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MARRIOTT INTERNATIONAL REPORTS FIRST QUARTER 2023 RESULTS AND RAISES FULL YEAR OUTLOOK

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May 2, 2023

MARRIOTT INTERNATIONAL REPORTS FIRST QUARTER 2023 RESULTS AND RAISES FULL YEAR OUTLOOK

  • First quarter 2023 comparable systemwide constant dollar RevPAR increased 34.3 percent worldwide, 25.6 percent in the U.S. & Canada, and 63.1 percent in international markets, compared to the 2022 first quarter; 
  • First quarter reported diluted EPS totaled $2.43, compared to reported diluted EPS of $1.14 in the year-ago quarter.  First quarter adjusted diluted EPS totaled $2.09, compared to first quarter 2022 adjusted diluted EPS of $1.25;
  • First quarter reported net income totaled $757 million, compared to reported net income of $377 million in the year-ago quarter.  First quarter adjusted net income totaled $648 million, compared to first quarter 2022 adjusted net income of $413 million;
  • Adjusted EBITDA totaled $1,098 million in the 2023 first quarter, compared to first quarter 2022 adjusted EBITDA of $759 million;
  • The company added approximately 11,000 rooms globally during the first quarter, including roughly 5,800 rooms in international markets and more than 2,700 conversion rooms;
  • At the end of the quarter, Marriott's worldwide development pipeline totaled more than 3,050 properties and approximately 502,000 rooms, including more than 21,000 rooms approved, but not yet subject to signed contracts.  Roughly 200,000 rooms in the pipeline were under construction as of the end of the first quarter;
  • Marriott repurchased 6.8 million shares of common stock for $1.1 billion during the first quarter.  Year to date through April 28, the company has returned $1.5 billion to shareholders through dividends and share repurchases.

BETHESDA, Md., May 2, 2023 /PRNewswire/ -- Marriott International, Inc. (NASDAQ: MAR) today reported first quarter 2023 results.

Anthony Capuano, President and Chief Executive Officer, said, "We are off to a great start in 2023.  First quarter worldwide RevPAR1 grew 34 percent year over year, with meaningful gains in both occupancy and average daily rate.  International markets were particularly robust, with RevPAR growth of 63 percent.  The lifting of travel restrictions throughout Asia Pacific, particularly in Greater China, significantly boosted first quarter demand in the region.

"In the U.S. & Canada, we saw solid demand across the leisure and group segments in the quarter, while business transient demand continued to improve.  ADR in the region rose 10 percent year over year, aided by higher special corporate negotiated rates and 15 percent growth in group ADR.

"Our industry-leading pipeline grew to approximately 502,000 rooms, up 2.6 percent from the year-ago quarter end.  Conversion activity remained healthy, accounting for 29 percent of rooms signed and 25 percent of rooms opened in the quarter.  We still expect net rooms growth of 4 to 4.5 percent for full year 2023.

"We were thrilled to welcome City Express to our lineup as our 31st brand yesterday, further broadening our brand portfolio into the midscale space.  With roughly 17,000 rooms joining our system, we are now the largest hotel company in the Caribbean & Latin America region.  Demand for the mid-scale segment is growing rapidly, and we see meaningful opportunity to both expand the brand further in CALA and introduce it in other regions.

"While the global economic picture is uncertain, demand remains strong, and we are not seeing signs of a slowdown.  With the faster than expected recovery in international markets and continued solid booking trends globally to date in the second quarter, we are raising our RevPAR guidance for the full year.  We believe our broad portfolio of brands, award-winning Marriott Bonvoy loyalty program, dedicated associates, and efficient asset-light business model position us very well for future growth."

First Quarter 2023 Results

Marriott's reported operating income totaled $951 million in the 2023 first quarter, compared to 2022 first quarter reported operating income of $558 million.  Reported net income totaled $757 million in the 2023 first quarter, compared to 2022 first quarter reported net income of $377 million.  Reported diluted earnings per share (EPS) totaled $2.43 in the quarter, compared to reported diluted EPS of $1.14 in the year-ago quarter.

Adjusted operating income in the 2023 first quarter totaled $941 million, compared to 2022 first quarter adjusted operating income of $605 million.  First quarter 2023 adjusted net income totaled $648 million, compared to 2022 first quarter adjusted net income of $413 million.  Adjusted diluted EPS in the 2023 first quarter totaled $2.09, compared to adjusted diluted EPS of $1.25 in the year-ago quarter.  The 2023 first quarter adjusted results excluded a special tax item of $100 million ($0.32 per share).  The 2022 first quarter adjusted results excluded $11 million after-tax ($0.03 per share) of impairment charges and a $6 million after-tax ($0.02 per share) gain on an investee's property sale.  

Adjusted results also excluded cost reimbursement revenue, reimbursed expenses and merger-related charges and other expenses.  See pages A-2 and A-8 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 $932 million in the 2023 first quarter, a 31 percent increase compared to base management and franchise fees of $713 million in the year-ago quarter.  The increase is primarily attributable to RevPAR increases and unit growth.  Other non-RevPAR related franchise fees in the 2023 first quarter totaled $197 million, a 16 percent increase compared to $170 million in the year-ago quarter, largely driven by higher co-branded credit card and residential branding fees.

Incentive management fees totaled $201 million in the 2023 first quarter, a 97 percent increase compared to $102 million in the 2022 first quarter.  Managed hotels in international markets contributed 57 percent of the fees earned in the quarter.

Owned, leased, and other revenue, net of direct expenses, totaled $75 million in the 2023 first quarter, compared to $65 million in the year-ago quarter.  The year-over-year change largely reflects improved performance at owned and leased hotels, partially offset by the $33 million of government subsidies received in the year ago quarter.

General, administrative, and other expenses for the 2023 first quarter totaled $202 million, a 3 percent decrease compared to $208 million in the year-ago quarter.

Interest expense, net, totaled $111 million in the 2023 first quarter, compared to $88 million in the year-ago quarter.  The increase was largely due to higher interest expense associated with higher debt balances.

In the 2023 first quarter, the provision for income taxes totaled $87 million, a 10 percent effective rate, compared to $99 million, a 21 percent effective rate, in the year ago quarter.  The 2023 first quarter provision included a $103 million benefit primarily from the release of reserves due to the completion of a prior year tax audit.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $1,098 million in the 2023 first quarter, compared to first quarter 2022 adjusted EBITDA of $759 million.  See page A-8 for the adjusted EBITDA calculation.

Selected Performance Information

The company added 79 properties (11,015 rooms) to its worldwide lodging portfolio during the 2023 first quarter, including more than 2,700 rooms converted from competitor brands and roughly 5,800 rooms in international markets.  Fourteen properties (2,351 rooms) exited the system during the quarter.  At the end of the quarter, Marriott's global lodging system totaled nearly 8,400 properties, with over 1,534,000 rooms.

At the end of the quarter, the company's worldwide development pipeline totaled 3,060 properties with approximately 502,000 rooms, including 1,018 properties with roughly 200,000 rooms under construction, or 40 percent of the pipeline, and 127 properties with more than 21,000 rooms approved for development, but not yet subject to signed contracts.

In the 2023 first quarter, worldwide RevPAR increased 34.3 percent (a 32.6 percent increase using actual dollars) compared to the 2022 first quarter.  RevPAR in the U.S. & Canada increased 25.6 percent (a 25.4 percent increase using actual dollars), and RevPAR in international markets increased 63.1 percent (a 55.1 percent increase using actual dollars).

Balance Sheet & Common Stock

At the end of the quarter, Marriott's total debt was $10.7 billion and cash and equivalents totaled $0.6 billion, compared to $10.1 billion in debt and $0.5 billion of cash and equivalents at year-end 2022.

In the first quarter, the company issued $800 million of Series KK Senior Notes due in 2029 with a 4.9 percent interest rate coupon.

Year to date through April 28, the company has repurchased 8.2 million shares for $1.4 billion.

Company Outlook 

The company is raising its guidance for full year 2023.  One month into the second quarter, global booking trends remain robust. 

Given short-term booking windows and a high level of macroeconomic uncertainty, there is less visibility in forecasting the company's financial performance for the second half of 2023.  

 

Second Quarter 2023

vs Second Quarter 2022

Full Year 2023
vs Full Year 2022

Comparable systemwide constant $

 RevPAR growth

        Worldwide

10% to 12%

10% to 13%

U.S. & Canada

5% to 7%

6% to 9%

International

27% to 29%

22% to 25%





Year-End 2023
vs Year-End 2022

Gross Rooms Growth

Approx. 5.5%

        Deletions

1% to 1.5%

        Net rooms growth

4% to 4.5%



($ in millions, except EPS)

Second Quarter 2023

Full Year 2023

Gross fee revenues

$1,205 to $1,225

$4,600 to $4,750

Owned, leased, and other revenue, net of direct expenses

Approx. $80

$300 to $310

General, administrative, and other expenses

$250 to $245  

$935 to $915

Adjusted EBITDA1,2

$1,140 to $1,165

$4,360 to $4,540

Adjusted EPS – diluted2,3

$2.09 to $2.15

$7.97 to $8.42

Investment Spending4

$850 to $1,000

Capital Return to Shareholders5

$3,600 to $4,100

 

1See pages A-9 and A-10 for the adjusted EBITDA calculations.

2Adjusted EBITDA and Adjusted EPS – diluted for second quarter and full year 2023 do not include cost reimbursement revenue, reimbursed expenses, merger-related charges and other expenses, special tax items, or any asset sales that may occur during the year, each of which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant.  Adjusted EPS – diluted for full year 2023 excludes a special tax item of $100 million reported in the first quarter of 2023.  See page A-2 for the Adjusted EPS – diluted calculation for the first quarter of 2023.

3Assumes the level of capital return to shareholders noted above.

4Investment spending includes capital and technology expenditures, loan advances, contract acquisition costs, and other investing activities. 

5 Assumes the level of investment spending noted above and that no asset sales occur during the remainder of the year. 

 

Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings review for the investment community and news media on Tuesday, May 2, 2023, at 8:30 a.m. Eastern Time (ET).  The conference call will be webcast simultaneously via Marriott's investor relations website at http://www.marriott.com/investor, click on "Events & Presentations" and click on the quarterly conference call link.  A replay will be available at that same website until May 1, 2024.

The telephone dial-in number for the conference call is US Toll Free: 800-267-6316, or Global: +1 203-518-9783. The conference ID is MAR1Q23.  A telephone replay of the conference call will be available from 1:00 p.m. ET, Tuesday, May 2, 2023, until 8:00 p.m. ET, Tuesday, May 9, 2023.  To access the replay, call US Toll Free: 800-756-0554 or Global: +1 402-220-7213. 

Note on forward-looking statements:  All statements in this press release and the accompanying schedules are made as of May 2, 2023. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. This press release and the accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including statements related to our RevPAR, rooms growth and other financial metric estimates, outlook and assumptions; our growth prospects; the effect of changes in global economic conditions; travel and lodging demand trends and expectations; booking, occupancy, ADR and RevPAR trends and expectations; our development pipeline, deletions, and growth expectations; our expectations regarding opportunities to expand the City Express brand portfolio; 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 identify 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 as of March 31, 2023 encompassed a portfolio of nearly 8,400 properties under 30 leading brands spanning 138 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company offers Marriott Bonvoy®, its highly-awarded travel program.  For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.  In addition, connect with us on Facebook and @MarriottIntl on Twitter and Instagram.

Marriott encourages investors, the media, and others interested in the company to review and subscribe to the information Marriott posts on its investor relations website at www.marriott.com/investor or Marriott's news center website at www.marriottnewscenter.com, which may be material. The contents of these websites are not incorporated by reference into this press release or any report or document Marriott files with the SEC, and any references to the websites are intended to be inactive textual references only.

1

All occupancy, Average Daily Rate (ADR) and RevPAR statistics and estimates are systemwide constant dollar.  Unless otherwise stated, all changes refer to year-over-year changes for the comparable period.  Occupancy, ADR and RevPAR comparisons between 2023 and 2022 reflect properties that are comparable in both years.

IRPR#1

Tables follow

 

MARRIOTT INTERNATIONAL, INC.

PRESS RELEASE SCHEDULES

TABLE OF CONTENTS

QUARTER 1, 2023
































































Consolidated Statements of Income - As Reported







A-1
















Non-GAAP Financial Measures 










A-2
















Total Lodging Products by Ownership Type








A-3
















Total Lodging Products by Tier










A-5
















Key Lodging Statistics












A-6
















Adjusted EBITDA












A-8
















Adjusted EBITDA Forecast - Second Quarter 2023







A-9
















Adjusted EBITDA Forecast - Full Year 2023








A-10
















Explanation of Non-GAAP Financial and Performance Measures




A-11

 

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED

FIRST QUARTER 2023 AND 2022

(in millions except per share amounts, unaudited)



















As Reported

As Reported

Percent



Three Months Ended

Three Months Ended

Better/(Worse)



March 31, 2023

March 31, 2022

Reported 2023 vs. 2022

REVENUES






Base management fees

$                                             293

$                                             213

38

Franchise fees 1

639

500

28

Incentive management fees

201

102

97

Gross Fee Revenues

1,133

815

39

Contract investment amortization 2

(21)

(24)

13

Net Fee Revenues

1,112

791

41

Owned, leased, and other revenue 3

356

262

36

Cost reimbursement revenue 4

4,147

3,146

32

  Total Revenues

5,615

4,199

34









OPERATING COSTS AND EXPENSES






Owned, leased, and other - direct 5

281

197

(43)

Depreciation, amortization, and other 6

44

48

8

General, administrative, and other 7

202

208

3

Merger-related charges and other

1

9

89

Reimbursed expenses 4

4,136

3,179

(30)

  Total Expenses

4,664

3,641

(28)









OPERATING INCOME

951

558

70









Gains and other income, net 8

3

4

(25)

Interest expense

(126)

(93)

(35)

Interest income


15

5

200

Equity in earnings 9

1

2

(50)









INCOME BEFORE INCOME TAXES

844

476

77









Provision for income taxes

(87)

(99)

12









NET INCOME

$                                             757

$                                             377

101









EARNINGS PER SHARE






  Earnings per share - basic

$                                            2.44

$                                            1.15

112

  Earnings per share - diluted

$                                            2.43

$                                            1.14

113









Basic Shares

309.6

328.3


Diluted Shares


311.0

330.0









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








Percent


March 31,

March 31,

Better/


2023

2022

(Worse)

Total revenues, as reported

$             5,615

$             4,199



Less: Cost reimbursement revenue

(4,147)

(3,146)



Add: Impairments 1

-

5



Adjusted total revenues **

1,468

1,058











Operating income, as reported

951

558



Less: Cost reimbursement revenue

(4,147)

(3,146)



Add: Reimbursed expenses

4,136

3,179



Add: Merger-related charges and other

1

9



Add: Impairments 1

-

5



Adjusted operating income **

941

605

56 %









Operating income margin

17 %

13 %



Adjusted operating income margin **

64 %

57 %











Net income, as reported

757

377



Less: Cost reimbursement revenue

(4,147)

(3,146)



Add: Reimbursed expenses

4,136

3,179



Add: Merger-related charges and other

1

9



Add: Impairments 2

-

11



Less: Gain on investee's property sale 3

-

(8)



Income tax effect of above adjustments

1

(9)



Less: Income tax special items

(100)

-



Adjusted net income **

$                648

$                413

57 %









Diluted earnings per share, as reported

$               2.43

$               1.14



Adjusted diluted earnings per share**

$               2.09

$               1.25

67 %








**

Denotes non-GAAP financial measures. Please see pages A-11 and A-12 for information about our reasons for providing



these alternative financial measures and the limitations on their use.













1

Three months ended March 31, 2022 includes impairment charges reported in Contract investment amortization of



$5 million.













2

Three months ended March 31, 2022 includes impairment charges reported in Contract investment amortization of



$5 million and Equity in earnings of $6 million.















3

Gain on investee's property sale reported in Equity in earnings.





 

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY OWNERSHIP TYPE

As of March 31, 2023








US & Canada

Total International

Total Worldwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

Managed

627

214,699

1,366

346,498

1,993

561,197

Marriott Hotels

103

57,233

169

52,551

272

109,784

Sheraton

25

20,383

183

61,867

208

82,250

Courtyard

167

27,077

114

24,446

281

51,523

Westin

40

21,865

79

24,498

119

46,363

JW Marriott

21

12,724

71

25,108

92

37,832

The Ritz-Carlton

40

12,076

73

17,572

113

29,648

Renaissance

24

10,607

54

17,327

78

27,934

Four Points

1

134

84

23,216

85

23,350

Le Méridien

1

100

73

20,355

74

20,455

W Hotels

23

6,516

39

10,406

62

16,922

Residence Inn

73

11,857

9

1,116

82

12,973

St. Regis

10

1,977

43

9,780

53

11,757

Delta Hotels by Marriott

25

6,770

27

4,956

52

11,726

The Luxury Collection

6

2,296

46

8,064

52

10,360

Gaylord Hotels

6

10,220

-

-

6

10,220

Aloft

2

505

43

9,431

45

9,936

Fairfield by Marriott

6

1,431

66

8,263

72

9,694

AC Hotels by Marriott

7

1,165

68

8,466

75

9,631

Autograph Collection

8

2,508

23

3,514

31

6,022

Marriott Executive Apartments

-

-

35

5,030

35

5,030

SpringHill Suites

25

4,241

-

-

25

4,241

EDITION

5

1,379

10

2,216

15

3,595

Element

3

810

13

2,551

16

3,361

Protea Hotels

-

-

25

3,081

25

3,081

Tribute Portfolio

-

-

8

1,150

8

1,150

Moxy

-

-

6

1,092

6

1,092

TownePlace Suites

6

825

-

-

6

825

Bulgari

-

-

5

442

5

442

Franchised

5,172

742,406

926

181,819

6,098

924,225

Courtyard

880

117,564

115

21,389

995

138,953

Fairfield by Marriott

1,137

106,880

48

8,510

1,185

115,390

Residence Inn

780

93,055

26

3,482

806

96,537

Marriott Hotels

234

74,506

63

18,167

297

92,673

Sheraton

147

46,348

72

20,857

219

67,205

SpringHill Suites

510

59,116

-

-

510

59,116

Autograph Collection

138

27,170

110

23,955

248

51,125

TownePlace Suites

486

49,296

-

-

486

49,296

Westin

91

30,818

27

7,858

118

38,676

Four Points

158

23,922

63

10,604

221

34,526

Aloft

157

22,453

22

3,607

179

26,060

AC Hotels by Marriott

104

17,187

47

8,388

151

25,575

Renaissance

64

18,074

29

7,487

93

25,561

Moxy

29

5,532

89

16,831

118

22,363

Delta Hotels by Marriott

63

14,272

11

2,557

74

16,829

The Luxury Collection

11

3,112

53

9,672

64

12,784

Tribute Portfolio

55

8,754

30

3,508

85

12,262

Element

80

10,712

2

269

82

10,981

Le Méridien

25

5,749

18

4,636

43

10,385

JW Marriott

12

6,072

11

2,714

23

8,786

Design Hotels

10

1,385

50

4,074

60

5,459

Protea Hotels

-

-

35

2,705

35

2,705

The Ritz-Carlton

1

429

-

-

1

429

W Hotels

-

-

1

246

1

246

Bulgari

-

-

2

161

2

161

Marriott Executive Apartments

-

-

2

142

2

142

 

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY OWNERSHIP TYPE

As of March 31, 2023








US & Canada

Total International

Total Worldwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

 Owned/Leased

14

4,656

38

9,209

52

13,865

 Marriott Hotels

2

1,308

6

2,064

8

3,372

 Courtyard

7

987

4

894

11

1,881

 Sheraton

-

-

4

1,830

4

1,830

 W Hotels

2

779

2

665

4

1,444

 Westin

1

1,073

-

-

1

1,073

 Protea Hotels

-

-

5

912

5

912

 Renaissance

1

317

2

505

3

822

 The Ritz-Carlton

-

-

2

550

2

550

 JW Marriott

-

-

1

496

1

496

 The Luxury Collection

-

-

3

383

3

383

 Autograph Collection

-

-

5

361

5

361

 Residence Inn

1

192

1

140

2

332

 Tribute Portfolio

-

-

2

249

2

249

 St. Regis

-

-

1

160

1

160

 Residences

67

7,158

49

4,733

116

11,891

 The Ritz-Carlton Residences 

40

4,426

16

1,443

56

5,869

 St. Regis Residences

10

1,196

12

1,562

22

2,758

 W Residences

10

1,089

7

547

17

1,636

 Bulgari Residences

-

-

5

514

5

514

 Sheraton Residences

-

-

2

282

2

282

 Westin Residences

3

266

1

9

4

275

 Marriott Hotels Residences

-

-

2

246

2

246

 The Luxury Collection Residences

1

91

3

115

4

206

 EDITION Residences

3

90

-

-

3

90

 Le Méridien Residences

-

-

1

15

1

15

 Timeshare*

72

18,839

21

3,906

93

22,745

 Yacht*

-

-

1

149

1

149

 Grand Total

5,952

987,758

2,401

546,314

8,353

1,534,072







*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 March 31, 2023








US & Canada

Total International

Total Worldwide

Total Systemwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

 Luxury

195

54,252

406

92,816

601

147,068

 JW Marriott

33

18,796

83

28,318

116

47,114

 The Ritz-Carlton

41

12,505

75

18,122

116

30,627

 The Ritz-Carlton Residences 

40

4,426

16

1,443

56

5,869

 The Luxury Collection

17

5,408

102

18,119

119

23,527

 The Luxury Collection Residences

1

91

3

115

4

206

 W Hotels

25

7,295

42

11,317

67

18,612

 W Residences

10

1,089

7

547

17

1,636

 St. Regis

10

1,977

44

9,940

54

11,917

 St. Regis Residences

10

1,196

12

1,562

22

2,758

 EDITION

5

1,379

10

2,216

15

3,595

 EDITION Residences

3

90

-

-

3

90

 Bulgari

-

-

7

603

7

603

 Bulgari Residences

-

-

5

514

5

514

 Premium

1,066

359,726

1,088

290,050

2,154

649,776

 Marriott Hotels

339

133,047

238

72,782

577

205,829

 Marriott Hotels Residences

-

-

2

246

2

246

 Sheraton

172

66,731

259

84,554

431

151,285

 Sheraton Residences

-

-

2

282

2

282

 Westin

132

53,756

106

32,356

238

86,112

 Westin Residences

3

266

1

9

4

275

 Autograph Collection

146

29,678

138

27,830

284

57,508

 Renaissance

89

28,998

85

25,319

174

54,317

 Le Méridien

26

5,849

91

24,991

117

30,840

 Le Méridien Residences

-

-

1

15

1

15

 Delta Hotels by Marriott

88

21,042

38

7,513

126

28,555

 Tribute Portfolio

55

8,754

40

4,907

95

13,661

 Gaylord Hotels

6

10,220

-

-

6

10,220

 Design Hotels

10

1,385

50

4,074

60

5,459

 Marriott Executive Apartments

-

-

37

5,172

37

5,172

 Select

4,619

554,941

885

159,393

5,504

714,334

 Courtyard

1,054

145,628

233

46,729

1,287

192,357

 Fairfield by Marriott

1,143

108,311

114

16,773

1,257

125,084

 Residence Inn

854

105,104

36

4,738

890

109,842

 SpringHill Suites

535

63,357

-

-

535

63,357

 Four Points

159

24,056

147

33,820

306

57,876

 TownePlace Suites

492

50,121

-

-

492

50,121

 Aloft

159

22,958

65

13,038

224

35,996

 AC Hotels by Marriott

111

18,352

115

16,854

226

35,206

 Moxy

29

5,532

95

17,923

124

23,455

 Element

83

11,522

15

2,820

98

14,342

 Protea Hotels

-

-

65

6,698

65

6,698

 Timeshare*

72

18,839

21

3,906

93

22,745

 Yacht*

-

-

1

149

1

149

 Grand Total

5,952

987,758

2,401

546,314

8,353

1,534,072







*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 March 31, 2023 and March 31, 2022


REVPAR

Occupancy

Average Daily Rate

Brand

2023

 vs. 2022

2023

 vs. 2022

2023

 vs. 2022

JW Marriott

$249.84

31.9 %

71.2 %

15.2 %

pts.

$350.87

3.8 %

The Ritz-Carlton

$336.13

9.1 %

65.1 %

7.6 %

pts.

$516.26

-3.7 %

W Hotels

$227.23

9.5 %

59.2 %

9.0 %

pts.

$384.13

-7.2 %

Composite US & Canada Luxury1

$309.13

17.7 %

67.4 %

10.9 %

pts.

$458.97

-1.4 %

Marriott Hotels

$155.42

43.5 %

65.6 %

13.3 %

pts.

$237.01

14.4 %

Sheraton

$149.02

36.6 %

64.2 %

13.0 %

pts.

$232.23

8.9 %

Westin

$153.71

35.0 %

64.0 %

10.9 %

pts.

$240.12

12.1 %

Composite US & Canada Premium2

$153.03

42.8 %

65.5 %

14.5 %

pts.

$233.72

11.2 %

US & Canada Full-Service3

$186.91

32.7 %

65.9 %

13.7 %

pts.

$283.70

5.0 %

Courtyard

$100.38

29.4 %

62.3 %

7.3 %

pts.

$161.23

14.2 %

Residence Inn

$143.69

18.4 %

74.8 %

4.2 %

pts.

$192.14

11.9 %

Composite US & Canada Select4

$114.84

24.8 %

66.4 %

6.4 %

pts.

$172.87

12.8 %

US & Canada - All5

$169.53

31.3 %

66.0 %

12.0 %

pts.

$256.81

7.5 %






















Comparable Systemwide US & Canada Properties













Three Months Ended March 31, 2023 and March 31, 2022


REVPAR

Occupancy

Average Daily Rate

Brand

2023

 vs. 2022

2023

 vs. 2022

2023

 vs. 2022

JW Marriott

$240.19

25.8 %

71.7 %

13.3 %

pts.

$335.23

2.5 %

The Ritz-Carlton

$329.14

9.7 %

64.7 %

8.0 %

pts.

$508.62

-3.9 %

W Hotels

$227.23

9.5 %

59.2 %

9.0 %

pts.

$384.13

-7.2 %

Composite US & Canada Luxury1

$286.97

17.5 %

67.7 %

10.8 %

pts.

$423.67

-1.2 %

Marriott Hotels

$128.50

37.0 %

63.1 %

12.0 %

pts.

$203.57

11.0 %

Sheraton

$108.09

34.8 %

60.1 %

11.3 %

pts.

$179.95

9.3 %

Westin

$147.01

33.2 %

65.4 %

11.1 %

pts.

$224.89

10.5 %

Composite US & Canada Premium2

$131.65

35.2 %

63.3 %

12.1 %

pts.

$207.87

9.3 %

US & Canada Full-Service3

$149.33

30.9 %

63.8 %

12.0 %

pts.

$233.94

6.3 %

Courtyard

$98.81

24.3 %

64.8 %

6.9 %

pts.

$152.42

11.1 %

Residence Inn

$117.74

16.3 %

73.0 %

3.2 %

pts.

$161.32

11.2 %

Fairfield by Marriott

$79.83

16.3 %

64.1 %

4.5 %

pts.

$124.45

8.2 %

Composite US & Canada Select4

$98.71

20.4 %

67.4 %

5.4 %

pts.

$146.40

10.7 %

US & Canada - All5

$119.74

25.6 %

65.9 %

8.2 %

pts.

$181.61

10.1 %






















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 International Properties













Three Months Ended March 31, 2023 and March 31, 2022


REVPAR

Occupancy

Average Daily Rate

Region

2023

 vs. 2022

2023

 vs. 2022

2023

 vs. 2022

Greater China

$81.68

77.8 %

64.0 %

23.5 %

pts.

$127.63

12.6 %

Asia Pacific excluding China

$116.36

116.2 %

68.0 %

24.2 %

pts.

$171.21

39.3 %

Caribbean & Latin America

$195.21

41.4 %

66.1 %

10.5 %

pts.

$295.22

19.0 %

Europe

$126.48

67.2 %

60.8 %

18.8 %

pts.

$208.12

15.4 %

Middle East & Africa

$140.62

17.0 %

70.0 %

3.8 %

pts.

$200.79

10.6 %











International - All1

$115.77

61.3 %

65.8 %

18.6 %

pts.

$175.90

15.6 %











Worldwide2

$139.84

43.5 %

65.9 %

15.6 %

pts.

$212.19

9.5 %






















Comparable Systemwide International Properties













Three Months Ended March 31, 2023 and March 31, 2022


REVPAR

Occupancy

Average Daily Rate

Region

2023

 vs. 2022

2023

 vs. 2022

2023

 vs. 2022

Greater China

$76.06

78.3 %

62.9 %

23.3 %

pts.

$120.98

12.2 %

Asia Pacific excluding China

$114.64

112.8 %

67.4 %

23.1 %

pts.

$170.20

39.9 %

Caribbean & Latin America

$165.67

40.9 %

67.4 %

11.7 %

pts.

$245.80

16.4 %

Europe

$98.61

75.6 %

57.2 %

19.5 %

pts.

$172.32

15.8 %

Middle East & Africa

$129.77

19.1 %

68.2 %

4.0 %

pts.

$190.18

12.0 %











International - All1

$108.80

63.1 %

63.9 %

18.3 %

pts.

$170.39

16.4 %











Worldwide2

$116.45

34.3 %

65.3 %

11.2 %

pts.

$178.31

11.3 %











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








Net income, as reported

$                  757








Cost reimbursement revenue

(4,147)








Reimbursed expenses

4,136








Interest expense

126








Interest expense from unconsolidated joint ventures 

1








Provision for income taxes

87








Depreciation and amortization

44








Contract investment amortization

21








Depreciation and amortization classified in reimbursed expenses

31








Depreciation, amortization, and impairments from unconsolidated joint ventures

4








Stock-based compensation

37








Merger-related charges and other

1








Adjusted EBITDA **

$               1,098



















Change from 2022 Adjusted EBITDA **

45 %




















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-11 and A-12 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

SECOND QUARTER 2023

($ in millions)


















Range




Estimated
Second Quarter 2023


Second Quarter 2022 **

Net income excluding certain items 1

$            636

$            655



Interest expense

138

138



Interest expense from unconsolidated joint ventures

1

1



Provision for income taxes

206

212



Depreciation and amortization

48

48



Contract investment amortization

22

22



Depreciation and amortization classified in reimbursed expenses

30

30



Depreciation, amortization, and impairments from unconsolidated joint ventures

4

4



Stock-based compensation

55

55



Adjusted EBITDA **

$          1,140

$          1,165

$                                 1,019









Increase over 2022 Adjusted EBITDA **

12 %

14 %


















**

Denotes non-GAAP financial measures. See pages A-11 and A-12 for information about our reasons for providing these alternative financial measures



and the limitations on their use.













1

Guidance excludes cost reimbursement revenue, reimbursed expenses, and merger-related charges and other expenses, each of which the company



cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant, except for depreciation and amortization classified



in reimbursed expenses, which is included in the caption "Depreciation and amortization classified in reimbursed expenses" above. Guidance does not



reflect any asset sales that may occur during the year, which the company cannot forecast with sufficient accuracy and without unreasonable efforts,



and which may be significant.













 

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

FULL YEAR 2023

($ in millions)


















Range




Estimated
Full Year 2023


Full Year 2022**

Net income excluding certain items 1 

$          2,523

$          2,659



Interest expense 

554

554



Interest expense from unconsolidated joint ventures 

6

6



Provision for income taxes

660

704



Depreciation and amortization

191

191



Contract investment amortization

90

90



Depreciation and amortization classified in reimbursed expenses

120

120



Depreciation, amortization, and impairments from unconsolidated joint ventures 

17

17



Stock-based compensation

199

199



Adjusted EBITDA **

$          4,360

$          4,540

$                                 3,853









Increase over 2022 Adjusted EBITDA **

13 %

18 %


















**

Denotes non-GAAP financial measures. See pages A-11 and A-12 for information about our reasons for providing these alternative financial measures



and the limitations on their use.













1

Guidance excludes cost reimbursement revenue, reimbursed expenses, and merger-related charges and other expenses, each of which the company

cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant, except for depreciation and amortization classified 

in reimbursed expenses, which is included in the caption "Depreciation and amortization classified in reimbursed expenses" above. Guidance does not 

reflect any asset sales that may occur during the year, which the company cannot forecast with sufficient accuracy and without unreasonable efforts, 

and which may be significant.













 

MARRIOTT INTERNATIONAL, INC.
EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES

In our press release and schedules, and on the related conference call, we report certain financial measures that are not required by, or presented in accordance with, United States generally accepted accounting principles ("GAAP"). We discuss the manner in which the non-GAAP measures reported in this press release and schedules are determined and management's reasons for reporting these non-GAAP measures below, and the press release schedules reconcile the most directly comparable GAAP measure to each non-GAAP measure that we refer to. Although management evaluates and presents these non-GAAP measures for the reasons described below, please be aware that these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for revenue, operating income, net income, earnings per share or any other comparable operating measure prescribed by GAAP. In addition, we may calculate and/or present these non-GAAP financial measures differently than measures with the same or similar names that other companies report, and as a result, the non-GAAP measures we report may not be comparable to those reported by others.

Adjusted Operating Income and Adjusted Operating Income Margin. Adjusted operating income and Adjusted operating income margin exclude cost reimbursement revenue, reimbursed expenses, merger-related charges and other expenses, and certain non-cash impairment charges. Adjusted operating income margin reflects Adjusted operating income divided by Adjusted total revenues. We believe that these are meaningful metrics because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.

Adjusted Net Income and Adjusted Diluted Earnings Per Share. Adjusted net income and Adjusted diluted earnings per share reflect our net income and diluted earnings per share excluding the impact of cost reimbursement revenue, reimbursed expenses, merger-related charges and other expenses, certain non-cash impairment charges, gains and losses on asset dispositions made by us or by our joint venture investees (when applicable), the income tax effect of these adjustments, and income tax special items. The income tax special items primarily related to the resolution of a prior year tax audit. We calculate the income tax effect of the adjustments using an estimated tax rate applicable to each adjustment. We believe that these measures are meaningful indicators of our performance because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.

Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("Adjusted EBITDA"). Adjusted EBITDA reflects net income excluding the impact of the following items: cost reimbursement revenue and reimbursed expenses, interest expense, depreciation and amortization (including depreciation and amortization classified in "Reimbursed expenses," as discussed below), provision for income taxes, merger-related charges and other expenses, and stock-based compensation expense for all periods presented. When applicable, Adjusted EBITDA also excludes certain non-cash impairment charges related to equity investments and gains and losses on asset dispositions made by us or by our joint venture investees.

In our presentations of Adjusted operating income and Adjusted operating income margin, Adjusted net income and Adjusted diluted earnings per share, and Adjusted EBITDA, we exclude a one-time cost in the 2022 first quarter related to certain property-level adjustments related to compensation and transition costs associated with the Starwood merger, which we record in the "Merger-related charges and other" caption of our Condensed Consolidated Statements of Income (our "Income Statements"), to allow for period-over period comparisons of our ongoing operations before the impact of these items. We also exclude non-cash impairment charges (if above a specified threshold) related to our management and franchise contracts (if the impairment is non-routine), leases, equity investments, and other capitalized assets, which we record in the "Contract investment amortization," "Depreciation, amortization, and other," and "Equity in earnings" captions of our Income Statements to allow for period-over period comparisons of our ongoing operations before the impact of these items. We exclude cost reimbursement revenue and reimbursed expenses, which relate to property-level and centralized programs and services that we operate for the benefit of our hotel owners. We do not operate these programs and services to generate a profit over the long term, and accordingly, when we recover the costs that we incur for these programs and services from our hotel owners, we do not seek a mark-up. For property-level services, our owners typically reimburse us at the same time that we incur expenses. However, for centralized programs and services, our owners may reimburse us before or after we incur expenses, causing timing differences between the costs we incur and the related reimbursement from hotel owners in our operating and net income. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively. Because we do not retain any such profits or losses over time, we exclude the net impact when evaluating period-over-period changes in our operating results.

We believe that Adjusted EBITDA is a meaningful indicator of our operating performance because it permits period-over-period comparisons of our ongoing operations before these items. Our use of Adjusted EBITDA also facilitates comparison with results from other lodging companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. Our Adjusted EBITDA also excludes depreciation and amortization expense, which we report under "Depreciation, amortization, and other" as well as depreciation and amortization classified in "Contract investment amortization," "Reimbursed expenses," and "Equity in earnings" of our Income Statements, because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. Depreciation and amortization classified in "Reimbursed expenses" reflects depreciation and amortization of Marriott-owned assets 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.

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.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/marriott-international-reports-first-quarter-2023-results-and-raises-full-year-outlook-301812542.html

SOURCE Marriott International, Inc.

Melissa Froehlich Flood, Corporate Relations, (301) 380-4839, newsroom@marriott.com; Jackie Burka McConagha, Investor Relations, (301) 380-5126, jackie.mcconagha@marriott.com; Betsy Dahm, Investor Relations, (301) 380-3372, betsy.dahm@marriott.com

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