Marriott International Reports Second Quarter 2024 Results

Marriott International Reports Second Quarter 2024 Results

  • Second quarter 2024 comparable systemwide constant dollar RevPAR increased 4.9 percent worldwide, 3.9 percent in the U.S. & Canada, and 7.4 percent in international markets, compared to the 2023 second quarter;
  • Second quarter reported diluted EPS totaled $2.69, compared to reported diluted EPS of $2.38 in the year-ago quarter. Second quarter adjusted diluted EPS totaled $2.50, compared to second quarter 2023 adjusted diluted EPS of $2.26;
  • Second quarter reported net income totaled $772 million, compared to reported net income of $726 million in the year-ago quarter. Second quarter adjusted net income totaled $716 million, compared to second quarter 2023 adjusted net income of $690 million;
  • Adjusted EBITDA totaled $1,324 million in the 2024 second quarter, compared to second quarter 2023 adjusted EBITDA of $1,219 million;
  • The company added roughly 15,500 net rooms during the quarter;
  • At the end of the quarter, Marriott’s worldwide development pipeline totaled approximately 3,500 properties and more than 559,000 rooms, including roughly 33,000 pipeline rooms approved, but not yet subject to signed contracts. Over 209,000 rooms in the pipeline were under construction as of the end of the second quarter;
  • Marriott repurchased 4.1 million shares of common stock for $1.0 billion in the second quarter. Year to date through July 29, the company has returned $2.8 billion to shareholders through dividends and share repurchases.

For a summary of second quarter highlights, please visit: https://news.marriott.com/static-assets/component-resources/newscenter/earnings/2024/20240731-q2-2024-infographic.pdf.

BETHESDA, Md., July 31, 2024 /PRNewswire/ — Marriott International, Inc. (Nasdaq: MAR) today reported second quarter 2024 results.

Anthony Capuano, President and Chief Executive Officer, said, “Marriott reported strong second quarter results, with net rooms up 6 percent year over year and worldwide RevPAR1 growth of nearly 5 percent, as consumers continued to prioritize travel. International RevPAR increased more than 7 percent, with Asia Pacific excluding China leading the way, posting an impressive 13 percent RevPAR increase from the year-ago quarter. 

“In the U.S. & Canada, second quarter RevPAR grew nearly 4 percent, with all customer segments growing versus the prior year quarter. Group RevPAR rose nearly 10 percent year over year, with both rate and occupancy increasing in the mid-single digits.

“With a membership base of over 210 million members and growing, Marriott Bonvoy is a key competitive advantage. We remain focused on enhancing the loyalty program’s benefits and finding new ways to engage with our members both on and off property. In June, we announced a collaboration with Starbucks. The number of members who have linked their accounts is already well exceeding our expectations.  

“Owner preference for our brands remains strong. We signed nearly 31,000 rooms in the quarter, 75 percent of which were in international markets. Our momentum around conversions continued, accounting for 37 percent of room additions in the quarter. We continue to expand our industry leading global portfolio, and our expectation for net rooms growth remains at 5.5 to 6 percent for full year 2024. 

“With our solid financial results and strong cash generation, we have already returned $2.8 billion to shareholders year-to-date through July 29.  We expect to return approximately $4.3 billion to our shareholders in 2024 through share repurchases and dividends.”

Second Quarter 2024 Results
Base management and franchise fees totaled $1,148 million in the 2024 second quarter, a 9 percent increase compared to base management and franchise fees of $1,057 million in the year-ago quarter.  The increase is primarily attributable to RevPAR increases and unit growth. Non-RevPAR-related franchise fees in the 2024 second quarter totaled $234 million, compared to $206 million in the year-ago quarter. The increase was largely driven by a 10 percent increase in co-branded credit card fees, as well as $13 million of higher residential branding fees.

Incentive management fees totaled $195 million in the 2024 second quarter, compared to $193 million in the 2023 second quarter, and were impacted by weaker results in Greater China, as well as unfavorable foreign exchange. Managed hotels in international markets contributed more than 60 percent of the incentive fees earned in the quarter.

Owned, leased, and other revenue, net of direct expenses, totaled $99 million in the 2024 second quarter, compared to $103 million in the year-ago quarter. 

General, administrative, and other expenses for the 2024 second quarter totaled $248 million, compared to $240 million in the year-ago quarter. 

Interest expense, net, totaled $164 million in the 2024 second quarter, compared to $141 million in the year-ago quarter. The increase was largely due to higher interest expense associated with higher debt balances.

Marriott’s reported operating income totaled $1,195 million in the 2024 second quarter, compared to 2023 second quarter reported operating income of $1,096 million. Reported net income totaled $772 million in the 2024 second quarter, compared to 2023 second quarter reported net income of $726 million. Reported diluted earnings per share (EPS) totaled $2.69 in the quarter, compared to reported diluted EPS of $2.38 in the year-ago quarter.

Adjusted operating income in the 2024 second quarter totaled $1,120 million, compared to 2023 second quarter adjusted operating income of $1,043 million. Second quarter 2024 adjusted net income totaled $716 million, compared to 2023 second quarter adjusted net income of $690 million. Adjusted diluted EPS in the 2024 second quarter totaled $2.50, compared to adjusted diluted EPS of $2.26 in the year-ago quarter. 

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

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $1,324 million in the 2024 second quarter, compared to second quarter 2023 adjusted EBITDA of $1,219 million. See page A-11 of the press release schedules for the adjusted EBITDA calculation.

Selected Performance Information
The company added roughly 15,500 net rooms during the quarter.

At the end of the quarter, Marriott’s global system totaled nearly 9,000 properties, with roughly 1,659,000 rooms.

At the end of the quarter, the company’s worldwide development pipeline totaled 3,509 properties with more than 559,000 rooms, including 208 properties with roughly 33,000 rooms approved for development, but not yet subject to signed contracts. The quarter-end pipeline included 1,127 properties with over 209,000 rooms under construction. Fifty-seven percent of rooms in the quarter-end pipeline are in international markets.

In the 2024 second quarter, worldwide RevPAR increased 4.9 percent (a 4.0 percent increase using actual dollars) compared to the 2023 second quarter.  RevPAR in the U.S. & Canada increased 3.9 percent (a 3.9 percent increase using actual dollars), and RevPAR in international markets increased 7.4 percent (a 4.2 percent increase using actual dollars).

Balance Sheet & Common Stock
At the end of the quarter, Marriott’s total debt was $13.1 billion and cash and equivalents totaled $0.3 billion, compared to $11.9 billion in debt and $0.3 billion of cash and equivalents at year-end 2023.

Year to date through July 29, the company has repurchased 10.4 million shares for $2.5 billion.

Company Outlook
The company’s updated outlook includes a narrowing of the RevPAR growth range for full year 2024, primarily as a result of a weaker operating environment in Greater China, as well as marginally softer expectations in the U.S. & Canada.


Third Quarter 2024

vs Third Quarter 2023

Full Year 2024

vs Full Year 2023

Comparable systemwide constant $

RevPAR growth



Worldwide

3% to 4%

3% to 4%






Year-End 2024

vs Year-End 2023

Net rooms growth


5.5% to 6%




($ in millions, except EPS)

Third Quarter 2024

Full Year 2024

Gross fee revenues

$1,275 to $1,290

$5,130 to $5,180

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

Approx. $75

$345 to $350

General, administrative, and other expenses

$250 to $240

$1,030 to $1,020

Adjusted EBITDA1,2

$1,225 to $1,250

$4,950 to $5,015

Adjusted EPS – diluted2,3

$2.27 to $2.33

$9.23 to $9.40

Investment spending4


$1,000 to $1,200

Capital return to shareholders5


Approx. $4,300

1

See page A-12 and page A-13 of the press release schedules for the adjusted EBITDA calculations.


2

Adjusted EBITDA and Adjusted EPS – diluted for third quarter and full year 2024 do not include cost reimbursement revenue, reimbursed expenses, merger-related charges and other expenses, or any asset sales that may occur during the year, each of which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant.


3

Assumes the level of capital return to shareholders noted above.


4

Includes capital and technology expenditures, loan advances, contract acquisition costs, and other investing activities.  


5

Factors in the purchase of the Sheraton Grand Chicago and underlying land for $500 million, $200 million of which is included in investment spending.  Assumes the level of investment spending noted above and that no asset sales occur during the year.


Marriott International, Inc. (Nasdaq: MAR) will conduct its quarterly earnings review for the investment community and news media on Wednesday, July 31, 2024, at 8:30 a.m. Eastern Time (ET).  The conference call will be webcast simultaneously via Marriott’s investor relations website at http://www.marriott.com/investor, click on “Events & Presentations” and click on the quarterly conference call link.  A replay will be available at that same website until July 31, 2025.

The telephone dial-in number for the conference call is US Toll Free: 800-274-8461, or Global: +1 203-518-9843. The conference ID is MAR2Q24.  A telephone replay of the conference call will be available from 1:00 p.m. ET, Wednesday, July 31, 2024, until 8:00 p.m. ET, Wednesday, August 7, 2024.  To access the replay, call US Toll Free: 800-695-1564 or Global: +1 402-530-9025.

Note on forward-looking statements:  All statements in this press release and the accompanying schedules are made as of July 31, 2024. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. This press release and the accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including statements related to our RevPAR, rooms growth and other financial metric estimates, outlook and assumptions; shareholder returns; our Marriott Bonvoy program; our development pipeline; owner preference for our brands; 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 9,000 properties across more than 30 leading brands in 141 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company offers Marriott Bonvoy®, its highly awarded travel program.  For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.  In addition, connect with us on Facebook and @MarriottIntl on X and Instagram.

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

1All occupancy, Average Daily Rate (ADR) and Revenue Per Available Room (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 2024 and 2023 reflect properties that are comparable in both years. 

IRPR#1

Tables follow

 

MARRIOTT INTERNATIONAL, INC.

PRESS RELEASE SCHEDULES

TABLE OF CONTENTS

QUARTER 2, 2024



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-8



Adjusted EBITDA

A-12



Adjusted EBITDA Forecast – Third Quarter 2024

A-13



Adjusted EBITDA Forecast – Full Year 2024

A-14



Explanation of Non-GAAP Financial and Performance Measures

A-15

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME – AS REPORTED

SECOND QUARTER 2024 AND 2023

($ in millions except per share amounts, unaudited)








As Reported


As Reported


Percent


Three Months Ended


Three Months Ended


Better/(Worse)


June 30, 2024


June 30, 2023


Reported 2024 vs. 2023

REVENUES






Base management fees

$                                  330


$                                  318


4

Franchise fees1

818


739


11

Incentive management fees

195


193


1

Gross Fee Revenues

1,343


1,250


7

Contract investment amortization2

(27)


(22)


(23)

Net Fee Revenues

1,316


1,228


7

Owned, leased, and other revenue3

395


390


1

Cost reimbursement revenue4

4,728


4,457


6

Total Revenues

6,439


6,075


6







OPERATING COSTS AND EXPENSES





Owned, leased, and other – direct5

296


287


(3)

Depreciation, amortization, and other6

47


48


2

General, administrative, and other7

248


240


(3)

Merger-related charges and other

8


38


79

Reimbursed expenses4

4,645


4,366


(6)

Total Expenses

5,244


4,979


(5)







OPERATING INCOME

1,195


1,096


9







Gains and other income, net8

4


2


100

Interest expense

(173)


(140)


(24)

Interest income

9


(1)


*

Equity in earnings9

5


7


(29)







INCOME BEFORE INCOME TAXES

1,040


964


8







Provision for income taxes

(268)


(238)


(13)







NET INCOME

$                                  772


$                                  726


6







EARNINGS PER SHARE






  Earnings per share – basic

$                                 2.70


$                                 2.39


13

  Earnings per share – diluted

$                                 2.69


$                                 2.38


13







Basic Shares

285.8


303.6



Diluted Shares

286.7


305.0









* Calculated percentage is not meaningful.

1 Franchise fees include fees from our franchise and license 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 management, franchise, and license contracts and any related impairments.

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 property 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.


A-1

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME – AS REPORTED

SECOND QUARTER YEAR-TO-DATE 2024 AND 2023

($ in millions except per share amounts, unaudited)








As Reported


As Reported


Percent


Six Months Ended


Six Months Ended


Better/(Worse)


June 30, 2024


June 30, 2023


Reported 2024 vs. 2023

REVENUES






Base management fees

$                                  643


$                                  611


5

Franchise fees1

1,506


1,378


9

Incentive management fees

404


394


3

Gross Fee Revenues

2,553


2,383


7

Contract investment amortization2

(50)


(43)


(16)

Net Fee Revenues

2,503


2,340


7

Owned, leased, and other revenue3

752


746


1

Cost reimbursement revenue4

9,161


8,604


6

Total Revenues

12,416


11,690


6







OPERATING COSTS AND EXPENSES






Owned, leased, and other – direct5

582


568


(2)

Depreciation, amortization, and other6

92


92


General, administrative, and other7

509


442


(15)

Merger-related charges and other

16


39


59

Reimbursed expenses4

9,146


8,502


(8)

Total Expenses

10,345


9,643


(7)







OPERATING INCOME

2,071


2,047


1







Gains and other income, net8

8


5


60

Interest expense

(336)


(266)


(26)

Interest income

19


14


36

Equity in earnings9

5


8


(38)







INCOME BEFORE INCOME TAXES

1,767


1,808


(2)







Provision for income taxes

(431)


(325)


(33)







NET INCOME

$                               1,336


$                               1,483


(10)







EARNINGS PER SHARE






Earnings per share – basic

$                                 4.64


$                                 4.84


(4)

Earnings per share – diluted

$                                 4.62


$                                 4.81


(4)







Basic Shares

288.1


306.6



Diluted Shares

289.1


308.0









1 Franchise fees include fees from our franchise and license 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 management, franchise, and license contracts and any related impairments.

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 property 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.


A-1 (Cont.)

.

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/


2024


2023


(Worse)


2024


2023


(Worse)

Total revenues, as reported

$        6,439


$        6,075




$      12,416


$      11,690



Less: Cost reimbursement revenue

(4,728)


(4,457)




(9,161)


(8,604)



Adjusted total revenues

1,711


1,618




3,255


3,086



























Operating income, as reported

1,195


1,096




2,071


2,047



Less: Cost reimbursement revenue

(4,728)


(4,457)




(9,161)


(8,604)



Add: Reimbursed expenses

4,645


4,366




9,146


8,502



Add: Merger-related charges and other

8


38




16


39



Adjusted operating income

1,120


1,043


7 %


2,072


1,984


4 %

























Operating income margin

19 %


18 %




17 %


18 %



Adjusted operating income margin

65 %


64 %




64 %


64 %



























Net income, as reported

772


726




1,336


1,483



Less: Cost reimbursement revenue

(4,728)


(4,457)




(9,161)


(8,604)



Add: Reimbursed expenses

4,645


4,366




9,146


8,502



Add: Merger-related charges and other

8


38




16


39



Income tax effect of above adjustments

19


17




(1)


18



Less: Income tax special items






(100)



Adjusted net income

$           716


$           690


4 %


$        1,336


$        1,338


— %













Diluted earnings per share, as reported

$          2.69


$          2.38




$          4.62


$          4.81



Adjusted diluted earnings per share

$          2.50


$          2.26


11 %


$          4.62


$          4.35


6 %













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.


A-3

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY OWNERSHIP TYPE

As of June 30, 2024









US & Canada

Total International1

Total Worldwide


Properties

Rooms

Properties

Rooms

Properties

Rooms

Managed

617

213,712

1,363

354,789

1,980

568,501

 Marriott Hotels

101

56,736

186

58,147

287

114,883

 Sheraton

26

20,869

182

61,494

208

82,363

 Courtyard

156

25,372

128

27,744

284

53,116

 Westin

40

22,344

78

23,608

118

45,952

 JW Marriott

23

13,189

74

26,496

97

39,685

 The Ritz-Carlton

41

12,354

77

18,047

118

30,401

 Renaissance

21

9,065

53

16,542

74

25,607

 Four Points

1

134

87

24,339

88

24,473

 Le Méridien

1

100

71

19,861

72

19,961

 W Hotels

23

6,516

42

11,805

65

18,321

 Residence Inn

73

12,002

9

1,116

82

13,118

 St. Regis

11

2,169

47

10,285

58

12,454

 Delta Hotels by Marriott

25

6,770

26

4,924

51

11,694

 Fairfield by Marriott

6

1,431

78

9,848

84

11,279

 Gaylord Hotels

6

10,220

6

10,220

 Aloft

2

505

44

9,696

46

10,201

 The Luxury Collection

6

2,296

39

7,737

45

10,033

 Autograph Collection

9

2,862

15

3,021

24

5,883

 Marriott Executive Apartments

35

5,011

35

5,011

 EDITION

5

1,379

15

2,844

20

4,223

 SpringHill Suites

23

3,872

23

3,872

 Element

3

810

14

2,803

17

3,613

 AC Hotels by Marriott

8

1,512

11

1,892

19

3,404

 Moxy

1

380

12

2,771

13

3,151

 Protea Hotels

23

2,824

23

2,824

 Tribute Portfolio

10

1,284

10

1,284

 TownePlace Suites

6

825

6

825

 Bulgari

7

650

7

650

 Owned/Leased

13

4,335

37

8,775

50

13,110

 Marriott Hotels

2

1,304

5

1,631

7

2,935

 Courtyard

7

987

4

894

11

1,881

 Sheraton

4

1,830

4

1,830

 W Hotels

2

779

2

665

4

1,444

 Westin

1

1,073

1

1,073

 Protea Hotels

5

912

5

912

 The Ritz-Carlton

2

550

2

550

 Renaissance

2

505

2

505

 JW Marriott

1

496

1

496

 The Luxury Collection

3

383

3

383

 Autograph Collection

5

360

5

360

 Residence Inn

1

192

1

140

2

332

 Tribute Portfolio

2

249

2

249

 St. Regis

1

160

1

160

Franchised, Licensed, and Other

5,425

818,512

1,384

244,237

6,809

1,062,749

 Courtyard

910

121,873

126

23,197

1,036

145,070

 Fairfield by Marriott

1,159

109,225

68

11,574

1,227

120,799

 Residence Inn

794

94,604

36

4,670

830

99,274

 Marriott Hotels

230

73,263

67

19,385

297

92,648

 Sheraton

140

43,453

80

22,834

220

66,287

 SpringHill Suites

534

62,100

534

62,100

 Autograph Collection

150

33,810

141

28,245

291

62,055

 TownePlace Suites

511

51,664

511

51,664

 Westin

94

31,759

31

9,774

125

41,533

 Four Points

150

22,503

77

13,609

227

36,112

 AC Hotels by Marriott

113

18,471

107

15,707

220

34,178

 Aloft

162

23,224

27

5,060

189

28,284

 Renaissance

68

19,060

31

8,044

99

27,104

 MGM Collection with Marriott Bonvoy**

12

26,210

12

26,210

 Moxy

39

6,899

97

18,372

136

25,271

 Timeshare*

72

18,839

21

3,906

93

22,745

 Tribute Portfolio

71

14,016

42

5,670

113

19,686

 Delta Hotels by Marriott

67

15,002

20

4,496

87

19,498

 The Luxury Collection

13

7,607

57

10,414

70

18,021

 City Express by Marriott

151

17,571

151

17,571

 Element

83

11,136

3

397

86

11,533

 Le Méridien

24

5,389

22

5,746

46

11,135

 Design Hotels*

16

1,904

120

8,266

136

10,170

 JW Marriott

12

6,072

15

3,272

27

9,344

 Protea Hotels

35

3,035

35

3,035

 The Ritz-Carlton

1

429

1

429

 Marriott Executive Apartments

3

242

3

242

 W Hotels

1

226

1

226

 Bulgari

2

161

2

161

 The Ritz-Carlton Yacht Collection*

1

149

1

149

 Four Points Express

2

108

2

108

 Apartments by Marriott Bonvoy

1

107

1

107

Residences

71

7,631

59

6,668

130

14,299

 The Ritz-Carlton Residences

43

4,790

19

1,756

62

6,546

 St. Regis Residences

10

1,198

13

1,785

23

2,983

 W Residences

10

1,092

7

549

17

1,641

 Marriott Hotels Residences

4

981

4

981

 Westin Residences

3

266

2

353

5

619

 Bulgari Residences

5

519

5

519

 Sheraton Residences

3

472

3

472

 The Luxury Collection Residences

1

91

3

115

4

206

 Renaissance Residences

1

112

1

112

 EDITION Residences

3

82

3

82

 JW Marriott Residences

1

62

1

62

 Le Méridien Residences

1

62

1

62

 Autograph Collection Residences

1

14

1

14

Grand Total

6,126

1,044,190

2,843

614,469

8,969

1,658,659








1 “International” refers to: (i) Europe, Middle East & Africa, (ii) Greater China, (iii) Asia Pacific excluding China, and (iv) Caribbean & Latin America.

* Timeshare, Design Hotels, and The Ritz-Carlton Yacht Collection counts are included in this table by geographical location. For external reporting purposes, these offerings are captured within “Unallocated corporate and other.”

** Excludes four MGM Collection with Marriott Bonvoy properties (two Autograph Collection, one Tribute Portfolio, and one The Luxury Collection) which are presented in “Franchised, Licensed and Other” within their respective brands.

In the above table, under “Owned/Leased,” 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.


A-4

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY TIER

As of June 30, 2024









US & Canada

Total International1

Total Worldwide

Total Systemwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

Luxury

204

60,043

434

99,126

638

159,169

 JW Marriott

35

19,261

90

30,264

125

49,525

 JW Marriott Residences

1

62

1

62

 The Ritz-Carlton

42

12,783

79

18,597

121

31,380

 The Ritz-Carlton Residences

43

4,790

19

1,756

62

6,546

 The Ritz-Carlton Yacht Collection*

1

149

1

149

 The Luxury Collection

19

9,903

99

18,534

118

28,437

 The Luxury Collection Residences

1

91

3

115

4

206

 W Hotels

25

7,295

45

12,696

70

19,991

 W Residences

10

1,092

7

549

17

1,641

 St. Regis

11

2,169

48

10,445

59

12,614

 St. Regis Residences

10

1,198

13

1,785

23

2,983

 EDITION

5

1,379

15

2,844

20

4,223

 EDITION Residences

3

82

3

82

 Bulgari

9

811

9

811

 Bulgari Residences

5

519

5

519

Premium

1,108

395,587

1,243

313,158

2,351

708,745

 Marriott Hotels

333

131,303

258

79,163

591

210,466

 Marriott Hotels Residences

4

981

4

981

 Sheraton

166

64,322

266

86,158

432

150,480

 Sheraton Residences

3

472

3

472

 Westin

135

55,176

109

33,382

244

88,558

 Westin Residences

3

266

2

353

5

619

 Autograph Collection

159

36,672

161

31,626

320

68,298

 Autograph Collection Residences

1

14

1

14

 Renaissance

89

28,125

86

25,091

175

53,216

 Renaissance Residences

1

112

1

112

 Delta Hotels by Marriott

92

21,772

46

9,420

138

31,192

 Le Méridien

25

5,489

93

25,607

118

31,096

 Le Méridien Residences

1

62

1

62

 MGM Collection with Marriott Bonvoy**

12

26,210

12

26,210

 Tribute Portfolio

71

14,016

54

7,203

125

21,219

 Gaylord Hotels

6

10,220

6

10,220

 Design Hotels*

16

1,904

120

8,266

136

10,170

 Marriott Executive Apartments

38

5,253

38

5,253

 Apartments by Marriott Bonvoy

1

107

1

107

Select

4,742

569,721

992

180,600

5,734

750,321

 Courtyard

1,073

148,232

258

51,835

1,331

200,067

 Fairfield by Marriott

1,165

110,656

146

21,422

1,311

132,078

 Residence Inn

868

106,798

46

5,926

914

112,724

 SpringHill Suites

557

65,972

557

65,972

 Four Points

151

22,637

164

37,948

315

60,585

 TownePlace Suites

517

52,489

517

52,489

 Aloft

164

23,729

71

14,756

235

38,485

 AC Hotels by Marriott

121

19,983

118

17,599

239

37,582

 Moxy

40

7,279

109

21,143

149

28,422

 Element

86

11,946

17

3,200

103

15,146

 Protea Hotels

63

6,771

63

6,771

Midscale

153

17,679

153

17,679

 City Express by Marriott

151

17,571

151

17,571

 Four Points Express

2

108

2

108

 Timeshare*

72

18,839

21

3,906

93

22,745

Grand Total

6,126

1,044,190

2,843

614,469

8,969

1,658,659








1 “International” refers to: (i) Europe, Middle East & Africa, (ii) Greater China, (iii) Asia Pacific excluding China, and (iv) Caribbean & Latin America.

* Timeshare, Design Hotels, and The Ritz-Carlton Yacht Collection counts are included in this table by geographical location. For external reporting purposes, these offerings are captured within “Unallocated corporate and other.”

** Excludes four MGM Collection with Marriott Bonvoy properties (two Autograph Collection, one Tribute Portfolio, and one The Luxury Collection) which are presented within their respective brands.

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.


A-6

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $















Comparable Company-Operated US & Canada Properties



Three Months Ended June 30, 2024 and June 30, 2023



REVPAR


Occupancy


Average Daily Rate

Brand


2024


vs. 2023


2024


vs. 2023


2024


vs. 2023

JW Marriott


$     249.86


1.6 %


73.3 %


-0.6 %

pts.


$     340.96


2.4 %

The Ritz-Carlton


$     352.94


3.3 %


69.2 %


1.8 %

pts.


$     510.38


0.6 %

W Hotels


$     231.58


1.8 %


70.9 %


0.9 %

pts.


$     326.44


0.5 %

Composite US & Canada Luxury1


$     298.56


1.5 %


71.2 %


0.6 %

pts.


$     419.44


0.6 %

Marriott Hotels


$     184.03


4.0 %


74.4 %


0.3 %

pts.


$     247.21


3.6 %

Sheraton


$     172.59


8.9 %


72.9 %


3.0 %

pts.


$     236.76


4.4 %

Westin


$     191.97


5.5 %


75.2 %


2.1 %

pts.


$     255.20


2.6 %

Composite US & Canada Premium2


$     180.87


5.2 %


73.8 %


1.0 %

pts.


$     244.97


3.7 %

US & Canada Full-Service3


$     205.80


4.0 %


73.3 %


1.0 %

pts.


$     280.87


2.6 %

Courtyard


$     124.52


3.1 %


72.4 %


1.0 %

pts.


$     172.10


1.6 %

Residence Inn


$     158.73


1.2 %


79.1 %


-0.7 %

pts.


$     200.75


2.1 %

Composite US & Canada Select4


$     136.01


2.3 %


74.8 %


0.6 %

pts.


$     181.96


1.4 %

US & Canada – All5


$     189.01


3.7 %


73.6 %


0.9 %

pts.


$     256.72


2.4 %

Comparable Systemwide US & Canada Properties



Three Months Ended June 30, 2024 and June 30, 2023



REVPAR


Occupancy


Average Daily Rate

Brand


2024


vs. 2023


2024


vs. 2023


2024


vs. 2023

JW Marriott


$     243.31


3.7 %


75.1 %


0.9 %

pts.


$     324.17


2.4 %

The Ritz-Carlton


$     352.42


3.5 %


69.7 %


1.9 %

pts.


$     505.31


0.7 %

W Hotels


$     231.58


1.8 %


70.9 %


0.9 %

pts.


$     326.44


0.5 %

Composite US & Canada Luxury1


$     284.64


2.4 %


72.5 %


1.1 %

pts.


$     392.58


0.7 %

Marriott Hotels


$     155.93


5.2 %


72.9 %


1.3 %

pts.


$     213.88


3.3 %

Sheraton


$     139.57


7.5 %


72.0 %


2.4 %

pts.


$     193.83


3.9 %

Westin


$     173.59


4.5 %


74.7 %


1.6 %

pts.


$     232.28


2.2 %

Composite US & Canada Premium2


$     157.64


5.5 %


72.8 %


1.7 %

pts.


$     216.61


3.0 %

US & Canada Full-Service3


$     171.82


4.9 %


72.7 %


1.7 %

pts.


$     236.19


2.5 %

Courtyard


$     123.46


2.5 %


73.9 %


0.4 %

pts.


$     167.06


1.9 %

Residence Inn


$     140.03


3.1 %


80.2 %


0.8 %

pts.


$     174.52


2.1 %

Fairfield by Marriott


$     102.55


2.5 %


74.2 %


0.5 %

pts.


$     138.25


1.8 %

Composite US & Canada Select4


$     121.99


3.1 %


76.1 %


0.7 %

pts.


$     160.40


2.1 %

US & Canada – All5


$     142.20


3.9 %


74.7 %


1.1 %

pts.


$     190.33


2.4 %















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.


A-8

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $















Comparable Company-Operated US & Canada Properties



Six Months Ended June 30, 2024 and June 30, 2023



REVPAR


Occupancy


Average Daily Rate

Brand


2024


vs. 2023


2024


vs. 2023


2024


vs. 2023

JW Marriott


$     255.92


2.5 %


72.2 %


0.0 %

pts.


$     354.38


2.5 %

The Ritz-Carlton


$     351.79


2.3 %


67.1 %


0.9 %

pts.


$     524.52


1.0 %

W Hotels


$     209.99


0.5 %


64.8 %


1.0 %

pts.


$     324.30


-1.0 %

Composite US & Canada Luxury1


$     306.08


1.3 %


69.3 %


0.6 %

pts.


$     441.67


0.4 %

Marriott Hotels


$     170.40


4.2 %


70.4 %


0.6 %

pts.


$     242.10


3.2 %

Sheraton


$     163.33


9.9 %


69.5 %


3.4 %

pts.


$     235.05


4.5 %

Westin


$     173.17


4.5 %


69.6 %


1.1 %

pts.


$     248.68


2.8 %

Composite US & Canada Premium2


$     167.57


4.6 %


69.7 %


0.8 %

pts.


$     240.28


3.4 %

US & Canada Full-Service3


$     196.92


3.5 %


69.6 %


0.8 %

pts.


$     282.73


2.3 %

Courtyard


$     112.86


1.6 %


67.2 %


0.2 %

pts.


$     168.05


1.2 %

Residence Inn


$     151.06


0.5 %


75.9 %


-1.4 %

pts.


$     199.03


2.3 %

Composite US & Canada Select4


$     126.13


1.3 %


70.3 %


-0.2 %

pts.


$     179.48


1.6 %

US & Canada – All5


$     179.89


3.1 %


69.8 %


0.6 %

pts.


$     257.72


2.3 %

Comparable Systemwide US & Canada Properties



Six Months Ended June 30, 2024 and June 30, 2023



REVPAR


Occupancy


Average Daily Rate

Brand


2024


vs. 2023


2024


vs. 2023


2024


vs. 2023

JW Marriott


$     245.84


3.2 %


73.1 %


0.4 %

pts.


$     336.28


2.6 %

The Ritz-Carlton


$     347.55


2.4 %


67.2 %


1.0 %

pts.


$     516.93


0.9 %

W Hotels


$     209.99


0.5 %


64.8 %


1.0 %

pts.


$     324.30


-1.0 %

Composite US & Canada Luxury1


$     286.72


1.7 %


70.1 %


0.7 %

pts.


$     409.26


0.6 %

Marriott Hotels


$     142.83


4.2 %


68.2 %


0.7 %

pts.


$     209.49


3.0 %

Sheraton


$     126.08


7.1 %


66.7 %


2.0 %

pts.


$     188.96


3.9 %

Westin


$     161.00


3.4 %


70.2 %


1.0 %

pts.


$     229.25


2.0 %

Composite US & Canada Premium2


$     144.83


4.4 %


68.2 %


1.1 %

pts.


$     212.36


2.6 %

US & Canada Full-Service3


$     160.68


3.8 %


68.4 %


1.1 %

pts.


$     234.88


2.2 %

Courtyard


$     111.23


1.2 %


68.9 %


-0.4 %

pts.


$     161.51


1.7 %

Residence Inn


$     129.25


1.9 %


76.1 %


-0.2 %

pts.


$     169.79


2.1 %

Fairfield by Marriott


$       91.03


1.0 %


68.5 %


-0.5 %

pts.


$     132.88


1.7 %

Composite US & Canada Select4


$     110.68


1.8 %


71.3 %


-0.1 %

pts.


$     155.17


1.9 %

US & Canada – All5


$     130.96


2.8 %


70.1 %


0.4 %

pts.


$     186.70


2.2 %















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.


A-8 (Cont.)

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $















Comparable Company-Operated International Properties



Three Months Ended June 30, 2024 and June 30, 2023



REVPAR


Occupancy


Average Daily Rate

Region


2024


vs. 2023


2024


vs. 2023


2024


vs. 2023

Europe


$     241.85


6.7 %


75.9 %


0.5 %

pts.


$     318.49


6.0 %

Middle East & Africa


$     121.16


16.8 %


65.1 %


3.5 %

pts.


$     186.07


10.6 %

Greater China


$       82.54


-4.6 %


68.9 %


0.9 %

pts.


$     119.84


-5.9 %

Asia Pacific excluding China


$     110.52


12.0 %


70.6 %


4.1 %

pts.


$     156.54


5.4 %

Caribbean & Latin America


$     171.04


6.3 %


66.5 %


3.6 %

pts.


$     257.16


0.5 %















International – All1


$     121.60


6.4 %


69.3 %


2.4 %

pts.


$     175.42


2.8 %















Worldwide2


$     150.24


4.9 %


71.1 %


1.7 %

pts.


$     211.16


2.4 %

Comparable Systemwide International Properties



Three Months Ended June 30, 2024 and June 30, 2023



REVPAR


Occupancy


Average Daily Rate

Region


2024


vs. 2023


2024


vs. 2023


2024


vs. 2023

Europe


$     171.89


6.6 %


75.0 %


2.1 %

pts.


$     229.13


3.6 %

Middle East & Africa


$     113.15


18.1 %


64.9 %


3.8 %

pts.


$     174.41


11.2 %

Greater China


$       77.12


-4.2 %


67.9 %


0.7 %

pts.


$     113.54


-5.1 %

Asia Pacific excluding China


$     113.44


13.0 %


71.0 %


4.3 %

pts.


$     159.71


6.2 %

Caribbean & Latin America


$     149.03


8.6 %


66.5 %


3.8 %

pts.


$     224.16


2.4 %















International – All1


$     121.14


7.4 %


69.7 %


2.6 %

pts.


$     173.80


3.4 %















Worldwide2


$     135.52


4.9 %


73.1 %


1.6 %

pts.


$     185.33


2.6 %















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

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


A-8 (Cont.)

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $















Comparable Company-Operated International Properties



Six Months Ended June 30, 2024 and June 30, 2023



REVPAR


Occupancy


Average Daily Rate

Region


2024


vs. 2023


2024


vs. 2023


2024


vs. 2023

Europe


$     195.35


6.0 %


68.8 %


0.8 %

pts.


$     283.82


4.7 %

Middle East & Africa


$     133.70


14.3 %


67.7 %


3.4 %

pts.


$     197.43


8.5 %

Greater China


$       83.84


0.1 %


67.2 %


1.6 %

pts.


$     124.72


-2.2 %

Asia Pacific excluding China


$     117.65


14.1 %


71.5 %


4.8 %

pts.


$     164.59


6.5 %

Caribbean & Latin America


$     196.16


8.2 %


67.3 %


2.8 %

pts.


$     291.59


3.7 %















International – All1


$     122.39


8.2 %


68.6 %


2.8 %

pts.


$     178.27


3.9 %















Worldwide2


$     146.83


5.5 %


69.1 %


1.8 %

pts.


$     212.38


2.7 %

Comparable Systemwide International Properties



Six Months Ended June 30, 2024 and June 30, 2023



REVPAR


Occupancy


Average Daily Rate

Region


2024


vs. 2023


2024


vs. 2023


2024


vs. 2023

Europe


$     139.27


6.6 %


67.1 %


2.7 %

pts.


$     207.57


2.4 %

Middle East & Africa


$     123.62


15.5 %


66.7 %


3.3 %

pts.


$     185.36


9.8 %

Greater China


$       78.13


0.4 %


66.3 %


1.5 %

pts.


$     117.82


-1.8 %

Asia Pacific excluding China


$     118.61


14.8 %


71.3 %


4.7 %

pts.


$     166.35


7.3 %

Caribbean & Latin America


$     167.20


10.3 %


68.1 %


3.8 %

pts.


$     245.56


4.2 %















International – All1


$     118.42


9.0 %


67.9 %


3.0 %

pts.


$     174.42


4.2 %















Worldwide2


$     126.98


4.5 %


69.4 %


1.2 %

pts.


$     182.89


2.7 %















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

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


A-8 (Cont.)

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA

($ in millions)



Fiscal Year 2024


First

Quarter


Second

Quarter


Total

Net income, as reported

$        564


$        772


$     1,336

Cost reimbursement revenue

(4,433)


(4,728)


(9,161)

Reimbursed expenses

4,501


4,645


9,146

Interest expense

163


173


336

Interest expense from unconsolidated joint ventures

2


2


4

Provision for income taxes

163


268


431

Depreciation and amortization

45


47


92

Contract investment amortization

23


27


50

Depreciation and amortization classified in reimbursed expenses

48


50


98

Depreciation, amortization, and impairments from unconsolidated joint ventures

5


3


8

Stock-based compensation

53


57


110

Merger-related charges and other

8


8


16

Adjusted EBITDA

$     1,142


$     1,324


$     2,466







Change from 2023 Adjusted EBITDA

4 %


9 %


6 %


Fiscal Year 2023


First

Quarter


Second

Quarter


Third

Quarter


Fourth

Quarter


Total

Net income, as reported

$          757


$          726


$          752


$          848


$       3,083

Cost reimbursement revenue

(4,147)


(4,457)


(4,391)


(4,418)


(17,413)

Reimbursed expenses

4,136


4,366


4,238


4,684


17,424

Interest expense

126


140


146


153


565

Interest expense from unconsolidated joint ventures

1


1


3


1


6

Provision (benefit) for income taxes

87


238


237


(267)


295

Depreciation and amortization

44


48


46


51


189

Contract investment amortization

21


22


23


22


88

Depreciation and amortization classified in reimbursed expenses

31


38


39


51


159

Depreciation, amortization, and impairments from unconsolidated joint ventures

4


3


6


6


19

Stock-based compensation

37


56


54


58


205

Merger-related charges and other

1


38


13


8


60

Gain on asset dispositions



(24)



(24)

Adjusted EBITDA

$       1,098


$       1,219


$       1,142


$       1,197


$       4,656











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.


A-12

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

THIRD QUARTER 2024

($ in millions)








Range




Estimated
Third Quarter 2024


Third Quarter 2023

Net income excluding certain items1

$          643


$          661



Interest expense

175


175



Interest expense from unconsolidated joint ventures

2


2



Provision for income taxes

223


230



Depreciation and amortization

45


45



Contract investment amortization

25


25



Depreciation and amortization classified in reimbursed expenses

50


50



Depreciation, amortization, and impairments from unconsolidated joint ventures

5


5



Stock-based compensation

57


57



Adjusted EBITDA

$       1,225


$       1,250


$                           1,142







Increase over 2023 Adjusted EBITDA

7 %


9 %









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 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.


A-13

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

FULL YEAR  2024

($ in millions)








Range




Estimated
Full Year 2024


Full Year 2023

Net income excluding certain items1

$       2,634


$       2,683



Interest expense

698


698



Interest expense from unconsolidated joint ventures

7


7



Provision for income taxes

885


901



Depreciation and amortization

183


183



Contract investment amortization

103


103



Depreciation and amortization classified in reimbursed expenses

200


200



Depreciation, amortization, and impairments from unconsolidated joint ventures

18


18



Stock-based compensation

222


222



Adjusted EBITDA

$       4,950


$       5,015


$                          4,656







Increase over 2023 Adjusted EBITDA

6 %


8 %









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 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.


A-14

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

In our press release and schedules, on the related conference call, and in the infographic made available in connection with our press release, we report certain financial measures that are not required by, or presented in accordance with, United States generally accepted accounting principles (GAAP). These non-GAAP financial measures are labeled as “adjusted” and/or identified with the symbol “†”. We discuss the manner in which the non-GAAP measures reported in this press release, schedules, and infographic are determined and management’s reasons for reporting these non-GAAP measures below, and the press release schedules reconcile each to the most directly comparable GAAP measures (with respect to the forward-looking non-GAAP measures, to the extent available without unreasonable efforts). Although management evaluates and presents these non-GAAP measures for the reasons described below, please be aware that these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for revenue, operating income, net income, earnings per share, or any other comparable operating measure prescribed by GAAP. In addition, we may calculate and/or present these non-GAAP financial measures differently than measures with the same or similar names that other companies report, and as a result, the non-GAAP measures we report may not be comparable to those reported by others.

Adjusted Operating Income and Adjusted Operating Income Margin. Adjusted operating income and Adjusted operating income margin exclude cost reimbursement revenue, reimbursed expenses, merger-related charges and other expenses, and certain non-cash impairment charges (when applicable). 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 (when applicable), and gains and losses on asset dispositions made by us or by our joint venture investees (when applicable). Additionally, Adjusted net income and Adjusted diluted earnings per share exclude the income tax effect of the above adjustments (calculated using an estimated tax rate applicable to each adjustment) and income tax special items, which in 2023 primarily related to the resolution of tax audits. We believe that these measures are meaningful indicators of our performance because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.

Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization (“Adjusted EBITDA”). Adjusted EBITDA reflects net income excluding the impact of the following items: cost reimbursement revenue and reimbursed expenses, interest expense, depreciation and amortization, provision (benefit) for income taxes, merger-related charges and other expenses, and stock-based compensation expense for all periods presented. When applicable, Adjusted EBITDA also excludes certain non-cash impairment charges 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 merger-related charges and other expenses as well as 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 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 exclude cost reimbursement revenue and reimbursed expenses, which relate to property-level and centralized programs and services that we operate for the benefit of our property owners. We do not operate these programs and services to generate a profit over the long term, and accordingly, when we recover the costs that we incur for these programs and services from our property owners, we do not seek a mark-up. For property-level services, our owners typically reimburse us at the same time that we incur expenses. However, for centralized programs and services, our owners may reimburse us before or after we incur expenses, causing timing differences between the costs we incur and the related reimbursement from property owners in our operating and net income. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively. Because we do not retain any such profits or losses over time, we exclude the net impact when evaluating period-over-period changes in our operating results.

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

RevPAR. In addition to the foregoing non-GAAP financial measures, we present Revenue per Available Room (“RevPAR”) as a performance measure. We believe RevPAR, which we calculate by dividing property level room revenue by rooms available for the period, is a meaningful indicator of our performance because it measures the period-over-period change in room revenues. RevPAR may not be comparable to similarly titled measures, such as revenues, and should not be viewed as necessarily correlating with our fee revenue. We also believe occupancy and average daily rate (“ADR”), which are components of calculating RevPAR, are meaningful indicators of our performance. Occupancy, which we calculate by dividing total rooms sold by total rooms available for the period, measures the utilization of a property’s available capacity. ADR, which we calculate by dividing property level room revenue by total rooms sold, measures average room price and is useful in assessing pricing levels. Comparisons to prior periods are on a constant U.S. dollar basis, which we calculate by applying exchange rates for the current period to the prior comparable period. We believe constant dollar analysis provides valuable information regarding our properties’ performance as it removes currency fluctuations from the presentation of such results.

We define our comparable properties as our properties that were open and operating under one of our hotel brands since the beginning of the last full calendar year (since January 1, 2023 for the current period) and have not, in either the current or previous year: (1) undergone significant room or public space renovations or expansions, (2) been converted between company-operated and franchised, or (3) sustained substantial property damage or business interruption. Our comparable properties also exclude MGM Collection with Marriott Bonvoy, Design Hotels, The Ritz-Carlton Yacht Collection, and timeshare properties.

Non-RevPAR Related Franchise Fees. In this press release, we also discuss non-RevPAR related franchise fees, which include co-branded credit card, timeshare and yacht fees, residential branding fees, franchise application and relicensing fees, and certain other non-hotel licensing fees.

A-15

SOURCE Marriott International, Inc.



Originally published at https://www.prnewswire.com/news-releases/marriott-international-reports-second-quarter-2024-results-302210602.html
Images courtesy of https://pixabay.com

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