- Second quarter 2023 comparable systemwide constant
dollar RevPAR increased 13.5 percent worldwide,
6.0 percent in the U.S. & Canada, and 39.1 percent in
international markets, compared to the 2022 second
quarter;
- Second quarter reported diluted EPS totaled $2.38, compared to reported diluted EPS of
$2.06 in the year-ago quarter.
Second quarter adjusted diluted EPS totaled $2.26, compared to second quarter 2022
adjusted diluted EPS of $1.80;
- Second quarter reported net income totaled $726 million, compared to reported net income of
$678 million in the year-ago
quarter. Second quarter adjusted net income totaled
$690 million, compared to second
quarter 2022 adjusted net income of $593
million;
- Adjusted EBITDA totaled $1,219 million in the 2023
second quarter, compared to second quarter 2022 adjusted EBITDA of
$1,019 million;
- The company added approximately 33,100 rooms globally
during the second quarter, including 17,300 rooms associated with
the City Express transaction and roughly 11,200 other rooms in
international markets. Marriott also added more than 2,800
conversion rooms;
- At the end of the quarter, Marriott's worldwide
development pipeline totaled more than 3,100 properties and nearly
547,000 rooms, including roughly 31,500 of pipeline rooms approved,
but not yet subject to signed contracts. More than 240,000
rooms in the pipeline, including approximately 37,000 rooms from
the company's deal with MGM Resorts International, were under
construction as of the end of the second quarter;
- Marriott repurchased 5.2 million shares of common stock
for $903 million during the second
quarter. Year to date through July
28, the company has returned $2.6
billion to shareholders through dividends and share
repurchases.
BETHESDA, Md., Aug. 1, 2023
/PRNewswire/ -- Marriott International, Inc. (NASDAQ: MAR) today
reported second quarter 2023 results.
Anthony Capuano, President and
Chief Executive Officer, said, "With continued momentum in demand
for global travel, we posted another quarter of outstanding
results. Second quarter worldwide
RevPAR1 increased 13.5 percent, aided by
significant growth in all of our international regions, where
RevPAR rose 39 percent. Greater
China rebounded quickly once travel restrictions were lifted
in January, with second quarter RevPAR surpassing pre-pandemic
levels.
"In the U.S. & Canada,
RevPAR increased 6 percent, with many urban markets showing
impressive growth in the second quarter. Within customer
segments, group once again performed extremely well, with revenue
rising 10 percent above 2022. Business transient revenue also
saw strong year-over-year growth, driven by solid average daily
rate growth. Leisure transient revenue rose as well, albeit
more slowly, as more travelers from the region chose to visit
overseas destinations.
"Our growth strategies are proving successful. During the
quarter, we added approximately 33,100 rooms to our system,
including 17,300 City Express rooms in the Caribbean & Latin America region, and our industry-leading
pipeline grew to nearly 547,000 rooms, with more than 240,000
global rooms under construction. In June, we announced our
planned entry into the affordable midscale extended stay space in
the U.S. & Canada. Initial owner interest in our new
offering has been tremendous.
"Just a few weeks ago, we announced our long-term strategic
licensing agreement with MGM Resorts International and the creation
of MGM Collection with Marriott Bonvoy. This transaction is
consistent with our strategy to pursue deals that meet customer
needs, increase our distribution, and enhance the value of Marriott
Bonvoy, our powerful loyalty platform. We are excited to have
17 iconic MGM Resorts properties available on our robust digital
channels beginning later this fall and to dramatically increase our
footprint in Las Vegas, an
important, high-barrier-to-entry U.S. market. With this deal,
our 2023 full year net rooms growth expectation is now 6.4 percent
to 6.7 percent.
"While conditions could change rapidly, booking trends remain
solid. We are raising our full year rooms growth and earnings
guidance and now expect to return $4.1
billion to $4.5 billion to
shareholders in 2023."
Second Quarter 2023 Results
Marriott's reported operating income totaled $1,096 million in the 2023 second quarter,
compared to 2022 second quarter reported operating income of
$950 million. Reported net
income totaled $726 million in the
2023 second quarter, compared to 2022 second quarter reported net
income of $678 million.
Reported diluted earnings per share (EPS) totaled $2.38 in the quarter, compared to reported
diluted EPS of $2.06 in the year-ago
quarter.
Adjusted operating income in the 2023 second quarter totaled
$1,043 million, compared to 2022
second quarter adjusted operating income of $857 million. Second quarter 2023 adjusted
net income totaled $690 million,
compared to 2022 second quarter adjusted net income of $593 million. Adjusted diluted EPS in the
2023 second quarter totaled $2.26,
compared to adjusted diluted EPS of $1.80 in the year-ago quarter. The 2022
second quarter adjusted results excluded $13
million ($11 million after-tax
and $0.03 per share) of gains on
investees' property sales and a $2
million ($2 million after-tax
and $0.01 per share) gain on an asset
disposition.
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 $1,057 million in the 2023 second quarter, a 13
percent increase compared to base management and franchise fees of
$938 million in the year-ago
quarter. The increase is primarily attributable to RevPAR
increases and unit growth.
Incentive management fees totaled $193
million in the 2023 second quarter, a 43 percent increase
compared to $135 million in the 2022
second quarter. Managed hotels in international markets
contributed 61 percent of the fees earned in the quarter.
Owned, leased, and other revenue, net of direct expenses,
totaled $103 million in the 2023
second quarter, compared to $83
million in the year-ago quarter. The year-over-year
change largely reflects improved performance at owned and leased
hotels. Results in the 2022 quarter included a $12 million expense accrual related to a
portfolio of 12 leased hotels in the U.S. & Canada.
General, administrative, and other expenses for the 2023 second
quarter totaled $240 million,
compared to $231 million in the
year-ago quarter.
Interest expense, net, totaled $141
million in the 2023 second quarter, compared to $89 million in the year-ago quarter. The
increase was largely due to higher interest expense associated with
higher debt balances.
Equity in earnings for the second quarter totaled $7 million, compared to $15 million in the year-ago quarter. Equity
in earnings in the 2022 second quarter included $13 million of gains on joint ventures' sales of
hotels.
Adjusted earnings before interest, taxes, depreciation, and
amortization (EBITDA) totaled $1,219
million in the 2023 second quarter, compared to second
quarter 2022 adjusted EBITDA of $1,019
million. See page A-11 for the adjusted EBITDA
calculation.
Selected Performance Information
Marriott added 254 properties (33,097 rooms) to its worldwide
lodging portfolio during the 2023 second quarter, including 17,300
rooms associated with the City Express transaction and roughly
11,200 other rooms in international markets. The company also
added more than 2,800 conversion rooms. Seventeen properties
(1,995 rooms) exited the system during the quarter. At the
end of the quarter, Marriott's global lodging system totaled nearly
8,600 properties, with over 1,565,000 rooms.
At the end of the quarter, the company's worldwide development
pipeline totaled 3,149 properties with nearly 547,000 rooms,
including 199 properties with roughly 31,500 rooms approved for
development, but not yet subject to signed contracts. The pipeline
includes 1,066 properties with more than 240,000 rooms under
construction, or 44 percent, including approximately 37,000 rooms
from the MGM Resorts deal.
In the 2023 second quarter, worldwide RevPAR increased 13.5
percent (a 12.7 percent increase using actual dollars) compared to
the 2022 second quarter. RevPAR in the U.S. &
Canada increased 6.0 percent (a
5.7 percent increase using actual dollars), and RevPAR in
international markets increased 39.1 percent (a 36.0 percent
increase using actual dollars).
Balance Sheet & Common Stock
At the end of the quarter, Marriott's total debt was
$11.3 billion and cash and
equivalents totaled $0.6 billion,
compared to $10.1 billion in debt and
$0.5 billion of cash and equivalents
at year-end 2022.
Year to date through July 28, the
company has repurchased 13.6 million shares for $2.3 billion.
Company Outlook
The company's updated guidance for full year 2023 reflects
relatively steady global economic conditions through the remainder
of 2023, with continued resilience in travel demand. RevPAR
growth is expected to remain higher internationally than in the
U.S. & Canada, where there has
been a return to more normal seasonal patterns, and year-over-year
RevPAR growth is stabilizing.
|
Third Quarter
2023
vs Third Quarter
2022
|
Full Year 2023
vs Full Year 2022
|
Comparable
systemwide constant $
RevPAR
growth
|
|
|
Worldwide
|
6% to 8%
|
12% to 14%
|
U.S. &
Canada
|
2% to 4%
|
7% to 9%
|
International
|
17% to 19%
|
28% to 30%
|
|
|
|
|
|
Year-End 2023
vs Year-End 2022
|
Net Rooms
Growth
|
|
6.4% to 6.7%
|
|
|
|
($ in millions, except EPS)
|
Third Quarter 2023
|
Full Year 2023
|
Gross fee
revenues
|
$1,185 to
$1,210
|
$4,730 to
$4,820
|
Owned, leased, and
other revenue, net of direct expenses
|
Approx. $65
|
$330 to $335
|
General,
administrative, and other expenses
|
$250 to $240
|
$935 to $915
|
Adjusted
EBITDA1,2
|
$1,105 to
$1,140
|
$4,535 to
$4,650
|
Adjusted EPS –
diluted2,3
|
$2.00 to
$2.09
|
$8.36 to
$8.65
|
Investment
Spending4
|
|
$900 to
$1,000
|
Capital Return to
Shareholders5
|
|
$4,100 to
$4,500
|
1See pages
A-12 and A-13 for the adjusted EBITDA calculations.
|
2Adjusted
EBITDA and Adjusted EPS – diluted for third quarter and full
year 2023 do not include cost reimbursement revenue, reimbursed
expenses, merger-related charges and other expenses, special tax
items, or any 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 reported in the first half of 2023.
See page A-3 for the Adjusted EPS – diluted calculation for the
first half 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 Tuesday, August 1, 2023, at
8:30 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 August 1, 2024.
The telephone dial-in number for the conference call is US Toll
Free: 800-267-6316, or Global: +1 203-518-9783. The conference ID
is MAR2Q23. A telephone replay of the conference call will be
available from 1:00 p.m. ET,
Tuesday, August 1, 2023, until
8:00 p.m. ET, Tuesday, August 8, 2023. To access the
replay, call US Toll Free: 800-839-3736 or Global: +1
402-220-2978.
Note on forward-looking statements: All statements
in this press release and the accompanying schedules are made as of
August 1, 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; our growth prospects; the effect of changes in global
economic conditions; travel and lodging demand trends and
expectations; booking, occupancy, ADR and RevPAR trends and
expectations; our development pipeline, deletions, and growth
expectations; our planned entry into midscale extended stay; 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 8,600 properties under 31 leading
brands spanning 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 Twitter 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.
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. Occupancy, ADR and RevPAR
comparisons between 2023 and 2019 reflect properties that are
defined as comparable as of June 30,
2023, even if they were not open and operating for the full
year 2019 or they did not meet all the other criteria for
comparable in 2019. Unless otherwise stated, all comparisons
to pre-pandemic or 2019 are comparing to the same time period each
year.
IRPR#1
Tables follow
MARRIOTT INTERNATIONAL, INC.
|
PRESS RELEASE SCHEDULES
|
TABLE OF CONTENTS
|
QUARTER 2, 2023
|
|
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|
|
|
|
|
|
|
Consolidated Statements
of Income - As Reported
|
|
|
|
|
|
|
|
|
A-1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures
|
|
|
|
|
|
|
|
|
|
|
|
A-3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Lodging Products
by Ownership Type
|
|
|
|
|
|
|
|
|
|
A-4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Lodging Products
by Tier
|
|
|
|
|
|
|
|
|
|
|
|
A-6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Key Lodging
Statistics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A-7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A-11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Forecast - Third Quarter 2023
|
|
|
|
|
|
|
|
|
|
A-12
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
Forecast - Full Year 2023
|
|
|
|
|
|
|
|
|
|
A-13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Explanation of Non-GAAP
Financial and Performance Measures
|
|
|
|
|
|
A-14
|
|
MARRIOTT INTERNATIONAL, INC.
|
|
CONSOLIDATED STATEMENTS OF INCOME - AS
REPORTED
|
|
SECOND QUARTER 2023 AND 2022
|
|
(in millions except per
share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
As Reported
|
|
Percent
|
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
Better/(Worse)
|
|
|
|
June 30, 2023
|
|
June 30, 2022
|
|
Reported 2023 vs. 2022
|
|
REVENUES
|
|
|
|
|
|
|
|
Base management
fees
|
|
$
318
|
|
$
269
|
|
18
|
|
Franchise fees
1
|
|
739
|
|
669
|
|
10
|
|
Incentive management
fees
|
|
193
|
|
135
|
|
43
|
|
Gross Fee Revenues
|
|
1,250
|
|
1,073
|
|
16
|
|
Contract investment
amortization 2
|
|
(22)
|
|
(19)
|
|
(16)
|
|
Net Fee Revenues
|
|
1,228
|
|
1,054
|
|
17
|
|
Owned, leased, and
other revenue 3
|
|
390
|
|
364
|
|
7
|
|
Cost reimbursement
revenue 4
|
|
4,457
|
|
3,920
|
|
14
|
|
Total Revenues
|
|
6,075
|
|
5,338
|
|
14
|
|
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES
|
|
|
|
|
|
|
|
Owned, leased, and
other - direct 5
|
|
287
|
|
281
|
|
(2)
|
|
Depreciation,
amortization, and other 6
|
|
48
|
|
49
|
|
2
|
|
General,
administrative, and other 7
|
|
240
|
|
231
|
|
(4)
|
|
Merger-related charges
and other
|
|
38
|
|
-
|
|
*
|
|
Reimbursed expenses
4
|
|
4,366
|
|
3,827
|
|
(14)
|
|
Total Expenses
|
|
4,979
|
|
4,388
|
|
(13)
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
|
|
1,096
|
|
950
|
|
15
|
|
|
|
|
|
|
|
|
|
Gains and other income,
net 8
|
|
2
|
|
2
|
|
-
|
|
Interest
expense
|
|
(140)
|
|
(95)
|
|
(47)
|
|
Interest
income
|
|
(1)
|
|
6
|
|
(117)
|
|
Equity in earnings
9
|
|
7
|
|
15
|
|
(53)
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES
|
|
964
|
|
878
|
|
10
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
(238)
|
|
(200)
|
|
(19)
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
726
|
|
$
678
|
|
7
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
|
|
|
|
|
|
|
|
Earnings per
share - basic
|
|
$
2.39
|
|
$
2.06
|
|
16
|
|
Earnings per
share - diluted
|
|
$
2.38
|
|
$
2.06
|
|
16
|
|
|
|
|
|
|
|
|
|
Basic Shares
|
|
303.6
|
|
328.2
|
|
|
|
Diluted
Shares
|
|
305.0
|
|
329.5
|
|
|
|
|
|
|
|
|
|
|
*
|
Calculated percentage
is not meaningful.
|
|
|
|
|
|
|
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
|
|
SECOND QUARTER YEAR-TO-DATE 2023 AND
2022
|
|
(in millions except per
share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As Reported
|
|
As Reported
|
|
Percent
|
|
|
|
Six Months Ended
|
|
Six Months Ended
|
|
Better/(Worse)
|
|
|
|
June 30, 2023
|
|
June 30, 2022
|
|
Reported 2023 vs. 2022
|
|
REVENUES
|
|
|
|
|
|
|
|
Base management
fees
|
|
$
611
|
|
$
482
|
|
27
|
|
Franchise fees
1
|
|
1,378
|
|
1,169
|
|
18
|
|
Incentive management
fees
|
|
394
|
|
237
|
|
66
|
|
Gross Fee Revenues
|
|
2,383
|
|
1,888
|
|
26
|
|
Contract investment
amortization 2
|
|
(43)
|
|
(43)
|
|
-
|
|
Net Fee Revenues
|
|
2,340
|
|
1,845
|
|
27
|
|
Owned, leased, and
other revenue 3
|
|
746
|
|
626
|
|
19
|
|
Cost reimbursement
revenue 4
|
|
8,604
|
|
7,066
|
|
22
|
|
Total Revenues
|
|
11,690
|
|
9,537
|
|
23
|
|
|
|
|
|
|
|
|
|
OPERATING COSTS AND EXPENSES
|
|
|
|
|
|
|
|
Owned, leased, and
other - direct 5
|
|
568
|
|
478
|
|
(19)
|
|
Depreciation,
amortization, and other 6
|
|
92
|
|
97
|
|
5
|
|
General,
administrative, and other 7
|
|
442
|
|
439
|
|
(1)
|
|
Merger-related charges
and other
|
|
39
|
|
9
|
|
(333)
|
|
Reimbursed expenses
4
|
|
8,502
|
|
7,006
|
|
(21)
|
|
Total Expenses
|
|
9,643
|
|
8,029
|
|
(20)
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
|
|
2,047
|
|
1,508
|
|
36
|
|
|
|
|
|
|
|
|
|
Gains and other income,
net 8
|
|
5
|
|
6
|
|
(17)
|
|
Interest
expense
|
|
(266)
|
|
(188)
|
|
(41)
|
|
Interest
income
|
|
14
|
|
11
|
|
27
|
|
Equity in earnings
9
|
|
8
|
|
17
|
|
(53)
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES
|
|
1,808
|
|
1,354
|
|
34
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
(325)
|
|
(299)
|
|
(9)
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
|
$
1,483
|
|
$
1,055
|
|
41
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
|
|
|
|
|
|
|
|
Earnings per
share - basic
|
|
$
4.84
|
|
$
3.21
|
|
51
|
|
Earnings per
share - diluted
|
|
$
4.81
|
|
$
3.20
|
|
50
|
|
|
|
|
|
|
|
|
|
Basic Shares
|
|
306.6
|
|
328.3
|
|
|
|
Diluted
Shares
|
|
308.0
|
|
329.8
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months Ended
|
|
|
|
|
|
|
Percent
|
|
|
|
|
|
Percent
|
|
|
June 30,
|
|
June 30,
|
|
Better/
|
|
June 30,
|
|
June 30,
|
|
Better/
|
|
|
2023
|
|
2022
|
|
(Worse)
|
|
2023
|
|
2022
|
|
(Worse)
|
|
Total revenues, as
reported
|
$
6,075
|
|
$
5,338
|
|
|
|
$
11,690
|
|
$
9,537
|
|
|
|
Less: Cost
reimbursement revenue
|
(4,457)
|
|
(3,920)
|
|
|
|
(8,604)
|
|
(7,066)
|
|
|
|
Add: Impairments
1
|
-
|
|
-
|
|
|
|
-
|
|
5
|
|
|
|
Adjusted total revenues
**
|
1,618
|
|
1,418
|
|
|
|
3,086
|
|
2,476
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income, as
reported
|
1,096
|
|
950
|
|
|
|
2,047
|
|
1,508
|
|
|
|
Less: Cost
reimbursement revenue
|
(4,457)
|
|
(3,920)
|
|
|
|
(8,604)
|
|
(7,066)
|
|
|
|
Add: Reimbursed
expenses
|
4,366
|
|
3,827
|
|
|
|
8,502
|
|
7,006
|
|
|
|
Add: Merger-related
charges and other
|
38
|
|
-
|
|
|
|
39
|
|
9
|
|
|
|
Add: Impairments
1
|
-
|
|
-
|
|
|
|
-
|
|
5
|
|
|
|
Adjusted operating income **
|
1,043
|
|
857
|
|
22 %
|
|
1,984
|
|
1,462
|
|
36 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income margin
|
18 %
|
|
18 %
|
|
|
|
18 %
|
|
16 %
|
|
|
|
Adjusted operating income margin
**
|
64 %
|
|
60 %
|
|
|
|
64 %
|
|
59 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as
reported
|
726
|
|
678
|
|
|
|
1,483
|
|
1,055
|
|
|
|
Less: Cost
reimbursement revenue
|
(4,457)
|
|
(3,920)
|
|
|
|
(8,604)
|
|
(7,066)
|
|
|
|
Add: Reimbursed
expenses
|
4,366
|
|
3,827
|
|
|
|
8,502
|
|
7,006
|
|
|
|
Add: Merger-related
charges and other
|
38
|
|
-
|
|
|
|
39
|
|
9
|
|
|
|
Add: Impairments
2
|
-
|
|
-
|
|
|
|
-
|
|
11
|
|
|
|
Less: Gains on
investees' property sales 3
|
-
|
|
(13)
|
|
|
|
-
|
|
(21)
|
|
|
|
Less: Gain on asset
dispositions 4
|
-
|
|
(2)
|
|
|
|
-
|
|
(2)
|
|
|
|
Income tax effect of
above adjustments
|
17
|
|
23
|
|
|
|
18
|
|
14
|
|
|
|
Less: Income tax
special items
|
-
|
|
-
|
|
|
|
(100)
|
|
-
|
|
|
|
Adjusted net income **
|
$
690
|
|
$
593
|
|
16 %
|
|
$
1,338
|
|
$
1,006
|
|
33 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share, as
reported
|
$
2.38
|
|
$
2.06
|
|
|
|
$
4.81
|
|
$
3.20
|
|
|
|
Adjusted diluted earnings per
share**
|
$
2.26
|
|
$
1.80
|
|
26 %
|
|
$
4.35
|
|
$
3.05
|
|
43 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
**
|
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
|
Six months ended June
30, 2022 includes impairment charges reported in Contract
investment amortization of $5 million.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
|
Six months ended June
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 June 30, 2023
|
|
|
|
|
|
|
|
|
US & Canada
|
Total International
|
Total Worldwide
|
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Managed
|
632
|
216,276
|
1,384
|
351,187
|
2,016
|
567,463
|
Marriott
Hotels
|
103
|
57,239
|
172
|
53,864
|
275
|
111,103
|
Sheraton
|
26
|
20,869
|
184
|
61,857
|
210
|
82,726
|
Courtyard
|
167
|
27,077
|
117
|
25,152
|
284
|
52,229
|
Westin
|
40
|
21,868
|
80
|
24,666
|
120
|
46,534
|
JW
Marriott
|
22
|
12,886
|
72
|
25,603
|
94
|
38,489
|
The
Ritz-Carlton
|
40
|
12,077
|
75
|
17,824
|
115
|
29,901
|
Renaissance
|
23
|
10,245
|
54
|
17,327
|
77
|
27,572
|
Four
Points
|
1
|
134
|
85
|
23,643
|
86
|
23,777
|
Le
Méridien
|
1
|
100
|
72
|
20,037
|
73
|
20,137
|
W
Hotels
|
23
|
6,516
|
39
|
10,399
|
62
|
16,915
|
Residence
Inn
|
73
|
11,857
|
9
|
1,116
|
82
|
12,973
|
St.
Regis
|
11
|
2,169
|
43
|
9,780
|
54
|
11,949
|
Delta Hotels by
Marriott
|
25
|
6,770
|
27
|
4,956
|
52
|
11,726
|
Fairfield by
Marriott
|
6
|
1,431
|
71
|
8,877
|
77
|
10,308
|
The Luxury
Collection
|
6
|
2,296
|
41
|
7,983
|
47
|
10,279
|
Gaylord
Hotels
|
6
|
10,220
|
-
|
-
|
6
|
10,220
|
Aloft
|
2
|
505
|
44
|
9,624
|
46
|
10,129
|
AC Hotels by
Marriott
|
8
|
1,512
|
68
|
8,466
|
76
|
9,978
|
Autograph
Collection
|
9
|
2,870
|
23
|
3,514
|
32
|
6,384
|
Marriott
Executive Apartments
|
-
|
-
|
36
|
5,159
|
36
|
5,159
|
SpringHill
Suites
|
25
|
4,241
|
-
|
-
|
25
|
4,241
|
Element
|
3
|
810
|
14
|
2,952
|
17
|
3,762
|
EDITION
|
5
|
1,379
|
11
|
2,309
|
16
|
3,688
|
Protea
Hotels
|
-
|
-
|
25
|
3,081
|
25
|
3,081
|
Moxy
|
1
|
380
|
6
|
1,092
|
7
|
1,472
|
Tribute
Portfolio
|
-
|
-
|
9
|
1,252
|
9
|
1,252
|
TownePlace
Suites
|
6
|
825
|
-
|
-
|
6
|
825
|
Bulgari
|
-
|
-
|
7
|
654
|
7
|
654
|
Franchised
|
5,192
|
744,050
|
1,117
|
204,600
|
6,309
|
948,650
|
Courtyard
|
885
|
118,187
|
114
|
21,276
|
999
|
139,463
|
Fairfield by
Marriott
|
1,140
|
107,312
|
51
|
8,966
|
1,191
|
116,278
|
Residence
Inn
|
783
|
93,400
|
28
|
3,719
|
811
|
97,119
|
Marriott
Hotels
|
233
|
74,401
|
63
|
18,167
|
296
|
92,568
|
Sheraton
|
144
|
44,781
|
74
|
21,831
|
218
|
66,612
|
SpringHill
Suites
|
511
|
59,267
|
-
|
-
|
511
|
59,267
|
Autograph
Collection
|
141
|
27,559
|
115
|
24,514
|
256
|
52,073
|
TownePlace
Suites
|
489
|
49,571
|
-
|
-
|
489
|
49,571
|
Westin
|
92
|
31,075
|
27
|
7,858
|
119
|
38,933
|
Four
Points
|
156
|
23,629
|
62
|
10,449
|
218
|
34,078
|
Aloft
|
158
|
22,580
|
22
|
3,607
|
180
|
26,187
|
AC Hotels by
Marriott
|
105
|
17,320
|
49
|
8,665
|
154
|
25,985
|
Renaissance
|
64
|
18,075
|
30
|
7,671
|
94
|
25,746
|
Moxy
|
31
|
5,797
|
92
|
17,323
|
123
|
23,120
|
City Express by
Marriott
|
-
|
-
|
149
|
17,300
|
149
|
17,300
|
Delta Hotels by
Marriott
|
63
|
14,273
|
13
|
2,998
|
76
|
17,271
|
Tribute
Portfolio
|
58
|
9,364
|
34
|
4,050
|
92
|
13,414
|
The Luxury
Collection
|
11
|
3,112
|
52
|
9,602
|
63
|
12,714
|
Le
Méridien
|
25
|
5,749
|
20
|
5,244
|
45
|
10,993
|
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
|
70
|
5,187
|
80
|
6,572
|
Protea
Hotels
|
-
|
-
|
33
|
2,622
|
33
|
2,622
|
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 June 30, 2023
|
|
|
|
|
|
|
|
|
US & Canada
|
Total International
|
Total Worldwide
|
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Owned/Leased
|
14
|
4,656
|
38
|
9,209
|
52
|
13,865
|
Marriott
Hotels
|
2
|
1,308
|
6
|
2,064
|
8
|
3,372
|
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
|
68
|
7,199
|
51
|
5,187
|
119
|
12,386
|
The Ritz-Carlton
Residences
|
40
|
4,431
|
17
|
1,506
|
57
|
5,937
|
St. Regis
Residences
|
10
|
1,196
|
12
|
1,562
|
22
|
2,758
|
W
Residences
|
10
|
1,089
|
7
|
547
|
17
|
1,636
|
Westin
Residences
|
3
|
266
|
2
|
353
|
5
|
619
|
Bulgari
Residences
|
-
|
-
|
5
|
514
|
5
|
514
|
Sheraton
Residences
|
-
|
-
|
2
|
282
|
2
|
282
|
Marriott Hotels
Residences
|
-
|
-
|
2
|
246
|
2
|
246
|
The Luxury
Collection Residences
|
1
|
91
|
3
|
115
|
4
|
206
|
EDITION
Residences
|
3
|
90
|
-
|
-
|
3
|
90
|
Le Méridien
Residences
|
-
|
-
|
1
|
62
|
1
|
62
|
JW Marriott
Residences
|
1
|
36
|
-
|
-
|
1
|
36
|
Timeshare*
|
72
|
18,839
|
21
|
3,906
|
93
|
22,745
|
Yacht*
|
-
|
-
|
1
|
149
|
1
|
149
|
Grand Total
|
5,978
|
991,020
|
2,612
|
574,238
|
8,590
|
1,565,258
|
*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 June 30, 2023
|
|
|
|
|
|
|
|
|
US & Canada
|
Total International
|
Total Worldwide
|
Total Systemwide
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Luxury
|
198
|
54,648
|
408
|
93,792
|
606
|
148,440
|
JW
Marriott
|
34
|
18,958
|
85
|
28,832
|
119
|
47,790
|
JW Marriott
Residences
|
1
|
36
|
-
|
-
|
1
|
36
|
The
Ritz-Carlton
|
41
|
12,506
|
77
|
18,374
|
118
|
30,880
|
The Ritz-Carlton
Residences
|
40
|
4,431
|
17
|
1,506
|
57
|
5,937
|
The Luxury
Collection
|
17
|
5,408
|
96
|
17,968
|
113
|
23,376
|
The Luxury
Collection Residences
|
1
|
91
|
3
|
115
|
4
|
206
|
W
Hotels
|
25
|
7,295
|
42
|
11,310
|
67
|
18,605
|
W
Residences
|
10
|
1,089
|
7
|
547
|
17
|
1,636
|
St.
Regis
|
11
|
2,169
|
44
|
9,940
|
55
|
12,109
|
St. Regis
Residences
|
10
|
1,196
|
12
|
1,562
|
22
|
2,758
|
EDITION
|
5
|
1,379
|
11
|
2,309
|
16
|
3,688
|
EDITION
Residences
|
3
|
90
|
-
|
-
|
3
|
90
|
Bulgari
|
-
|
-
|
9
|
815
|
9
|
815
|
Bulgari
Residences
|
-
|
-
|
5
|
514
|
5
|
514
|
Premium
|
1,070
|
359,807
|
1,131
|
296,246
|
2,201
|
656,053
|
Marriott
Hotels
|
338
|
132,948
|
241
|
74,095
|
579
|
207,043
|
Marriott Hotels
Residences
|
-
|
-
|
2
|
246
|
2
|
246
|
Sheraton
|
170
|
65,650
|
262
|
85,518
|
432
|
151,168
|
Sheraton
Residences
|
-
|
-
|
2
|
282
|
2
|
282
|
Westin
|
133
|
54,016
|
107
|
32,524
|
240
|
86,540
|
Westin
Residences
|
3
|
266
|
2
|
353
|
5
|
619
|
Autograph
Collection
|
150
|
30,429
|
143
|
28,389
|
293
|
58,818
|
Renaissance
|
88
|
28,637
|
86
|
25,503
|
174
|
54,140
|
Le
Méridien
|
26
|
5,849
|
92
|
25,281
|
118
|
31,130
|
Le Méridien
Residences
|
-
|
-
|
1
|
62
|
1
|
62
|
Delta Hotels by
Marriott
|
88
|
21,043
|
40
|
7,954
|
128
|
28,997
|
Tribute
Portfolio
|
58
|
9,364
|
45
|
5,551
|
103
|
14,915
|
Gaylord
Hotels
|
6
|
10,220
|
-
|
-
|
6
|
10,220
|
Design
Hotels
|
10
|
1,385
|
70
|
5,187
|
80
|
6,572
|
Marriott
Executive Apartments
|
-
|
-
|
38
|
5,301
|
38
|
5,301
|
Select
|
4,638
|
557,726
|
1,051
|
180,145
|
5,689
|
737,871
|
Courtyard
|
1,059
|
146,251
|
235
|
47,322
|
1,294
|
193,573
|
Fairfield by
Marriott
|
1,146
|
108,743
|
122
|
17,843
|
1,268
|
126,586
|
Residence
Inn
|
857
|
105,449
|
38
|
4,975
|
895
|
110,424
|
SpringHill
Suites
|
536
|
63,508
|
-
|
-
|
536
|
63,508
|
Four
Points
|
157
|
23,763
|
147
|
34,092
|
304
|
57,855
|
TownePlace
Suites
|
495
|
50,396
|
-
|
-
|
495
|
50,396
|
Aloft
|
160
|
23,085
|
66
|
13,231
|
226
|
36,316
|
AC Hotels by
Marriott
|
113
|
18,832
|
117
|
17,131
|
230
|
35,963
|
Moxy
|
32
|
6,177
|
98
|
18,415
|
130
|
24,592
|
City Express by
Marriott
|
-
|
-
|
149
|
17,300
|
149
|
17,300
|
Element
|
83
|
11,522
|
16
|
3,221
|
99
|
14,743
|
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
|
5,978
|
991,020
|
2,612
|
574,238
|
8,590
|
1,565,258
|
|
|
|
|
|
|
|
*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 June 30, 2023 and June 30,
2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily Rate
|
Brand
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
JW Marriott
|
|
$239.29
|
3.4 %
|
|
73.5 %
|
1.2 %
|
pts.
|
|
$325.62
|
1.8 %
|
The
Ritz-Carlton
|
|
$341.14
|
-5.3 %
|
|
68.0 %
|
-2.8 %
|
pts.
|
|
$501.41
|
-1.4 %
|
W Hotels
|
|
$245.95
|
-3.0 %
|
|
69.7 %
|
1.1 %
|
pts.
|
|
$352.76
|
-4.5 %
|
Composite US & Canada
Luxury1
|
|
$294.05
|
-1.8 %
|
|
70.8 %
|
-0.6 %
|
pts.
|
|
$415.17
|
-1.0 %
|
Marriott
Hotels
|
|
$178.84
|
9.1 %
|
|
74.0 %
|
2.0 %
|
pts.
|
|
$241.71
|
6.2 %
|
Sheraton
|
|
$165.07
|
10.0 %
|
|
71.3 %
|
3.7 %
|
pts.
|
|
$231.43
|
4.3 %
|
Westin
|
|
$182.94
|
4.5 %
|
|
72.4 %
|
0.1 %
|
pts.
|
|
$252.54
|
4.4 %
|
Composite US & Canada
Premium2
|
|
$174.50
|
8.2 %
|
|
72.9 %
|
2.0 %
|
pts.
|
|
$239.46
|
5.2 %
|
US & Canada
Full-Service3
|
|
$200.09
|
4.9 %
|
|
72.4 %
|
1.5 %
|
pts.
|
|
$276.23
|
2.7 %
|
Courtyard
|
|
$119.10
|
7.2 %
|
|
70.9 %
|
0.7 %
|
pts.
|
|
$168.00
|
6.2 %
|
Residence
Inn
|
|
$155.77
|
4.6 %
|
|
79.4 %
|
-0.8 %
|
pts.
|
|
$196.18
|
5.6 %
|
Composite US & Canada
Select4
|
|
$131.11
|
6.7 %
|
|
73.6 %
|
0.4 %
|
pts.
|
|
$178.23
|
6.1 %
|
US & Canada -
All5
|
|
$183.42
|
5.2 %
|
|
72.7 %
|
1.2 %
|
pts.
|
|
$252.26
|
3.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Systemwide US & Canada
Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2023 and June 30,
2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily Rate
|
Brand
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
JW Marriott
|
|
$231.03
|
2.2 %
|
|
73.9 %
|
0.8 %
|
pts.
|
|
$312.77
|
1.1 %
|
The
Ritz-Carlton
|
|
$339.82
|
-4.6 %
|
|
68.5 %
|
-2.4 %
|
pts.
|
|
$496.03
|
-1.3 %
|
W Hotels
|
|
$245.95
|
-3.0 %
|
|
69.7 %
|
1.1 %
|
pts.
|
|
$352.76
|
-4.5 %
|
Composite US & Canada
Luxury1
|
|
$278.74
|
-1.4 %
|
|
71.5 %
|
-0.2 %
|
pts.
|
|
$389.71
|
-1.1 %
|
Marriott
Hotels
|
|
$149.83
|
9.1 %
|
|
71.5 %
|
2.8 %
|
pts.
|
|
$209.46
|
4.9 %
|
Sheraton
|
|
$130.81
|
10.3 %
|
|
69.4 %
|
3.8 %
|
pts.
|
|
$188.57
|
4.3 %
|
Westin
|
|
$167.26
|
6.0 %
|
|
72.8 %
|
1.6 %
|
pts.
|
|
$229.72
|
3.7 %
|
Composite US & Canada
Premium2
|
|
$151.77
|
7.5 %
|
|
71.2 %
|
2.6 %
|
pts.
|
|
$213.20
|
3.6 %
|
US & Canada
Full-Service3
|
|
$166.16
|
5.7 %
|
|
71.2 %
|
2.2 %
|
pts.
|
|
$233.29
|
2.3 %
|
Courtyard
|
|
$119.91
|
6.6 %
|
|
73.4 %
|
0.9 %
|
pts.
|
|
$163.46
|
5.2 %
|
Residence
Inn
|
|
$135.41
|
5.7 %
|
|
79.2 %
|
-0.8 %
|
pts.
|
|
$170.95
|
6.8 %
|
Fairfield by
Marriott
|
|
$99.75
|
6.6 %
|
|
73.7 %
|
1.1 %
|
pts.
|
|
$135.38
|
5.0 %
|
Composite US & Canada
Select4
|
|
$117.94
|
6.3 %
|
|
75.3 %
|
0.7 %
|
pts.
|
|
$156.71
|
5.4 %
|
US & Canada -
All5
|
|
$137.93
|
6.0 %
|
|
73.6 %
|
1.3 %
|
pts.
|
|
$187.44
|
4.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2023 and June 30,
2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily Rate
|
Brand
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
JW Marriott
|
|
$244.53
|
16.2 %
|
|
72.4 %
|
8.1 %
|
pts.
|
|
$337.98
|
3.1 %
|
The
Ritz-Carlton
|
|
$336.63
|
1.5 %
|
|
66.5 %
|
2.6 %
|
pts.
|
|
$506.40
|
-2.4 %
|
W Hotels
|
|
$236.64
|
2.6 %
|
|
64.5 %
|
5.0 %
|
pts.
|
|
$367.07
|
-5.4 %
|
Composite US & Canada
Luxury1
|
|
$300.81
|
7.5 %
|
|
69.1 %
|
5.2 %
|
pts.
|
|
$435.41
|
-0.7 %
|
Marriott
Hotels
|
|
$167.20
|
22.7 %
|
|
69.8 %
|
7.6 %
|
pts.
|
|
$239.52
|
9.3 %
|
Sheraton
|
|
$157.27
|
21.1 %
|
|
68.0 %
|
8.3 %
|
pts.
|
|
$231.34
|
6.3 %
|
Westin
|
|
$168.41
|
16.5 %
|
|
68.3 %
|
5.4 %
|
pts.
|
|
$246.75
|
7.2 %
|
Composite US & Canada
Premium2
|
|
$163.84
|
21.9 %
|
|
69.2 %
|
8.2 %
|
pts.
|
|
$236.68
|
7.5 %
|
US & Canada
Full-Service3
|
|
$193.16
|
16.7 %
|
|
69.2 %
|
7.6 %
|
pts.
|
|
$279.14
|
3.9 %
|
Courtyard
|
|
$109.79
|
16.3 %
|
|
66.6 %
|
4.0 %
|
pts.
|
|
$164.85
|
9.4 %
|
Residence
Inn
|
|
$149.76
|
10.8 %
|
|
77.1 %
|
1.7 %
|
pts.
|
|
$194.23
|
8.4 %
|
Composite US & Canada
Select4
|
|
$122.96
|
14.4 %
|
|
70.0 %
|
3.4 %
|
pts.
|
|
$175.68
|
8.9 %
|
US & Canada -
All5
|
|
$176.19
|
16.3 %
|
|
69.4 %
|
6.6 %
|
pts.
|
|
$253.92
|
5.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Systemwide US & Canada
Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2023 and June 30,
2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily Rate
|
Brand
|
|
2023
|
vs.
2022
|
|
2023
|
vs.
2022
|
|
2023
|
vs.
2022
|
JW Marriott
|
|
$235.59
|
13.0 %
|
|
72.8 %
|
7.0 %
|
pts.
|
|
$323.77
|
2.1 %
|
The
Ritz-Carlton
|
|
$332.42
|
2.1 %
|
|
66.5 %
|
3.0 %
|
pts.
|
|
$499.79
|
-2.5 %
|
W Hotels
|
|
$236.64
|
2.6 %
|
|
64.5 %
|
5.0 %
|
pts.
|
|
$367.07
|
-5.4 %
|
Composite US & Canada
Luxury1
|
|
$282.13
|
7.4 %
|
|
69.6 %
|
5.3 %
|
pts.
|
|
$405.18
|
-0.7 %
|
Marriott
Hotels
|
|
$139.24
|
20.4 %
|
|
67.4 %
|
7.4 %
|
pts.
|
|
$206.73
|
7.2 %
|
Sheraton
|
|
$120.28
|
20.4 %
|
|
65.0 %
|
7.6 %
|
pts.
|
|
$185.11
|
6.2 %
|
Westin
|
|
$157.19
|
17.1 %
|
|
69.1 %
|
6.3 %
|
pts.
|
|
$227.45
|
6.4 %
|
Composite US & Canada
Premium2
|
|
$141.97
|
18.8 %
|
|
67.3 %
|
7.3 %
|
pts.
|
|
$210.86
|
5.8 %
|
US & Canada
Full-Service3
|
|
$157.86
|
16.3 %
|
|
67.6 %
|
7.1 %
|
pts.
|
|
$233.54
|
4.0 %
|
Courtyard
|
|
$109.49
|
13.9 %
|
|
69.2 %
|
3.9 %
|
pts.
|
|
$158.31
|
7.4 %
|
Residence
Inn
|
|
$126.70
|
10.4 %
|
|
76.1 %
|
1.2 %
|
pts.
|
|
$166.39
|
8.7 %
|
Fairfield by
Marriott
|
|
$89.84
|
10.7 %
|
|
69.0 %
|
2.8 %
|
pts.
|
|
$130.20
|
6.2 %
|
Composite US & Canada
Select4
|
|
$108.40
|
12.3 %
|
|
71.4 %
|
3.1 %
|
pts.
|
|
$151.85
|
7.5 %
|
US & Canada -
All5
|
|
$128.91
|
14.3 %
|
|
69.8 %
|
4.7 %
|
pts.
|
|
$184.64
|
6.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 June 30, 2023 and June 30,
2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily Rate
|
Region
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
Greater
China
|
|
$90.90
|
124.5 %
|
|
69.5 %
|
27.9 %
|
pts.
|
|
$130.86
|
34.3 %
|
Asia Pacific excluding
China
|
|
$109.48
|
45.1 %
|
|
67.0 %
|
9.7 %
|
pts.
|
|
$163.43
|
24.1 %
|
Caribbean & Latin
America
|
|
$160.93
|
10.1 %
|
|
62.8 %
|
2.1 %
|
pts.
|
|
$256.25
|
6.4 %
|
Europe
|
|
$205.13
|
24.2 %
|
|
75.0 %
|
5.8 %
|
pts.
|
|
$273.43
|
14.5 %
|
Middle East &
Africa
|
|
$116.06
|
20.0 %
|
|
63.8 %
|
4.2 %
|
pts.
|
|
$182.05
|
12.2 %
|
|
|
|
|
|
|
|
|
|
|
|
International - All1
|
|
$121.50
|
43.8 %
|
|
68.2 %
|
14.1 %
|
pts.
|
|
$178.06
|
14.0 %
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide2
|
|
$148.66
|
19.9 %
|
|
70.2 %
|
8.5 %
|
pts.
|
|
$211.77
|
5.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Systemwide International
Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, 2023 and June 30,
2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily Rate
|
Region
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
Greater
China
|
|
$84.99
|
125.2 %
|
|
68.5 %
|
28.5 %
|
pts.
|
|
$124.03
|
31.5 %
|
Asia Pacific excluding
China
|
|
$111.21
|
47.6 %
|
|
67.3 %
|
9.3 %
|
pts.
|
|
$165.20
|
27.1 %
|
Caribbean & Latin
America
|
|
$138.71
|
11.9 %
|
|
63.3 %
|
1.6 %
|
pts.
|
|
$218.98
|
9.0 %
|
Europe
|
|
$161.98
|
24.5 %
|
|
73.8 %
|
6.9 %
|
pts.
|
|
$219.59
|
12.8 %
|
Middle East &
Africa
|
|
$109.70
|
22.6 %
|
|
63.0 %
|
3.9 %
|
pts.
|
|
$174.24
|
15.0 %
|
|
|
|
|
|
|
|
|
|
|
|
International - All1
|
|
$119.21
|
39.1 %
|
|
68.2 %
|
12.4 %
|
pts.
|
|
$174.91
|
13.7 %
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide2
|
|
$132.17
|
13.5 %
|
|
71.9 %
|
4.7 %
|
pts.
|
|
$183.79
|
6.0 %
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2023 and June 30,
2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily Rate
|
Region
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
Greater
China
|
|
$87.42
|
100.1 %
|
|
67.1 %
|
25.9 %
|
pts.
|
|
$130.35
|
22.8 %
|
Asia Pacific excluding
China
|
|
$113.94
|
73.2 %
|
|
67.5 %
|
16.9 %
|
pts.
|
|
$168.81
|
29.9 %
|
Caribbean & Latin
America
|
|
$178.07
|
25.3 %
|
|
64.6 %
|
6.2 %
|
pts.
|
|
$275.87
|
13.1 %
|
Europe
|
|
$166.09
|
37.4 %
|
|
68.0 %
|
12.3 %
|
pts.
|
|
$244.08
|
12.5 %
|
Middle East &
Africa
|
|
$128.26
|
18.3 %
|
|
66.9 %
|
4.0 %
|
pts.
|
|
$191.80
|
11.3 %
|
|
|
|
|
|
|
|
|
|
|
|
International - All1
|
|
$118.74
|
51.9 %
|
|
67.1 %
|
16.5 %
|
pts.
|
|
$176.87
|
14.5 %
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide2
|
|
$143.96
|
30.4 %
|
|
68.1 %
|
12.2 %
|
pts.
|
|
$211.32
|
7.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable Systemwide International
Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, 2023 and June 30,
2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily Rate
|
Region
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
|
2023
|
vs. 2022
|
Greater
China
|
|
$81.68
|
100.6 %
|
|
66.0 %
|
26.1 %
|
pts.
|
|
$123.72
|
21.3 %
|
Asia Pacific excluding
China
|
|
$113.64
|
73.5 %
|
|
67.4 %
|
16.2 %
|
pts.
|
|
$168.73
|
31.9 %
|
Caribbean & Latin
America
|
|
$152.12
|
26.0 %
|
|
65.4 %
|
6.6 %
|
pts.
|
|
$232.60
|
13.2 %
|
Europe
|
|
$130.71
|
39.8 %
|
|
65.6 %
|
13.2 %
|
pts.
|
|
$199.11
|
11.7 %
|
Middle East &
Africa
|
|
$119.67
|
20.7 %
|
|
65.6 %
|
4.0 %
|
pts.
|
|
$182.48
|
13.4 %
|
|
|
|
|
|
|
|
|
|
|
|
International - All1
|
|
$114.17
|
49.5 %
|
|
66.1 %
|
15.4 %
|
pts.
|
|
$172.71
|
14.6 %
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide2
|
|
$124.38
|
22.4 %
|
|
68.7 %
|
8.0 %
|
pts.
|
|
$181.11
|
8.1 %
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
NON-GAAP FINANCIAL MEASURES
|
|
ADJUSTED EBITDA
|
|
(in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Year 2023
|
|
|
|
|
|
|
First
Quarter
|
|
Second
Quarter
|
|
Total
|
|
|
|
|
|
Net income, as
reported
|
$
757
|
|
$
726
|
|
$
1,483
|
|
|
|
|
|
Cost reimbursement
revenue
|
(4,147)
|
|
(4,457)
|
|
(8,604)
|
|
|
|
|
|
Reimbursed
expenses
|
4,136
|
|
4,366
|
|
8,502
|
|
|
|
|
|
Interest
expense
|
126
|
|
140
|
|
266
|
|
|
|
|
|
Interest expense from
unconsolidated joint ventures
|
1
|
|
1
|
|
2
|
|
|
|
|
|
Provision for income
taxes
|
87
|
|
238
|
|
325
|
|
|
|
|
|
Depreciation and
amortization
|
44
|
|
48
|
|
92
|
|
|
|
|
|
Contract investment
amortization
|
21
|
|
22
|
|
43
|
|
|
|
|
|
Depreciation and
amortization classified in reimbursed expenses
|
31
|
|
38
|
|
69
|
|
|
|
|
|
Depreciation,
amortization, and impairments from unconsolidated joint
ventures
|
4
|
|
3
|
|
7
|
|
|
|
|
|
Stock-based
compensation
|
37
|
|
56
|
|
93
|
|
|
|
|
|
Merger-related charges
and other
|
1
|
|
38
|
|
39
|
|
|
|
|
|
Adjusted EBITDA **
|
$
1,098
|
|
$
1,219
|
|
$
2,317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change from 2022 Adjusted EBITDA
**
|
45 %
|
|
20 %
|
|
30 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
THIRD QUARTER 2023
|
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range
|
|
|
|
|
|
Estimated
Third Quarter 2023
|
|
Third Quarter 2022 **
|
|
|
Net income excluding
certain items 1
|
$
602
|
|
$
629
|
|
|
|
|
Interest
expense
|
140
|
|
140
|
|
|
|
|
Interest expense from
unconsolidated joint ventures
|
2
|
|
2
|
|
|
|
|
Provision for income
taxes
|
193
|
|
201
|
|
|
|
|
Depreciation and
amortization
|
50
|
|
50
|
|
|
|
|
Contract investment
amortization
|
23
|
|
23
|
|
|
|
|
Depreciation and
amortization classified in reimbursed expenses
|
35
|
|
35
|
|
|
|
|
Depreciation,
amortization, and impairments from unconsolidated joint
ventures
|
4
|
|
4
|
|
|
|
|
Stock-based
compensation
|
56
|
|
56
|
|
|
|
|
Adjusted EBITDA **
|
$
1,105
|
|
$
1,140
|
|
$
985
|
|
|
|
|
|
|
|
|
|
|
Increase over 2022
Adjusted EBITDA **
|
12 %
|
|
16 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** 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 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
|
$
2,635
|
|
$
2,722
|
|
|
|
|
Interest
expense
|
568
|
|
568
|
|
|
|
|
Interest expense from
unconsolidated joint ventures
|
6
|
|
6
|
|
|
|
|
Provision for income
taxes
|
690
|
|
718
|
|
|
|
|
Depreciation and
amortization
|
190
|
|
190
|
|
|
|
|
Contract investment
amortization
|
90
|
|
90
|
|
|
|
|
Depreciation and
amortization classified in reimbursed expenses
|
138
|
|
138
|
|
|
|
|
Depreciation,
amortization, and impairments from unconsolidated joint
ventures
|
17
|
|
17
|
|
|
|
|
Stock-based
compensation
|
201
|
|
201
|
|
|
|
|
Adjusted EBITDA **
|
$
4,535
|
|
$
4,650
|
|
$
3,853
|
|
|
|
|
|
|
|
|
|
|
Increase over 2022 Adjusted EBITDA
**
|
18 %
|
|
21 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
** 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 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"). 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 the most
directly comparable GAAP measure to each non-GAAP measure that we
refer to. 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), the
income tax effect of these adjustments, and income tax special
items. The income tax special items primarily related to the
resolution of a prior year tax audit. We calculate the income tax
effect of the adjustments using an estimated tax rate applicable to
each adjustment. 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 (including depreciation and
amortization classified in "Reimbursed expenses," as discussed
below), 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 half 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.
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SOURCE Marriott International, Inc.