Marriott International Reports Second Quarter 2021 Results
- Second quarter 2021 comparable systemwide constant dollar RevPAR increased 262.6 percent worldwide, 274.6 percent in the
U.S. &Canada , and 223.2 percent in international markets, compared to the 2020 second quarter; - Second quarter 2021 comparable systemwide constant dollar RevPAR declined 43.8 percent worldwide, 39.5 percent in the
U.S. &Canada , and 55.6 percent in international markets, compared to the 2019 second quarter; - Second quarter reported diluted EPS totaled
$1.28 , compared to reported diluted loss per share of$0.72 in the year-ago quarter. Second quarter adjusted diluted EPS totaled$0.79 , compared to second quarter 2020 adjusted diluted loss per share of$0.57 ; - Second quarter reported net income totaled
$422 million , compared to reported net loss of$234 million in the year-ago quarter. Second quarter adjusted net income totaled$260 million , compared to second quarter 2020 adjusted net loss of$184 million ; - Adjusted EBITDA totaled
$558 million in the 2021 second quarter, compared to second quarter 2020 adjusted EBITDA of$61 million ; - The company added nearly 25,000 rooms globally during the second quarter, including roughly 13,000 rooms in international markets and a total of approximately 5,300 conversion rooms. Gross rooms growth was 6.1 percent for the twelve months ended
June 30, 2021 ; - At quarter end, Marriott's worldwide development pipeline totaled 2,750 properties and nearly 478,000 rooms, including roughly 19,000 rooms approved, but not yet subject to signed contracts. More than 212,000 rooms in the pipeline were under construction as of the end of the 2021 second quarter.
"The swift resurgence of lodging demand once the virus has been largely contained and restrictions have eased has been most evident in Mainland China. Second quarter RevPAR in Mainland China was on par with the second quarter of 2019, and in April, for the first time since the pandemic began, leisure, business transient and group room nights were all ahead of 2019 levels.
"In our largest region, the
"Owners continue to seek out our brands. Year to date through June, rooms signed were 36 percent ahead of the same period in 2020 and more than 30 percent of rooms signed in the first half of this year are conversions. We have also seen strong openings, with approximately 49,000 rooms added to our system in the first six months of the year. For the full year 2021, we continue to expect gross rooms growth will accelerate to approximately 6 percent, with net rooms growth now expected to be towards the top end of the 3 to 3.5 percent range.
"
"While we are keeping a close eye on the Delta and other variant strains, we are optimistic that the upward trajectory of the global recovery will continue. We anticipate that more workers returning to their offices on a hybrid basis will serve as a catalyst for a meaningful increase in business transient and group demand in the fall. Many of our associates are starting to get back on the road, and our largest corporate clients tell us they are beginning to do the same. Our recovery to date has shown us that there is tremendous pent-up demand for the travel experiences we consistently provide. Timelines are hard to predict and will continue to vary by region, but I believe that we are on our way to a full global recovery."
Second Quarter 2021 Results
Marriott's reported operating income totaled
Adjusted operating income in the 2021 second quarter totaled
Second quarter 2021 adjusted net income totaled
Adjusted results also excluded restructuring and merger-related charges, cost reimbursement revenue, and reimbursed expenses. See pages A-3 and A-12 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
Incentive management fees totaled
Owned, leased, and other revenue, net of direct expenses, totaled a profit of
Depreciation, amortization, and other expenses for the 2021 second quarter totaled
General, administrative, and other expenses for the 2021 second quarter totaled
Interest expense, net, totaled
Equity in losses for the second quarter totaled
In the 2021 second quarter, the provision for income taxes totaled a
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled
Selected Performance Information
The company added 149 properties (24,909 rooms) to its worldwide lodging portfolio during the 2021 second quarter, including approximately 5,300 conversion rooms and roughly 13,000 rooms in international markets. Additions in the 2021 second quarter included eight all-inclusive conversion properties (2,943 rooms) in the company's
At quarter end, the company's worldwide development pipeline totaled 2,750 properties with nearly 478,000 rooms, including 1,069 properties with more than 212,000 rooms under construction and 114 properties with roughly 19,000 rooms approved for development, but not yet subject to signed contracts.
In the 2021 second quarter, worldwide RevPAR increased 262.6 percent (a 268.7 percent increase using actual dollars) compared to the 2020 second quarter. RevPAR in the
Balance Sheet and Liquidity
At quarter end, Marriott's net debt was
The company's net liquidity was approximately
On
Investment Spending
Marriott now anticipates that full year 2021 investment spending will total
COVID-19
Due to the numerous uncertainties associated with COVID-19, Marriott cannot presently estimate the impact of this unprecedented situation on its future results, which is highly dependent on the severity and duration of the pandemic and its impacts, but expects that COVID-19 will continue to be material to the company's results.
The telephone dial-in number for the conference call is 1-706-679-3455 and the conference ID is 2952228. A telephone replay of the conference call will be available from
Note on forward-looking statements: All statements in this press release and the accompanying schedules are made as of
Marriott may post updates about COVID-19 and other matters on its investor relations website at www.marriott.com/investor or Marriott's news center website at www.marriottnewscenter.com. Marriott encourages investors, the media, and others interested in the company to review and subscribe to the information Marriott posts on these websites, 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
1 All occupancy, ADR and RevPAR statistics are systemwide constant dollar and include hotels that have been temporarily closed due to COVID-19. Unless otherwise stated, all changes refer to year-over-year changes for the comparable period. RevPAR comparisons between 2021 and 2020 reflect properties that are comparable in both years. ADR and RevPAR comparisons between 2021 and 2019 reflect properties that are defined as comparable as of
IRPR#1
Tables follow
|
|||||||||||||||
PRESS RELEASE SCHEDULES |
|||||||||||||||
TABLE OF CONTENTS |
|||||||||||||||
QUARTER 2, 2021 |
|||||||||||||||
Consolidated Statements of Income - As Reported |
A-1 |
||||||||||||||
Non-GAAP Financial Measures |
A-3 |
||||||||||||||
Total Lodging Products |
A-4 |
||||||||||||||
Key Lodging Statistics |
A-7 |
||||||||||||||
Adjusted EBITDA |
A-12 |
||||||||||||||
Explanation of Non-GAAP Financial and Performance Measures |
A-13 |
|
|||||||
CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED |
|||||||
SECOND QUARTER 2021 AND 2020 |
|||||||
(in millions except per share amounts, unaudited) |
|||||||
As Reported |
As Reported |
Percent |
|||||
Three Months Ended |
Three Months Ended |
Better/(Worse) |
|||||
|
|
Reported 2021 vs. 2020 |
|||||
REVENUES |
|||||||
Base management fees |
$ 156 |
$ 40 |
290 |
||||
Franchise fees 1 |
431 |
182 |
137 |
||||
Incentive management fees |
55 |
12 |
358 |
||||
Gross Fee Revenues |
642 |
234 |
174 |
||||
Contract investment amortization 2 |
(18) |
(21) |
14 |
||||
Net Fee Revenues |
624 |
213 |
193 |
||||
Owned, leased, and other revenue 3 |
187 |
49 |
282 |
||||
Cost reimbursement revenue 4 |
2,338 |
1,202 |
95 |
||||
Total Revenues |
3,149 |
1,464 |
115 |
||||
OPERATING COSTS AND EXPENSES |
|||||||
Owned, leased, and other - direct 5 |
168 |
121 |
(39) |
||||
Depreciation, amortization, and other 6 |
50 |
72 |
31 |
||||
General, administrative, and other 7 |
187 |
178 |
(5) |
||||
Restructuring and merger-related charges |
3 |
6 |
50 |
||||
Reimbursed expenses 4 |
2,255 |
1,241 |
(82) |
||||
Total Expenses |
2,663 |
1,618 |
(65) |
||||
OPERATING INCOME (LOSS) |
486 |
(154) |
416 |
||||
Gains and other income, net 8 |
5 |
5 |
- |
||||
Interest expense |
(109) |
(127) |
14 |
||||
Interest income |
7 |
8 |
(13) |
||||
Equity in losses 9 |
(8) |
(30) |
73 |
||||
INCOME (LOSS) BEFORE INCOME TAXES |
381 |
(298) |
228 |
||||
Benefit for income taxes |
41 |
64 |
(36) |
||||
NET INCOME (LOSS) |
$ 422 |
$ (234) |
280 |
||||
EARNINGS (LOSS) PER SHARE |
|||||||
Earnings (Loss) per share - basic |
$ 1.29 |
$ (0.72) |
279 |
||||
Earnings (Loss) per share - diluted |
$ 1.28 |
$ (0.72) |
278 |
||||
Basic Shares |
327.1 |
325.6 |
|||||
Diluted Shares 10 |
329.1 |
325.6 |
|||||
1 |
Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, 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 expensesinclude 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 losses include our equity in losses of unconsolidated equity method investments. |
||||||
10 |
Basic and fully diluted weighted average shares outstanding used to calculate earnings (loss) per share for the period in which we had a loss are the same because |
||||||
inclusion of additional equivalents would be anti-dilutive. |
|
|||||||
CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED |
|||||||
SECOND QUARTER YEAR-TO-DATE 2021 AND 2020 |
|||||||
(in millions except per share amounts, unaudited) |
|||||||
As Reported |
As Reported |
Percent |
|||||
Six Months Ended |
Six Months Ended |
Better/(Worse) |
|||||
|
|
Reported 2021 vs. 2020 |
|||||
REVENUES |
|||||||
Base management fees |
$ 262 |
$ 254 |
3 |
||||
Franchise fees 1 |
737 |
597 |
23 |
||||
Incentive management fees |
88 |
12 |
633 |
||||
Gross Fee Revenues |
1,087 |
863 |
26 |
||||
Contract investment amortization 2 |
(35) |
(46) |
24 |
||||
Net Fee Revenues |
1,052 |
817 |
29 |
||||
Owned, leased, and other revenue 3 |
295 |
329 |
(10) |
||||
Cost reimbursement revenue 4 |
4,118 |
4,999 |
(18) |
||||
Total Revenues |
5,465 |
6,145 |
(11) |
||||
OPERATING COSTS AND EXPENSES |
|||||||
Owned, leased, and other - direct 5 |
303 |
393 |
23 |
||||
Depreciation, amortization, and other 6 |
102 |
222 |
54 |
||||
General, administrative, and other 7 |
398 |
448 |
11 |
||||
Restructuring and merger-related charges |
4 |
4 |
- |
||||
Reimbursed expenses 4 |
4,088 |
5,118 |
20 |
||||
Total Expenses |
4,895 |
6,185 |
21 |
||||
OPERATING INCOME (LOSS) |
570 |
(40) |
1,525 |
||||
Gains and other income, net 8 |
6 |
1 |
500 |
||||
Interest expense |
(216) |
(220) |
2 |
||||
Interest income |
14 |
14 |
- |
||||
Equity in losses 9 |
(20) |
(34) |
41 |
||||
INCOME (LOSS) BEFORE INCOME TAXES |
354 |
(279) |
227 |
||||
Benefit for income taxes |
57 |
76 |
(25) |
||||
NET INCOME (LOSS) |
$ 411 |
$ (203) |
302 |
||||
EARNINGS (LOSS) PER SHARE |
|||||||
Earnings (Loss) per share - basic |
$ 1.26 |
$ (0.63) |
300 |
||||
Earnings (Loss) per share - diluted |
$ 1.25 |
$ (0.63) |
298 |
||||
Basic Shares |
326.9 |
325.5 |
|||||
Diluted Shares 10 |
329.0 |
325.5 |
|||||
1 |
Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, 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 expensesinclude 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 losses include our equity in losses of unconsolidated equity method investments. |
||||||
10 |
Basic and fully diluted weighted average shares outstanding used to calculate earnings (loss) per share for the period in which we had a loss are the same because |
||||||
inclusion of additional equivalents would be anti-dilutive. |
|
||||||||||||
NON-GAAP FINANCIAL MEASURES |
||||||||||||
($ in millions except per share amounts) |
||||||||||||
The following table presents our reconciliations of Adjusted operating income (loss), Adjusted operating income (loss) margin, Adjusted net income (loss), and Adjusted diluted |
||||||||||||
earnings (loss) per share, to the most directly comparable GAAP measure. Adjusted total revenues is used in the determination of Adjusted operating income (loss) margin. |
||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||
Percent |
Percent |
|||||||||||
|
|
Better/ |
|
|
Better/ |
|||||||
2021 |
2020 |
(Worse) |
2021 |
2020 |
(Worse) |
|||||||
Total revenues, as reported |
$ 3,149 |
$ 1,464 |
$ 5,465 |
$ 6,145 |
||||||||
Less: Cost reimbursement revenue |
(2,338) |
(1,202) |
(4,118) |
(4,999) |
||||||||
Add: Impairments 1 |
- |
3 |
- |
10 |
||||||||
Adjusted total revenues ** |
811 |
265 |
1,347 |
1,156 |
||||||||
Operating income (loss), as reported |
486 |
(154) |
570 |
(40) |
||||||||
Less: Cost reimbursement revenue |
(2,338) |
(1,202) |
(4,118) |
(4,999) |
||||||||
Add: Reimbursed expenses |
2,255 |
1,241 |
4,088 |
5,118 |
||||||||
Add: Restructuring and merger-related charges |
3 |
6 |
4 |
4 |
||||||||
Add: Impairments2 |
- |
24 |
- |
125 |
||||||||
Adjusted operating income (loss) ** |
406 |
(85) |
* |
544 |
208 |
162% |
||||||
Operating income (loss) margin |
15% |
-11% |
10% |
-1% |
||||||||
Adjusted operating income (loss) margin ** |
50% |
-32% |
40% |
18% |
||||||||
Net income (loss), as reported |
422 |
(234) |
411 |
(203) |
||||||||
Less: Cost reimbursement revenue |
(2,338) |
(1,202) |
(4,118) |
(4,999) |
||||||||
Add: Reimbursed expenses |
2,255 |
1,241 |
4,088 |
5,118 |
||||||||
Add: Restructuring and merger-related charges |
3 |
6 |
4 |
4 |
||||||||
Add: Impairments3 |
- |
32 |
4 |
133 |
||||||||
Income tax effect of above adjustments |
16 |
(27) |
3 |
(77) |
||||||||
Less: Income tax special items |
(98) |
- |
(98) |
- |
||||||||
Adjusted net income (loss) ** |
$ 260 |
$ (184) |
* |
$ 294 |
$ (24) |
* |
||||||
Diluted earnings (loss) per share, as reported |
$ 1.28 |
$ (0.72) |
$ 1.25 |
$ (0.63) |
||||||||
Adjusted diluted earnings (loss) per share** |
$ 0.79 |
$ (0.57) |
* |
$ 0.89 |
$ (0.07) |
* |
||||||
* |
Calculated percentage is not meaningful. |
|||||||||||
** |
Denotes non-GAAP financial measures. Please see pages A-13 and A-14 for information about our reasons for providing these alternative financial measures and the |
|||||||||||
limitations on their use. |
||||||||||||
1 |
Includes impairment charges reported in Contract investment amortization of |
|||||||||||
respectively. |
||||||||||||
2 |
Includes impairment charges reported in Contract investment amortization of |
|||||||||||
million in the 2020 second quarter and 2020 second quarter year-to-date, respectively. |
||||||||||||
3 |
Includes impairment charges reported in Equity in losses of |
|||||||||||
investment amortization of |
||||||||||||
2020 second quarter and 2020 second quarter year-to-date, respectively. |
|
||||||
TOTAL LODGING PRODUCTS |
||||||
As of |
||||||
US & |
|
Total Worldwide |
||||
Units |
Rooms |
Units |
Rooms |
Units |
Rooms |
|
Managed |
643 |
221,660 |
1,282 |
329,998 |
1,925 |
551,658 |
Marriott Hotels |
114 |
61,587 |
182 |
53,148 |
296 |
114,735 |
Marriott Hotels Serviced Apartments |
- |
- |
1 |
154 |
1 |
154 |
Sheraton |
28 |
23,609 |
188 |
63,313 |
216 |
86,922 |
Courtyard |
169 |
27,265 |
103 |
22,405 |
272 |
49,670 |
Westin |
40 |
21,847 |
74 |
22,341 |
114 |
44,188 |
JW Marriott |
21 |
12,712 |
62 |
23,099 |
83 |
35,811 |
Renaissance |
24 |
10,607 |
58 |
18,284 |
82 |
28,891 |
The Ritz-Carlton |
38 |
11,406 |
65 |
16,410 |
103 |
27,816 |
The Ritz-Carlton Serviced Apartments |
- |
- |
5 |
715 |
5 |
715 |
Four Points |
1 |
134 |
79 |
21,755 |
80 |
21,889 |
Le Méridien |
1 |
100 |
70 |
20,031 |
71 |
20,131 |
W Hotels |
22 |
6,403 |
33 |
8,984 |
55 |
15,387 |
W Hotels Serviced Apartments |
- |
- |
1 |
160 |
1 |
160 |
Residence Inn |
76 |
12,199 |
8 |
982 |
84 |
13,181 |
The Luxury Collection |
6 |
2,296 |
48 |
8,741 |
54 |
11,037 |
Gaylord Hotels |
6 |
10,220 |
- |
- |
6 |
10,220 |
St. Regis |
10 |
1,968 |
37 |
8,662 |
47 |
10,630 |
St. Regis Serviced Apartments |
- |
- |
1 |
70 |
1 |
70 |
Aloft |
1 |
330 |
41 |
9,452 |
42 |
9,782 |
AC Hotels by Marriott |
7 |
1,165 |
68 |
8,264 |
75 |
9,429 |
Fairfield by Marriott |
7 |
1,539 |
47 |
6,467 |
54 |
8,006 |
Delta Hotels |
25 |
6,770 |
1 |
360 |
26 |
7,130 |
Marriott Executive Apartments |
- |
- |
35 |
5,238 |
35 |
5,238 |
Autograph Collection |
8 |
2,335 |
16 |
2,441 |
24 |
4,776 |
SpringHill Suites |
27 |
4,496 |
- |
- |
27 |
4,496 |
Protea Hotels |
- |
- |
28 |
3,466 |
28 |
3,466 |
EDITION |
4 |
1,207 |
7 |
1,488 |
11 |
2,695 |
Element |
2 |
640 |
9 |
1,786 |
11 |
2,426 |
Moxy |
- |
- |
5 |
887 |
5 |
887 |
TownePlace Suites |
6 |
825 |
- |
- |
6 |
825 |
Tribute Portfolio |
- |
- |
5 |
453 |
5 |
453 |
Bulgari |
- |
- |
5 |
442 |
5 |
442 |
Franchised |
4,868 |
697,256 |
747 |
154,400 |
5,615 |
851,656 |
Courtyard |
840 |
112,096 |
99 |
18,582 |
939 |
130,678 |
Fairfield by Marriott |
1,082 |
101,273 |
33 |
5,707 |
1,115 |
106,980 |
Residence Inn |
759 |
90,335 |
17 |
2,369 |
776 |
92,704 |
Marriott Hotels |
224 |
70,954 |
61 |
18,412 |
285 |
89,366 |
Sheraton |
154 |
46,451 |
67 |
18,679 |
221 |
65,130 |
SpringHill Suites |
479 |
55,182 |
- |
- |
479 |
55,182 |
TownePlace Suites |
455 |
46,167 |
- |
- |
455 |
46,167 |
Autograph Collection |
120 |
23,959 |
87 |
19,309 |
207 |
43,268 |
Westin |
89 |
30,194 |
23 |
7,163 |
112 |
37,357 |
Four Points |
159 |
23,864 |
60 |
10,028 |
219 |
33,892 |
Renaissance |
60 |
17,425 |
29 |
7,781 |
89 |
25,206 |
Aloft |
139 |
20,072 |
22 |
3,561 |
161 |
23,633 |
AC Hotels by Marriott |
78 |
13,004 |
37 |
6,614 |
115 |
19,618 |
Moxy |
26 |
4,913 |
61 |
11,748 |
87 |
16,661 |
Delta Hotels |
55 |
12,165 |
8 |
1,887 |
63 |
14,052 |
The Luxury Collection |
10 |
2,644 |
51 |
9,465 |
61 |
12,109 |
Le Méridien |
22 |
5,096 |
16 |
4,212 |
38 |
9,308 |
Element |
64 |
8,544 |
2 |
293 |
66 |
8,837 |
Tribute Portfolio |
34 |
5,689 |
20 |
2,497 |
54 |
8,186 |
JW Marriott |
13 |
5,947 |
8 |
2,131 |
21 |
8,078 |
Protea Hotels |
- |
- |
36 |
2,949 |
36 |
2,949 |
Design Hotels |
5 |
853 |
8 |
862 |
13 |
1,715 |
The Ritz-Carlton |
1 |
429 |
- |
- |
1 |
429 |
Bulgari |
- |
- |
1 |
85 |
1 |
85 |
Marriott Executive Apartments |
- |
- |
1 |
66 |
1 |
66 |
|
||||||
TOTAL LODGING PRODUCTS |
||||||
As of |
||||||
US & |
|
Total Worldwide |
||||
Units |
Rooms |
Units |
Rooms |
Units |
Rooms |
|
Owned/Leased |
26 |
6,483 |
39 |
9,288 |
65 |
15,771 |
Courtyard |
19 |
2,814 |
4 |
894 |
23 |
3,708 |
|
2 |
1,308 |
6 |
2,064 |
8 |
3,372 |
Sheraton |
- |
- |
4 |
1,830 |
4 |
1,830 |
|
2 |
779 |
2 |
665 |
4 |
1,444 |
Westin |
1 |
1,073 |
- |
- |
1 |
1,073 |
|
- |
- |
6 |
991 |
6 |
991 |
Renaissance |
1 |
317 |
2 |
505 |
3 |
822 |
Autograph Collection1 |
- |
- |
6 |
576 |
6 |
576 |
The Ritz-Carlton |
- |
- |
2 |
550 |
2 |
550 |
|
- |
- |
1 |
496 |
1 |
496 |
The Luxury Collection2 |
- |
- |
4 |
417 |
4 |
417 |
|
1 |
192 |
1 |
140 |
2 |
332 |
St. Regis |
- |
- |
1 |
160 |
1 |
160 |
Residences |
63 |
6,773 |
37 |
2,993 |
100 |
9,766 |
The |
37 |
4,177 |
13 |
1,034 |
50 |
5,211 |
St. Regis Residences |
10 |
1,105 |
7 |
598 |
17 |
1,703 |
W Residences |
10 |
1,089 |
4 |
359 |
14 |
1,448 |
Bulgari Residences |
- |
- |
5 |
514 |
5 |
514 |
|
3 |
266 |
- |
- |
3 |
266 |
|
- |
- |
2 |
246 |
2 |
246 |
The Luxury Collection Residences |
1 |
91 |
3 |
115 |
4 |
206 |
Autograph Collection Residences |
- |
- |
1 |
62 |
1 |
62 |
Sheraton Residences |
- |
- |
1 |
50 |
1 |
50 |
EDITION Residences |
2 |
45 |
- |
- |
2 |
45 |
Le Méridien Residences |
- |
- |
1 |
15 |
1 |
15 |
Timeshare* |
72 |
18,896 |
20 |
3,862 |
92 |
22,758 |
Grand Total |
5,672 |
951,068 |
2,125 |
500,541 |
7,797 |
1,451,609 |
*Timeshare property and room counts are included on this table in their geographical locations. For external reporting purposes, these counts are captured in the Corporate segment. |
||||||
1Includes five properties acquired when we purchased |
||||||
2 Includes two properties acquired when we purchased |
|
||||||
TOTAL LODGING PRODUCTS |
||||||
As of |
||||||
US & |
|
Total Worldwide |
||||
Total Systemwide |
Units |
Rooms |
Units |
Rooms |
Units |
Rooms |
Luxury |
187 |
52,298 |
366 |
85,360 |
553 |
137,658 |
|
34 |
18,659 |
71 |
25,726 |
105 |
44,385 |
The Ritz-Carlton |
39 |
11,835 |
67 |
16,960 |
106 |
28,795 |
The |
37 |
4,177 |
13 |
1,034 |
50 |
5,211 |
|
- |
- |
5 |
715 |
5 |
715 |
The Luxury Collection1 |
16 |
4,940 |
103 |
18,623 |
119 |
23,563 |
The Luxury Collection Residences |
1 |
91 |
3 |
115 |
4 |
206 |
|
24 |
7,182 |
35 |
9,649 |
59 |
16,831 |
W Residences |
10 |
1,089 |
4 |
359 |
14 |
1,448 |
|
- |
- |
1 |
160 |
1 |
160 |
St. Regis |
10 |
1,968 |
38 |
8,822 |
48 |
10,790 |
St. Regis Residences |
10 |
1,105 |
7 |
598 |
17 |
1,703 |
|
- |
- |
1 |
70 |
1 |
70 |
EDITION |
4 |
1,207 |
7 |
1,488 |
11 |
2,695 |
EDITION Residences |
2 |
45 |
- |
- |
2 |
45 |
Bulgari |
- |
- |
6 |
527 |
6 |
527 |
Bulgari Residences |
- |
- |
5 |
514 |
5 |
514 |
Full-Service |
1,016 |
352,825 |
973 |
271,979 |
1,989 |
624,804 |
|
340 |
133,849 |
249 |
73,624 |
589 |
207,473 |
|
- |
- |
2 |
246 |
2 |
246 |
|
- |
- |
1 |
154 |
1 |
154 |
Sheraton |
182 |
70,060 |
259 |
83,822 |
441 |
153,882 |
Sheraton Residences |
- |
- |
1 |
50 |
1 |
50 |
Westin |
130 |
53,114 |
97 |
29,504 |
227 |
82,618 |
|
3 |
266 |
- |
- |
3 |
266 |
Renaissance |
85 |
28,349 |
89 |
26,570 |
174 |
54,919 |
Autograph Collection2 |
128 |
26,294 |
109 |
22,326 |
237 |
48,620 |
Autograph Collection Residences |
- |
- |
1 |
62 |
1 |
62 |
Le Méridien |
23 |
5,196 |
86 |
24,243 |
109 |
29,439 |
Le Méridien Residences |
- |
- |
1 |
15 |
1 |
15 |
|
80 |
18,935 |
9 |
2,247 |
89 |
21,182 |
|
6 |
10,220 |
- |
- |
6 |
10,220 |
Tribute Portfolio |
34 |
5,689 |
25 |
2,950 |
59 |
8,639 |
|
- |
- |
36 |
5,304 |
36 |
5,304 |
|
5 |
853 |
8 |
862 |
13 |
1,715 |
Limited-Service |
4,397 |
527,049 |
766 |
139,340 |
5,163 |
666,389 |
Courtyard |
1,028 |
142,175 |
206 |
41,881 |
1,234 |
184,056 |
|
1,089 |
102,812 |
80 |
12,174 |
1,169 |
114,986 |
|
836 |
102,726 |
26 |
3,491 |
862 |
106,217 |
SpringHill Suites |
506 |
59,678 |
- |
- |
506 |
59,678 |
Four Points |
160 |
23,998 |
139 |
31,783 |
299 |
55,781 |
TownePlace Suites |
461 |
46,992 |
- |
- |
461 |
46,992 |
Aloft |
140 |
20,402 |
63 |
13,013 |
203 |
33,415 |
|
85 |
14,169 |
105 |
14,878 |
190 |
29,047 |
Moxy |
26 |
4,913 |
66 |
12,635 |
92 |
17,548 |
Element |
66 |
9,184 |
11 |
2,079 |
77 |
11,263 |
|
- |
- |
70 |
7,406 |
70 |
7,406 |
Timeshare* |
72 |
18,896 |
20 |
3,862 |
92 |
22,758 |
Grand Total |
5,672 |
951,068 |
2,125 |
500,541 |
7,797 |
1,451,609 |
*Timeshare property and room counts are included on this table in their geographical locations. For external reporting purposes, these counts are captured in the Corporate segment. |
||||||
1 Includes two properties acquired when we purchased |
||||||
2Includes five properties acquired when we purchased |
|
||||||||||
KEY LODGING STATISTICS |
||||||||||
In Constant $ |
||||||||||
|
||||||||||
Three Months Ended |
||||||||||
REVPAR |
Occupancy |
Average Daily Rate |
||||||||
Brand |
2021 |
vs. 2020 |
2021 |
vs. 2020 |
2021 |
vs. 2020 |
||||
|
|
909.5% |
48.5% |
42.5% |
pts. |
|
25.8% |
|||
The Ritz-Carlton |
|
582.3% |
49.6% |
40.2% |
pts. |
|
29.2% |
|||
|
|
910.8% |
42.9% |
37.2% |
pts. |
|
33.4% |
|||
Composite US & Canada Luxury1 |
|
805.1% |
46.9% |
40.3% |
pts. |
|
26.8% |
|||
|
|
526.5% |
41.4% |
34.4% |
pts. |
|
6.2% |
|||
Sheraton |
|
581.2% |
34.1% |
27.1% |
pts. |
|
38.8% |
|||
Westin |
|
648.1% |
40.6% |
34.1% |
pts. |
|
20.0% |
|||
Composite US & Canada Premium2 |
|
618.3% |
38.7% |
32.5% |
pts. |
|
14.8% |
|||
US & Canada Full-Service3 |
|
682.7% |
40.4% |
34.1% |
pts. |
|
21.4% |
|||
Courtyard |
|
429.1% |
57.9% |
45.8% |
pts. |
|
10.8% |
|||
|
|
166.3% |
71.3% |
41.7% |
pts. |
|
10.5% |
|||
Composite US & Canada Limited-Service4 |
|
294.1% |
60.9% |
44.4% |
pts. |
|
7.1% |
|||
US & |
|
554.9% |
45.0% |
36.4% |
pts. |
|
25.1% |
|||
|
||||||||||
Three Months Ended |
||||||||||
REVPAR |
Occupancy |
Average Daily Rate |
||||||||
Brand |
2021 |
vs. 2020 |
2021 |
vs. 2020 |
2021 |
vs. 2020 |
||||
|
|
987.7% |
49.9% |
44.9% |
pts. |
|
8.9% |
|||
The Ritz-Carlton |
|
595.1% |
49.1% |
40.1% |
pts. |
|
27.7% |
|||
|
|
910.8% |
42.9% |
37.2% |
pts. |
|
33.4% |
|||
Composite US & Canada Luxury1 |
|
823.0% |
47.6% |
41.4% |
pts. |
|
20.5% |
|||
|
|
425.5% |
44.1% |
34.5% |
pts. |
|
14.6% |
|||
Sheraton |
|
338.4% |
40.7% |
28.4% |
pts. |
|
32.1% |
|||
Westin |
|
493.1% |
43.0% |
33.8% |
pts. |
|
27.6% |
|||
Composite US & Canada Premium2 |
|
446.4% |
43.3% |
33.4% |
pts. |
|
25.1% |
|||
US & Canada Full-Service3 |
|
504.7% |
43.8% |
34.3% |
pts. |
|
30.9% |
|||
Courtyard |
|
288.8% |
60.3% |
41.3% |
pts. |
|
22.2% |
|||
|
|
110.2% |
73.8% |
33.4% |
pts. |
|
15.0% |
|||
|
|
209.7% |
65.0% |
39.7% |
pts. |
|
20.8% |
|||
Composite US & Canada Limited-Service4 |
|
187.7% |
65.3% |
38.5% |
pts. |
|
18.0% |
|||
US & |
|
274.6% |
56.1% |
36.7% |
pts. |
|
29.3% |
|||
1 |
||||||||||
2 |
||||||||||
Systemwide also includes Le Méridien and Tribute Portfolio. |
||||||||||
3 Includes Composite US & Canada Luxury and Composite US & Canada Premium. |
||||||||||
4 Includes Courtyard, |
||||||||||
and |
||||||||||
5 Includes US & Canada Full-Service and Composite US & Canada Limited-Service. |
|
||||||||||
KEY LODGING STATISTICS |
||||||||||
In Constant $ |
||||||||||
|
||||||||||
Three Months Ended |
||||||||||
REVPAR |
Occupancy |
Average Daily Rate |
||||||||
Region |
2021 |
vs. 2020 |
2021 |
vs. 2020 |
2021 |
vs. 2020 |
||||
|
|
117.0% |
63.9% |
28.6% |
pts. |
|
19.9% |
|||
|
|
164.1% |
29.6% |
16.6% |
pts. |
|
15.9% |
|||
|
|
1105.4% |
41.7% |
35.4% |
pts. |
|
83.1% |
|||
|
|
1030.5% |
23.8% |
20.8% |
pts. |
|
40.9% |
|||
|
|
211.1% |
45.1% |
28.0% |
pts. |
|
18.3% |
|||
International - All1 |
|
203.1% |
41.8% |
24.3% |
pts. |
|
27.3% |
|||
Worldwide2 |
|
336.9% |
43.3% |
29.9% |
pts. |
|
35.1% |
|||
|
||||||||||
Three Months Ended |
||||||||||
REVPAR |
Occupancy |
Average Daily Rate |
||||||||
Region |
2021 |
vs. 2020 |
2021 |
vs. 2020 |
2021 |
vs. 2020 |
||||
|
|
114.3% |
62.4% |
27.5% |
pts. |
|
20.1% |
|||
|
|
147.6% |
30.3% |
16.4% |
pts. |
|
13.7% |
|||
|
|
1068.5% |
39.7% |
33.5% |
pts. |
|
80.6% |
|||
|
|
732.1% |
23.2% |
19.7% |
pts. |
|
25.7% |
|||
|
|
219.1% |
43.7% |
27.5% |
pts. |
|
18.7% |
|||
International - All1 |
|
223.2% |
38.4% |
23.3% |
pts. |
|
26.7% |
|||
Worldwide2 |
|
262.6% |
50.8% |
32.8% |
pts. |
|
28.9% |
|||
1 Includes |
||||||||||
2 Includes US & |
|
||||||||||
KEY LODGING STATISTICS |
||||||||||
In Constant $ |
||||||||||
|
||||||||||
Six Months Ended |
||||||||||
REVPAR |
Occupancy |
Average Daily Rate |
||||||||
Brand |
2021 |
vs. 2020 |
2021 |
vs. 2020 |
2021 |
vs. 2020 |
||||
|
|
24.0% |
40.4% |
8.3% |
pts. |
|
-1.5% |
|||
The Ritz-Carlton |
|
47.4% |
42.5% |
9.5% |
pts. |
|
14.3% |
|||
|
|
13.2% |
35.3% |
3.9% |
pts. |
|
0.7% |
|||
Composite US & Canada Luxury1 |
|
29.9% |
39.4% |
7.1% |
pts. |
|
6.5% |
|||
|
|
-20.0% |
32.8% |
0.9% |
pts. |
|
-22.1% |
|||
Sheraton |
|
-28.1% |
25.8% |
-5.0% |
pts. |
|
-14.1% |
|||
Westin |
|
-7.6% |
32.3% |
1.4% |
pts. |
|
-11.5% |
|||
Composite US & Canada Premium2 |
|
-18.6% |
30.5% |
-0.7% |
pts. |
|
-16.8% |
|||
US & Canada Full-Service3 |
|
-2.7% |
32.3% |
0.9% |
pts. |
|
-5.5% |
|||
Courtyard |
|
17.2% |
49.4% |
16.8% |
pts. |
|
-22.7% |
|||
|
|
18.3% |
66.2% |
18.3% |
pts. |
|
-14.4% |
|||
Composite US & Canada Limited-Service4 |
|
15.8% |
53.2% |
16.4% |
pts. |
|
-19.8% |
|||
US & |
|
0.5% |
37.1% |
4.4% |
pts. |
|
-11.4% |
|||
|
||||||||||
Six Months Ended |
||||||||||
REVPAR |
Occupancy |
Average Daily Rate |
||||||||
Brand |
2021 |
vs. 2020 |
2021 |
vs. 2020 |
2021 |
vs. 2020 |
||||
|
|
22.6% |
42.1% |
10.6% |
pts. |
|
-8.2% |
|||
The Ritz-Carlton |
|
46.9% |
41.7% |
9.2% |
pts. |
|
14.3% |
|||
|
|
13.2% |
35.3% |
3.9% |
pts. |
|
0.7% |
|||
Composite US & Canada Luxury1 |
|
27.9% |
40.0% |
7.9% |
pts. |
|
2.7% |
|||
|
|
-7.4% |
35.8% |
3.6% |
pts. |
|
-16.7% |
|||
Sheraton |
|
-12.8% |
33.4% |
0.6% |
pts. |
|
-14.3% |
|||
Westin |
|
-7.6% |
35.0% |
1.9% |
pts. |
|
-12.7% |
|||
Composite US & Canada Premium2 |
|
-5.2% |
35.3% |
2.8% |
pts. |
|
-12.8% |
|||
US & Canada Full-Service3 |
|
1.6% |
35.9% |
3.4% |
pts. |
|
-8.1% |
|||
Courtyard |
|
25.5% |
51.9% |
15.2% |
pts. |
|
-11.3% |
|||
|
|
20.7% |
68.0% |
15.6% |
pts. |
|
-7.0% |
|||
|
|
38.1% |
56.0% |
16.7% |
pts. |
|
-3.2% |
|||
Composite US & Canada Limited-Service4 |
|
26.2% |
57.6% |
15.7% |
pts. |
|
-8.2% |
|||
US & |
|
14.2% |
48.2% |
10.4% |
pts. |
|
-10.5% |
|||
1 |
||||||||||
2 |
||||||||||
Systemwide also includes Le Méridien and Tribute Portfolio. |
||||||||||
3 Includes Composite US & Canada Luxury and Composite US & Canada Premium. |
||||||||||
4 Includes Courtyard, |
||||||||||
and |
||||||||||
5 Includes US & Canada Full-Service and Composite US & Canada Limited-Service. |
|
||||||||||
KEY LODGING STATISTICS |
||||||||||
In Constant $ |
||||||||||
|
||||||||||
Six Months Ended |
||||||||||
REVPAR |
Occupancy |
Average Daily Rate |
||||||||
Region |
2021 |
vs. 2020 |
2021 |
vs. 2020 |
2021 |
vs. 2020 |
||||
|
|
100.5% |
56.0% |
26.1% |
pts. |
|
6.9% |
|||
|
|
-28.5% |
31.6% |
-1.5% |
pts. |
|
-25.2% |
|||
|
|
1.6% |
36.6% |
5.4% |
pts. |
|
-13.5% |
|||
|
|
-37.4% |
18.6% |
-6.3% |
pts. |
|
-16.0% |
|||
|
|
15.7% |
43.4% |
5.6% |
pts. |
|
0.9% |
|||
International - All1 |
|
9.2% |
38.4% |
7.2% |
pts. |
|
-11.3% |
|||
Worldwide2 |
|
4.3% |
37.8% |
5.9% |
pts. |
|
-12.0% |
|||
|
||||||||||
Six Months Ended |
||||||||||
REVPAR |
Occupancy |
Average Daily Rate |
||||||||
Region |
2021 |
vs. 2020 |
2021 |
vs. 2020 |
2021 |
vs. 2020 |
||||
|
|
97.1% |
55.0% |
25.4% |
pts. |
|
6.2% |
|||
|
|
-25.8% |
32.5% |
-0.8% |
pts. |
|
-24.1% |
|||
|
|
-1.1% |
34.2% |
4.9% |
pts. |
|
-15.3% |
|||
|
|
-38.4% |
18.2% |
-6.6% |
pts. |
|
-16.0% |
|||
|
|
15.9% |
42.2% |
5.3% |
pts. |
|
1.5% |
|||
International - All1 |
|
1.8% |
35.1% |
4.9% |
pts. |
|
-12.4% |
|||
Worldwide2 |
|
11.1% |
44.3% |
8.8% |
pts. |
|
-10.9% |
|||
1 Includes |
||||||||||
2 Includes US & |
|
||||||||||
KEY LODGING STATISTICS - 2021 vs 2019 |
||||||||||
In Constant $ |
||||||||||
|
||||||||||
Three Months Ended |
||||||||||
REVPAR |
Occupancy |
Average Daily Rate |
||||||||
Region |
2021 |
vs. 2019 |
2021 |
vs. 2019 |
2021 |
vs. 2019 |
||||
|
|
-16.9% |
62.4% |
-5.3% |
pts. |
|
-9.9% |
|||
|
|
-69.0% |
30.3% |
-39.9% |
pts. |
|
-28.2% |
|||
|
|
-38.7% |
39.7% |
-22.0% |
pts. |
|
-4.7% |
|||
|
|
-77.4% |
23.2% |
-52.7% |
pts. |
|
-26.1% |
|||
|
|
-31.0% |
43.7% |
-19.4% |
pts. |
|
-0.3% |
|||
International - All2 |
|
-55.6% |
38.4% |
-30.8% |
pts. |
|
-20.0% |
|||
US & |
|
-39.5% |
56.1% |
-21.2% |
pts. |
|
-16.6% |
|||
Worldwide3 |
|
-43.8% |
50.8% |
-24.1% |
pts. |
|
-17.2% |
|||
|
||||||||||
Six Months Ended |
||||||||||
REVPAR |
Occupancy |
Average Daily Rate |
||||||||
Region |
2021 |
vs. 2019 |
2021 |
vs. 2019 |
2021 |
vs. 2019 |
||||
|
|
-27.1% |
55.0% |
-10.3% |
pts. |
|
-13.6% |
|||
|
|
-68.6% |
32.5% |
-38.5% |
pts. |
|
-31.5% |
|||
|
|
-54.9% |
34.2% |
-29.1% |
pts. |
|
-16.7% |
|||
|
|
-80.9% |
18.2% |
-51.2% |
pts. |
|
-27.0% |
|||
|
|
-38.2% |
42.2% |
-24.0% |
pts. |
|
-3.0% |
|||
International - All2 |
|
-59.9% |
35.1% |
-32.6% |
pts. |
|
-22.5% |
|||
US & |
|
-47.7% |
48.2% |
-25.0% |
pts. |
|
-20.6% |
|||
Worldwide3 |
|
-51.0% |
44.3% |
-27.2% |
pts. |
|
-21.0% |
|||
1 The comparisons between 2021 and 2019 reflect properties that are defined as comparable as of |
||||||||||
2 Includes |
||||||||||
3 Includes US & |
|
|||||||||
NON-GAAP FINANCIAL MEASURES |
|||||||||
ADJUSTED EBITDA |
|||||||||
($ in millions) |
|||||||||
Fiscal Year 2021 |
|||||||||
First |
Second |
Total |
|||||||
Net (loss) income, as reported |
$ (11) |
$ 422 |
$ 411 |
||||||
Cost reimbursement revenue |
(1,780) |
(2,338) |
(4,118) |
||||||
Reimbursed expenses |
1,833 |
2,255 |
4,088 |
||||||
Interest expense |
107 |
109 |
216 |
||||||
Interest expense from unconsolidated joint ventures |
2 |
1 |
3 |
||||||
Benefit for income taxes |
(16) |
(41) |
(57) |
||||||
Depreciation and amortization |
52 |
50 |
102 |
||||||
Contract investment amortization |
17 |
18 |
35 |
||||||
Depreciation and amortization classified in reimbursed expenses |
28 |
27 |
55 |
||||||
Depreciation, amortization and impairments from unconsolidated joint ventures |
10 |
9 |
19 |
||||||
Stock-based compensation |
53 |
43 |
96 |
||||||
Restructuring and merger-related charges |
1 |
3 |
4 |
||||||
Adjusted EBITDA ** |
$ 296 |
$ 558 |
$ 854 |
||||||
Change from 2020 Adjusted EBITDA ** |
-33% |
815% |
70% |
||||||
Fiscal Year 2020 |
|||||||||
First |
Second |
Third |
Fourth |
Total |
|||||
Net income (loss), as reported |
$ 31 |
$ (234) |
$ 100 |
$ (164) |
$ (267) |
||||
Cost reimbursement revenue |
(3,797) |
(1,202) |
(1,789) |
(1,664) |
(8,452) |
||||
Reimbursed expenses |
3,877 |
1,241 |
1,683 |
1,634 |
8,435 |
||||
Interest expense |
93 |
127 |
113 |
112 |
445 |
||||
Interest expense from unconsolidated joint ventures |
3 |
1 |
12 |
8 |
24 |
||||
(Benefit) provision for income taxes |
(12) |
(64) |
27 |
(150) |
(199) |
||||
Depreciation and amortization |
150 |
72 |
53 |
71 |
346 |
||||
Contract investment amortization |
25 |
21 |
48 |
38 |
132 |
||||
Depreciation classified in reimbursed expenses |
26 |
27 |
27 |
29 |
109 |
||||
Depreciation, amortization and impairments from unconsolidated joint ventures |
7 |
16 |
3 |
78 |
104 |
||||
Stock-based compensation |
41 |
50 |
49 |
57 |
197 |
||||
Restructuring and merger-related (recoveries) charges |
(2) |
6 |
1 |
262 |
267 |
||||
Loss on asset dispositions |
- |
- |
- |
6 |
6 |
||||
Adjusted EBITDA ** |
$ 442 |
$ 61 |
$ 327 |
$ 317 |
$ 1,147 |
||||
** Denotes non-GAAP financial measures. Please see pages A-13 and A-14 for information about our reasons for providing these alternative financial measures and the limitations on their use. |
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,
Adjusted Operating Income (Loss) and Adjusted Operating Income (Loss) Margin. Adjusted operating income (loss) and Adjusted operating income (loss) margin exclude cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges, and non-cash impairment charges. Adjusted operating income (loss) margin reflects Adjusted operating income (loss) 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 (Loss) and Adjusted Diluted Earnings (Loss) Per Share. Adjusted net income (loss) and Adjusted diluted earnings (loss) per share reflect our net income/loss and diluted earnings/loss per share excluding the impact of cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges, non-cash impairment charges, losses and gains on asset dispositions (when applicable), income tax special items, and the income tax effect of these adjustments. The income tax special items primarily related to the income tax benefit arising from the favorable resolution of pre-acquisition Starwood tax audits in the 2021 second quarter. 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/loss 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), non-cash impairment charges, benefit (provision) for income taxes, restructuring and merger-related charges (recoveries), and stock-based compensation expense for all periods presented. When applicable, Adjusted EBITDA also excludes gains and losses on asset dispositions made by us or by our joint venture investees.
In our presentations of Adjusted operating income (loss) and Adjusted operating income (loss) margin, Adjusted net income (loss), Adjusted diluted earnings (loss) per share and Adjusted EBITDA, we exclude charges incurred under our restructuring plans that we initiated beginning in the 2020 second quarter to achieve cost savings in response to the decline in lodging demand caused by COVID-19 and transition costs associated with the Starwood merger, which we record in the "Restructuring and merger-related charges" caption of our Condensed Consolidated Statements of Income (Loss) (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 related to our management and franchise contracts, leases, and equity investments, which we record in the "Contract investment amortization," "Depreciation, amortization, and other," and "Equity in losses" 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 and facilitates our comparison of results before these items with results from other lodging companies. We use Adjusted EBITDA to evaluate 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 losses" 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 and software, 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. |
EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES |
RevPAR. In addition to the foregoing non-GAAP financial measures, we present Revenue per |
View original content:https://www.prnewswire.com/news-releases/marriott-international-reports-second-quarter-2021-results-301346327.html
SOURCE
Connie Kim, Corporate Relations, (301) 380-4028, connie.kim@marriott.com; Jackie Burka McConagha, Investor Relations, (301) 380-5126, jackie.burka@marriott.com; Betsy Dahm, Investor Relations, (301) 380-3372, betsy.dahm@marriott.com