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

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Aug 1, 2023

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

  • Second quarter 2023 comparable systemwide constant dollar RevPAR increased 13.5 percent worldwide, 6.0 percent in the U.S. & Canada, and 39.1 percent in international markets, compared to the 2022 second quarter; 
  • Second quarter reported diluted EPS totaled $2.38, compared to reported diluted EPS of $2.06 in the year-ago quarter.  Second quarter adjusted diluted EPS totaled $2.26, compared to second quarter 2022 adjusted diluted EPS of $1.80;
  • Second quarter reported net income totaled $726 million, compared to reported net income of $678 million in the year-ago quarter.  Second quarter adjusted net income totaled $690 million, compared to second quarter 2022 adjusted net income of $593 million;
  • Adjusted EBITDA totaled $1,219 million in the 2023 second quarter, compared to second quarter 2022 adjusted EBITDA of $1,019 million;
  • The company added approximately 33,100 rooms globally during the second quarter, including 17,300 rooms associated with the City Express transaction and roughly 11,200 other rooms in international markets.  Marriott also added more than 2,800 conversion rooms;
  • At the end of the quarter, Marriott's worldwide development pipeline totaled more than 3,100 properties and nearly 547,000 rooms, including roughly 31,500 of pipeline rooms approved, but not yet subject to signed contracts.  More than 240,000 rooms in the pipeline, including approximately 37,000 rooms from the company's deal with MGM Resorts International, were under construction as of the end of the second quarter;
  • Marriott repurchased 5.2 million shares of common stock for $903 million during the second quarter.  Year to date through July 28, the company has returned $2.6 billion to shareholders through dividends and share repurchases.

BETHESDA, Md., Aug. 1, 2023 /PRNewswire/ -- Marriott International, Inc. (NASDAQ: MAR) today reported second quarter 2023 results.

Anthony Capuano, President and Chief Executive Officer, said, "With continued momentum in demand for global travel, we posted another quarter of outstanding results.  Second quarter worldwide RevPAR1 increased 13.5 percent, aided by significant growth in all of our international regions, where RevPAR rose 39 percent.  Greater China rebounded quickly once travel restrictions were lifted in January, with second quarter RevPAR surpassing pre-pandemic levels.

"In the U.S. & Canada, RevPAR increased 6 percent, with many urban markets showing impressive growth in the second quarter.  Within customer segments, group once again performed extremely well, with revenue rising 10 percent above 2022.  Business transient revenue also saw strong year-over-year growth, driven by solid average daily rate growth.  Leisure transient revenue rose as well, albeit more slowly, as more travelers from the region chose to visit overseas destinations.

"Our growth strategies are proving successful.  During the quarter, we added approximately 33,100 rooms to our system, including 17,300 City Express rooms in the Caribbean & Latin America region, and our industry-leading pipeline grew to nearly 547,000 rooms, with more than 240,000 global rooms under construction.  In June, we announced our planned entry into the affordable midscale extended stay space in the U.S. & Canada.  Initial owner interest in our new offering has been tremendous. 

"Just a few weeks ago, we announced our long-term strategic licensing agreement with MGM Resorts International and the creation of MGM Collection with Marriott Bonvoy.  This transaction is consistent with our strategy to pursue deals that meet customer needs, increase our distribution, and enhance the value of Marriott Bonvoy, our powerful loyalty platform.  We are excited to have 17 iconic MGM Resorts properties available on our robust digital channels beginning later this fall and to dramatically increase our footprint in Las Vegas, an important, high-barrier-to-entry U.S. market.  With this deal, our 2023 full year net rooms growth expectation is now 6.4 percent to 6.7 percent.

"While conditions could change rapidly, booking trends remain solid. We are raising our full year rooms growth and earnings guidance and now expect to return $4.1 billion to $4.5 billion to shareholders in 2023."

Second Quarter 2023 Results

Marriott's reported operating income totaled $1,096 million in the 2023 second quarter, compared to 2022 second quarter reported operating income of $950 million.  Reported net income totaled $726 million in the 2023 second quarter, compared to 2022 second quarter reported net income of $678 million.  Reported diluted earnings per share (EPS) totaled $2.38 in the quarter, compared to reported diluted EPS of $2.06 in the year-ago quarter.

Adjusted operating income in the 2023 second quarter totaled $1,043 million, compared to 2022 second quarter adjusted operating income of $857 million.  Second quarter 2023 adjusted net income totaled $690 million, compared to 2022 second quarter adjusted net income of $593 million.  Adjusted diluted EPS in the 2023 second quarter totaled $2.26, compared to adjusted diluted EPS of $1.80 in the year-ago quarter.  The 2022 second quarter adjusted results excluded $13 million ($11 million after-tax and $0.03 per share) of gains on investees' property sales and a $2 million ($2 million after-tax and $0.01 per share) gain on an asset disposition.  

Adjusted results also excluded cost reimbursement revenue, reimbursed expenses and merger-related charges and other expenses.  See pages A-3 and A-11 for the calculation of adjusted results and the manner in which the adjusted measures are determined in this press release.

Base management and franchise fees totaled $1,057 million in the 2023 second quarter, a 13 percent increase compared to base management and franchise fees of $938 million in the year-ago quarter.  The increase is primarily attributable to RevPAR increases and unit growth.

Incentive management fees totaled $193 million in the 2023 second quarter, a 43 percent increase compared to $135 million in the 2022 second quarter.  Managed hotels in international markets contributed 61 percent of the fees earned in the quarter.

Owned, leased, and other revenue, net of direct expenses, totaled $103 million in the 2023 second quarter, compared to $83 million in the year-ago quarter.  The year-over-year change largely reflects improved performance at owned and leased hotels.  Results in the 2022 quarter included a $12 million expense accrual related to a portfolio of 12 leased hotels in the U.S. & Canada.

General, administrative, and other expenses for the 2023 second quarter totaled $240 million, compared to $231 million in the year-ago quarter. 

Interest expense, net, totaled $141 million in the 2023 second quarter, compared to $89 million in the year-ago quarter.  The increase was largely due to higher interest expense associated with higher debt balances.

Equity in earnings for the second quarter totaled $7 million, compared to $15 million in the year-ago quarter.  Equity in earnings in the 2022 second quarter included $13 million of gains on joint ventures' sales of hotels.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $1,219 million in the 2023 second quarter, compared to second quarter 2022 adjusted EBITDA of $1,019 million.  See page A-11 for the adjusted EBITDA calculation.

Selected Performance Information

Marriott added 254 properties (33,097 rooms) to its worldwide lodging portfolio during the 2023 second quarter, including 17,300 rooms associated with the City Express transaction and roughly 11,200 other rooms in international markets.  The company also added more than 2,800 conversion rooms.  Seventeen properties (1,995 rooms) exited the system during the quarter.  At the end of the quarter, Marriott's global lodging system totaled nearly 8,600 properties, with over 1,565,000 rooms.

At the end of the quarter, the company's worldwide development pipeline totaled 3,149 properties with nearly 547,000 rooms, including 199 properties with roughly 31,500 rooms approved for development, but not yet subject to signed contracts. The pipeline includes 1,066 properties with more than 240,000 rooms under construction, or 44 percent, including approximately 37,000 rooms from the MGM Resorts deal.

In the 2023 second quarter, worldwide RevPAR increased 13.5 percent (a 12.7 percent increase using actual dollars) compared to the 2022 second quarter.  RevPAR in the U.S. & Canada increased 6.0 percent (a 5.7 percent increase using actual dollars), and RevPAR in international markets increased 39.1 percent (a 36.0 percent increase using actual dollars).

Balance Sheet & Common Stock

At the end of the quarter, Marriott's total debt was $11.3 billion and cash and equivalents totaled $0.6 billion, compared to $10.1 billion in debt and $0.5 billion of cash and equivalents at year-end 2022.

Year to date through July 28, the company has repurchased 13.6 million shares for $2.3 billion.

Company Outlook

The company's updated guidance for full year 2023 reflects relatively steady global economic conditions through the remainder of 2023, with continued resilience in travel demand.  RevPAR growth is expected to remain higher internationally than in the U.S. & Canada, where there has been a return to more normal seasonal patterns, and year-over-year RevPAR growth is stabilizing. 

 

Third Quarter 2023

vs Third Quarter 2022

Full Year 2023
vs Full Year 2022

Comparable systemwide constant $

 RevPAR growth

       Worldwide

6% to 8%

12% to 14%

U.S. & Canada

2% to 4%

7% to 9%

International

17% to 19%

28% to 30%





Year-End 2023
vs Year-End 2022

Net Rooms Growth

6.4% to 6.7%



($ in millions, except EPS)

Third Quarter 2023

Full Year 2023

Gross fee revenues

$1,185 to $1,210

$4,730 to $4,820

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

Approx. $65

$330 to $335

General, administrative, and other expenses

$250 to $240  

$935 to $915  

Adjusted EBITDA1,2

$1,105 to $1,140

$4,535 to $4,650

Adjusted EPS – diluted2,3

$2.00 to $2.09

$8.36 to $8.65

Investment Spending4

$900 to $1,000

Capital Return to Shareholders5

$4,100 to $4,500

 

1See pages A-12 and A-13 for the adjusted EBITDA calculations.

2Adjusted EBITDA and Adjusted EPS – diluted for third quarter and full year 2023 do not include cost reimbursement revenue, reimbursed expenses, merger-related charges and other expenses, special tax items, or any asset sales that may occur during the year, each of which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant.  Adjusted EPS – diluted for full year 2023 excludes a special tax item of $100 million reported in the first half of 2023.  See page A-3 for the Adjusted EPS – diluted calculation for the first half of 2023.

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

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

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

 

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

The telephone dial-in number for the conference call is US Toll Free: 800-267-6316, or Global: +1 203-518-9783. The conference ID is MAR2Q23.  A telephone replay of the conference call will be available from 1:00 p.m. ET, Tuesday, August 1, 2023, until 8:00 p.m. ET, Tuesday, August 8, 2023.  To access the replay, call US Toll Free: 800-839-3736 or Global: +1 402-220-2978. 

Note on forward-looking statements:  All statements in this press release and the accompanying schedules are made as of August 1, 2023. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. This press release and the accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including statements related to our RevPAR, rooms growth and other financial metric estimates, outlook and assumptions; our growth prospects; the effect of changes in global economic conditions; travel and lodging demand trends and expectations; booking, occupancy, ADR and RevPAR trends and expectations; our development pipeline, deletions, and growth expectations; our planned entry into midscale extended stay; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including the risk factors that we describe in our Securities and Exchange Commission filings, including our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release.

Marriott International, Inc. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of nearly 8,600 properties under 31 leading brands spanning 139 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company offers Marriott Bonvoy®, its highly-awarded travel program.  For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.  In addition, connect with us on Facebook and @MarriottIntl on Twitter and Instagram.

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

1 All occupancy, Average Daily Rate (ADR) and RevPAR statistics and estimates are systemwide constant dollar.  Unless otherwise stated, all changes refer to year-over-year changes for the comparable period.  Occupancy, ADR and RevPAR comparisons between 2023 and 2022 reflect properties that are comparable in both years.  Occupancy, ADR and RevPAR comparisons between 2023 and 2019 reflect properties that are defined as comparable as of June 30, 2023, even if they were not open and operating for the full year 2019 or they did not meet all the other criteria for comparable in 2019.  Unless otherwise stated, all comparisons to pre-pandemic or 2019 are comparing to the same time period each year.

IRPR#1

Tables follow

 

MARRIOTT INTERNATIONAL, INC.

PRESS RELEASE SCHEDULES

TABLE OF CONTENTS

QUARTER 2, 2023
































































Consolidated Statements of Income - As Reported







A-1
















Non-GAAP Financial Measures 










A-3
















Total Lodging Products by Ownership Type








A-4
















Total Lodging Products by Tier










A-6
















Key Lodging Statistics












A-7
















Adjusted EBITDA












A-11
















Adjusted EBITDA Forecast - Third Quarter 2023








A-12
















Adjusted EBITDA Forecast - Full Year 2023








A-13
















Explanation of Non-GAAP Financial and Performance Measures




A-14

 

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED

SECOND QUARTER 2023 AND 2022

(in millions except per share amounts, unaudited)



















As Reported

As Reported

Percent



Three Months Ended

Three Months Ended

Better/(Worse)



June 30, 2023

June 30, 2022

Reported 2023 vs. 2022

REVENUES






Base management fees

$                                             318

$                                             269

18

Franchise fees 1

739

669

10

Incentive management fees

193

135

43

Gross Fee Revenues

1,250

1,073

16

Contract investment amortization 2

(22)

(19)

(16)

Net Fee Revenues

1,228

1,054

17

Owned, leased, and other revenue 3

390

364

7

Cost reimbursement revenue 4

4,457

3,920

14

  Total Revenues

6,075

5,338

14









OPERATING COSTS AND EXPENSES






Owned, leased, and other - direct 5

287

281

(2)

Depreciation, amortization, and other 6

48

49

2

General, administrative, and other 7

240

231

(4)

Merger-related charges and other

38

-

 * 

Reimbursed expenses 4

4,366

3,827

(14)

  Total Expenses

4,979

4,388

(13)









OPERATING INCOME

1,096

950

15









Gains and other income, net 8

2

2

-

Interest expense

(140)

(95)

(47)

Interest income 

(1)

6

(117)

Equity in earnings 9

7

15

(53)









INCOME BEFORE INCOME TAXES

964

878

10









Provision for income taxes

(238)

(200)

(19)









NET INCOME

$                                             726

$                                             678

7









EARNINGS PER SHARE






  Earnings per share - basic

$                                            2.39

$                                            2.06

16

  Earnings per share - diluted

$                                            2.38

$                                            2.06

16









Basic Shares

303.6

328.2


Diluted Shares 

305.0

329.5









*

Calculated percentage is not meaningful.





1

Franchise fees include fees from our franchise agreements, application and relicensing fees, timeshare and yacht fees, co-branded credit card fees, and 

residential branding fees.





2

Contract investment amortization includes amortization of capitalized costs to obtain contracts with our owner and franchisee customers, and any related

impairments, accelerations, or write-offs.





3

Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue.

4

Cost reimbursement revenue includes reimbursements from properties for property-level and centralized programs and services that we operate for the benefit of 

our hotel owners. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services.

5

Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses.

6

Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of capitalized costs incurred to acquire management, franchise,

and license agreements, and any related impairments, accelerations, or write-offs.



7

General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses.

8

Gains and other income, net includes gains and losses on the sale of real estate, the sale of joint venture interests and other investments, and adjustments from 

other equity investments.





9

Equity in earnings include our equity in earnings or losses of unconsolidated equity method investments.

 

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED

SECOND QUARTER YEAR-TO-DATE 2023 AND 2022

(in millions except per share amounts, unaudited)



















As Reported

As Reported

Percent



Six Months Ended

Six Months Ended

Better/(Worse)



June 30, 2023

June 30, 2022

Reported 2023 vs. 2022

REVENUES






Base management fees

$                                             611

$                                             482

27

Franchise fees 1

1,378

1,169

18

Incentive management fees

394

237

66

Gross Fee Revenues

2,383

1,888

26

Contract investment amortization 2

(43)

(43)

-

Net Fee Revenues

2,340

1,845

27

Owned, leased, and other revenue 3

746

626

19

Cost reimbursement revenue 4

8,604

7,066

22

  Total Revenues

11,690

9,537

23









OPERATING COSTS AND EXPENSES






Owned, leased, and other - direct 5

568

478

(19)

Depreciation, amortization, and other 6

92

97

5

General, administrative, and other 7

442

439

(1)

Merger-related charges and other

39

9

(333)

Reimbursed expenses 4

8,502

7,006

(21)

  Total Expenses

9,643

8,029

(20)









OPERATING INCOME

2,047

1,508

36









Gains and other income, net 8

5

6

(17)

Interest expense

(266)

(188)

(41)

Interest income 

14

11

27

Equity in earnings 9

8

17

(53)









INCOME BEFORE INCOME TAXES

1,808

1,354

34









Provision for income taxes

(325)

(299)

(9)









NET INCOME 

$                                           1,483

$                                           1,055

41









EARNINGS PER SHARE






  Earnings per share - basic

$                                            4.84

$                                            3.21

51

  Earnings per share - diluted

$                                            4.81

$                                            3.20

50









Basic Shares

306.6

328.3


Diluted Shares 

308.0

329.8









1

Franchise fees include fees from our franchise agreements, application and relicensing fees, timeshare and yacht fees, co-branded credit card fees, and 

residential branding fees.





2

Contract investment amortization includes amortization of capitalized costs to obtain contracts with our owner and franchisee customers, and any related

impairments, accelerations, or write-offs.





3

Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue.

4

Cost reimbursement revenue includes reimbursements from properties for property-level and centralized programs and services that we operate for the benefit of 

our hotel owners. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services.

5

Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses.

6

Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of capitalized costs incurred to acquire management, franchise,

and license agreements, and any related impairments, accelerations, or write-offs.



7

General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses.

8

Gains and other income, net includes gains and losses on the sale of real estate, the sale of joint venture interests and other investments, and adjustments from 

other equity investments.





9

Equity in earnings include our equity in earnings or losses of unconsolidated equity method investments.

 

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

(in millions except per share amounts)














The following table presents our reconciliations of Adjusted operating income, Adjusted operating income margin, Adjusted net income, and Adjusted diluted earnings per share, to the 

most directly comparable GAAP measure. Adjusted total revenues is used in the determination of Adjusted operating income margin.





























Three Months Ended 

Six Months Ended 






Percent




Percent


June 30,

June 30,

Better/

June 30,

June 30,

Better/


2023

2022

(Worse)

2023

2022

(Worse)

Total revenues, as reported

$             6,075

$             5,338


$            11,690

$             9,537


Less: Cost reimbursement revenue

(4,457)

(3,920)


(8,604)

(7,066)


Add: Impairments 1

-

-


-

5


Adjusted total revenues **

1,618

1,418


3,086

2,476















Operating income, as reported

1,096

950


2,047

1,508


Less: Cost reimbursement revenue

(4,457)

(3,920)


(8,604)

(7,066)


Add: Reimbursed expenses

4,366

3,827


8,502

7,006


Add: Merger-related charges and other

38

-


39

9


Add: Impairments 1

-

-


-

5


Adjusted operating income **

1,043

857

22 %

1,984

1,462

36 %














Operating income margin

18 %

18 %


18 %

16 %


Adjusted operating income margin **

64 %

60 %


64 %

59 %















Net income, as reported

726

678


1,483

1,055


Less: Cost reimbursement revenue

(4,457)

(3,920)


(8,604)

(7,066)


Add: Reimbursed expenses

4,366

3,827


8,502

7,006


Add: Merger-related charges and other

38

-


39

9


Add: Impairments 2

-

-


-

11


Less: Gains on investees' property sales 3

-

(13)


-

(21)


Less: Gain on asset dispositions 4

-

(2)


-

(2)


Income tax effect of above adjustments

17

23


18

14


Less: Income tax special items

-

-


(100)

-


Adjusted net income **

$                690

$                593

16 %

$             1,338

$             1,006

33 %














Diluted earnings per share, as reported

$               2.38

$               2.06


$               4.81

$               3.20


Adjusted diluted earnings per share**

$               2.26

$               1.80

26 %

$               4.35

$               3.05

43 %













**

Denotes non-GAAP financial measures. Please see pages A-14 and A-15 for information about our reasons for providing these alternative financial measures and the limitations

on their use.























1

Six months ended June 30, 2022 includes impairment charges reported in Contract investment amortization of $5 million.


















2

Six months ended June 30, 2022 includes impairment charges reported in Contract investment amortization of $5 million and Equity in earnings of $6 million. 














3

Gains on investees' property sales reported in Equity in earnings.





















4

Gain on asset dispositions reported in Gains and other income, net.








 

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY OWNERSHIP TYPE

As of June 30, 2023








US & Canada

Total International

Total Worldwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

Managed

632

216,276

1,384

351,187

2,016

567,463

 Marriott Hotels 

103

57,239

172

53,864

275

111,103

 Sheraton 

26

20,869

184

61,857

210

82,726

 Courtyard 

167

27,077

117

25,152

284

52,229

 Westin 

40

21,868

80

24,666

120

46,534

 JW Marriott 

22

12,886

72

25,603

94

38,489

 The Ritz-Carlton 

40

12,077

75

17,824

115

29,901

 Renaissance 

23

10,245

54

17,327

77

27,572

 Four Points 

1

134

85

23,643

86

23,777

 Le Méridien 

1

100

72

20,037

73

20,137

 W Hotels 

23

6,516

39

10,399

62

16,915

 Residence Inn 

73

11,857

9

1,116

82

12,973

 St. Regis 

11

2,169

43

9,780

54

11,949

 Delta Hotels by Marriott 

25

6,770

27

4,956

52

11,726

 Fairfield by Marriott 

6

1,431

71

8,877

77

10,308

 The Luxury Collection 

6

2,296

41

7,983

47

10,279

 Gaylord Hotels 

6

10,220

-

-

6

10,220

 Aloft 

2

505

44

9,624

46

10,129

 AC Hotels by Marriott 

8

1,512

68

8,466

76

9,978

 Autograph Collection 

9

2,870

23

3,514

32

6,384

 Marriott Executive Apartments 

-

-

36

5,159

36

5,159

 SpringHill Suites 

25

4,241

-

-

25

4,241

 Element 

3

810

14

2,952

17

3,762

 EDITION 

5

1,379

11

2,309

16

3,688

 Protea Hotels 

-

-

25

3,081

25

3,081

 Moxy 

1

380

6

1,092

7

1,472

 Tribute Portfolio 

-

-

9

1,252

9

1,252

 TownePlace Suites 

6

825

-

-

6

825

 Bulgari 

-

-

7

654

7

654

Franchised

5,192

744,050

1,117

204,600

6,309

948,650

 Courtyard 

885

118,187

114

21,276

999

139,463

 Fairfield by Marriott 

1,140

107,312

51

8,966

1,191

116,278

 Residence Inn 

783

93,400

28

3,719

811

97,119

 Marriott Hotels 

233

74,401

63

18,167

296

92,568

 Sheraton 

144

44,781

74

21,831

218

66,612

 SpringHill Suites 

511

59,267

-

-

511

59,267

 Autograph Collection 

141

27,559

115

24,514

256

52,073

 TownePlace Suites 

489

49,571

-

-

489

49,571

 Westin 

92

31,075

27

7,858

119

38,933

 Four Points 

156

23,629

62

10,449

218

34,078

 Aloft 

158

22,580

22

3,607

180

26,187

 AC Hotels by Marriott 

105

17,320

49

8,665

154

25,985

 Renaissance 

64

18,075

30

7,671

94

25,746

 Moxy 

31

5,797

92

17,323

123

23,120

 City Express by Marriott

-

-

149

17,300

149

17,300

 Delta Hotels by Marriott 

63

14,273

13

2,998

76

17,271

 Tribute Portfolio 

58

9,364

34

4,050

92

13,414

 The Luxury Collection 

11

3,112

52

9,602

63

12,714

 Le Méridien 

25

5,749

20

5,244

45

10,993

 Element 

80

10,712

2

269

82

10,981

 JW Marriott 

12

6,072

12

2,733

24

8,805

 Design Hotels 

10

1,385

70

5,187

80

6,572

 Protea Hotels 

-

-

33

2,622

33

2,622

 The Ritz-Carlton 

1

429

-

-

1

429

 W Hotels 

-

-

1

246

1

246

 Bulgari 

-

-

2

161

2

161

 Marriott Executive Apartments 

-

-

2

142

2

142

 

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY OWNERSHIP TYPE

As of June 30, 2023








US & Canada

Total International

Total Worldwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

 Owned/Leased 

14

4,656

38

9,209

52

13,865

  Marriott Hotels  

2

1,308

6

2,064

8

3,372

  Courtyard  

7

987

4

894

11

1,881

  Sheraton  

-

-

4

1,830

4

1,830

  W Hotels  

2

779

2

665

4

1,444

  Westin  

1

1,073

-

-

1

1,073

  Protea Hotels  

-

-

5

912

5

912

  Renaissance  

1

317

2

505

3

822

  The Ritz-Carlton  

-

-

2

550

2

550

  JW Marriott  

-

-

1

496

1

496

  The Luxury Collection  

-

-

3

383

3

383

  Autograph Collection  

-

-

5

361

5

361

  Residence Inn  

1

192

1

140

2

332

  Tribute Portfolio  

-

-

2

249

2

249

  St. Regis  

-

-

1

160

1

160

 Residences 

68

7,199

51

5,187

119

12,386

  The Ritz-Carlton Residences  

40

4,431

17

1,506

57

5,937

  St. Regis Residences  

10

1,196

12

1,562

22

2,758

  W Residences  

10

1,089

7

547

17

1,636

  Westin Residences  

3

266

2

353

5

619

  Bulgari Residences  

-

-

5

514

5

514

  Sheraton Residences  

-

-

2

282

2

282

  Marriott Hotels Residences  

-

-

2

246

2

246

  The Luxury Collection Residences  

1

91

3

115

4

206

  EDITION Residences  

3

90

-

-

3

90

  Le Méridien Residences  

-

-

1

62

1

62

  JW Marriott Residences  

1

36

-

-

1

36

  Timeshare*  

72

18,839

21

3,906

93

22,745

  Yacht*  

-

-

1

149

1

149

 Grand Total 

5,978

991,020

2,612

574,238

8,590

1,565,258

 

*Timeshare and Yacht counts are included in this table by geographical location. For external reporting purposes, these offerings are captured within "Unallocated corporate and other."

In the above table, The Luxury Collection, Autograph Collection and Tribute Portfolio include seven total properties that we acquired when we purchased Elegant Hotels Group plc in December 2019 which we currently intend to re-brand under such brands after the completion of planned renovations.

 

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY TIER

As of June 30, 2023








US & Canada

Total International

Total Worldwide

Total Systemwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

 Luxury 

198

54,648

408

93,792

606

148,440

  JW Marriott  

34

18,958

85

28,832

119

47,790

  JW Marriott Residences  

1

36

-

-

1

36

  The Ritz-Carlton  

41

12,506

77

18,374

118

30,880

  The Ritz-Carlton Residences  

40

4,431

17

1,506

57

5,937

  The Luxury Collection  

17

5,408

96

17,968

113

23,376

  The Luxury Collection Residences  

1

91

3

115

4

206

  W Hotels  

25

7,295

42

11,310

67

18,605

  W Residences  

10

1,089

7

547

17

1,636

  St. Regis  

11

2,169

44

9,940

55

12,109

  St. Regis Residences  

10

1,196

12

1,562

22

2,758

  EDITION  

5

1,379

11

2,309

16

3,688

  EDITION Residences  

3

90

-

-

3

90

  Bulgari  

-

-

9

815

9

815

  Bulgari Residences  

-

-

5

514

5

514

 Premium 

1,070

359,807

1,131

296,246

2,201

656,053

  Marriott Hotels  

338

132,948

241

74,095

579

207,043

  Marriott Hotels Residences  

-

-

2

246

2

246

  Sheraton  

170

65,650

262

85,518

432

151,168

  Sheraton Residences  

-

-

2

282

2

282

  Westin  

133

54,016

107

32,524

240

86,540

  Westin Residences  

3

266

2

353

5

619

  Autograph Collection  

150

30,429

143

28,389

293

58,818

  Renaissance  

88

28,637

86

25,503

174

54,140

  Le Méridien  

26

5,849

92

25,281

118

31,130

  Le Méridien Residences  

-

-

1

62

1

62

  Delta Hotels by Marriott  

88

21,043

40

7,954

128

28,997

  Tribute Portfolio  

58

9,364

45

5,551

103

14,915

  Gaylord Hotels  

6

10,220

-

-

6

10,220

  Design Hotels  

10

1,385

70

5,187

80

6,572

  Marriott Executive Apartments  

-

-

38

5,301

38

5,301

 Select 

4,638

557,726

1,051

180,145

5,689

737,871

  Courtyard  

1,059

146,251

235

47,322

1,294

193,573

  Fairfield by Marriott  

1,146

108,743

122

17,843

1,268

126,586

  Residence Inn  

857

105,449

38

4,975

895

110,424

  SpringHill Suites  

536

63,508

-

-

536

63,508

  Four Points  

157

23,763

147

34,092

304

57,855

  TownePlace Suites  

495

50,396

-

-

495

50,396

  Aloft  

160

23,085

66

13,231

226

36,316

  AC Hotels by Marriott  

113

18,832

117

17,131

230

35,963

  Moxy  

32

6,177

98

18,415

130

24,592

  City Express by Marriott 

-

-

149

17,300

149

17,300

  Element  

83

11,522

16

3,221

99

14,743

  Protea Hotels  

-

-

63

6,615

63

6,615

  Timeshare*  

72

18,839

21

3,906

93

22,745

  Yacht*  

-

-

1

149

1

149

 Grand Total 

5,978

991,020

2,612

574,238

8,590

1,565,258







 

*Timeshare and Yacht counts are included in this table by geographical location. For external reporting purposes, these offerings are captured within "Unallocated corporate and other."

In the above table, The Luxury Collection, Autograph Collection and Tribute Portfolio include seven total properties that we acquired when we purchased Elegant Hotels Group plc in December 2019 which we currently intend to re-brand under such brands after the completion of planned renovations.

 

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $











Comparable Company-Operated US & Canada Properties













Three Months Ended June 30, 2023 and June 30, 2022


REVPAR

Occupancy

Average Daily Rate

Brand

2023

 vs. 2022

2023

 vs. 2022

2023

 vs. 2022

JW Marriott

$239.29

3.4 %

73.5 %

1.2 %

pts.

$325.62

1.8 %

The Ritz-Carlton

$341.14

-5.3 %

68.0 %

-2.8 %

pts.

$501.41

-1.4 %

W Hotels

$245.95

-3.0 %

69.7 %

1.1 %

pts.

$352.76

-4.5 %

Composite US & Canada Luxury1

$294.05

-1.8 %

70.8 %

-0.6 %

pts.

$415.17

-1.0 %

Marriott Hotels

$178.84

9.1 %

74.0 %

2.0 %

pts.

$241.71

6.2 %

Sheraton

$165.07

10.0 %

71.3 %

3.7 %

pts.

$231.43

4.3 %

Westin

$182.94

4.5 %

72.4 %

0.1 %

pts.

$252.54

4.4 %

Composite US & Canada Premium2

$174.50

8.2 %

72.9 %

2.0 %

pts.

$239.46

5.2 %

US & Canada Full-Service3

$200.09

4.9 %

72.4 %

1.5 %

pts.

$276.23

2.7 %

Courtyard

$119.10

7.2 %

70.9 %

0.7 %

pts.

$168.00

6.2 %

Residence Inn

$155.77

4.6 %

79.4 %

-0.8 %

pts.

$196.18

5.6 %

Composite US & Canada Select4

$131.11

6.7 %

73.6 %

0.4 %

pts.

$178.23

6.1 %

US & Canada - All5

$183.42

5.2 %

72.7 %

1.2 %

pts.

$252.26

3.4 %






















Comparable Systemwide US & Canada Properties













Three Months Ended June 30, 2023 and June 30, 2022


REVPAR

Occupancy

Average Daily Rate

Brand

2023

 vs. 2022

2023

 vs. 2022

2023

 vs. 2022

JW Marriott

$231.03

2.2 %

73.9 %

0.8 %

pts.

$312.77

1.1 %

The Ritz-Carlton

$339.82

-4.6 %

68.5 %

-2.4 %

pts.

$496.03

-1.3 %

W Hotels

$245.95

-3.0 %

69.7 %

1.1 %

pts.

$352.76

-4.5 %

Composite US & Canada Luxury1

$278.74

-1.4 %

71.5 %

-0.2 %

pts.

$389.71

-1.1 %

Marriott Hotels

$149.83

9.1 %

71.5 %

2.8 %

pts.

$209.46

4.9 %

Sheraton

$130.81

10.3 %

69.4 %

3.8 %

pts.

$188.57

4.3 %

Westin

$167.26

6.0 %

72.8 %

1.6 %

pts.

$229.72

3.7 %

Composite US & Canada Premium2

$151.77

7.5 %

71.2 %

2.6 %

pts.

$213.20

3.6 %

US & Canada Full-Service3

$166.16

5.7 %

71.2 %

2.2 %

pts.

$233.29

2.3 %

Courtyard

$119.91

6.6 %

73.4 %

0.9 %

pts.

$163.46

5.2 %

Residence Inn

$135.41

5.7 %

79.2 %

-0.8 %

pts.

$170.95

6.8 %

Fairfield by Marriott

$99.75

6.6 %

73.7 %

1.1 %

pts.

$135.38

5.0 %

Composite US & Canada Select4

$117.94

6.3 %

75.3 %

0.7 %

pts.

$156.71

5.4 %

US & Canada - All5

$137.93

6.0 %

73.6 %

1.3 %

pts.

$187.44

4.1 %






















1 Includes JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, and EDITION.



2 Includes Marriott Hotels, Sheraton, Westin, Renaissance, Autograph Collection, Delta Hotels by Marriott, and Gaylord Hotels.

  Systemwide also includes Le Méridien and Tribute Portfolio.







3 Includes Composite US & Canada Luxury and Composite US & Canada Premium.




4 Includes Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four Points, Aloft, Element, 

  and AC Hotels by Marriott.  Systemwide also includes Moxy.







5 Includes US & Canada Full-Service and Composite US & Canada Select.






 

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $











Comparable Company-Operated US & Canada Properties













Six Months Ended June 30, 2023 and June 30, 2022


REVPAR

Occupancy

Average Daily Rate

Brand

2023

 vs. 2022

2023

 vs. 2022

2023

 vs. 2022

JW Marriott

$244.53

16.2 %

72.4 %

8.1 %

pts.

$337.98

3.1 %

The Ritz-Carlton

$336.63

1.5 %

66.5 %

2.6 %

pts.

$506.40

-2.4 %

W Hotels

$236.64

2.6 %

64.5 %

5.0 %

pts.

$367.07

-5.4 %

Composite US & Canada Luxury1

$300.81

7.5 %

69.1 %

5.2 %

pts.

$435.41

-0.7 %

Marriott Hotels

$167.20

22.7 %

69.8 %

7.6 %

pts.

$239.52

9.3 %

Sheraton

$157.27

21.1 %

68.0 %

8.3 %

pts.

$231.34

6.3 %

Westin

$168.41

16.5 %

68.3 %

5.4 %

pts.

$246.75

7.2 %

Composite US & Canada Premium2

$163.84

21.9 %

69.2 %

8.2 %

pts.

$236.68

7.5 %

US & Canada Full-Service3

$193.16

16.7 %

69.2 %

7.6 %

pts.

$279.14

3.9 %

Courtyard

$109.79

16.3 %

66.6 %

4.0 %

pts.

$164.85

9.4 %

Residence Inn

$149.76

10.8 %

77.1 %

1.7 %

pts.

$194.23

8.4 %

Composite US & Canada Select4

$122.96

14.4 %

70.0 %

3.4 %

pts.

$175.68

8.9 %

US & Canada - All5

$176.19

16.3 %

69.4 %

6.6 %

pts.

$253.92

5.3 %






















Comparable Systemwide US & Canada Properties













Six Months Ended June 30, 2023 and June 30, 2022


REVPAR

Occupancy

Average Daily Rate

Brand

2023

 vs. 2022

2023

 vs. 2022

2023

 vs. 2022

JW Marriott

$235.59

13.0 %

72.8 %

7.0 %

pts.

$323.77

2.1 %

The Ritz-Carlton

$332.42

2.1 %

66.5 %

3.0 %

pts.

$499.79

-2.5 %

W Hotels

$236.64

2.6 %

64.5 %

5.0 %

pts.

$367.07

-5.4 %

Composite US & Canada Luxury1

$282.13

7.4 %

69.6 %

5.3 %

pts.

$405.18

-0.7 %

Marriott Hotels

$139.24

20.4 %

67.4 %

7.4 %

pts.

$206.73

7.2 %

Sheraton

$120.28

20.4 %

65.0 %

7.6 %

pts.

$185.11

6.2 %

Westin

$157.19

17.1 %

69.1 %

6.3 %

pts.

$227.45

6.4 %

Composite US & Canada Premium2

$141.97

18.8 %

67.3 %

7.3 %

pts.

$210.86

5.8 %

US & Canada Full-Service3

$157.86

16.3 %

67.6 %

7.1 %

pts.

$233.54

4.0 %

Courtyard

$109.49

13.9 %

69.2 %

3.9 %

pts.

$158.31

7.4 %

Residence Inn

$126.70

10.4 %

76.1 %

1.2 %

pts.

$166.39

8.7 %

Fairfield by Marriott

$89.84

10.7 %

69.0 %

2.8 %

pts.

$130.20

6.2 %

Composite US & Canada Select4

$108.40

12.3 %

71.4 %

3.1 %

pts.

$151.85

7.5 %

US & Canada - All5

$128.91

14.3 %

69.8 %

4.7 %

pts.

$184.64

6.5 %

































1 Includes JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, and EDITION.



2 Includes Marriott Hotels, Sheraton, Westin, Renaissance, Autograph Collection, Delta Hotels by Marriott, and Gaylord Hotels.

  Systemwide also includes Le Méridien and Tribute Portfolio.







3 Includes Composite US & Canada Luxury and Composite US & Canada Premium.




4 Includes Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four Points, Aloft, Element, 

  and AC Hotels by Marriott.  Systemwide also includes Moxy.







5 Includes US & Canada Full-Service and Composite US & Canada Select.






 

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $











Comparable Company-Operated International Properties













Three Months Ended June 30, 2023 and June 30, 2022


REVPAR

Occupancy

Average Daily Rate

Region

2023

 vs. 2022

2023

 vs. 2022

2023

 vs. 2022

Greater China

$90.90

124.5 %

69.5 %

27.9 %

pts.

$130.86

34.3 %

Asia Pacific excluding China

$109.48

45.1 %

67.0 %

9.7 %

pts.

$163.43

24.1 %

Caribbean & Latin America

$160.93

10.1 %

62.8 %

2.1 %

pts.

$256.25

6.4 %

Europe

$205.13

24.2 %

75.0 %

5.8 %

pts.

$273.43

14.5 %

Middle East & Africa

$116.06

20.0 %

63.8 %

4.2 %

pts.

$182.05

12.2 %











International - All1

$121.50

43.8 %

68.2 %

14.1 %

pts.

$178.06

14.0 %











Worldwide2

$148.66

19.9 %

70.2 %

8.5 %

pts.

$211.77

5.5 %






















Comparable Systemwide International Properties













Three Months Ended June 30, 2023 and June 30, 2022


REVPAR

Occupancy

Average Daily Rate

Region

2023

 vs. 2022

2023

 vs. 2022

2023

 vs. 2022

Greater China

$84.99

125.2 %

68.5 %

28.5 %

pts.

$124.03

31.5 %

Asia Pacific excluding China

$111.21

47.6 %

67.3 %

9.3 %

pts.

$165.20

27.1 %

Caribbean & Latin America

$138.71

11.9 %

63.3 %

1.6 %

pts.

$218.98

9.0 %

Europe

$161.98

24.5 %

73.8 %

6.9 %

pts.

$219.59

12.8 %

Middle East & Africa

$109.70

22.6 %

63.0 %

3.9 %

pts.

$174.24

15.0 %











International - All1

$119.21

39.1 %

68.2 %

12.4 %

pts.

$174.91

13.7 %











Worldwide2

$132.17

13.5 %

71.9 %

4.7 %

pts.

$183.79

6.0 %











1 Includes Greater China, Asia Pacific excluding China, Caribbean & Latin America, Europe, and Middle East & Africa.

2 Includes US & Canada - All and International - All.



















 

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $











Comparable Company-Operated International Properties













Six Months Ended June 30, 2023 and June 30, 2022


REVPAR

Occupancy

Average Daily Rate

Region

2023

 vs. 2022

2023

 vs. 2022

2023

 vs. 2022

Greater China

$87.42

100.1 %

67.1 %

25.9 %

pts.

$130.35

22.8 %

Asia Pacific excluding China

$113.94

73.2 %

67.5 %

16.9 %

pts.

$168.81

29.9 %

Caribbean & Latin America

$178.07

25.3 %

64.6 %

6.2 %

pts.

$275.87

13.1 %

Europe

$166.09

37.4 %

68.0 %

12.3 %

pts.

$244.08

12.5 %

Middle East & Africa

$128.26

18.3 %

66.9 %

4.0 %

pts.

$191.80

11.3 %











International - All1

$118.74

51.9 %

67.1 %

16.5 %

pts.

$176.87

14.5 %











Worldwide2

$143.96

30.4 %

68.1 %

12.2 %

pts.

$211.32

7.2 %






















Comparable Systemwide International Properties













Six Months Ended June 30, 2023 and June 30, 2022


REVPAR

Occupancy

Average Daily Rate

Region

2023

 vs. 2022

2023

 vs. 2022

2023

 vs. 2022

Greater China

$81.68

100.6 %

66.0 %

26.1 %

pts.

$123.72

21.3 %

Asia Pacific excluding China

$113.64

73.5 %

67.4 %

16.2 %

pts.

$168.73

31.9 %

Caribbean & Latin America

$152.12

26.0 %

65.4 %

6.6 %

pts.

$232.60

13.2 %

Europe

$130.71

39.8 %

65.6 %

13.2 %

pts.

$199.11

11.7 %

Middle East & Africa

$119.67

20.7 %

65.6 %

4.0 %

pts.

$182.48

13.4 %











International - All1

$114.17

49.5 %

66.1 %

15.4 %

pts.

$172.71

14.6 %











Worldwide2

$124.38

22.4 %

68.7 %

8.0 %

pts.

$181.11

8.1 %











1 Includes Greater China, Asia Pacific excluding China, Caribbean & Latin America, Europe, and Middle East & Africa.

2 Includes US & Canada - All and International - All.








 

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA

(in millions)













Fiscal Year 2023





First
Quarter

Second
Quarter

Total




Net income, as reported

$                  757

$              726

$           1,483




Cost reimbursement revenue

(4,147)

(4,457)

(8,604)




Reimbursed expenses

4,136

4,366

8,502




Interest expense

126

140

266




Interest expense from unconsolidated joint ventures 

1

1

2




Provision for income taxes

87

238

325




Depreciation and amortization

44

48

92




Contract investment amortization

21

22

43




Depreciation and amortization classified in reimbursed expenses 

31

38

69




Depreciation, amortization, and impairments from unconsolidated joint ventures 

4

3

7




Stock-based compensation

37

56

93




Merger-related charges and other

1

38

39




Adjusted EBITDA **

$               1,098

$           1,219

$           2,317















Change from 2022 Adjusted EBITDA **

45 %

20 %

30 %
















Fiscal Year 2022


First
Quarter

Second
Quarter

Third
Quarter

Fourth
Quarter

Total

Net income, as reported

$                  377

$              678

$              630

$              673

$           2,358

Cost reimbursement revenue

(3,146)

(3,920)

(3,931)

(4,420)

(15,417)

Reimbursed expenses

3,179

3,827

3,786

4,349

15,141

Interest expense

93

95

100

115

403

Interest expense from unconsolidated joint ventures 

1

2

2

1

6

Provision for income taxes

99

200

239

218

756

Depreciation and amortization

48

49

50

46

193

Contract investment amortization

24

19

22

24

89

Depreciation and amortization classified in reimbursed expenses

26

29

32

31

118

Depreciation, amortization, and impairments from unconsolidated joint ventures 

13

3

7

4

27

Stock-based compensation

44

52

48

48

192

Merger-related charges and other

9

-

2

1

12

Gains on investees' property sales

(8)

(13)

(2)

-

(23)

Gain on asset dispositions

-

(2)

-

-

(2)

Adjusted EBITDA **

$                  759

$           1,019

$              985

$           1,090

$           3,853























** Denotes non-GAAP financial measures. Please see pages A-14 and A-15 for information about our reasons for providing these alternative financial measures and the limitations on their use.

 

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

THIRD QUARTER 2023

($ in millions)


















Range




Estimated
Third Quarter 2023


Third Quarter 2022 **

Net income excluding certain items 1 

$            602

$            629



Interest expense 

140

140



Interest expense from unconsolidated joint ventures 

2

2



Provision for income taxes

193

201



Depreciation and amortization

50

50



Contract investment amortization

23

23



Depreciation and amortization classified in reimbursed expenses

35

35



Depreciation, amortization, and impairments from unconsolidated joint ventures 

4

4



Stock-based compensation

56

56



Adjusted EBITDA **

$          1,105

$          1,140

$                                    985









Increase over 2022 Adjusted EBITDA **

12 %

16 %



















** Denotes non-GAAP financial measures. See pages A-14 and A-15 for information about our reasons for providing these alternative financial measures



and the limitations on their use.













1

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

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

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

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

and which may be significant.





 

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

FULL YEAR 2023

($ in millions)


















Range




Estimated
Full Year 2023


Full Year 2022**

Net income excluding certain items 1 

$          2,635

$          2,722



Interest expense 

568

568



Interest expense from unconsolidated joint ventures 

6

6



Provision for income taxes

690

718



Depreciation and amortization

190

190



Contract investment amortization

90

90



Depreciation and amortization classified in reimbursed expenses

138

138



Depreciation, amortization, and impairments from unconsolidated joint ventures 

17

17



Stock-based compensation

201

201



Adjusted EBITDA **

$          4,535

$          4,650

$                                 3,853









Increase over 2022 Adjusted EBITDA **

18 %

21 %



















** Denotes non-GAAP financial measures. See pages A-14 and A-15 for information about our reasons for providing these alternative financial measures



and the limitations on their use.













1

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

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

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

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

and which may be significant.





 

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

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

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

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

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

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

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

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

RevPAR. In addition to the foregoing non-GAAP financial measures, we present Revenue per Available Room ("RevPAR") as a performance measure. We believe RevPAR is a meaningful indicator of our performance because it measures the period-over-period change in room revenues for comparable properties. RevPAR relates to property level revenue and may not be comparable to similarly titled measures, such as revenues, and should not be viewed as necessarily correlating with our fee revenue. We calculate RevPAR by dividing room sales (recorded in local currency) for comparable properties by room nights available for the period. We present growth in comparative RevPAR on a constant dollar basis, which we calculate by applying exchange rates for the current period to each period presented. We believe constant dollar analysis provides valuable information regarding our properties' performance as it removes currency fluctuations from the presentation of such results.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/marriott-international-reports-second-quarter-2023-results-and-raises-full-year-outlook-301889829.html

SOURCE Marriott International, Inc.

Melissa Froehlich Flood, Corporate Communications, (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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