- Fourth quarter 2023 comparable systemwide constant dollar
RevPAR increased 7.2 percent worldwide, 3.3 percent in the U.S.
& Canada, and 17.4
percent in international markets, compared to the
2022 fourth quarter;
- Fourth quarter reported diluted EPS totaled $2.87, compared to reported diluted EPS of
$2.12 in the year-ago quarter. Fourth
quarter adjusted diluted EPS totaled $3.57, compared to fourth quarter 2022 adjusted
diluted EPS of $1.96;
- Fourth quarter reported net income totaled $848 million, compared to reported net income of
$673 million in the year-ago quarter.
Fourth quarter adjusted net income totaled $1,055 million, compared to fourth quarter 2022
adjusted net income of $622
million;
- Adjusted EBITDA totaled $1,197
million in the 2023 fourth quarter, compared to fourth
quarter 2022 adjusted EBITDA of $1,090
million;
- The company added nearly 81,300 rooms globally during
2023, including approximately 17,500 rooms associated with the City
Express transaction and more than 43,000 other rooms in
international markets. Net rooms grew 4.7 percent from
year-end 2022;
- At the end of the year, Marriott's worldwide development
pipeline totaled nearly 3,400 properties and roughly 573,000 rooms,
including over 21,000 pipeline rooms approved, but not yet subject
to signed contracts. More than 232,000 rooms in the pipeline were
under construction as of the end of 2023;
- For full year 2023, Marriott repurchased
21.5 million shares of common stock for $3.9 billion, including 4.7 million
shares for $965 million in the fourth quarter. The company
returned over $4.5 billion to
shareholders through dividends and share repurchases in
2023.
BETHESDA, Md., Feb. 13,
2024 /PRNewswire/ -- Marriott International, Inc.
(Nasdaq: MAR) today reported fourth quarter and full year 2023
results.
Anthony Capuano, President and
Chief Executive Officer, said, "Our team delivered excellent
results in 2023, as demand for our industry leading portfolio of
properties and offerings around the world continued to grow.
Full year global RevPAR1 rose 15 percent, net
rooms grew 4.7 percent, and our fee-driven, asset-light business
model generated record levels of cash.
"In the fourth quarter, worldwide RevPAR rose 7 percent.
International RevPAR grew 17 percent, with particular strength in
Asia Pacific and Europe.
"In the U.S. & Canada,
fourth quarter RevPAR rose over 3 percent. Group revenue at our
hotels increased 7 percent compared to the 2022 fourth quarter,
driven by solid rate increases. While already significantly
above 2019 levels, hotel leisure revenue rose again, up 2
percent. Business transient revenue at our hotels grew 3
percent from the year-ago quarter, with demand from large corporate
customers continuing to make gains.
"Our development team had a stellar 2023, signing a record
164,000 organic rooms globally, including 37,000 rooms from our
deal with MGM Resorts International, and our development pipeline
reached a new high of roughly 573,000 rooms at year end.
During the year, we added nearly 81,300 rooms to our distribution,
with one in four organic rooms from conversions.
"The power of our unparalleled Marriott Bonvoy loyalty program
continues to increase, with 196 million members at year end.
We've continued to leverage our global portfolio and have expanded
our co-brand credit card offerings, with 31 cards now across 11
countries. In 2023, global card spend increased a remarkable 11
percent over the prior year.
"In 2024, we expect another year of solid growth and significant
shareholder returns. With normalizing RevPAR growth around
the world, we anticipate a worldwide full year RevPAR increase of 3
to 5 percent and net rooms growth of 5.5 to 6 percent. We expect
this should yield adjusted EBITDA of approximately $4.9 billion to $5.0
billion for the year and enable us to return $4.1 billion to $4.3
billion to shareholders after factoring in $500 million to purchase the Sheraton Grand
Chicago."
Fourth Quarter 2023 Results
Base management and
franchise fees totaled $1,026 million
in the 2023 fourth quarter, a 9 percent increase compared to base
management and franchise fees of $945
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 fourth quarter
totaled $220 million, compared to
$215 million in the year-ago quarter.
The increase was largely driven by higher co-brand credit card
fees.
Incentive management fees totaled $218
million in the 2023 fourth quarter, a 17 percent increase
compared to $186 million in the 2022
fourth quarter. Managed hotels in international markets
contributed two-thirds of the incentive fees earned in the
quarter.
Owned, leased, and other revenue, net of direct expenses,
totaled $151 million in the 2023
fourth quarter, compared to $101
million in the year-ago quarter. Results in the 2023
quarter included a $63 million
($47 million after-tax and
$0.16 per share) termination fee
related to a development project.
General, administrative, and other expenses for the 2023 fourth
quarter totaled $330 million,
compared to $236 million in the
year-ago quarter. The year-over-year change reflects a
$27 million ($20 million after-tax and $0.07 per share) litigation reserve related to an
international hotel, as well as higher performance-related
compensation expenses, professional fees, and bad debt
reserves.
Interest expense, net, totaled $144
million in the 2023 fourth quarter, compared to $107 million in the year-ago quarter. The
increase was largely due to higher interest expense associated with
higher debt balances.
In the 2023 fourth quarter, the provision for income taxes
totaled a $267 million benefit,
compared to a $218 million expense in
the 2022 fourth quarter. The favorable year-over-year change
is primarily due to international intellectual property
restructuring transactions completed in the quarter resulting in
$228 million ($0.77 per share) of benefits and a $223 million ($0.75
per share) favorable impact from the release of a tax valuation
allowance.
Marriott's reported operating income totaled $718 million in the 2023 fourth quarter, compared
to 2022 fourth quarter reported operating income of $996
million. Reported net income totaled $848 million in the 2023 fourth quarter, a 26
percent increase compared to 2022 fourth quarter reported net
income of $673 million. Reported
diluted earnings per share (EPS) totaled $2.87 in the quarter, compared to reported
diluted EPS of $2.12 in the year-ago
quarter.
Adjusted operating income in the 2023 fourth quarter totaled
$992 million, compared to 2022 fourth
quarter adjusted operating income of $926
million. Fourth quarter 2023 adjusted net income totaled
$1,055 million, compared to 2022
fourth quarter adjusted net income of $622
million. Adjusted diluted EPS in the 2023 fourth quarter
totaled $3.57, compared to adjusted
diluted EPS of $1.96 in the year-ago
quarter.
Adjusted results 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.
Adjusted earnings before interest, taxes, depreciation, and
amortization (EBITDA) totaled $1,197
million in the 2023 fourth quarter, a 10 percent increase
compared to fourth quarter 2022 adjusted EBITDA of $1,090 million. See page A-11 for the
adjusted EBITDA calculation.
Selected Performance Information
Marriott added 558
properties (81,281 rooms) to its worldwide portfolio during 2023,
including approximately 17,500 rooms associated with the City
Express transaction and more than 43,000 other rooms in
international markets. Sixty-three properties (9,430 rooms)
exited the system during the year. At the end of the year,
Marriott's global system totaled nearly 8,800 properties, with more
than 1,597,000 rooms.
At the end of the year, the company's worldwide development
pipeline totaled 3,379 properties with roughly 573,000 rooms,
including 126 properties with over 21,000 rooms approved for
development, but not yet subject to signed contracts. The year-end
pipeline included 1,066 properties with more than 232,000 rooms
under construction, or 41 percent, including approximately 37,000
rooms from the MGM deal.
In the 2023 fourth quarter, worldwide RevPAR increased 7.2
percent (a 7.6 percent increase using actual dollars) compared to
the 2022 fourth quarter. RevPAR in the U.S. &
Canada increased 3.3 percent (a
3.3 percent increase using actual dollars), and RevPAR in
international markets increased 17.4 percent (an 18.7 percent
increase using actual dollars).
Balance Sheet & Common Stock
At year-end 2023,
Marriott's total debt was $11.9
billion and cash and equivalents totaled $0.3 billion, compared to $10.1 billion in debt and $0.5 billion of cash and equivalents at year-end
2022.
The company repurchased 4.7 million shares of common stock
in the 2023 fourth quarter for $965 million. For full
year 2023, Marriott repurchased 21.5 million shares for
$3.9 billion. Year to date
through February 9, the company has
repurchased 1.3 million shares for $300
million.
Company Outlook
|
First Quarter 2024
vs First Quarter 2023
|
Full Year 2024
vs Full Year 2023
|
Comparable systemwide constant
$
RevPAR growth
|
|
|
Worldwide
|
4% to 5%
|
3% to 5%
|
|
|
|
|
|
Year-End 2024
vs Year-End 2023
|
Net rooms growth
|
|
5.5% to 6%
|
($ in millions, except EPS)
|
First Quarter 2024
|
Full Year 2024
|
Gross fee
revenues
|
$1,190 to
$1,205
|
$5,120 to
$5,220
|
Owned, leased, and
other revenue, net of direct expenses
|
$65 to $70
|
$320 to $330
|
General,
administrative, and other expenses
|
$245 to $235
|
$1,035 to
$1,015
|
Adjusted
EBITDA1,2
|
$1,120 to
$1,150
|
$4,880 to
$5,010
|
Adjusted EPS –
diluted2,3
|
$2.12 to
$2.19
|
$9.18 to
$9.52
|
Investment
spending4
|
|
$1,000 to
$1,200
|
Capital return to
shareholders5
|
|
$4,100 to
$4,300
|
|
1See pages
A-12 and A-13 for the adjusted EBITDA calculations.
|
2Adjusted
EBITDA and Adjusted EPS – diluted for first quarter and full
year 2024 do not include cost reimbursement revenue, reimbursed
expenses, merger-related charges and other expenses, 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.
|
3Assumes the
level of capital return to shareholders noted above.
|
4Includes
capital and technology expenditures, loan advances, contract
acquisition costs, and other investing activities.
|
5Factors in
the purchase of the Sheraton Grand Chicago and underlying land for
$500 million, $200 million of which is included in investment
spending. Assumes the level of investment spending noted
above and that no asset sales occur during the year.
|
Marriott International, Inc. (NASDAQ: MAR) will conduct its
quarterly earnings review for the investment community and news
media on Tuesday, February 13, 2024,
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 February 13, 2025.
The telephone dial-in number for the conference call is US Toll
Free: 800-245-3047, or Global: +1 203-518-9765. The conference ID
is MAR4Q23. A telephone replay of the conference call will be
available from 1:00 p.m. ET,
Tuesday, February 13, 2024, until
8:00 p.m. ET, Tuesday, February 20, 2024. To access the
replay, call US Toll Free: 800-934-2730 or Global: +1
402-220-1141.
Note on forward-looking statements: All statements
in this press release and the accompanying schedules are made as of
February 13, 2024. 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; shareholder returns; 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 8,800 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),
RevPAR and hotel revenue statistics and estimates are systemwide
constant dollar. Unless otherwise stated, all changes refer
to year-over-year changes for the comparable period.
Occupancy, ADR, RevPAR and hotel revenue comparisons between 2023
and 2022 reflect properties that are comparable in both years.
MARRIOTT
INTERNATIONAL, INC.
|
PRESS RELEASE
SCHEDULES
|
TABLE OF
CONTENTS
|
QUARTER 4,
2023
|
|
|
|
|
|
|
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 - First Quarter 2024
|
|
A-12
|
|
|
|
Adjusted EBITDA
Forecast - Full Year 2024
|
|
A-13
|
|
|
|
Explanation of Non-GAAP
Financial and Performance Measures
|
|
A-14
|
MARRIOTT
INTERNATIONAL, INC.
|
CONSOLIDATED
STATEMENTS OF INCOME - AS REPORTED
|
FOURTH QUARTER 2023
AND 2022
|
(in millions except per
share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
As
Reported
|
|
Percent
|
|
|
Three Months
Ended
|
|
Three Months
Ended
|
|
Better/(Worse)
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
Reported 2023 vs.
2022
|
REVENUES
|
|
|
|
|
|
|
Base management
fees
|
|
$
321
|
|
$
287
|
|
12
|
Franchise fees
1
|
|
705
|
|
658
|
|
7
|
Incentive management
fees
|
|
218
|
|
186
|
|
17
|
Gross Fee
Revenues
|
|
1,244
|
|
1,131
|
|
10
|
Contract investment
amortization 2
|
|
(22)
|
|
(24)
|
|
8
|
Net Fee
Revenues
|
|
1,222
|
|
1,107
|
|
10
|
Owned, leased, and
other revenue 3
|
|
455
|
|
396
|
|
15
|
Cost reimbursement
revenue 4
|
|
4,418
|
|
4,420
|
|
-
|
Total
Revenues
|
|
6,095
|
|
5,923
|
|
3
|
|
|
|
|
|
|
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
|
|
Owned, leased, and
other - direct 5
|
|
304
|
|
295
|
|
(3)
|
Depreciation,
amortization, and other 6
|
|
51
|
|
46
|
|
(11)
|
General,
administrative, and other 7
|
|
330
|
|
236
|
|
(40)
|
Merger-related charges
and other
|
|
8
|
|
1
|
|
(700)
|
Reimbursed expenses
4
|
|
4,684
|
|
4,349
|
|
(8)
|
Total
Expenses
|
|
5,377
|
|
4,927
|
|
(9)
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
718
|
|
996
|
|
(28)
|
|
|
|
|
|
|
|
Gains and other income,
net 8
|
|
7
|
|
2
|
|
250
|
Interest
expense
|
|
(153)
|
|
(115)
|
|
(33)
|
Interest
income
|
|
9
|
|
8
|
|
13
|
Equity in earnings
9
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
581
|
|
891
|
|
(35)
|
|
|
|
|
|
|
|
Benefit (provision) for
income taxes
|
|
267
|
|
(218)
|
|
222
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
848
|
|
$
673
|
|
26
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE
|
|
|
|
|
|
|
Earnings per
share - basic
|
|
$
2.88
|
|
$
2.13
|
|
35
|
Earnings per
share - diluted
|
|
$
2.87
|
|
$
2.12
|
|
35
|
|
|
|
|
|
|
|
Basic Shares
|
|
294.3
|
|
316.5
|
|
|
Diluted
Shares
|
|
295.6
|
|
317.9
|
|
|
|
|
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
|
FULL YEAR 2023 AND
2022
|
(in millions except per
share amounts, unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
As
Reported
|
|
Percent
|
|
|
Twelve Months
Ended
|
|
Twelve Months
Ended
|
|
Better/(Worse)
|
|
|
December 31,
2023
|
|
December 31,
2022
|
|
Reported 2023 vs.
2022
|
REVENUES
|
|
|
|
|
|
|
Base management
fees
|
|
$
1,238
|
|
$
1,044
|
|
19
|
Franchise fees
1
|
|
2,831
|
|
2,505
|
|
13
|
Incentive management
fees
|
|
755
|
|
529
|
|
43
|
Gross Fee
Revenues
|
|
4,824
|
|
4,078
|
|
18
|
Contract investment
amortization 2
|
|
(88)
|
|
(89)
|
|
1
|
Net Fee
Revenues
|
|
4,736
|
|
3,989
|
|
19
|
Owned, leased, and
other revenue 3
|
|
1,564
|
|
1,367
|
|
14
|
Cost reimbursement
revenue 4
|
|
17,413
|
|
15,417
|
|
13
|
Total
Revenues
|
|
23,713
|
|
20,773
|
|
14
|
|
|
|
|
|
|
|
OPERATING COSTS AND
EXPENSES
|
|
|
|
|
|
|
Owned, leased, and
other - direct 5
|
|
1,165
|
|
1,074
|
|
(8)
|
Depreciation,
amortization, and other 6
|
|
189
|
|
193
|
|
2
|
General,
administrative, and other 7
|
|
1,011
|
|
891
|
|
(13)
|
Merger-related charges
and other
|
|
60
|
|
12
|
|
(400)
|
Reimbursed expenses
4
|
|
17,424
|
|
15,141
|
|
(15)
|
Total
Expenses
|
|
19,849
|
|
17,311
|
|
(15)
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
3,864
|
|
3,462
|
|
12
|
|
|
|
|
|
|
|
Gains and other income,
net 8
|
|
40
|
|
11
|
|
264
|
Interest
expense
|
|
(565)
|
|
(403)
|
|
(40)
|
Interest
income
|
|
30
|
|
26
|
|
15
|
Equity in earnings
9
|
|
9
|
|
18
|
|
(50)
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
3,378
|
|
3,114
|
|
8
|
|
|
|
|
|
|
|
Provision for income
taxes
|
|
(295)
|
|
(756)
|
|
61
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
3,083
|
|
$
2,358
|
|
31
|
|
|
|
|
|
|
|
EARNINGS PER
SHARE
|
|
|
|
|
|
|
Earnings per
share - basic
|
|
$
10.23
|
|
$
7.27
|
|
41
|
Earnings per
share - diluted
|
|
$
10.18
|
|
$
7.24
|
|
41
|
|
|
|
|
|
|
|
Basic Shares
|
|
301.5
|
|
324.4
|
|
|
Diluted
Shares
|
|
302.9
|
|
325.8
|
|
|
|
|
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
|
|
Twelve Months
Ended
|
|
|
|
|
|
Percent
|
|
|
|
|
|
Percent
|
|
December
31,
|
|
December
31,
|
|
Better/
|
|
December
31,
|
|
December
31,
|
|
Better/
|
|
2023
|
|
2022
|
|
(Worse)
|
|
2023
|
|
2022
|
|
(Worse)
|
Total revenues, as
reported
|
$
6,095
|
|
$
5,923
|
|
|
|
$
23,713
|
|
$
20,773
|
|
|
Less: Cost
reimbursement revenue
|
(4,418)
|
|
(4,420)
|
|
|
|
(17,413)
|
|
(15,417)
|
|
|
Add: Impairments
1
|
-
|
|
-
|
|
|
|
-
|
|
5
|
|
|
Adjusted total revenues
**
|
1,677
|
|
1,503
|
|
|
|
6,300
|
|
5,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income, as
reported
|
718
|
|
996
|
|
|
|
3,864
|
|
3,462
|
|
|
Less: Cost
reimbursement revenue
|
(4,418)
|
|
(4,420)
|
|
|
|
(17,413)
|
|
(15,417)
|
|
|
Add: Reimbursed
expenses
|
4,684
|
|
4,349
|
|
|
|
17,424
|
|
15,141
|
|
|
Add: Merger-related
charges and other
|
8
|
|
1
|
|
|
|
60
|
|
12
|
|
|
Add: Impairments
1
|
-
|
|
-
|
|
|
|
-
|
|
5
|
|
|
Adjusted operating
income **
|
992
|
|
926
|
|
7 %
|
|
3,935
|
|
3,203
|
|
23 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
margin
|
12 %
|
|
17 %
|
|
|
|
16 %
|
|
17 %
|
|
|
Adjusted operating
income margin **
|
59 %
|
|
62 %
|
|
|
|
62 %
|
|
60 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, as
reported
|
848
|
|
673
|
|
|
|
3,083
|
|
2,358
|
|
|
Less: Cost
reimbursement revenue
|
(4,418)
|
|
(4,420)
|
|
|
|
(17,413)
|
|
(15,417)
|
|
|
Add: Reimbursed
expenses
|
4,684
|
|
4,349
|
|
|
|
17,424
|
|
15,141
|
|
|
Add: Merger-related
charges and other
|
8
|
|
1
|
|
|
|
60
|
|
12
|
|
|
Add: Impairments
2
|
-
|
|
-
|
|
|
|
-
|
|
11
|
|
|
Less: Gains on
investees' property sales 3
|
-
|
|
-
|
|
|
|
-
|
|
(23)
|
|
|
Less: Gain on asset
dispositions 4
|
-
|
|
-
|
|
|
|
(24)
|
|
(2)
|
|
|
Income tax effect of
above adjustments
|
(67)
|
|
19
|
|
|
|
(3)
|
|
69
|
|
|
Less: Income tax
special items
|
-
|
|
-
|
|
|
|
(100)
|
|
30
|
|
|
Adjusted net income
**
|
$
1,055
|
|
$
622
|
|
70 %
|
|
$
3,027
|
|
$
2,179
|
|
39 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share, as reported
|
$
2.87
|
|
$
2.12
|
|
|
|
$
10.18
|
|
$
7.24
|
|
|
Adjusted diluted
earnings per share**
|
$
3.57
|
|
$
1.96
|
|
82 %
|
|
$
9.99
|
|
$
6.69
|
|
49 %
|
|
|
**
|
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
|
Twelve months ended
December 31, 2022 includes impairment charges reported in Contract
investment amortization of $5 million.
|
|
|
2
|
Twelve months ended
December 31, 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 December 31,
2023
|
|
|
|
|
|
|
|
|
US &
Canada
|
Total
International
|
Total
Worldwide
|
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Managed
|
624
|
215,246
|
1,422
|
360,717
|
2,046
|
575,963
|
Marriott
Hotels
|
102
|
56,993
|
181
|
57,199
|
283
|
114,192
|
Sheraton
|
26
|
20,869
|
185
|
62,777
|
211
|
83,646
|
Courtyard
|
158
|
25,723
|
124
|
27,046
|
282
|
52,769
|
Westin
|
41
|
22,669
|
79
|
24,032
|
120
|
46,701
|
JW
Marriott
|
23
|
13,189
|
73
|
25,940
|
96
|
39,129
|
The
Ritz-Carlton
|
41
|
12,358
|
75
|
17,842
|
116
|
30,200
|
Renaissance
|
22
|
9,438
|
55
|
17,041
|
77
|
26,479
|
Four
Points
|
1
|
134
|
86
|
24,130
|
87
|
24,264
|
Le
Méridien
|
1
|
100
|
72
|
19,800
|
73
|
19,900
|
W
Hotels
|
23
|
6,516
|
43
|
11,938
|
66
|
18,454
|
Residence
Inn
|
73
|
11,857
|
9
|
1,116
|
82
|
12,973
|
St.
Regis
|
11
|
2,169
|
46
|
10,053
|
57
|
12,222
|
Delta Hotels by
Marriott
|
25
|
6,770
|
27
|
5,052
|
52
|
11,822
|
Fairfield by
Marriott
|
6
|
1,431
|
78
|
9,858
|
84
|
11,289
|
Aloft
|
2
|
505
|
44
|
9,747
|
46
|
10,252
|
Gaylord
Hotels
|
6
|
10,220
|
—
|
—
|
6
|
10,220
|
The Luxury
Collection
|
6
|
2,296
|
40
|
7,819
|
46
|
10,115
|
AC Hotels by
Marriott
|
8
|
1,512
|
68
|
8,465
|
76
|
9,977
|
Autograph
Collection
|
9
|
2,862
|
24
|
3,728
|
33
|
6,590
|
Marriott
Executive Apartments
|
—
|
—
|
36
|
5,171
|
36
|
5,171
|
SpringHill
Suites
|
25
|
4,241
|
—
|
—
|
25
|
4,241
|
EDITION
|
5
|
1,379
|
14
|
2,779
|
19
|
4,158
|
Element
|
3
|
810
|
14
|
2,803
|
17
|
3,613
|
Protea
Hotels
|
—
|
—
|
24
|
2,897
|
24
|
2,897
|
Moxy
|
1
|
380
|
8
|
1,551
|
9
|
1,931
|
Tribute
Portfolio
|
—
|
—
|
10
|
1,283
|
10
|
1,283
|
TownePlace
Suites
|
6
|
825
|
—
|
—
|
6
|
825
|
Bulgari
|
—
|
—
|
7
|
650
|
7
|
650
|
Franchised
|
5,259
|
752,630
|
1,210
|
218,830
|
6,469
|
971,460
|
Courtyard
|
901
|
120,381
|
118
|
21,929
|
1,019
|
142,310
|
Fairfield by
Marriott
|
1,147
|
108,014
|
59
|
10,079
|
1,206
|
118,093
|
Residence
Inn
|
787
|
93,862
|
32
|
4,279
|
819
|
98,141
|
Marriott
Hotels
|
233
|
74,555
|
64
|
18,378
|
297
|
92,933
|
Sheraton
|
142
|
44,054
|
79
|
22,664
|
221
|
66,718
|
SpringHill
Suites
|
522
|
60,533
|
—
|
—
|
522
|
60,533
|
Autograph
Collection
|
144
|
28,459
|
122
|
25,474
|
266
|
53,933
|
TownePlace
Suites
|
497
|
50,238
|
—
|
—
|
497
|
50,238
|
Westin
|
92
|
31,078
|
30
|
9,305
|
122
|
40,383
|
Four
Points
|
153
|
22,831
|
69
|
11,877
|
222
|
34,708
|
Aloft
|
160
|
22,952
|
26
|
4,966
|
186
|
27,918
|
AC Hotels by
Marriott
|
109
|
17,874
|
51
|
9,127
|
160
|
27,001
|
Renaissance
|
66
|
18,603
|
30
|
7,671
|
96
|
26,274
|
Moxy
|
34
|
6,192
|
95
|
17,921
|
129
|
24,113
|
Delta Hotels by
Marriott
|
67
|
14,960
|
16
|
3,732
|
83
|
18,692
|
City Express by
Marriott
|
—
|
—
|
150
|
17,431
|
150
|
17,431
|
Tribute
Portfolio
|
66
|
10,725
|
40
|
4,870
|
106
|
15,595
|
The Luxury
Collection
|
11
|
3,112
|
53
|
9,818
|
64
|
12,930
|
Le
Méridien
|
24
|
5,389
|
22
|
5,740
|
46
|
11,129
|
Element
|
80
|
10,712
|
2
|
269
|
82
|
10,981
|
JW
Marriott
|
12
|
6,072
|
12
|
2,733
|
24
|
8,805
|
Design
Hotels
|
11
|
1,605
|
100
|
7,097
|
111
|
8,702
|
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
|
154
|
2
|
154
|
Apartments by
Marriott Bonvoy
|
—
|
—
|
1
|
107
|
1
|
107
|
MARRIOTT
INTERNATIONAL, INC.
|
TOTAL LODGING
PRODUCTS BY OWNERSHIP TYPE
|
As of December 31,
2023
|
|
|
|
|
|
|
|
|
US &
Canada
|
Total
International
|
Total
Worldwide
|
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Owned/Leased
|
13
|
4,339
|
37
|
8,776
|
50
|
13,115
|
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
|
The
Ritz-Carlton
|
—
|
—
|
2
|
550
|
2
|
550
|
Renaissance
|
—
|
—
|
2
|
505
|
2
|
505
|
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
|
69
|
7,416
|
57
|
6,532
|
126
|
13,948
|
The Ritz-Carlton
Residences
|
41
|
4,575
|
18
|
1,644
|
59
|
6,219
|
St. Regis
Residences
|
10
|
1,198
|
13
|
1,777
|
23
|
2,975
|
W
Residences
|
10
|
1,092
|
7
|
547
|
17
|
1,639
|
Marriott Hotels
Residences
|
—
|
—
|
4
|
981
|
4
|
981
|
Westin
Residences
|
3
|
266
|
2
|
353
|
5
|
619
|
Bulgari
Residences
|
—
|
—
|
5
|
519
|
5
|
519
|
Sheraton
Residences
|
—
|
—
|
3
|
472
|
3
|
472
|
The Luxury
Collection Residences
|
1
|
91
|
3
|
115
|
4
|
206
|
Renaissance
Residences
|
1
|
112
|
—
|
—
|
1
|
112
|
EDITION
Residences
|
3
|
82
|
—
|
—
|
3
|
82
|
JW Marriott
Residences
|
—
|
—
|
1
|
62
|
1
|
62
|
Le Méridien
Residences
|
—
|
—
|
1
|
62
|
1
|
62
|
Timeshare*
|
72
|
18,839
|
21
|
3,906
|
93
|
22,745
|
Yacht*
|
—
|
—
|
1
|
149
|
1
|
149
|
Grand
Total
|
6,037
|
998,470
|
2,748
|
598,910
|
8,785
|
1,597,380
|
|
|
|
|
|
|
|
*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 December 31,
2023
|
|
|
|
|
|
|
|
|
US &
Canada
|
Total
International
|
Total
Worldwide
|
Total
Systemwide
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Properties
|
Rooms
|
Luxury
|
200
|
55,337
|
422
|
96,897
|
622
|
152,234
|
JW
Marriott
|
35
|
19,261
|
86
|
29,169
|
121
|
48,430
|
JW Marriott
Residences
|
—
|
—
|
1
|
62
|
1
|
62
|
The
Ritz-Carlton
|
42
|
12,787
|
77
|
18,392
|
119
|
31,179
|
The Ritz-Carlton
Residences
|
41
|
4,575
|
18
|
1,644
|
59
|
6,219
|
The Luxury
Collection
|
17
|
5,408
|
96
|
18,020
|
113
|
23,428
|
The Luxury
Collection Residences
|
1
|
91
|
3
|
115
|
4
|
206
|
W
Hotels
|
25
|
7,295
|
46
|
12,849
|
71
|
20,144
|
W
Residences
|
10
|
1,092
|
7
|
547
|
17
|
1,639
|
St.
Regis
|
11
|
2,169
|
47
|
10,213
|
58
|
12,382
|
St. Regis
Residences
|
10
|
1,198
|
13
|
1,777
|
23
|
2,975
|
EDITION
|
5
|
1,379
|
14
|
2,779
|
19
|
4,158
|
EDITION
Residences
|
3
|
82
|
—
|
—
|
3
|
82
|
Bulgari
|
—
|
—
|
9
|
811
|
9
|
811
|
Bulgari
Residences
|
—
|
—
|
5
|
519
|
5
|
519
|
Premium
|
1,084
|
362,108
|
1,203
|
307,719
|
2,287
|
669,827
|
Marriott
Hotels
|
337
|
132,856
|
250
|
77,208
|
587
|
210,064
|
Marriott Hotels
Residences
|
—
|
—
|
4
|
981
|
4
|
981
|
Sheraton
|
168
|
64,923
|
268
|
87,271
|
436
|
152,194
|
Sheraton
Residences
|
—
|
—
|
3
|
472
|
3
|
472
|
Westin
|
134
|
54,820
|
109
|
33,337
|
243
|
88,157
|
Westin
Residences
|
3
|
266
|
2
|
353
|
5
|
619
|
Autograph
Collection
|
153
|
31,321
|
151
|
29,563
|
304
|
60,884
|
Renaissance
|
88
|
28,041
|
87
|
25,217
|
175
|
53,258
|
Renaissance
Residences
|
1
|
112
|
—
|
—
|
1
|
112
|
Le
Méridien
|
25
|
5,489
|
94
|
25,540
|
119
|
31,029
|
Le Méridien
Residences
|
—
|
—
|
1
|
62
|
1
|
62
|
Delta Hotels by
Marriott
|
92
|
21,730
|
43
|
8,784
|
135
|
30,514
|
Tribute
Portfolio
|
66
|
10,725
|
52
|
6,402
|
118
|
17,127
|
Gaylord
Hotels
|
6
|
10,220
|
—
|
—
|
6
|
10,220
|
Design
Hotels
|
11
|
1,605
|
100
|
7,097
|
111
|
8,702
|
Marriott
Executive Apartments
|
—
|
—
|
38
|
5,325
|
38
|
5,325
|
Apartments by
Marriott Bonvoy
|
—
|
—
|
1
|
107
|
1
|
107
|
Select
|
4,681
|
562,186
|
951
|
172,808
|
5,632
|
734,994
|
Courtyard
|
1,066
|
147,091
|
246
|
49,869
|
1,312
|
196,960
|
Fairfield by
Marriott
|
1,153
|
109,445
|
137
|
19,937
|
1,290
|
129,382
|
Residence
Inn
|
861
|
105,911
|
42
|
5,535
|
903
|
111,446
|
SpringHill
Suites
|
547
|
64,774
|
—
|
—
|
547
|
64,774
|
Four
Points
|
154
|
22,965
|
155
|
36,007
|
309
|
58,972
|
TownePlace
Suites
|
503
|
51,063
|
—
|
—
|
503
|
51,063
|
Aloft
|
162
|
23,457
|
70
|
14,713
|
232
|
38,170
|
AC Hotels by
Marriott
|
117
|
19,386
|
119
|
17,592
|
236
|
36,978
|
Moxy
|
35
|
6,572
|
103
|
19,472
|
138
|
26,044
|
Element
|
83
|
11,522
|
16
|
3,072
|
99
|
14,594
|
Protea
Hotels
|
—
|
—
|
63
|
6,611
|
63
|
6,611
|
Midscale
|
—
|
—
|
150
|
17,431
|
150
|
17,431
|
City Express by
Marriott
|
—
|
—
|
150
|
17,431
|
150
|
17,431
|
Timeshare*
|
72
|
18,839
|
21
|
3,906
|
93
|
22,745
|
Yacht*
|
—
|
—
|
1
|
149
|
1
|
149
|
Grand
Total
|
6,037
|
998,470
|
2,748
|
598,910
|
8,785
|
1,597,380
|
|
|
|
|
|
|
|
*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
December 31, 2023 and December 31, 2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily
Rate
|
Brand
|
|
2023
|
vs.
2022
|
|
2023
|
vs.
2022
|
|
2023
|
vs.
2022
|
JW Marriott
|
|
$216.01
|
4.3 %
|
|
67.2 %
|
0.5 %
|
pts.
|
|
$321.37
|
3.6 %
|
The
Ritz-Carlton
|
|
$320.06
|
-1.1 %
|
|
64.0 %
|
0.4 %
|
pts.
|
|
$499.85
|
-1.7 %
|
W Hotels
|
|
$214.88
|
5.1 %
|
|
64.9 %
|
3.5 %
|
pts.
|
|
$331.27
|
-0.6 %
|
Composite US &
Canada Luxury1
|
|
$282.21
|
2.0 %
|
|
66.4 %
|
0.9 %
|
pts.
|
|
$425.24
|
0.6 %
|
Marriott
Hotels
|
|
$160.56
|
6.7 %
|
|
65.9 %
|
1.3 %
|
pts.
|
|
$243.70
|
4.7 %
|
Sheraton
|
|
$142.88
|
3.6 %
|
|
63.2 %
|
-0.2 %
|
pts.
|
|
$225.99
|
4.0 %
|
Westin
|
|
$165.74
|
4.3 %
|
|
65.9 %
|
0.2 %
|
pts.
|
|
$251.54
|
4.0 %
|
Composite US &
Canada Premium2
|
|
$157.36
|
4.7 %
|
|
65.7 %
|
0.5 %
|
pts.
|
|
$239.69
|
3.9 %
|
US & Canada
Full-Service3
|
|
$183.74
|
3.8 %
|
|
65.8 %
|
0.6 %
|
pts.
|
|
$279.23
|
2.9 %
|
Courtyard
|
|
$102.41
|
3.0 %
|
|
62.9 %
|
0.1 %
|
pts.
|
|
$162.88
|
2.8 %
|
Residence
Inn
|
|
$137.50
|
1.9 %
|
|
72.6 %
|
-1.4 %
|
pts.
|
|
$189.41
|
3.9 %
|
Composite US &
Canada Select4
|
|
$115.39
|
2.7 %
|
|
66.3 %
|
-0.6 %
|
pts.
|
|
$174.00
|
3.6 %
|
US & Canada -
All5
|
|
$167.34
|
3.6 %
|
|
65.9 %
|
0.3 %
|
pts.
|
|
$253.83
|
3.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide US & Canada Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2023 and December 31, 2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily
Rate
|
Brand
|
|
2023
|
vs.
2022
|
|
2023
|
vs.
2022
|
|
2023
|
vs.
2022
|
JW Marriott
|
|
$209.27
|
3.4 %
|
|
68.1 %
|
0.6 %
|
pts.
|
|
$307.46
|
2.5 %
|
The
Ritz-Carlton
|
|
$317.65
|
-1.1 %
|
|
64.2 %
|
0.4 %
|
pts.
|
|
$494.90
|
-1.7 %
|
W Hotels
|
|
$214.88
|
5.1 %
|
|
64.9 %
|
3.5 %
|
pts.
|
|
$331.27
|
-0.6 %
|
Composite US &
Canada Luxury1
|
|
$264.35
|
1.7 %
|
|
66.9 %
|
0.9 %
|
pts.
|
|
$395.05
|
0.3 %
|
Marriott
Hotels
|
|
$130.26
|
6.4 %
|
|
63.3 %
|
1.3 %
|
pts.
|
|
$205.71
|
4.3 %
|
Sheraton
|
|
$111.56
|
4.4 %
|
|
61.2 %
|
0.4 %
|
pts.
|
|
$182.40
|
3.7 %
|
Westin
|
|
$150.71
|
4.2 %
|
|
66.2 %
|
1.2 %
|
pts.
|
|
$227.72
|
2.3 %
|
Composite US &
Canada Premium2
|
|
$135.49
|
4.7 %
|
|
64.1 %
|
0.9 %
|
pts.
|
|
$211.50
|
3.3 %
|
US & Canada
Full-Service3
|
|
$149.93
|
4.1 %
|
|
64.4 %
|
0.9 %
|
pts.
|
|
$232.88
|
2.7 %
|
Courtyard
|
|
$102.04
|
2.3 %
|
|
64.7 %
|
-0.3 %
|
pts.
|
|
$157.81
|
2.7 %
|
Residence
Inn
|
|
$119.27
|
3.0 %
|
|
72.2 %
|
-0.3 %
|
pts.
|
|
$165.14
|
3.4 %
|
Fairfield by
Marriott
|
|
$83.72
|
1.4 %
|
|
64.8 %
|
-0.9 %
|
pts.
|
|
$129.24
|
2.7 %
|
Composite US &
Canada Select4
|
|
$101.83
|
2.5 %
|
|
67.2 %
|
-0.3 %
|
pts.
|
|
$151.55
|
3.0 %
|
US & Canada -
All5
|
|
$121.68
|
3.3 %
|
|
66.0 %
|
0.2 %
|
pts.
|
|
$184.28
|
3.1 %
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2023 and December 31, 2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily
Rate
|
Brand
|
|
2023
|
vs.
2022
|
|
2023
|
vs.
2022
|
|
|
2023
|
vs.
2022
|
JW Marriott
|
|
$224.01
|
10.9 %
|
|
69.7 %
|
4.8 %
|
pts.
|
|
$321.24
|
3.2 %
|
The
Ritz-Carlton
|
|
$323.71
|
0.2 %
|
|
65.3 %
|
1.3 %
|
pts.
|
|
$496.09
|
-1.7 %
|
W Hotels
|
|
$214.97
|
8.5 %
|
|
66.3 %
|
5.2 %
|
pts.
|
|
$324.33
|
0.0 %
|
Composite US &
Canada Luxury1
|
|
$282.35
|
5.3 %
|
|
67.9 %
|
3.3 %
|
pts.
|
|
$416.06
|
0.2 %
|
Marriott
Hotels
|
|
$166.07
|
14.3 %
|
|
69.5 %
|
4.6 %
|
pts.
|
|
$239.09
|
6.6 %
|
Sheraton
|
|
$149.43
|
14.2 %
|
|
67.1 %
|
5.1 %
|
pts.
|
|
$222.64
|
5.5 %
|
Westin
|
|
$170.97
|
10.3 %
|
|
69.0 %
|
3.2 %
|
pts.
|
|
$247.68
|
5.1 %
|
Composite US &
Canada Premium2
|
|
$162.08
|
13.3 %
|
|
69.0 %
|
4.7 %
|
pts.
|
|
$235.05
|
5.5 %
|
US & Canada
Full-Service3
|
|
$187.49
|
10.6 %
|
|
68.7 %
|
4.4 %
|
pts.
|
|
$272.81
|
3.5 %
|
Courtyard
|
|
$109.37
|
9.5 %
|
|
66.3 %
|
2.0 %
|
pts.
|
|
$164.96
|
6.1 %
|
Residence
Inn
|
|
$147.26
|
6.1 %
|
|
76.3 %
|
0.2 %
|
pts.
|
|
$193.02
|
5.8 %
|
Composite US &
Canada Select4
|
|
$122.12
|
8.3 %
|
|
69.6 %
|
1.5 %
|
pts.
|
|
$175.50
|
5.9 %
|
US & Canada -
All5
|
|
$171.81
|
10.2 %
|
|
68.9 %
|
3.7 %
|
pts.
|
|
$249.25
|
4.3 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide US & Canada Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2023 and December 31, 2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily
Rate
|
Brand
|
|
2023
|
vs.
2022
|
|
2023
|
vs.
2022
|
|
|
2023
|
vs.
2022
|
JW Marriott
|
|
$217.17
|
8.7 %
|
|
70.7 %
|
4.3 %
|
pts.
|
|
$307.33
|
2.2 %
|
The
Ritz-Carlton
|
|
$321.09
|
0.5 %
|
|
65.5 %
|
1.5 %
|
pts.
|
|
$490.30
|
-1.7 %
|
W Hotels
|
|
$214.97
|
8.5 %
|
|
66.3 %
|
5.2 %
|
pts.
|
|
$324.33
|
0.0 %
|
Composite US &
Canada Luxury1
|
|
$265.70
|
5.2 %
|
|
68.6 %
|
3.3 %
|
pts.
|
|
$387.44
|
0.1 %
|
Marriott
Hotels
|
|
$138.12
|
13.0 %
|
|
67.1 %
|
4.5 %
|
pts.
|
|
$205.75
|
5.5 %
|
Sheraton
|
|
$118.69
|
13.0 %
|
|
64.9 %
|
4.5 %
|
pts.
|
|
$182.92
|
5.2 %
|
Westin
|
|
$156.38
|
11.0 %
|
|
69.3 %
|
4.3 %
|
pts.
|
|
$225.78
|
4.1 %
|
Composite US &
Canada Premium2
|
|
$141.33
|
11.7 %
|
|
67.4 %
|
4.4 %
|
pts.
|
|
$209.70
|
4.4 %
|
US & Canada
Full-Service3
|
|
$155.27
|
10.4 %
|
|
67.5 %
|
4.3 %
|
pts.
|
|
$229.92
|
3.4 %
|
Courtyard
|
|
$109.90
|
8.0 %
|
|
68.9 %
|
2.0 %
|
pts.
|
|
$159.44
|
4.8 %
|
Residence
Inn
|
|
$127.73
|
6.7 %
|
|
76.2 %
|
0.6 %
|
pts.
|
|
$167.69
|
5.9 %
|
Fairfield by
Marriott
|
|
$91.40
|
6.4 %
|
|
69.3 %
|
1.3 %
|
pts.
|
|
$131.95
|
4.4 %
|
Composite US &
Canada Select4
|
|
$109.27
|
7.5 %
|
|
71.3 %
|
1.6 %
|
pts.
|
|
$153.17
|
5.1 %
|
US & Canada -
All5
|
|
$128.25
|
8.9 %
|
|
69.8 %
|
2.7 %
|
pts.
|
|
$183.83
|
4.7 %
|
|
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 International Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2023 and December 31, 2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily
Rate
|
Region
|
|
2023
|
vs.
2022
|
|
2023
|
vs.
2022
|
|
2023
|
vs.
2022
|
Greater
China
|
|
$85.33
|
87.4 %
|
|
68.9 %
|
23.6 %
|
pts.
|
|
$123.90
|
23.2 %
|
Asia Pacific excluding
China
|
|
$124.20
|
10.8 %
|
|
72.3 %
|
3.2 %
|
pts.
|
|
$171.84
|
6.0 %
|
Caribbean & Latin
America
|
|
$177.82
|
4.3 %
|
|
65.9 %
|
2.9 %
|
pts.
|
|
$269.64
|
-0.2 %
|
Europe
|
|
$170.44
|
9.3 %
|
|
70.8 %
|
3.1 %
|
pts.
|
|
$240.85
|
4.4 %
|
Middle East &
Africa
|
|
$159.41
|
2.6 %
|
|
71.8 %
|
1.0 %
|
pts.
|
|
$222.06
|
1.2 %
|
|
|
|
|
|
|
|
|
|
|
|
International -
All1
|
|
$125.46
|
20.1 %
|
|
70.3 %
|
10.3 %
|
pts.
|
|
$178.37
|
2.5 %
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide2
|
|
$143.46
|
11.2 %
|
|
68.4 %
|
6.0 %
|
pts.
|
|
$209.60
|
1.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide International Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2023 and December 31, 2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily
Rate
|
Region
|
|
2023
|
vs.
2022
|
|
2023
|
vs.
2022
|
|
2023
|
vs.
2022
|
Greater
China
|
|
$80.49
|
80.9 %
|
|
68.0 %
|
22.3 %
|
pts.
|
|
$118.36
|
21.4 %
|
Asia Pacific excluding
China
|
|
$125.45
|
13.3 %
|
|
72.3 %
|
3.1 %
|
pts.
|
|
$173.52
|
8.5 %
|
Caribbean & Latin
America
|
|
$145.16
|
3.1 %
|
|
65.7 %
|
1.3 %
|
pts.
|
|
$221.11
|
1.1 %
|
Europe
|
|
$133.94
|
9.5 %
|
|
68.4 %
|
3.3 %
|
pts.
|
|
$195.71
|
4.1 %
|
Middle East &
Africa
|
|
$147.10
|
4.0 %
|
|
70.3 %
|
0.6 %
|
pts.
|
|
$209.15
|
3.1 %
|
|
|
|
|
|
|
|
|
|
|
|
International -
All1
|
|
$119.68
|
17.4 %
|
|
69.2 %
|
8.1 %
|
pts.
|
|
$173.08
|
3.6 %
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide2
|
|
$121.06
|
7.2 %
|
|
67.0 %
|
2.6 %
|
pts.
|
|
$180.69
|
3.0 %
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2023 and December 31, 2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily
Rate
|
Region
|
|
2023
|
vs.
2022
|
|
2023
|
vs.
2022
|
|
2023
|
vs.
2022
|
Greater
China
|
|
$88.18
|
80.3 %
|
|
68.9 %
|
22.4 %
|
pts.
|
|
$128.03
|
21.7 %
|
Asia Pacific excluding
China
|
|
$117.33
|
41.9 %
|
|
69.5 %
|
11.5 %
|
pts.
|
|
$168.86
|
18.4 %
|
Caribbean & Latin
America
|
|
$168.44
|
13.8 %
|
|
64.0 %
|
4.4 %
|
pts.
|
|
$263.19
|
6.0 %
|
Europe
|
|
$183.67
|
21.2 %
|
|
70.7 %
|
7.7 %
|
pts.
|
|
$259.65
|
8.0 %
|
Middle East &
Africa
|
|
$128.99
|
12.5 %
|
|
67.6 %
|
3.2 %
|
pts.
|
|
$190.71
|
7.2 %
|
|
|
|
|
|
|
|
|
|
|
|
International -
All1
|
|
$120.78
|
35.6 %
|
|
68.8 %
|
13.1 %
|
pts.
|
|
$175.62
|
9.7 %
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide2
|
|
$142.69
|
21.2 %
|
|
68.8 %
|
9.1 %
|
pts.
|
|
$207.27
|
5.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable
Systemwide International Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
December 31, 2023 and December 31, 2022
|
|
|
REVPAR
|
|
Occupancy
|
|
Average Daily
Rate
|
Region
|
|
2023
|
vs.
2022
|
|
2023
|
vs.
2022
|
|
2023
|
vs.
2022
|
Greater
China
|
|
$82.77
|
78.6 %
|
|
67.9 %
|
22.2 %
|
pts.
|
|
$121.91
|
20.2 %
|
Asia Pacific excluding
China
|
|
$117.89
|
43.2 %
|
|
69.4 %
|
10.9 %
|
pts.
|
|
$169.93
|
20.7 %
|
Caribbean & Latin
America
|
|
$142.85
|
13.9 %
|
|
64.7 %
|
4.2 %
|
pts.
|
|
$220.73
|
6.5 %
|
Europe
|
|
$142.88
|
21.8 %
|
|
68.7 %
|
8.3 %
|
pts.
|
|
$207.86
|
7.2 %
|
Middle East &
Africa
|
|
$120.67
|
14.7 %
|
|
66.6 %
|
2.9 %
|
pts.
|
|
$181.18
|
9.7 %
|
|
|
|
|
|
|
|
|
|
|
|
International -
All1
|
|
$116.81
|
32.6 %
|
|
67.9 %
|
11.7 %
|
pts.
|
|
$172.05
|
9.7 %
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide2
|
|
$124.70
|
14.9 %
|
|
69.2 %
|
5.5 %
|
pts.
|
|
$180.24
|
5.8 %
|
|
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
|
|
Fourth
Quarter
|
|
Total
|
Net income, as
reported
|
$
757
|
|
$
726
|
|
$
752
|
|
$
848
|
|
$ 3,083
|
Cost reimbursement
revenue
|
(4,147)
|
|
(4,457)
|
|
(4,391)
|
|
(4,418)
|
|
(17,413)
|
Reimbursed
expenses
|
4,136
|
|
4,366
|
|
4,238
|
|
4,684
|
|
17,424
|
Interest
expense
|
126
|
|
140
|
|
146
|
|
153
|
|
565
|
Interest expense from
unconsolidated joint ventures
|
1
|
|
1
|
|
3
|
|
1
|
|
6
|
Provision (benefit) for
income taxes
|
87
|
|
238
|
|
237
|
|
(267)
|
|
295
|
Depreciation and
amortization
|
44
|
|
48
|
|
46
|
|
51
|
|
189
|
Contract investment
amortization
|
21
|
|
22
|
|
23
|
|
22
|
|
88
|
Depreciation and
amortization classified in reimbursed expenses
|
31
|
|
38
|
|
39
|
|
51
|
|
159
|
Depreciation,
amortization, and impairments from unconsolidated joint
ventures
|
4
|
|
3
|
|
6
|
|
6
|
|
19
|
Stock-based
compensation
|
37
|
|
56
|
|
54
|
|
58
|
|
205
|
Merger-related charges
and other
|
1
|
|
38
|
|
13
|
|
8
|
|
60
|
Gain on asset
dispositions
|
-
|
|
-
|
|
(24)
|
|
-
|
|
(24)
|
Adjusted EBITDA
**
|
$1,098
|
|
$1,219
|
|
$1,142
|
|
$1,197
|
|
$
4,656
|
|
|
|
|
|
|
|
|
|
|
Change from 2022
Adjusted EBITDA **
|
45 %
|
|
20 %
|
|
16 %
|
|
10 %
|
|
21 %
|
|
|
|
|
|
|
|
|
|
|
|
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
|
FIRST QUARTER
2024
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range
|
|
|
|
Estimated
First Quarter 2024
|
|
First Quarter 2023 **
|
Net income excluding
certain items 1
|
$
616
|
|
$
638
|
|
|
Interest
expense
|
160
|
|
160
|
|
|
Interest expense from
unconsolidated joint ventures
|
2
|
|
2
|
|
|
Provision for income
taxes
|
177
|
|
185
|
|
|
Depreciation and
amortization
|
45
|
|
45
|
|
|
Contract investment
amortization
|
20
|
|
20
|
|
|
Depreciation and
amortization classified in reimbursed expenses
|
43
|
|
43
|
|
|
Depreciation,
amortization, and impairments from unconsolidated joint
ventures
|
4
|
|
4
|
|
|
Stock-based
compensation
|
53
|
|
53
|
|
|
Adjusted EBITDA
**
|
$
1,120
|
|
$
1,150
|
|
$
1,098
|
|
|
|
|
|
|
Increase over 2023
Adjusted EBITDA **
|
2 %
|
|
5 %
|
|
|
|
|
|
** 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
2024
|
($ in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range
|
|
|
|
Estimated
Full Year 2024
|
|
Full Year 2023 **
|
Net income excluding
certain items 1
|
$ 2,621
|
|
$ 2,718
|
|
|
Interest
expense
|
680
|
|
680
|
|
|
Interest expense from
unconsolidated joint ventures
|
7
|
|
7
|
|
|
Provision for income
taxes
|
875
|
|
908
|
|
|
Depreciation and
amortization
|
180
|
|
180
|
|
|
Contract investment
amortization
|
100
|
|
100
|
|
|
Depreciation and
amortization classified in reimbursed expenses
|
180
|
|
180
|
|
|
Depreciation,
amortization, and impairments from unconsolidated joint
ventures
|
17
|
|
17
|
|
|
Stock-based
compensation
|
220
|
|
220
|
|
|
Adjusted EBITDA
**
|
$
4,880
|
|
$
5,010
|
|
$
4,656
|
|
|
|
|
|
|
Increase over 2023
Adjusted EBITDA **
|
5 %
|
|
8 %
|
|
|
|
|
|
** 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"). 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, and 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 (benefit) 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 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 property 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 property 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
property 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, franchise application and relicensing fees, and
certain other licensing fees.
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SOURCE Marriott International, Inc.