MARRIOTT INTERNATIONAL REPORTS FIRST QUARTER 2022 RESULTS AND REINSTATES QUARTERLY CASH DIVIDEND
- First quarter 2022 comparable systemwide constant dollar RevPAR increased 96.5 percent worldwide, 99.1 percent in the
U.S. &Canada , and 88.5 percent in international markets, compared to the 2021 first quarter; - First quarter 2022 comparable systemwide constant dollar RevPAR declined 19.4 percent worldwide, 14.5 percent in the
U.S. &Canada , and 31.7 percent in international markets, compared to the 2019 first quarter; - First quarter reported diluted EPS totaled
$1.14 , compared to reported diluted loss per share of$0.03 in the year-ago quarter. First quarter adjusted diluted EPS totaled$1.25 , compared to first quarter 2021 adjusted diluted EPS of$0.10 ; - First quarter reported net income totaled
$377 million , compared to a reported net loss of$11 million in the year-ago quarter. First quarter adjusted net income totaled$413 million , compared to first quarter 2021 adjusted net income of$34 million ; - Adjusted EBITDA totaled
$759 million in the 2022 first quarter, compared to first quarter 2021 adjusted EBITDA of$296 million ; - Marriott resumes cash dividends, with the Board of Directors declaring a
$0.30 per share dividend payable onJune 30, 2022 , to shareholders of record as ofMay 16, 2022 ; - The company added roughly 11,800 rooms globally during the first quarter, including approximately 5,300 rooms in international markets and a total of more than 2,500 conversion rooms;
- At quarter end, Marriott's worldwide development pipeline totaled nearly 2,900 properties and more than 489,000 rooms, including roughly 20,800 rooms approved, but not yet subject to signed contracts. Approximately 201,400 rooms in the pipeline were under construction as of the end of the 2022 first quarter.
"In the
"Globally, robust demand trends continued in April, and going forward we expect leisure travel to remain strong, business travel to accelerate and cross border travel to gain momentum, supporting solid ADR performance. In the
"Owner preference for our brands remains strong. We signed over 19,000 rooms in the quarter, nearly half of which were in international markets. Our momentum around conversions continued, accounting for 22 percent of room additions in the quarter. Roughly 80 percent of those conversion rooms were in the high-value upper upscale and luxury tiers. For 2022, we still expect gross rooms growth approaching 5 percent and deletions of 1 to 1.5 percent, resulting in anticipated net rooms growth of 3.5 to 4 percent.
"I am very pleased to share that we are resuming capital returns to shareholders sooner than anticipated. Our focus on maximizing cash flow, managing expenses, and improving our credit profile, combined with strong first quarter results, has resulted in our Board of Directors declaring a
"Our teams have navigated these challenging times incredibly well, and I think we can all look forward with real optimism. I believe Marriott remains extremely well-positioned to benefit from the continued recovery and to experience strong growth for years to come."
1 |
All occupancy, Average Daily Rate (ADR) and RevPAR statistics are systemwide constant dollar and include hotels that have been temporarily closed due to COVID-19. Unless otherwise stated, all changes refer to year-over-year changes for the comparable period. Occupancy, ADR and RevPAR comparisons between 2022 and 2021 reflect properties that are comparable in both years. Occupancy, ADR and RevPAR comparisons between 2022 and 2019 reflect properties that are defined as comparable as of |
First Quarter 2022 Results
Marriott's reported operating income totaled
Adjusted operating income in the 2022 first quarter totaled
First quarter 2022 adjusted net income totaled
Adjusted results also excluded cost reimbursement revenue, reimbursed expenses and restructuring, merger-related charges, and other expenses. These items totaled a
Base management and franchise fees totaled
Incentive management fees totaled
Contract investment amortization for the 2022 first quarter totaled
Owned, leased, and other revenue, net of direct expenses, totaled
General, administrative, and other expenses for the 2022 first quarter totaled
Interest expense, net, totaled
Equity in earnings/losses for the first quarter totaled
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled
Selected Performance Information
The company added 75 properties (11,799 rooms) to its worldwide lodging portfolio during the 2022 first quarter, including more than 2,500 rooms converted from competitor brands and approximately 5,300 rooms in international markets. Sixteen properties (3,494 rooms) exited the system during the quarter. At quarter end, Marriott's global lodging system totaled more than 8,000 properties, with nearly 1,488,000 rooms.
At quarter end, the company's worldwide development pipeline totaled 2,878 properties with more than 489,000 rooms, including 998 properties with approximately 201,400 rooms under construction and 127 properties with roughly 20,800 rooms approved for development, but not yet subject to signed contracts.
In the 2022 first quarter, worldwide RevPAR increased 96.5 percent (a 95.5 percent increase using actual dollars) compared to the 2021 first quarter. RevPAR in the
Balance Sheet
At quarter end, Marriott's net debt was
Investment Spending
Marriott anticipates that full year 2022 investment spending will total
The telephone dial-in number for the conference call is US Toll Free: 866-342-8591 or Global: +1 203-518-9713. The conference ID is MAR1Q22. A telephone replay of the conference call will be available from
Note on forward-looking statements: All statements in this press release and the accompanying schedules are made as of
Marriott may post updates about COVID-19 and other matters on its investor relations website at www.marriott.com/investor or Marriott's news center website at www.marriottnewscenter.com. Marriott encourages investors, the media, and others interested in the company to review and subscribe to the information Marriott posts on these websites, which may be material. The contents of these websites are not incorporated by reference into this press release or any report or document Marriott files with the
IRPR#1
Tables follow
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PRESS RELEASE SCHEDULES |
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TABLE OF CONTENTS |
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QUARTER 1, 2022 |
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Consolidated Statements of Income - As Reported |
A-1 |
||||||||||||||
Non-GAAP Financial Measures |
A-2 |
||||||||||||||
Total Lodging Products |
A-3 |
||||||||||||||
Key Lodging Statistics |
A-6 |
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Adjusted EBITDA |
A-9 |
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Explanation of Non-GAAP Financial and Performance Measures |
A-10 |
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|
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CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED |
||||||
FIRST QUARTER 2022 AND 2021 |
||||||
(in millions except per share amounts, unaudited) |
||||||
As Reported |
As Reported |
Percent |
||||
Three Months Ended |
Three Months Ended |
Better/(Worse) |
||||
|
|
Reported 2022 vs. 2021 |
||||
REVENUES |
||||||
Base management fees |
$ 213 |
$ 106 |
101 |
|||
Franchise fees 1 |
500 |
306 |
63 |
|||
Incentive management fees |
102 |
33 |
209 |
|||
Gross Fee Revenues |
815 |
445 |
83 |
|||
Contract investment amortization 2 |
(24) |
(17) |
(41) |
|||
Net Fee Revenues |
791 |
428 |
85 |
|||
Owned, leased, and other revenue 3 |
262 |
108 |
143 |
|||
Cost reimbursement revenue 4 |
3,146 |
1,780 |
77 |
|||
Total Revenues |
4,199 |
2,316 |
81 |
|||
OPERATING COSTS AND EXPENSES |
||||||
Owned, leased, and other - direct 5 |
197 |
135 |
(46) |
|||
Depreciation, amortization, and other 6 |
48 |
52 |
8 |
|||
General, administrative, and other 7 |
208 |
211 |
1 |
|||
Restructuring, merger-related charges, and other |
9 |
1 |
(800) |
|||
Reimbursed expenses 4 |
3,179 |
1,833 |
(73) |
|||
Total Expenses |
3,641 |
2,232 |
(63) |
|||
OPERATING INCOME |
558 |
84 |
564 |
|||
Gains and other income, net 8 |
4 |
1 |
300 |
|||
Interest expense |
(93) |
(107) |
13 |
|||
Interest income |
5 |
7 |
(29) |
|||
Equity in earnings (losses) 9 |
2 |
(12) |
117 |
|||
INCOME (LOSS) BEFORE INCOME TAXES |
476 |
(27) |
1,863 |
|||
(Provision) benefit for income taxes |
(99) |
16 |
(719) |
|||
NET INCOME (LOSS) |
$ 377 |
$ (11) |
3,527 |
|||
EARNINGS (LOSS) PER SHARE |
||||||
Earnings (loss) per share - basic |
$ 1.15 |
$ (0.03) |
3,933 |
|||
Earnings (loss) per share - diluted |
$ 1.14 |
$ (0.03) |
3,900 |
|||
Basic Shares |
328.3 |
326.7 |
||||
Diluted Shares 10 |
330.0 |
326.7 |
||||
1 |
Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, and |
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residential branding fees. |
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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 |
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our hotel owners. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services. |
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5 |
Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses. |
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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. |
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7 |
General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses. |
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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 (losses) include our equity in earnings or losses of unconsolidated equity method investments. |
||||||
10 |
Basic and fully diluted weighted average shares outstanding used to calculate earnings (loss) per share for the period in which we had a loss are the same because |
||||||
inclusion of additional equivalents would be anti-dilutive. |
|
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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 |
|||||
|
|
Better/ |
|||
2022 |
2021 |
(Worse) |
|||
Total revenues, as reported |
$ 4,199 |
$ 2,316 |
|||
Less: Cost reimbursement revenue |
(3,146) |
(1,780) |
|||
Add: Impairments 1 |
5 |
- |
|||
Adjusted total revenues ** |
1,058 |
536 |
|||
Operating income, as reported |
558 |
84 |
|||
Less: Cost reimbursement revenue |
(3,146) |
(1,780) |
|||
Add: Reimbursed expenses |
3,179 |
1,833 |
|||
Add: Restructuring, merger-related charges, and other |
9 |
1 |
|||
Add: Impairments 1 |
5 |
- |
|||
Adjusted operating income ** |
605 |
138 |
338% |
||
Operating income margin |
13% |
4% |
|||
Adjusted operating income margin ** |
57% |
26% |
|||
Net income (loss), as reported |
377 |
(11) |
|||
Less: Cost reimbursement revenue |
(3,146) |
(1,780) |
|||
Add: Reimbursed expenses |
3,179 |
1,833 |
|||
Add: Restructuring, merger-related charges, and other |
9 |
1 |
|||
Add: Impairments 2 |
11 |
4 |
|||
Less: Gain on investee's property sale 3 |
(8) |
- |
|||
Income tax effect of above adjustments |
(9) |
(13) |
|||
Adjusted net income ** |
$ 413 |
$ 34 |
1115% |
||
Diluted earnings (loss) per share, as reported |
$ 1.14 |
$ (0.03) |
|||
Adjusted diluted earnings per share** |
$ 1.25 |
$ 0.10 |
1150% |
||
** |
Denotes non-GAAP financial measures. Please see pages A-10 and A-11 for information about our reasons for providing |
|||||
these alternative financial measures and the limitations on their use. |
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1 |
Includes impairment charges reported in Contract investment amortization of |
|||||
2 |
Includes impairment charges reported in Contract investment amortization of |
|||||
|
||||||
2021 first quarter. |
||||||
3 |
Gain on investee's property sale reported in Equity in earnings (losses) in the 2022 first quarter. |
|
||||||
TOTAL LODGING PRODUCTS |
||||||
As of |
||||||
US & |
|
Total Worldwide |
||||
Units |
Rooms |
Units |
Rooms |
Units |
Rooms |
|
Managed |
636 |
218,211 |
1,308 |
333,745 |
1,944 |
551,956 |
Marriott Hotels |
108 |
58,561 |
186 |
54,404 |
294 |
112,965 |
Marriott Hotels Serviced Apartments |
- |
- |
1 |
154 |
1 |
154 |
Sheraton |
27 |
23,113 |
182 |
61,382 |
209 |
84,495 |
Courtyard |
169 |
27,259 |
108 |
23,418 |
277 |
50,677 |
Westin |
40 |
21,865 |
75 |
23,170 |
115 |
45,035 |
JW Marriott |
21 |
12,712 |
63 |
23,405 |
84 |
36,117 |
The Ritz-Carlton |
38 |
11,410 |
67 |
16,927 |
105 |
28,337 |
The |
- |
- |
5 |
715 |
5 |
715 |
Renaissance |
24 |
10,607 |
57 |
17,587 |
81 |
28,194 |
Four Points |
1 |
134 |
77 |
21,681 |
78 |
21,815 |
Le Méridien |
1 |
100 |
69 |
19,147 |
70 |
19,247 |
W Hotels |
22 |
6,262 |
36 |
9,784 |
58 |
16,046 |
W Hotels Serviced Apartments |
- |
- |
1 |
160 |
1 |
160 |
Residence Inn |
76 |
12,199 |
8 |
982 |
84 |
13,181 |
St. Regis |
10 |
1,968 |
39 |
9,153 |
49 |
11,121 |
St. Regis Serviced Apartments |
- |
- |
1 |
70 |
1 |
70 |
The Luxury Collection |
6 |
2,296 |
50 |
8,795 |
56 |
11,091 |
Gaylord Hotels |
6 |
10,220 |
- |
- |
6 |
10,220 |
Aloft |
2 |
505 |
43 |
9,560 |
45 |
10,065 |
AC Hotels by Marriott |
7 |
1,165 |
68 |
8,260 |
75 |
9,425 |
Fairfield by Marriott |
7 |
1,539 |
55 |
7,573 |
62 |
9,112 |
Delta Hotels |
25 |
6,770 |
2 |
477 |
27 |
7,247 |
Autograph Collection |
8 |
2,494 |
16 |
2,451 |
24 |
4,945 |
Marriott Executive Apartments |
- |
- |
34 |
4,866 |
34 |
4,866 |
SpringHill Suites |
26 |
4,360 |
- |
- |
26 |
4,360 |
EDITION |
4 |
1,207 |
10 |
2,122 |
14 |
3,329 |
Protea Hotels |
- |
- |
27 |
3,296 |
27 |
3,296 |
Element |
2 |
640 |
12 |
2,273 |
14 |
2,913 |
Moxy |
- |
- |
5 |
887 |
5 |
887 |
TownePlace Suites |
6 |
825 |
- |
- |
6 |
825 |
Tribute Portfolio |
- |
- |
6 |
604 |
6 |
604 |
Bulgari |
- |
- |
5 |
442 |
5 |
442 |
Franchised |
5,026 |
720,230 |
818 |
166,821 |
5,844 |
887,051 |
Courtyard |
852 |
113,557 |
110 |
20,618 |
962 |
134,175 |
Fairfield by Marriott |
1,116 |
104,981 |
42 |
7,093 |
1,158 |
112,074 |
Residence Inn |
771 |
92,006 |
21 |
2,818 |
792 |
94,824 |
Marriott Hotels |
230 |
73,053 |
61 |
17,980 |
291 |
91,033 |
Sheraton |
151 |
45,711 |
70 |
20,358 |
221 |
66,069 |
SpringHill Suites |
491 |
56,809 |
- |
- |
491 |
56,809 |
TownePlace Suites |
473 |
48,192 |
- |
- |
473 |
48,192 |
Autograph Collection |
133 |
26,288 |
98 |
21,067 |
231 |
47,355 |
Westin |
91 |
30,817 |
25 |
7,575 |
116 |
38,392 |
Four Points |
158 |
23,901 |
63 |
10,517 |
221 |
34,418 |
Renaissance |
62 |
17,681 |
28 |
7,483 |
90 |
25,164 |
Aloft |
146 |
21,001 |
21 |
3,394 |
167 |
24,395 |
AC Hotels by Marriott |
94 |
15,567 |
41 |
7,503 |
135 |
23,070 |
Moxy |
26 |
4,913 |
79 |
14,940 |
105 |
19,853 |
Delta Hotels |
57 |
12,542 |
10 |
2,414 |
67 |
14,956 |
The Luxury Collection |
12 |
3,188 |
51 |
9,331 |
63 |
12,519 |
Element |
73 |
9,725 |
2 |
269 |
75 |
9,994 |
Tribute Portfolio |
43 |
6,766 |
24 |
3,104 |
67 |
9,870 |
Le Méridien |
24 |
5,543 |
16 |
4,127 |
40 |
9,670 |
JW Marriott |
13 |
6,247 |
9 |
2,305 |
22 |
8,552 |
Protea Hotels |
- |
- |
34 |
2,636 |
34 |
2,636 |
Design Hotels |
9 |
1,313 |
10 |
1,062 |
19 |
2,375 |
The Ritz-Carlton |
1 |
429 |
- |
- |
1 |
429 |
Bulgari |
- |
- |
2 |
161 |
2 |
161 |
Marriott Executive Apartments |
- |
- |
1 |
66 |
1 |
66 |
|
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TOTAL LODGING PRODUCTS |
||||||
As of |
||||||
US & |
|
Total Worldwide |
||||
Units |
Rooms |
Units |
Rooms |
Units |
Rooms |
|
Owned/Leased |
26 |
6,483 |
38 |
9,199 |
64 |
15,682 |
Courtyard |
19 |
2,814 |
4 |
884 |
23 |
3,698 |
Marriott Hotels |
2 |
1,308 |
6 |
2,064 |
8 |
3,372 |
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 |
Autograph Collection1 |
- |
- |
6 |
576 |
6 |
576 |
The Ritz-Carlton |
- |
- |
2 |
550 |
2 |
550 |
JW Marriott |
- |
- |
1 |
496 |
1 |
496 |
The Luxury Collection2 |
- |
- |
4 |
417 |
4 |
417 |
Residence Inn |
1 |
192 |
1 |
140 |
2 |
332 |
St. Regis |
- |
- |
1 |
160 |
1 |
160 |
Residences |
64 |
6,807 |
40 |
3,484 |
104 |
10,291 |
The |
38 |
4,234 |
14 |
1,131 |
52 |
5,365 |
St. Regis Residences |
10 |
1,082 |
9 |
1,045 |
19 |
2,127 |
W Residences |
10 |
1,089 |
4 |
359 |
14 |
1,448 |
Bulgari Residences |
- |
- |
5 |
514 |
5 |
514 |
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 |
Sheraton Residences |
- |
- |
1 |
50 |
1 |
50 |
EDITION Residences |
2 |
45 |
- |
- |
2 |
45 |
Le Méridien Residences |
- |
- |
1 |
15 |
1 |
15 |
Timeshare* |
72 |
18,839 |
20 |
3,862 |
92 |
22,701 |
Grand Total |
5,824 |
970,570 |
2,224 |
517,111 |
8,048 |
1,487,681 |
*Timeshare property and room counts are included on this table in their geographical locations. For external reporting purposes, these counts are captured within "Unallocated corporate and other." |
||||||
1 Includes five properties acquired when we purchased |
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2 Includes two properties acquired when we purchased |
|
||||||
TOTAL LODGING PRODUCTS |
||||||
As of |
||||||
US & |
|
Total Worldwide |
||||
Total Systemwide |
Units |
Rooms |
Units |
Rooms |
Units |
Rooms |
Luxury |
190 |
53,039 |
384 |
88,822 |
574 |
141,861 |
JW Marriott |
34 |
18,959 |
73 |
26,206 |
107 |
45,165 |
The Ritz-Carlton |
39 |
11,839 |
69 |
17,477 |
108 |
29,316 |
The |
38 |
4,234 |
14 |
1,131 |
52 |
5,365 |
The |
- |
- |
5 |
715 |
5 |
715 |
The Luxury Collection1 |
18 |
5,484 |
105 |
18,543 |
123 |
24,027 |
The Luxury Collection Residences |
1 |
91 |
3 |
115 |
4 |
206 |
W Hotels |
24 |
7,041 |
38 |
10,449 |
62 |
17,490 |
W Residences |
10 |
1,089 |
4 |
359 |
14 |
1,448 |
W Hotels Serviced Apartments |
- |
- |
1 |
160 |
1 |
160 |
St. Regis |
10 |
1,968 |
40 |
9,313 |
50 |
11,281 |
St. Regis Residences |
10 |
1,082 |
9 |
1,045 |
19 |
2,127 |
St. Regis Serviced Apartments |
- |
- |
1 |
70 |
1 |
70 |
EDITION |
4 |
1,207 |
10 |
2,122 |
14 |
3,329 |
EDITION Residences |
2 |
45 |
- |
- |
2 |
45 |
Bulgari |
- |
- |
7 |
603 |
7 |
603 |
Bulgari Residences |
- |
- |
5 |
514 |
5 |
514 |
Full-Service |
1,046 |
356,408 |
994 |
274,773 |
2,040 |
631,181 |
Marriott Hotels |
340 |
132,922 |
253 |
74,448 |
593 |
207,370 |
Marriott Hotels Residences |
- |
- |
2 |
246 |
2 |
246 |
Marriott Hotels Serviced Apartments |
- |
- |
1 |
154 |
1 |
154 |
Sheraton |
178 |
68,824 |
256 |
83,570 |
434 |
152,394 |
Sheraton Residences |
- |
- |
1 |
50 |
1 |
50 |
Westin |
132 |
53,755 |
100 |
30,745 |
232 |
84,500 |
Westin Residences |
3 |
266 |
1 |
9 |
4 |
275 |
Renaissance |
87 |
28,605 |
87 |
25,575 |
174 |
54,180 |
Autograph Collection2 |
141 |
28,782 |
120 |
24,094 |
261 |
52,876 |
Le Méridien |
25 |
5,643 |
85 |
23,274 |
110 |
28,917 |
Le Méridien Residences |
- |
- |
1 |
15 |
1 |
15 |
Delta Hotels |
82 |
19,312 |
12 |
2,891 |
94 |
22,203 |
Tribute Portfolio |
43 |
6,766 |
30 |
3,708 |
73 |
10,474 |
Gaylord Hotels |
6 |
10,220 |
- |
- |
6 |
10,220 |
Marriott Executive Apartments |
- |
- |
35 |
4,932 |
35 |
4,932 |
Design Hotels |
9 |
1,313 |
10 |
1,062 |
19 |
2,375 |
Limited-Service |
4,516 |
542,284 |
826 |
149,654 |
5,342 |
691,938 |
Courtyard |
1,040 |
143,630 |
222 |
44,920 |
1,262 |
188,550 |
Fairfield by Marriott |
1,123 |
106,520 |
97 |
14,666 |
1,220 |
121,186 |
Residence Inn |
848 |
104,397 |
30 |
3,940 |
878 |
108,337 |
SpringHill Suites |
517 |
61,169 |
- |
- |
517 |
61,169 |
Four Points |
159 |
24,035 |
140 |
32,198 |
299 |
56,233 |
TownePlace Suites |
479 |
49,017 |
- |
- |
479 |
49,017 |
Aloft |
148 |
21,506 |
64 |
12,954 |
212 |
34,460 |
AC Hotels by Marriott |
101 |
16,732 |
109 |
15,763 |
210 |
32,495 |
Moxy |
26 |
4,913 |
84 |
15,827 |
110 |
20,740 |
Element |
75 |
10,365 |
14 |
2,542 |
89 |
12,907 |
Protea Hotels |
- |
- |
66 |
6,844 |
66 |
6,844 |
Timeshare* |
72 |
18,839 |
20 |
3,862 |
92 |
22,701 |
Grand Total |
5,824 |
970,570 |
2,224 |
517,111 |
8,048 |
1,487,681 |
*Timeshare property and room counts are included on this table in their geographical locations. For external reporting purposes, these counts are captured within "Unallocated corporate and other." |
||||||
1 Includes two properties acquired when we purchased |
||||||
2 Includes five properties acquired when we purchased |
|
||||||||||
KEY LODGING STATISTICS |
||||||||||
In Constant $ |
||||||||||
|
||||||||||
Three Months Ended |
||||||||||
REVPAR |
Occupancy |
Average Daily Rate |
||||||||
Brand |
2022 |
vs. 2021 |
2022 |
vs. 2021 |
2022 |
vs. 2021 |
||||
|
|
117.3% |
56.0% |
24.7% |
pts. |
|
21.7% |
|||
The Ritz-Carlton |
|
108.7% |
57.4% |
24.6% |
pts. |
|
19.3% |
|||
|
|
115.1% |
50.7% |
22.2% |
pts. |
|
20.6% |
|||
Composite US & Canada Luxury1 |
|
116.2% |
56.6% |
25.6% |
pts. |
|
18.6% |
|||
|
|
211.5% |
52.0% |
28.4% |
pts. |
|
41.5% |
|||
Sheraton |
|
349.8% |
53.7% |
36.6% |
pts. |
|
43.1% |
|||
Westin |
|
198.2% |
53.9% |
29.6% |
pts. |
|
34.8% |
|||
Composite US & Canada Premium2 |
|
228.8% |
51.5% |
29.6% |
pts. |
|
39.6% |
|||
US & Canada Full-Service3 |
|
171.7% |
52.6% |
28.7% |
pts. |
|
23.2% |
|||
Courtyard |
|
108.9% |
55.1% |
14.1% |
pts. |
|
55.3% |
|||
|
|
57.3% |
70.6% |
9.2% |
pts. |
|
36.9% |
|||
Composite US & Canada Limited-Service4 |
|
93.4% |
60.2% |
14.6% |
pts. |
|
46.5% |
|||
US & |
|
154.7% |
54.4% |
25.4% |
pts. |
|
35.7% |
|||
|
||||||||||
Three Months Ended |
||||||||||
REVPAR |
Occupancy |
Average Daily Rate |
||||||||
Brand |
2022 |
vs. 2021 |
2022 |
vs. 2021 |
2022 |
vs. 2021 |
||||
|
|
131.0% |
58.9% |
25.5% |
pts. |
|
30.9% |
|||
The Ritz-Carlton |
|
111.4% |
56.7% |
25.0% |
pts. |
|
18.3% |
|||
|
|
115.1% |
50.7% |
22.2% |
pts. |
|
20.6% |
|||
Composite US & Canada Luxury1 |
|
122.6% |
57.3% |
25.8% |
pts. |
|
22.3% |
|||
|
|
157.9% |
51.2% |
23.8% |
pts. |
|
38.2% |
|||
Sheraton |
|
177.0% |
50.1% |
23.7% |
pts. |
|
45.8% |
|||
Westin |
|
179.4% |
54.5% |
27.4% |
pts. |
|
38.8% |
|||
Composite US & Canada Premium2 |
|
159.6% |
51.7% |
24.3% |
pts. |
|
37.5% |
|||
US & Canada Full-Service3 |
|
149.2% |
52.4% |
24.5% |
pts. |
|
32.6% |
|||
Courtyard |
|
84.8% |
58.0% |
14.4% |
pts. |
|
38.8% |
|||
|
|
42.8% |
69.8% |
7.7% |
pts. |
|
27.1% |
|||
|
|
64.9% |
60.0% |
12.9% |
pts. |
|
29.6% |
|||
Composite US & Canada Limited-Service4 |
|
64.7% |
62.1% |
12.3% |
pts. |
|
32.1% |
|||
US & |
|
99.1% |
58.0% |
17.4% |
pts. |
|
39.3% |
|||
1 |
||||||||||
2 |
||||||||||
Systemwide also includes Le Méridien and Tribute Portfolio. |
||||||||||
3 Includes Composite US & Canada Luxury and Composite US & Canada Premium. |
||||||||||
4 Includes Courtyard, |
||||||||||
and |
||||||||||
5 Includes US & Canada Full-Service and Composite US & Canada Limited-Service. |
|
||||||||||
KEY LODGING STATISTICS |
||||||||||
In Constant $ |
||||||||||
|
||||||||||
Three Months Ended |
||||||||||
REVPAR |
Occupancy |
Average Daily Rate |
||||||||
Region |
2022 |
vs. 2021 |
2022 |
vs. 2021 |
2022 |
vs. 2021 |
||||
|
|
-6.9% |
41.9% |
-5.7% |
pts. |
|
5.7% |
|||
|
|
66.6% |
45.0% |
11.7% |
pts. |
|
23.4% |
|||
|
|
152.4% |
57.5% |
26.7% |
pts. |
|
35.5% |
|||
|
|
401.9% |
42.7% |
30.3% |
pts. |
|
45.7% |
|||
|
|
97.7% |
66.1% |
23.5% |
pts. |
|
27.3% |
|||
International - All1 |
|
75.1% |
48.2% |
13.0% |
pts. |
|
28.0% |
|||
Worldwide2 |
|
114.1% |
51.0% |
18.6% |
pts. |
|
36.0% |
|||
|
||||||||||
Three Months Ended |
||||||||||
REVPAR |
Occupancy |
Average Daily Rate |
||||||||
Region |
2022 |
vs. 2021 |
2022 |
vs. 2021 |
2022 |
vs. 2021 |
||||
|
|
-6.2% |
41.3% |
-5.4% |
pts. |
|
6.0% |
|||
|
|
62.0% |
45.1% |
11.2% |
pts. |
|
21.8% |
|||
|
|
166.6% |
53.1% |
24.6% |
pts. |
|
43.2% |
|||
|
|
400.3% |
38.9% |
27.7% |
pts. |
|
44.6% |
|||
|
|
99.4% |
64.5% |
23.2% |
pts. |
|
27.7% |
|||
International - All1 |
|
88.5% |
46.2% |
14.8% |
pts. |
|
28.3% |
|||
Worldwide2 |
|
96.5% |
54.5% |
16.6% |
pts. |
|
36.5% |
|||
1 Includes |
||||||||||
2 Includes US & |
|
||||||||||
KEY LODGING STATISTICS - 2022 vs 2019 |
||||||||||
In Constant $ |
||||||||||
|
||||||||||
Three Months Ended |
||||||||||
REVPAR |
Occupancy |
Average Daily Rate |
||||||||
Region |
2022 |
vs. 2019 |
2022 |
vs. 2019 |
2022 |
vs. 2019 |
||||
|
|
-41.9% |
41.3% |
-21.3% |
pts. |
|
-12.0% |
|||
|
|
-48.4% |
45.1% |
-26.1% |
pts. |
|
-18.6% |
|||
|
|
-13.5% |
53.1% |
-11.4% |
pts. |
|
5.1% |
|||
|
|
-37.9% |
38.9% |
-23.8% |
pts. |
|
-0.1% |
|||
|
|
11.5% |
64.5% |
-4.9% |
pts. |
|
20.0% |
|||
International - All2 |
|
-31.7% |
46.2% |
-19.8% |
pts. |
|
-2.4% |
|||
US & |
|
-14.5% |
58.0% |
-10.9% |
pts. |
|
1.7% |
|||
Worldwide3 |
|
-19.4% |
54.5% |
-13.6% |
pts. |
|
0.8% |
|||
1 The comparisons between 2022 and 2019 reflect properties that are defined as comparable as of |
||||||||||
2 Includes |
||||||||||
3 Includes US & |
|
|||||||||
NON-GAAP FINANCIAL MEASURES |
|||||||||
ADJUSTED EBITDA |
|||||||||
($ in millions) |
|||||||||
Fiscal Year 2022 |
|||||||||
First |
|||||||||
Net income, as reported |
$ 377 |
||||||||
Cost reimbursement revenue |
(3,146) |
||||||||
Reimbursed expenses |
3,179 |
||||||||
Interest expense |
93 |
||||||||
Interest expense from unconsolidated joint ventures |
1 |
||||||||
Provision for income taxes |
99 |
||||||||
Depreciation and amortization |
48 |
||||||||
Contract investment amortization |
24 |
||||||||
Depreciation and amortization classified in reimbursed expenses |
26 |
||||||||
Depreciation, amortization, and impairments from unconsolidated joint ventures |
13 |
||||||||
Stock-based compensation |
44 |
||||||||
Restructuring, merger-related charges, and other |
9 |
||||||||
Gain on investee's property sale |
(8) |
||||||||
Adjusted EBITDA ** |
$ 759 |
||||||||
Change from 2021 Adjusted EBITDA ** |
156% |
||||||||
Fiscal Year 2021 |
|||||||||
First |
Second |
Third |
Fourth |
Total |
|||||
Net (loss) income, as reported |
$ (11) |
$ 422 |
$ 220 |
$ 468 |
$ 1,099 |
||||
Cost reimbursement revenue |
(1,780) |
(2,338) |
(2,950) |
(3,374) |
(10,442) |
||||
Reimbursed expenses |
1,833 |
2,255 |
2,917 |
3,317 |
10,322 |
||||
Loss on extinguishment of debt |
- |
- |
164 |
- |
164 |
||||
Interest expense |
107 |
109 |
107 |
97 |
420 |
||||
Interest expense from unconsolidated joint ventures |
2 |
1 |
2 |
2 |
7 |
||||
(Benefit) provision for income taxes |
(16) |
(41) |
58 |
80 |
81 |
||||
Depreciation and amortization |
52 |
50 |
64 |
54 |
220 |
||||
Contract investment amortization |
17 |
18 |
21 |
19 |
75 |
||||
Depreciation and amortization classified in reimbursed expenses |
28 |
27 |
28 |
28 |
111 |
||||
Depreciation, amortization, and impairments from unconsolidated joint ventures |
10 |
9 |
5 |
7 |
31 |
||||
Stock-based compensation |
53 |
43 |
43 |
43 |
182 |
||||
Restructuring, merger-related charges, and other |
1 |
3 |
4 |
- |
8 |
||||
Adjusted EBITDA ** |
$ 296 |
$ 558 |
$ 683 |
$ 741 |
$ 2,278 |
||||
** Denotes non-GAAP financial measures. Please see pages A-10 and A-11 for information about our reasons for providing these alternative financial measures and the limitations on their use. |
|||||||||
|
In our press release and schedules, and on the related conference call, we report certain financial measures that are not required by, or presented in accordance with, |
Adjusted Operating Income and Adjusted Operating Income Margin. Adjusted operating income and Adjusted operating income margin exclude cost reimbursement revenue, reimbursed expenses, restructuring, 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/loss and diluted earnings/loss per share excluding the impact of cost reimbursement revenue, reimbursed expenses, restructuring, 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), and the income tax effect of these adjustments. We calculate the income tax effect of the adjustments using an estimated tax rate applicable to each adjustment. We believe that these measures are meaningful indicators of our performance because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below. |
Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("Adjusted EBITDA"). Adjusted EBITDA reflects net income/loss excluding the impact of the following items: cost reimbursement revenue and reimbursed expenses, interest expense, depreciation and amortization (including depreciation and amortization classified in "Reimbursed expenses," as discussed below), certain non-cash impairment charges related to equity investments, benefit (provision) for income taxes, restructuring, merger-related charges, and other expenses, and stock-based compensation expense for all periods presented. When applicable, Adjusted EBITDA also excludes loss on extinguishment of debt 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, charges incurred under our restructuring plans that we initiated beginning in the 2020 second quarter to achieve cost savings in response to the decline in lodging demand caused by COVID-19, and transition costs associated with the Starwood merger, which we record in the "Restructuring, merger-related charges, and other" caption of our Condensed Consolidated Statements of Income (Loss) (our "Income Statements"), as well as the loss related to the debt extinguishment in the 2021 third quarter, which we recorded in the "Loss on extinguishment of debt" caption of our prior period 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 (losses)" captions of our Income Statements to allow for period-over period comparisons of our ongoing operations before the impact of these items. We exclude cost reimbursement revenue and reimbursed expenses, which relate to property-level and centralized programs and services that we operate for the benefit of our hotel owners. We do not operate these programs and services to generate a profit over the long term, and accordingly, when we recover the costs that we incur for these programs and services from our hotel owners, we do not seek a mark-up. For property-level services, our owners typically reimburse us at the same time that we incur expenses. However, for centralized programs and services, our owners may reimburse us before or after we incur expenses, causing timing differences between the costs we incur and the related reimbursement from hotel owners in our operating and net income. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively. Because we do not retain any such profits or losses over time, we exclude the net impact when evaluating period-over-period changes in our operating results. |
We believe that Adjusted EBITDA is a meaningful indicator of our operating performance because it permits period-over-period comparisons of our ongoing operations before these items. 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 (losses)" of our Income Statements, because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. Depreciation and amortization classified in "Reimbursed expenses" reflects depreciation and amortization of Marriott-owned assets and software, for which we receive cash from owners to reimburse the company for its investments made for the benefit of the system. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We exclude stock-based compensation expense in all periods presented to address the considerable variability among companies in recording compensation expense because companies use stock-based payment awards differently, both in the type and quantity of awards granted. |
|
RevPAR. In addition to the foregoing non-GAAP financial measures, we present Revenue per |
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SOURCE
Melissa Froehlich Flood, Corporate Relations, (301) 380-4839, newsroom@marriott.com, or Jackie Burka McConagha, Investor Relations, (301) 380-5126, jackie.mcconagha@marriott.com,Investor Relations, (301) 380-3372, betsy.dahm@marriott.com