Marriott
Hotels
|
|
$143.32
|
6.4 %
|
|
70.3 %
|
1.9 %
|
pts.
|
|
$203.73
|
3.6 %
|
Sheraton
|
|
$128.05
|
7.7 %
|
|
68.7 %
|
2.2 %
|
pts.
|
|
$186.35
|
4.1 %
|
Westin
|
|
$159.36
|
6.3 %
|
|
72.2 %
|
3.0 %
|
pts.
|
|
$220.77
|
1.8 %
|
Composite US & Canada
Premium2
|
|
$145.89
|
5.7 %
|
|
70.4 %
|
2.0 %
|
pts.
|
|
$207.28
|
2.7 %
|
US & Canada
Full-Service3
|
|
$156.84
|
5.0 %
|
|
70.1 %
|
1.9 %
|
pts.
|
|
$223.58
|
2.1 %
|
Courtyard
|
|
$117.54
|
3.2 %
|
|
72.4 %
|
0.5 %
|
pts.
|
|
$162.39
|
2.4 %
|
Residence
Inn
|
|
$137.78
|
3.3 %
|
|
79.9 %
|
0.1 %
|
pts.
|
|
$172.36
|
3.2 %
|
Fairfield by
Marriott
|
|
$101.45
|
3.6 %
|
|
73.9 %
|
0.3 %
|
pts.
|
|
$137.25
|
3.2 %
|
Composite US & Canada
Select4
|
|
$117.71
|
3.7 %
|
|
75.1 %
|
0.6 %
|
pts.
|
|
$156.67
|
2.9 %
|
US & Canada -
All5
|
|
$133.92
|
4.3 %
|
|
73.1 %
|
1.1 %
|
pts.
|
|
$183.28
|
2.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Includes JW Marriott, The
Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, and
EDITION.
|
2 Includes Marriott Hotels, Sheraton,
Westin, Renaissance, Autograph Collection, Delta Hotels by
Marriott, and Gaylord Hotels.
|
Systemwide also
includes Le Méridien and Tribute Portfolio.
|
3 Includes Composite US & Canada
Luxury and Composite US & Canada Premium.
|
4 Includes Courtyard, Residence Inn,
Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four
Points, Aloft, Element,
|
and AC Hotels by
Marriott. Systemwide also includes Moxy.
|
5 Includes US & Canada Full-Service
and Composite US & Canada Select.
|
MARRIOTT INTERNATIONAL, INC.
|
KEY LODGING STATISTICS
|
In Constant $
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Company-Operated US & Canada
Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2023 and September
30, 2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily Rate
|
Brand
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
|
|
2023
|
vs. 2022
|
JW Marriott
|
|
$225.75
|
12.8 %
|
|
70.7 %
|
6.1 %
|
pts.
|
|
$319.11
|
3.0 %
|
The
Ritz-Carlton
|
|
$324.94
|
0.6 %
|
|
65.7 %
|
1.5 %
|
pts.
|
|
$494.85
|
-1.7 %
|
W Hotels
|
|
$215.00
|
9.8 %
|
|
66.8 %
|
5.8 %
|
pts.
|
|
$322.06
|
0.3 %
|
Composite US & Canada
Luxury1
|
|
$281.83
|
6.5 %
|
|
68.5 %
|
4.1 %
|
pts.
|
|
$411.56
|
0.2 %
|
Marriott
Hotels
|
|
$167.88
|
16.9 %
|
|
70.6 %
|
5.7 %
|
pts.
|
|
$237.65
|
7.5 %
|
Sheraton
|
|
$151.65
|
17.5 %
|
|
68.5 %
|
6.8 %
|
pts.
|
|
$221.48
|
5.8 %
|
Westin
|
|
$172.73
|
12.3 %
|
|
70.1 %
|
4.2 %
|
pts.
|
|
$246.46
|
5.6 %
|
Composite US & Canada
Premium2
|
|
$163.74
|
16.3 %
|
|
70.1 %
|
6.1 %
|
pts.
|
|
$233.64
|
6.1 %
|
US & Canada
Full-Service3
|
|
$189.27
|
12.9 %
|
|
69.7 %
|
5.7 %
|
pts.
|
|
$271.40
|
3.7 %
|
Courtyard
|
|
$110.53
|
11.2 %
|
|
67.1 %
|
2.5 %
|
pts.
|
|
$164.71
|
7.0 %
|
Residence
Inn
|
|
$150.54
|
7.5 %
|
|
77.5 %
|
0.8 %
|
pts.
|
|
$194.16
|
6.4 %
|
Composite US & Canada
Select4
|
|
$123.41
|
9.9 %
|
|
70.4 %
|
2.1 %
|
pts.
|
|
$175.28
|
6.7 %
|
US & Canada -
All5
|
|
$173.39
|
12.4 %
|
|
69.9 %
|
4.8 %
|
pts.
|
|
$248.07
|
4.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Systemwide US & Canada
Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2023 and September
30, 2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily Rate
|
Brand
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
|
|
2023
|
vs. 2022
|
JW Marriott
|
|
$219.51
|
10.4 %
|
|
71.6 %
|
5.4 %
|
pts.
|
|
$306.56
|
2.1 %
|
The
Ritz-Carlton
|
|
$322.24
|
1.1 %
|
|
65.9 %
|
1.8 %
|
pts.
|
|
$488.79
|
-1.8 %
|
W Hotels
|
|
$215.00
|
9.8 %
|
|
66.8 %
|
5.8 %
|
pts.
|
|
$322.06
|
0.3 %
|
Composite US & Canada
Luxury1
|
|
$266.22
|
6.4 %
|
|
69.2 %
|
4.1 %
|
pts.
|
|
$384.70
|
0.1 %
|
Marriott
Hotels
|
|
$140.80
|
15.2 %
|
|
68.4 %
|
5.5 %
|
pts.
|
|
$205.83
|
5.9 %
|
Sheraton
|
|
$121.24
|
15.8 %
|
|
66.2 %
|
5.8 %
|
pts.
|
|
$183.26
|
5.6 %
|
Westin
|
|
$158.29
|
13.4 %
|
|
70.3 %
|
5.3 %
|
pts.
|
|
$225.17
|
4.8 %
|
Composite US & Canada
Premium2
|
|
$143.11
|
14.0 %
|
|
68.4 %
|
5.6 %
|
pts.
|
|
$209.26
|
4.8 %
|
US & Canada
Full-Service3
|
|
$157.17
|
12.5 %
|
|
68.5 %
|
5.4 %
|
pts.
|
|
$229.51
|
3.6 %
|
Courtyard
|
|
$112.28
|
9.9 %
|
|
70.3 %
|
2.8 %
|
pts.
|
|
$159.79
|
5.5 %
|
Residence
Inn
|
|
$130.43
|
7.8 %
|
|
77.4 %
|
0.8 %
|
pts.
|
|
$168.47
|
6.6 %
|
Fairfield by
Marriott
|
|
$93.77
|
8.0 %
|
|
70.7 %
|
2.0 %
|
pts.
|
|
$132.70
|
5.0 %
|
Composite US & Canada
Select4
|
|
$111.60
|
9.1 %
|
|
72.7 %
|
2.2 %
|
pts.
|
|
$153.55
|
5.7 %
|
US & Canada -
All5
|
|
$130.48
|
10.8 %
|
|
70.9 %
|
3.5 %
|
pts.
|
|
$183.93
|
5.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Includes JW Marriott, The
Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, and
EDITION.
|
2 Includes Marriott Hotels, Sheraton,
Westin, Renaissance, Autograph Collection, Delta Hotels by
Marriott, and Gaylord Hotels.
|
Systemwide also
includes Le Méridien and Tribute Portfolio.
|
3 Includes Composite US & Canada
Luxury and Composite US & Canada Premium.
|
4 Includes Courtyard, Residence Inn,
Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four
Points, Aloft, Element,
|
and AC Hotels by
Marriott. Systemwide also includes Moxy.
|
5 Includes US & Canada Full-Service
and Composite US & Canada Select.
|
MARRIOTT INTERNATIONAL, INC.
|
KEY LODGING STATISTICS
|
In Constant $
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Company-Operated International
Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2023 and September
30, 2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily Rate
|
Region
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
Greater
China
|
|
$93.41
|
48.6 %
|
|
72.5 %
|
14.5 %
|
pts.
|
|
$128.93
|
18.9 %
|
Asia Pacific excluding
China
|
|
$116.21
|
35.2 %
|
|
70.7 %
|
9.3 %
|
pts.
|
|
$164.45
|
17.5 %
|
Caribbean & Latin
America
|
|
$138.64
|
2.4 %
|
|
61.1 %
|
2.4 %
|
pts.
|
|
$226.76
|
-1.6 %
|
Europe
|
|
$226.46
|
10.6 %
|
|
75.5 %
|
3.2 %
|
pts.
|
|
$300.01
|
6.0 %
|
Middle East &
Africa
|
|
$101.11
|
18.1 %
|
|
65.4 %
|
4.2 %
|
pts.
|
|
$154.50
|
10.5 %
|
|
|
|
|
|
|
|
|
|
|
|
International - All1
|
|
$121.93
|
25.8 %
|
|
70.5 %
|
9.0 %
|
pts.
|
|
$172.91
|
9.7 %
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide2
|
|
$142.51
|
13.8 %
|
|
70.6 %
|
5.7 %
|
pts.
|
|
$201.76
|
4.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Systemwide International
Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2023 and September
30, 2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily Rate
|
Region
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
Greater
China
|
|
$87.31
|
47.4 %
|
|
71.3 %
|
14.5 %
|
pts.
|
|
$122.40
|
17.4 %
|
Asia Pacific excluding
China
|
|
$117.73
|
36.4 %
|
|
70.4 %
|
8.6 %
|
pts.
|
|
$167.12
|
19.7 %
|
Caribbean & Latin
America
|
|
$121.87
|
2.8 %
|
|
62.4 %
|
2.5 %
|
pts.
|
|
$195.43
|
-1.4 %
|
Europe
|
|
$175.50
|
9.8 %
|
|
74.7 %
|
3.2 %
|
pts.
|
|
$235.04
|
5.0 %
|
Middle East &
Africa
|
|
$98.24
|
20.2 %
|
|
65.3 %
|
3.5 %
|
pts.
|
|
$150.50
|
13.8 %
|
|
|
|
|
|
|
|
|
|
|
|
International - All1
|
|
$120.43
|
21.8 %
|
|
70.1 %
|
7.6 %
|
pts.
|
|
$171.85
|
8.5 %
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide2
|
|
$129.73
|
8.8 %
|
|
72.1 %
|
3.2 %
|
pts.
|
|
$179.84
|
4.1 %
|
|
|
|
|
|
|
|
|
|
|
|
1 Includes Greater China, Asia Pacific
excluding China, Caribbean & Latin America, Europe, and Middle
East & Africa.
|
2 Includes US & Canada - All and
International - All.
|
MARRIOTT INTERNATIONAL, INC.
|
KEY LODGING STATISTICS
|
In Constant $
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Company-Operated International
Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2023 and September
30, 2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily Rate
|
Region
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
Greater
China
|
|
$89.14
|
78.2 %
|
|
68.9 %
|
22.0 %
|
pts.
|
|
$129.41
|
21.2 %
|
Asia Pacific excluding
China
|
|
$114.87
|
58.1 %
|
|
68.5 %
|
14.3 %
|
pts.
|
|
$167.63
|
25.2 %
|
Caribbean & Latin
America
|
|
$165.92
|
17.8 %
|
|
63.4 %
|
4.9 %
|
pts.
|
|
$261.59
|
8.7 %
|
Europe
|
|
$188.49
|
25.0 %
|
|
70.5 %
|
9.0 %
|
pts.
|
|
$267.38
|
9.0 %
|
Middle East &
Africa
|
|
$118.53
|
17.8 %
|
|
66.2 %
|
4.0 %
|
pts.
|
|
$178.96
|
10.7 %
|
|
|
|
|
|
|
|
|
|
|
|
International - All1
|
|
$119.30
|
42.0 %
|
|
68.2 %
|
14.1 %
|
pts.
|
|
$174.86
|
12.7 %
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide2
|
|
$142.74
|
24.7 %
|
|
68.9 %
|
10.1 %
|
pts.
|
|
$207.02
|
6.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Systemwide International
Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended September 30, 2023 and September
30, 2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily Rate
|
Region
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
Greater
China
|
|
$83.53
|
77.9 %
|
|
67.8 %
|
22.2 %
|
pts.
|
|
$123.11
|
19.8 %
|
Asia Pacific excluding
China
|
|
$115.15
|
58.7 %
|
|
68.4 %
|
13.6 %
|
pts.
|
|
$168.42
|
27.1 %
|
Caribbean & Latin
America
|
|
$141.96
|
18.2 %
|
|
64.4 %
|
5.2 %
|
pts.
|
|
$220.49
|
8.6 %
|
Europe
|
|
$146.12
|
25.8 %
|
|
68.6 %
|
9.8 %
|
pts.
|
|
$212.87
|
7.9 %
|
Middle East &
Africa
|
|
$111.67
|
20.3 %
|
|
65.3 %
|
3.7 %
|
pts.
|
|
$171.06
|
13.5 %
|
|
|
|
|
|
|
|
|
|
|
|
International - All1
|
|
$115.90
|
38.7 %
|
|
67.4 %
|
12.9 %
|
pts.
|
|
$171.93
|
12.3 %
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide2
|
|
$125.96
|
17.5 %
|
|
69.8 %
|
6.4 %
|
pts.
|
|
$180.34
|
6.7 %
|
|
|
|
|
|
|
|
|
|
|
|
1 Includes Greater China, Asia Pacific
excluding China, Caribbean & Latin America, Europe, and Middle
East & Africa.
|
2 Includes US & Canada - All and
International - All.
|
MARRIOTT INTERNATIONAL, INC.
|
NON-GAAP FINANCIAL MEASURES
|
ADJUSTED EBITDA
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2023
|
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Total
|
|
|
Net income, as
reported
|
$
757
|
|
$
726
|
|
$
752
|
|
$
2,235
|
|
|
Cost reimbursement
revenue
|
(4,147)
|
|
(4,457)
|
|
(4,391)
|
|
(12,995)
|
|
|
Reimbursed
expenses
|
4,136
|
|
4,366
|
|
4,238
|
|
12,740
|
|
|
Interest
expense
|
126
|
|
140
|
|
146
|
|
412
|
|
|
Interest expense from
unconsolidated joint ventures
|
1
|
|
1
|
|
3
|
|
5
|
|
|
Provision for income
taxes
|
87
|
|
238
|
|
237
|
|
562
|
|
|
Depreciation and
amortization
|
44
|
|
48
|
|
46
|
|
138
|
|
|
Contract investment
amortization
|
21
|
|
22
|
|
23
|
|
66
|
|
|
Depreciation and
amortization classified in reimbursed expenses
|
31
|
|
38
|
|
39
|
|
108
|
|
|
Depreciation,
amortization, and impairments from unconsolidated joint
ventures
|
4
|
|
3
|
|
6
|
|
13
|
|
|
Stock-based
compensation
|
37
|
|
56
|
|
54
|
|
147
|
|
|
Merger-related charges
and other
|
1
|
|
38
|
|
13
|
|
52
|
|
|
Gain on asset
dispositions
|
-
|
|
-
|
|
(24)
|
|
(24)
|
|
|
Adjusted EBITDA **
|
$
1,098
|
|
$
1,219
|
|
$
1,142
|
|
$
3,459
|
|
|
|
|
|
|
|
|
|
|
|
|
Change from 2022 Adjusted EBITDA
**
|
45 %
|
|
20 %
|
|
16 %
|
|
25 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2022
|
|
First
Quarter
|
|
Second
Quarter
|
|
Third
Quarter
|
|
Fourth
Quarter
|
|
Total
|
Net income, as
reported
|
$
377
|
|
$
678
|
|
$
630
|
|
$
673
|
|
$
2,358
|
Cost reimbursement
revenue
|
(3,146)
|
|
(3,920)
|
|
(3,931)
|
|
(4,420)
|
|
(15,417)
|
Reimbursed
expenses
|
3,179
|
|
3,827
|
|
3,786
|
|
4,349
|
|
15,141
|
Interest
expense
|
93
|
|
95
|
|
100
|
|
115
|
|
403
|
Interest expense from
unconsolidated joint ventures
|
1
|
|
2
|
|
2
|
|
1
|
|
6
|
Provision for income
taxes
|
99
|
|
200
|
|
239
|
|
218
|
|
756
|
Depreciation and
amortization
|
48
|
|
49
|
|
50
|
|
46
|
|
193
|
Contract investment
amortization
|
24
|
|
19
|
|
22
|
|
24
|
|
89
|
Depreciation and
amortization classified in reimbursed expenses
|
26
|
|
29
|
|
32
|
|
31
|
|
118
|
Depreciation,
amortization, and impairments from unconsolidated joint
ventures
|
13
|
|
3
|
|
7
|
|
4
|
|
27
|
Stock-based
compensation
|
44
|
|
52
|
|
48
|
|
48
|
|
192
|
Merger-related charges
and other
|
9
|
|
-
|
|
2
|
|
1
|
|
12
|
Gains on investees'
property sales
|
(8)
|
|
(13)
|
|
(2)
|
|
-
|
|
(23)
|
Gain on asset
dispositions
|
-
|
|
(2)
|
|
-
|
|
-
|
|
(2)
|
Adjusted EBITDA **
|
$
759
|
|
$
1,019
|
|
$
985
|
|
$
1,090
|
|
$
3,853
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** Denotes non-GAAP
financial measures. Please see pages A-14 and A-15 for information
about our reasons for providing these alternative financial
measures and the limitations on their use.
|
|
|
|
|
|
|
|
|
|
|
|
|
MARRIOTT INTERNATIONAL, INC.
|
NON-GAAP FINANCIAL MEASURES
|
ADJUSTED EBITDA FORECAST
|
FOURTH QUARTER 2023
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range
|
|
|
|
|
Estimated
Fourth Quarter 2023
|
|
Fourth Quarter 2022 **
|
|
Net income excluding
certain items 1
|
$
603
|
|
$
630
|
|
|
|
Interest
expense
|
158
|
|
158
|
|
|
|
Interest expense from
unconsolidated joint ventures
|
1
|
|
1
|
|
|
|
Provision for income
taxes
|
190
|
|
198
|
|
|
|
Depreciation and
amortization
|
47
|
|
47
|
|
|
|
Contract investment
amortization
|
24
|
|
24
|
|
|
|
Depreciation and
amortization classified in reimbursed expenses
|
36
|
|
36
|
|
|
|
Depreciation,
amortization, and impairments from unconsolidated joint
ventures
|
4
|
|
4
|
|
|
|
Stock-based
compensation
|
52
|
|
52
|
|
|
|
Adjusted EBITDA **
|
$
1,115
|
|
$
1,150
|
|
$
1,090
|
|
|
|
|
|
|
|
|
Increase over 2022 Adjusted EBITDA
**
|
2 %
|
|
6 %
|
|
|
|
|
|
|
|
|
|
|
|
** Denotes non-GAAP
financial measures. See pages A-14 and A-15 for information about
our reasons for providing these alternative financial
measures
|
|
|
|
|
and the limitations on
their use.
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Guidance excludes cost
reimbursement revenue, reimbursed expenses, and merger-related
charges and other expenses, each of which the company
|
|
|
|
|
cannot forecast with
sufficient accuracy and without unreasonable efforts, and which may
be significant, except for depreciation and amortization
classified
|
|
|
|
in reimbursed expenses,
which is included in the caption "Depreciation and amortization
classified in reimbursed expenses" above. Guidance does
not
|
|
|
|
|
|
reflect any additional
asset sales that may occur during the year, which the company
cannot forecast with sufficient accuracy and without unreasonable
efforts,
|
|
and which may be
significant.
|
|
|
|
|
|
MARRIOTT INTERNATIONAL, INC.
|
NON-GAAP FINANCIAL MEASURES
|
ADJUSTED EBITDA FORECAST
|
FULL YEAR 2023
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range
|
|
|
|
|
Estimated
Full Year 2023
|
|
Full Year 2022**
|
|
Net income excluding
certain items 1
|
$
2,691
|
|
$
2,718
|
|
|
|
Interest
expense
|
570
|
|
570
|
|
|
|
Interest expense from
unconsolidated joint ventures
|
6
|
|
6
|
|
|
|
Provision for income
taxes
|
696
|
|
704
|
|
|
|
Depreciation and
amortization
|
185
|
|
185
|
|
|
|
Contract investment
amortization
|
90
|
|
90
|
|
|
|
Depreciation and
amortization classified in reimbursed expenses
|
144
|
|
144
|
|
|
|
Depreciation,
amortization, and impairments from unconsolidated joint
ventures
|
17
|
|
17
|
|
|
|
Stock-based
compensation
|
199
|
|
199
|
|
|
|
Gain on asset
dispositions
|
(24)
|
|
(24)
|
|
|
|
Adjusted EBITDA **
|
$
4,574
|
|
$
4,609
|
|
$
3,853
|
|
|
|
|
|
|
|
|
Increase over 2022 Adjusted EBITDA
**
|
19 %
|
|
20 %
|
|
|
|
|
|
|
|
|
|
|
|
** Denotes non-GAAP
financial measures. See pages A-14 and A-15 for information about
our reasons for providing these alternative financial
measures
|
|
|
|
|
and the limitations on
their use.
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
Guidance excludes cost
reimbursement revenue, reimbursed expenses, and merger-related
charges and other expenses, each of which the company
|
|
|
|
|
cannot forecast with
sufficient accuracy and without unreasonable efforts, and which may
be significant, except for depreciation and amortization
classified
|
|
|
|
|
in reimbursed expenses,
which is included in the caption "Depreciation and amortization
classified in reimbursed expenses" above. Guidance does
not
|
|
|
|
|
|
reflect any additional
asset sales that may occur during the year, which the company
cannot forecast with sufficient accuracy and without unreasonable
efforts,
|
|
|
|
and which may be
significant.
|
|
|
|
|
|
MARRIOTT INTERNATIONAL,
INC.
EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE
MEASURES
In our press release and schedules, and on the related
conference call, we report certain financial measures that are not
required by, or presented in accordance with, United States generally accepted accounting
principles ("GAAP"). These non-GAAP financial
measures are labeled as "adjusted" and/or identified with the
symbol "**". We discuss the manner in which the non-GAAP measures
reported in this press release and schedules are determined and
management's reasons for reporting these non-GAAP measures below,
and the press release schedules reconcile each to the most directly
comparable GAAP measures (with respect to the forward-looking
non-GAAP measures, to the extent available without unreasonable
efforts). Although management evaluates and presents these non-GAAP
measures for the reasons described below, please be aware that
these non-GAAP measures have limitations and should not be
considered in isolation or as a substitute for revenue, operating
income, net income, earnings per share or any other comparable
operating measure prescribed by GAAP. In addition, we may calculate
and/or present these non-GAAP financial measures differently than
measures with the same or similar names that other companies
report, and as a result, the non-GAAP measures we report may not be
comparable to those reported by others.
Adjusted Operating Income and Adjusted Operating Income
Margin. Adjusted operating income and Adjusted operating
income margin exclude cost reimbursement revenue, reimbursed
expenses, merger-related charges and other expenses, and certain
non-cash impairment charges. Adjusted operating income margin
reflects Adjusted operating income divided by Adjusted total
revenues. We believe that these are meaningful metrics because they
allow for period-over-period comparisons of our ongoing operations
before these items and for the reasons further described below.
Adjusted Net Income and Adjusted Diluted Earnings Per
Share. Adjusted net income and Adjusted diluted earnings per
share reflect our net income and diluted earnings per share
excluding the impact of cost reimbursement revenue, reimbursed
expenses, merger-related charges and other expenses, certain
non-cash impairment charges, gains and losses on asset dispositions
made by us or by our joint venture investees (when applicable).
Additionally, Adjusted net income and Adjusted diluted earnings per
share exclude the income tax effect of the above adjustments
(calculated using an estimated tax rate applicable to each
adjustment) and income tax special items, which primarily related
to the resolution of tax audits. We believe that these measures are
meaningful indicators of our performance because they allow for
period-over-period comparisons of our ongoing operations before
these items and for the reasons further described below.
Adjusted Earnings Before Interest Expense, Taxes,
Depreciation and Amortization ("Adjusted EBITDA"). Adjusted
EBITDA reflects net income excluding the impact of the following
items: cost reimbursement revenue and reimbursed expenses, interest
expense, depreciation and amortization, provision for income taxes,
merger-related charges and other expenses, and stock-based
compensation expense for all periods presented. When applicable,
Adjusted EBITDA also excludes certain non-cash impairment charges
related to equity investments and gains and losses on asset
dispositions made by us or by our joint venture investees.
In our presentations of Adjusted operating income and Adjusted
operating income margin, Adjusted net income and Adjusted diluted
earnings per share, and Adjusted EBITDA, we exclude a one-time cost
in the 2022 first quarter related to certain property-level
adjustments related to compensation and transition costs associated
with the Starwood merger, which we record in the "Merger-related
charges and other" caption of our Condensed Consolidated Statements
of Income (our "Income Statements"), to allow for period-over
period comparisons of our ongoing operations before the impact of
these items. We also exclude non-cash impairment charges (if above
a specified threshold) related to our management and franchise
contracts (if the impairment is non-routine), leases, equity
investments, and other capitalized assets, which we record in the
"Contract investment amortization," "Depreciation, amortization,
and other," and "Equity in earnings" captions of our Income
Statements to allow for period-over period comparisons of our
ongoing operations before the impact of these items. We exclude
cost reimbursement revenue and reimbursed expenses, which relate to
property-level and centralized programs and services that we
operate for the benefit of our hotel owners. We do not operate
these programs and services to generate a profit over the long
term, and accordingly, when we recover the costs that we incur for
these programs and services from our hotel owners, we do not seek a
mark-up. For property-level services, our owners typically
reimburse us at the same time that we incur expenses. However, for
centralized programs and services, our owners may reimburse us
before or after we incur expenses, causing timing differences
between the costs we incur and the related reimbursement from hotel
owners in our operating and net income. Over the long term, these
programs and services are not designed to impact our economics,
either positively or negatively. Because we do not retain any such
profits or losses over time, we exclude the net impact when
evaluating period-over-period changes in our operating results.
We believe that Adjusted EBITDA is a meaningful indicator of our
operating performance because it permits period-over-period
comparisons of our ongoing operations before these items. Our use
of Adjusted EBITDA also facilitates comparison with results from
other lodging companies because it excludes certain items that can
vary widely across different industries or among companies within
the same industry. For example, interest expense can be dependent
on a company's capital structure, debt levels, and credit ratings.
Accordingly, the impact of interest expense on earnings can vary
significantly among companies. The tax positions of companies can
also vary because of their differing abilities to take advantage of
tax benefits and because of the tax policies of the jurisdictions
in which they operate. As a result, effective tax rates and
provisions for income taxes can vary considerably among companies.
Our Adjusted EBITDA also excludes depreciation and amortization
expense, which we report under "Depreciation, amortization, and
other" as well as depreciation and amortization classified in
"Contract investment amortization," "Reimbursed expenses," and
"Equity in earnings" of our Income Statements, because companies
utilize productive assets of different ages and use different
methods of both acquiring and depreciating productive assets.
Depreciation and amortization classified in "Reimbursed expenses"
reflects depreciation and amortization of Marriott-owned assets,
for which we receive cash from owners to reimburse the company for
its investments made for the benefit of the system. These
differences can result in considerable variability in the relative
costs of productive assets and the depreciation and amortization
expense among companies. We exclude stock-based compensation
expense in all periods presented to address the considerable
variability among companies in recording compensation expense
because companies use stock-based payment awards differently, both
in the type and quantity of awards granted.
MARRIOTT INTERNATIONAL,
INC.
EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE
MEASURES
RevPAR. In addition to the foregoing non-GAAP financial
measures, we present Revenue per Available Room ("RevPAR") as a
performance measure. We believe RevPAR is a meaningful indicator of
our performance because it measures the period-over-period change
in room revenues for comparable properties. RevPAR relates to
property level revenue and may not be comparable to similarly
titled measures, such as revenues, and should not be viewed as
necessarily correlating with our fee revenue. We calculate RevPAR
by dividing room sales (recorded in local currency) for comparable
properties by room nights available for the period. We present
growth in comparative RevPAR on a constant dollar basis, which we
calculate by applying exchange rates for the current period to each
period presented. We believe constant dollar analysis provides
valuable information regarding our properties' performance as it
removes currency fluctuations from the presentation of such
results.
Non-RevPAR Related Franchise Fees. In this press release,
we also discuss non-RevPAR related franchise fees, which include
co-branded credit card, timeshare and yacht fees, residential
branding fees, application fees, relicensing fees, and certain
other licensing fees.
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content:https://www.prnewswire.com/news-releases/marriott-international-reports-third-quarter-2023-results-301974981.html
SOURCE Marriott International, Inc.