MARRIOTT INTERNATIONAL REPORTS THIRD QUARTER 2023 RESULTS

MARRIOTT INTERNATIONAL REPORTS THIRD QUARTER 2023 RESULTS

  • Third quarter 2023 comparable systemwide constant dollar RevPAR increased 8.8 percent worldwide, 4.3 percent in the U.S. & Canada, and 21.8 percent in international markets, compared to the 2022 third quarter; 
  • Third quarter reported diluted EPS totaled $2.51, compared to reported diluted EPS of $1.94 in the year-ago quarter.  Third quarter adjusted diluted EPS totaled $2.11, compared to third quarter 2022 adjusted diluted EPS of $1.69;
  • Third quarter reported net income totaled $752 million, compared to reported net income of $630 million in the year-ago quarter.  Third quarter adjusted net income totaled $634 million, compared to third quarter 2022 adjusted net income of $551 million;
  • Adjusted EBITDA totaled $1,142 million in the 2023 third quarter, compared to third quarter 2022 adjusted EBITDA of $985 million;
  • The company added approximately 17,200 rooms globally during the third quarter, including roughly 13,000 rooms in international markets and more than 4,900 conversion rooms;
  • At the end of the quarter, Marriott’s worldwide development pipeline totaled more than 3,200 properties and nearly 557,000 rooms, including roughly 40,300 of pipeline rooms approved, but not yet subject to signed contracts.  Approximately 238,000 rooms in the pipeline were under construction as of the end of the third quarter;
  • Marriott repurchased 4.8 million shares of common stock for $950 million during the third quarter.  Year to date through October 31, the company has returned $3.7 billion to shareholders through dividends and share repurchases.

BETHESDA, Md., Nov. 2, 2023 /PRNewswire/ — Marriott International, Inc. (NASDAQ: MAR) today reported third quarter 2023 results.

Anthony Capuano, President and Chief Executive Officer, said, “We are extremely pleased with our results in the quarter.  Worldwide RevPAR[1] grew 9 percent year over year, reflecting robust demand around the world.  International RevPAR increased 22 percent, with particular strength in Asia Pacific.  Both occupancy and rate contributed to global RevPAR gains in the third quarter, and cross-border travel continued to rise.

“In the U.S. & Canada, RevPAR rose more than 4 percent, with many urban markets showing outsized growth.  Group and business transient saw mid-single digit hotel revenue gains in the quarter, largely driven by rate increases.  Leisure transient demand in the region has also remained solid, leading to 4 percent hotel revenue growth for the segment compared to the year-ago quarter.

“Given the meaningful benefits we deliver to owners, demand for our brands remains strong.  Through the first three quarters of 2023, we’ve signed more than 100,000 organic rooms, including the MGM Resorts International deal, an impressive 60 percent increase compared to the same period last year.  Even with 5 percent net rooms growth in the last four quarters, our development pipeline continues to grow.  Of our record 557,000-room pipeline, 43 percent is under construction.

“With continued momentum in our business around the world, we are raising our full year 2023 worldwide RevPAR growth guidance to 14 to 15 percent year over year and expect to return $4.3 billion to $4.5 billion to shareholders through share repurchases and dividends.” 

Third Quarter 2023 Results
Marriott’s reported operating income totaled $1,099 million in the 2023 third quarter, compared to 2022 third quarter reported operating income of $958 million.  Reported net income totaled $752 million in the 2023 third quarter, compared to 2022 third quarter reported net income of $630 million.  Reported diluted earnings per share (EPS) totaled $2.51 in the quarter, compared to reported diluted EPS of $1.94 in the year-ago quarter.

Adjusted operating income in the 2023 third quarter totaled $959 million, compared to 2022 third quarter adjusted operating income of $815 million.  Third quarter 2023 adjusted net income totaled $634 million, compared to 2022 third quarter adjusted net income of $551 million.  Adjusted diluted EPS in the 2023 third quarter totaled $2.11, compared to adjusted diluted EPS of $1.69 in the year-ago quarter.  The 2023 third quarter adjusted results excluded a $24 million ($16 million after-tax and $0.05 per share) gain on the sale of a hotel in the Caribbean & Latin America (CALA) region.  The 2022 third quarter adjusted results excluded special tax items of $30 million ($0.09 per share) and a $2 million ($2 million after-tax and $0.01 per share) gain on an investee’s property sale.

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

Base management and franchise fees totaled $1,054 million in the 2023 third quarter, an 11 percent increase compared to base management and franchise fees of $953 million in the year-ago quarter.  The increase is primarily attributable to RevPAR increases and unit growth.  Non-RevPAR-related franchise fees in the 2023 third quarter totaled $208 million, an 8 percent increase compared to $192 million in the year-ago quarter, largely driven by higher co-brand credit card fees.

Incentive management fees totaled $143 million in the 2023 third quarter, a 35 percent increase compared to $106 million in the 2022 third quarter.  Managed hotels in international markets contributed 77 percent of the incentive fees earned in the quarter. 

Owned, leased, and other revenue, net of direct expenses, totaled $70 million in the 2023 third quarter, compared to $44 million in the year-ago quarter.  Results in the 2022 quarter included a $19 million expense accrual related to a portfolio of 12 leased hotels in the U.S. & Canada. 

General, administrative, and other expenses for the 2023 third quarter totaled $239 million, compared to $216 million in the year-ago quarter.  The year-over-year change largely reflects higher staffing levels.

Gains and other income, net, totaled $28 million, compared to $3 million in the 2022 third quarter.  Gains and other income, net, in the 2023 third quarter primarily reflected a $24 million gain associated with the sale of a hotel in the CALA region.

Interest expense, net, totaled $139 million in the 2023 third quarter, compared to $93 million in the year-ago quarter.  The increase was largely due to higher interest expense associated with higher debt balances.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $1,142 million in the 2023 third quarter, compared to third quarter 2022 adjusted EBITDA of $985 million.  See page A-11 for the adjusted EBITDA calculation.

Selected Performance Information
Marriott added 97 properties (17,192 rooms) to its worldwide lodging portfolio during the 2023 third quarter, including roughly 13,000 rooms in international markets and more than 4,900 conversion rooms.  Eleven properties (1,494 rooms) exited the system during the quarter.  At the end of the quarter, Marriott’s global lodging system totaled nearly 8,700 properties, with approximately 1,581,000 rooms.

At the end of the quarter, the company’s worldwide development pipeline totaled 3,239 properties with nearly 557,000 rooms, including 242 properties with roughly 40,300 rooms approved for development, but not yet subject to signed contracts. The pipeline includes 1,081 properties with approximately 238,000 rooms under construction, or 43 percent, including approximately 37,000 rooms from the MGM deal.

In the 2023 third quarter, worldwide RevPAR increased 8.8 percent (an 8.7 percent increase using actual dollars) compared to the 2022 third quarter.  RevPAR in the U.S. & Canada increased 4.3 percent (a 4.2 percent increase using actual dollars), and RevPAR in international markets increased 21.8 percent (a 22.0 percent increase using actual dollars).

Balance Sheet & Common Stock
At the end of the quarter, Marriott’s total debt was $11.8 billion and cash and equivalents totaled $0.7 billion, compared to $10.1 billion in debt and $0.5 billion of cash and equivalents at year-end 2022.

Year to date through October 31, the company has repurchased 18.3 million shares for $3.3 billion.

In the third quarter, the company issued $450 million of Series LL Senior Notes due in 2026 with a 5.45 percent interest rate coupon and $700 million of Series MM Senior Notes due in 2028 with a 5.55 percent interest rate coupon.

Company Outlook
Marriott anticipates that the 37,000 rooms related to its deal with MGM will now be added to its distribution in early 2024.  As such, the company now expects full year 2023 net rooms growth of 4.2 to 4.5 percent, higher than its August 2, 2023 guidance when excluding the MGM rooms. 


Fourth Quarter 2023

vs Fourth Quarter 2022

Full Year 2023

vs Full Year 2022


Comparable systemwide constant $

 RevPAR growth




        Worldwide

6% to 7.5%

14% to 15%


U.S. & Canada

3% to 4%

8% to 9%


International

14% to 16%

31% to 32%








Year-End 2023

vs Year-End 2022


Net Rooms Growth


4.2% to 4.5%


($ in millions, except EPS)

Fourth Quarter 2023

Full Year 2023

Gross fee revenues

$1,185 to $1,215

$4,765 to $4,795

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

$80 to $85

$328 to $333

General, administrative, and other expenses

Approx. $255  

Approx. $935  

Adjusted EBITDA1,2

$1,115 to $1,150

$4,574 to $4,609

Adjusted EPS – diluted2,3

$2.04 to $2.13

$8.50 to $8.59

Investment Spending4


$900 to $950

Capital Return to Shareholders5


$4,300 to $4,500


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

2Adjusted EBITDA and Adjusted EPS – diluted for fourth quarter and full year 2023 do not include cost reimbursement revenue, reimbursed expenses, merger-related charges and other expenses, special tax items, or any additional asset sales that may occur during the year, each of which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant.  Adjusted EPS – diluted for full year 2023 excludes a special tax item of $100 million and an asset sale gain of $24 million reported in the first three quarters of 2023.  See page A-3 for the Adjusted EPS – diluted calculation for the first three quarters of 2023.

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

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

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

Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings review for the investment community and news media on Thursday, November 2, 2023, at 8:00 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 November 2, 2024.

The telephone dial-in number for the conference call is US Toll Free: 800-579-2543, or Global: +1 785-424-1789. The conference ID is MAR3Q23.  A telephone replay of the conference call will be available from 1:00 p.m. ET, Thursday, November 2, 2023, until 8:00 p.m. ET, Thursday, November 9, 2023.  To access the replay, call US Toll Free: 800-839-1246 or Global: +1 402-220-0464. 

Note on forward-looking statements:  All statements in this press release and the accompanying schedules are made as of November 2, 2023. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. This press release and the accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including statements related to our RevPAR, rooms growth and other financial metric estimates, outlook and assumptions; travel and lodging demand trends and expectations; our development pipeline and growth expectations; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including the risk factors that we describe in our Securities and Exchange Commission filings, including our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release.

Marriott International, Inc. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of nearly 8,700 properties across more than 30 leading brands in 139 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company offers Marriott Bonvoy®, its highly awarded travel program.  For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.  In addition, connect with us on Facebook and @MarriottIntl on 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.

IRPR#1

Tables follow

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

MARRIOTT INTERNATIONAL, INC.

PRESS RELEASE SCHEDULES

TABLE OF CONTENTS

QUARTER 3, 2023

































































Consolidated Statements of Income – As Reported












A-1

















Non-GAAP Financial Measures














A-3

















Total Lodging Products by Ownership Type













A-4

















Total Lodging Products by Tier














A-6

















Key Lodging Statistics














A-7

















Adjusted EBITDA














A-11

















Adjusted EBITDA Forecast – Fourth Quarter 2023












A-12

















Adjusted EBITDA Forecast – Full Year 2023












A-13

















Explanation of Non-GAAP Financial and Performance Measures










A-14

















MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME – AS REPORTED

THIRD QUARTER 2023 AND 2022

(in millions except per share amounts, unaudited)

















As Reported


As Reported


Percent



Three Months Ended


Three Months Ended


Better/(Worse)



September 30, 2023


September 30, 2022


Reported 2023 vs. 2022

REVENUES







Base management fees


$                                             306


$                                             275


11

Franchise fees 1


748


678


10

Incentive management fees


143


106


35

Gross Fee Revenues


1,197


1,059


13

Contract investment amortization 2


(23)


(22)


(5)

Net Fee Revenues


1,174


1,037


13

Owned, leased, and other revenue 3


363


345


5

Cost reimbursement revenue 4


4,391


3,931


12

  Total Revenues


5,928


5,313


12








OPERATING COSTS AND EXPENSES







Owned, leased, and other – direct 5


293


301


3

Depreciation, amortization, and other 6


46


50


8

General, administrative, and other 7


239


216


(11)

Merger-related charges and other


13


2


(550)

Reimbursed expenses 4


4,238


3,786


(12)

  Total Expenses


4,829


4,355


(11)








OPERATING INCOME


1,099


958


15








Gains and other income, net 8


28


3


833

Interest expense


(146)


(100)


(46)

Interest income


7


7


Equity in earnings 9


1


1









INCOME BEFORE INCOME TAXES


989


869


14








Provision for income taxes


(237)


(239)


1








NET INCOME


$                                             752


$                                             630


19








EARNINGS PER SHARE







  Earnings per share – basic


$                                            2.52


$                                            1.94


30

  Earnings per share – diluted


$                                            2.51


$                                            1.94


29








Basic Shares


298.6


324.5



Diluted Shares


300.1


325.7







1

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




residential branding fees.







2

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




impairments, accelerations, or write-offs.







3

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





4

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




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



5

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



6

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




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







7

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





8

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




other equity investments.







9

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





MARRIOTT INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME – AS REPORTED
THIRD QUARTER YEAR-TO-DATE 2023 AND 2022
(in millions except per share amounts, unaudited)










As Reported


As Reported


Percent



Nine Months Ended


Nine Months Ended


Better/(Worse)



September 30, 2023


September 30, 2022


Reported 2023 vs. 2022

REVENUES







Base management fees


$                                             917


$                                             757


21

Franchise fees 1


2,126


1,847


15

Incentive management fees


537


343


57

Gross Fee Revenues


3,580


2,947


21

Contract investment amortization 2


(66)


(65)


(2)

Net Fee Revenues


3,514


2,882


22

Owned, leased, and other revenue 3


1,109


971


14

Cost reimbursement revenue 4


12,995


10,997


18

  Total Revenues


17,618


14,850


19








OPERATING COSTS AND EXPENSES







Owned, leased, and other – direct 5


861


779


(11)

Depreciation, amortization, and other 6


138


147


6

General, administrative, and other 7


681


655


(4)

Merger-related charges and other


52


11


(373)

Reimbursed expenses 4


12,740


10,792


(18)

  Total Expenses


14,472


12,384


(17)








OPERATING INCOME


3,146


2,466


28








Gains and other income, net 8


33


9


267

Interest expense


(412)


(288)


(43)

Interest income


21


18


17

Equity in earnings 9


9


18


(50)








INCOME BEFORE INCOME TAXES


2,797


2,223


26








Provision for income taxes


(562)


(538)


(4)








NET INCOME


$                                           2,235


$                                           1,685


33








EARNINGS PER SHARE







  Earnings per share – basic


$                                            7.36


$                                            5.15


43

  Earnings per share – diluted


$                                            7.32


$                                            5.13


43








Basic Shares


303.9


327.0



Diluted Shares


305.3


328.4







1

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




residential branding fees.







2

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




impairments, accelerations, or write-offs.







3

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





4

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




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



5

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



6

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




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







7

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





8

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




other equity investments.







9

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





MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

(in millions except per share amounts)













The following table presents our reconciliations of Adjusted operating income, Adjusted operating income margin, Adjusted net income, and Adjusted diluted earnings per share, to the most directly comparable GAAP measure. Adjusted total revenues is used in the determination of Adjusted operating income margin.


























Three Months Ended


Nine Months Ended






Percent






Percent


September 30,


September 30,


Better/


September 30,


September 30,


Better/


2023


2022


(Worse)


2023


2022


(Worse)

Total revenues, as reported

$             5,928


$             5,313




$            17,618


$            14,850



Less: Cost reimbursement revenue

(4,391)


(3,931)




(12,995)


(10,997)



Add: Impairments 1






5



Adjusted total revenues **

1,537


1,382




4,623


3,858















Operating income, as reported

1,099


958




3,146


2,466



Less: Cost reimbursement revenue

(4,391)


(3,931)




(12,995)


(10,997)



Add: Reimbursed expenses

4,238


3,786




12,740


10,792



Add: Merger-related charges and other

13


2




52


11



Add: Impairments 1






5



Adjusted operating income **

959


815


18 %


2,943


2,277


29 %













Operating income margin

19 %


18 %




18 %


17 %



Adjusted operating income margin **

62 %


59 %




64 %


59 %















Net income, as reported

752


630




2,235


1,685



Less: Cost reimbursement revenue

(4,391)


(3,931)




(12,995)


(10,997)



Add: Reimbursed expenses

4,238


3,786




12,740


10,792



Add: Merger-related charges and other

13


2




52


11



Add: Impairments 2






11



Less: Gains on investees’ property sales 3


(2)





(23)



Less: Gain on asset dispositions 4

(24)





(24)


(2)



Income tax effect of above adjustments

46


36




64


50



Less: Income tax special items


30




(100)


30



Adjusted net income **

$                634


$                551


15 %


$             1,972


$             1,557


27 %













Diluted earnings per share, as reported

$               2.51


$               1.94




$               7.32


$               5.13



Adjusted diluted earnings per share**

$               2.11


$               1.69


25 %


$               6.46


$               4.74


36 %









**

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

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
























2

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






















3

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

























4

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












MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY OWNERSHIP TYPE

As of September 30, 2023









US & Canada

Total International

Total Worldwide


Properties

Rooms

Properties

Rooms

Properties

Rooms

Managed

629

215,952

1,410

358,039

2,039

573,991

 Marriott Hotels

102

56,990

179

56,334

281

113,324

 Sheraton

26

20,869

185

62,318

211

83,187

 Courtyard

164

26,628

120

25,552

284

52,180

 Westin

40

21,862

82

25,271

122

47,133

 JW Marriott

23

13,189

73

25,893

96

39,082

 The Ritz-Carlton

40

12,154

75

17,832

115

29,986

 Renaissance

23

10,245

55

17,545

78

27,790

 Four Points

1

134

85

23,839

86

23,973

 Le Méridien

1

100

73

20,180

74

20,280

 W Hotels

23

6,516

41

11,107

64

17,623

 Residence Inn

73

11,857

9

1,116

82

12,973

 St. Regis

11

2,169

44

9,880

55

12,049

 Delta Hotels by Marriott

25

6,770

27

5,052

52

11,822

 Fairfield by Marriott

6

1,431

74

9,207

80

10,638

 Aloft

2

505

46

10,096

48

10,601

 The Luxury Collection

6

2,296

41

7,983

47

10,279

 Gaylord Hotels

6

10,220

6

10,220

 AC Hotels by Marriott

8

1,512

68

8,466

76

9,978

 Autograph Collection

9

2,870

24

3,569

33

6,439

 Marriott Executive Apartments

36

5,159

36

5,159

 SpringHill Suites

25

4,241

25

4,241

 Element

3

810

15

3,132

18

3,942

 EDITION

5

1,379

11

2,309

16

3,688

 Protea Hotels

24

2,901

24

2,901

 Moxy

1

380

7

1,393

8

1,773

 Tribute Portfolio

9

1,251

9

1,251

 TownePlace Suites

6

825

6

825

 Bulgari

7

654

7

654

Franchised

5,217

747,617

1,155

210,458

6,372

958,075

 Courtyard

891

119,004

117

21,823

1,008

140,827

 Fairfield by Marriott

1,142

107,585

56

9,760

1,198

117,345

 Residence Inn

785

93,648

30

3,857

815

97,505

 Marriott Hotels

232

74,195

64

18,378

296

92,573

 Sheraton

143

44,473

75

22,011

218

66,484

 SpringHill Suites

518

60,135

518

60,135

 Autograph Collection

143

28,022

117

24,778

260

52,800

 TownePlace Suites

491

49,725

491

49,725

 Westin

92

31,078

28

8,253

120

39,331

 Four Points

154

23,323

66

10,995

220

34,318

 Aloft

158

22,580

22

4,283

180

26,863

 AC Hotels by Marriott

107

17,616

50

8,882

157

26,498

 Renaissance

65

18,286

30

7,671

95

25,957

 Moxy

31

5,797

94

17,676

125

23,473

 Delta Hotels by Marriott

66

14,929

14

3,266

80

18,195

 City Express by Marriott

149

17,300

149

17,300

 Tribute Portfolio

60

9,762

35

4,140

95

13,902

 The Luxury Collection

11

3,112

52

9,588

63

12,700

 Le Méridien

25

5,749

21

5,488

46

11,237

 Element

80

10,712

2

269

82

10,981

 JW Marriott

12

6,072

12

2,733

24

8,805

 Design Hotels

10

1,385

82

5,956

92

7,341

 Protea Hotels

34

2,802

34

2,802

 The Ritz-Carlton

1

429

1

429

 W Hotels

1

246

1

246

 Bulgari

2

161

2

161

 Marriott Executive Apartments

2

142

2

142

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY OWNERSHIP TYPE

As of September 30, 2023









US & Canada

Total International

Total Worldwide


Properties

Rooms

Properties

Rooms

Properties

Rooms

Owned/Leased

14

4,656

37

8,776

51

13,432

 Marriott Hotels

2

1,308

5

1,631

7

2,939

 Courtyard

7

987

4

894

11

1,881

 Sheraton

4

1,830

4

1,830

 W Hotels

2

779

2

665

4

1,444

 Westin

1

1,073

1

1,073

 Protea Hotels

5

912

5

912

 Renaissance

1

317

2

505

3

822

 The Ritz-Carlton

2

550

2

550

 JW Marriott

1

496

1

496

 The Luxury Collection

3

383

3

383

 Autograph Collection

5

361

5

361

 Residence Inn

1

192

1

140

2

332

 Tribute Portfolio

2

249

2

249

 St. Regis

1

160

1

160

Residences

67

7,166

52

5,444

119

12,610

 The Ritz-Carlton Residences

40

4,437

17

1,502

57

5,939

 St. Regis Residences

10

1,198

12

1,628

22

2,826

 W Residences

10

1,092

7

547

17

1,639

 Westin Residences

3

266

2

353

5

619

 Bulgari Residences

5

519

5

519

 Sheraton Residences

3

472

3

472

 Marriott Hotels Residences

2

246

2

246

 The Luxury Collection Residences

1

91

3

115

4

206

 EDITION Residences

3

82

3

82

 Le Méridien Residences

1

62

1

62

 Timeshare*

72

18,839

21

3,906

93

22,745

 Yacht*

1

149

1

149

Grand Total

5,999

994,230

2,676

586,772

8,675

1,581,002


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

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

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY TIER

As of September 30, 2023









US & Canada

Total International

Total Worldwide

Total Systemwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

Luxury

198

54,995

412

94,951

610

149,946

 JW Marriott

35

19,261

86

29,122

121

48,383

 The Ritz-Carlton

41

12,583

77

18,382

118

30,965

 The Ritz-Carlton Residences

40

4,437

17

1,502

57

5,939

 The Luxury Collection

17

5,408

96

17,954

113

23,362

 The Luxury Collection Residences

1

91

3

115

4

206

 W Hotels

25

7,295

44

12,018

69

19,313

 W Residences

10

1,092

7

547

17

1,639

 St. Regis

11

2,169

45

10,040

56

12,209

 St. Regis Residences

10

1,198

12

1,628

22

2,826

 EDITION

5

1,379

11

2,309

16

3,688

 EDITION Residences

3

82

3

82

 Bulgari

9

815

9

815

 Bulgari Residences

5

519

5

519

Premium

1,075

360,769

1,164

302,471

2,239

663,240

 Marriott Hotels

336

132,493

248

76,343

584

208,836

 Marriott Hotels Residences

2

246

2

246

 Sheraton

169

65,342

264

86,159

433

151,501

 Sheraton Residences

3

472

3

472

 Westin

133

54,013

110

33,524

243

87,537

 Westin Residences

3

266

2

353

5

619

 Autograph Collection

152

30,892

146

28,708

298

59,600

 Renaissance

89

28,848

87

25,721

176

54,569

 Le Méridien

26

5,849

94

25,668

120

31,517

 Le Méridien Residences

1

62

1

62

 Delta Hotels by Marriott

91

21,699

41

8,318

132

30,017

 Tribute Portfolio

60

9,762

46

5,640

106

15,402

 Gaylord Hotels

6

10,220

6

10,220

 Design Hotels

10

1,385

82

5,956

92

7,341

 Marriott Executive Apartments

38

5,301

38

5,301

Select

4,654

559,627

1,078

185,295

5,732

744,922

 Courtyard

1,062

146,619

241

48,269

1,303

194,888

 Fairfield by Marriott

1,148

109,016

130

18,967

1,278

127,983

 Residence Inn

859

105,697

40

5,113

899

110,810

 SpringHill Suites

543

64,376

543

64,376

 Four Points

155

23,457

151

34,834

306

58,291

 TownePlace Suites

497

50,550

497

50,550

 Aloft

160

23,085

68

14,379

228

37,464

 AC Hotels by Marriott

115

19,128

118

17,348

233

36,476

 Moxy

32

6,177

101

19,069

133

25,246

 City Express by Marriott

149

17,300

149

17,300

 Element

83

11,522

17

3,401

100

14,923

 Protea Hotels

63

6,615

63

6,615

 Timeshare*

72

18,839

21

3,906

93

22,745

 Yacht*

1

149

1

149

Grand Total

5,999

994,230

2,676

586,772

8,675

1,581,002


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

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

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $












Comparable Company-Operated US & Canada Properties














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



REVPAR


Occupancy


Average Daily Rate

Brand


2023

vs. 2022


2023

vs. 2022


2023

vs. 2022

JW Marriott


$188.80

5.0 %


67.6 %

2.2 %

pts.


$279.35

1.5 %

The Ritz-Carlton


$301.93

-1.4 %


64.1 %

-0.6 %

pts.


$471.29

-0.5 %

W Hotels


$218.78

5.4 %


70.9 %

5.2 %

pts.


$308.55

-2.4 %

Composite US & Canada Luxury1


$253.41

1.8 %


67.3 %

1.4 %

pts.


$376.78

-0.3 %

Marriott Hotels


$168.41

7.0 %


72.2 %

2.0 %

pts.


$233.38

4.1 %

Sheraton


$154.05

9.3 %


69.8 %

3.6 %

pts.


$220.76

3.7 %

Westin


$177.84

4.5 %


72.5 %

1.0 %

pts.


$245.18

3.0 %

Composite US & Canada Premium2


$164.92

6.3 %


71.6 %

2.0 %

pts.


$230.28

3.4 %

US & Canada Full-Service3


$184.04

4.9 %


70.7 %

1.8 %

pts.


$260.40

2.2 %

Courtyard


$111.09

2.4 %


68.0 %

-0.2 %

pts.


$163.30

2.8 %

Residence Inn


$152.08

1.6 %


78.4 %

-0.9 %

pts.


$194.02

2.8 %

Composite US & Canada Select4


$123.56

2.1 %


71.1 %

-0.4 %

pts.


$173.70

2.6 %

US & Canada – All5


$169.46

4.4 %


70.8 %

1.3 %

pts.


$239.40

2.5 %























Comparable Systemwide US & Canada Properties














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



REVPAR


Occupancy


Average Daily Rate

Brand


2023

vs. 2022


2023

vs. 2022


2023

vs. 2022

JW Marriott


$187.89

4.6 %


69.3 %

2.3 %

pts.


$271.02

1.2 %

The Ritz-Carlton


$302.23

-1.2 %


64.8 %

-0.4 %

pts.


$466.59

-0.5 %

W Hotels


$218.78

5.4 %


70.9 %

5.2 %

pts.


$308.55

-2.4 %

Composite US & Canada Luxury1


$241.80

2.0 %


68.3 %

1.5 %

pts.


$353.80

-0.2 %

Marriott Hotels


$143.32

6.4 %


70.3 %

1.9 %

pts.


$203.73

3.6 %

Sheraton


$128.05

7.7 %


68.7 %

2.2 %

pts.


$186.35

4.1 %

Westin


$159.36

6.3 %


72.2 %

3.0 %

pts.


$220.77

1.8 %

Composite US & Canada Premium2


$145.89

5.7 %


70.4 %

2.0 %

pts.


$207.28

2.7 %

US & Canada Full-Service3


$156.84

5.0 %


70.1 %

1.9 %

pts.


$223.58

2.1 %

Courtyard


$117.54

3.2 %


72.4 %

0.5 %

pts.


$162.39

2.4 %

Residence Inn


$137.78

3.3 %


79.9 %

0.1 %

pts.


$172.36

3.2 %

Fairfield by Marriott


$101.45

3.6 %


73.9 %

0.3 %

pts.


$137.25

3.2 %

Composite US & Canada Select4


$117.71

3.7 %


75.1 %

0.6 %

pts.


$156.67

2.9 %

US & Canada – All5


$133.92

4.3 %


73.1 %

1.1 %

pts.


$183.28

2.7 %























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

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

  Systemwide also includes Le Méridien and Tribute Portfolio.

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

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

  and AC Hotels by Marriott.  Systemwide also includes Moxy.

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

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $












Comparable Company-Operated US & Canada Properties














Nine Months Ended September 30, 2023 and September 30, 2022



REVPAR


Occupancy


Average Daily Rate

Brand


2023

vs. 2022


2023

vs. 2022



2023

vs. 2022

JW Marriott


$225.75

12.8 %


70.7 %

6.1 %

pts.


$319.11

3.0 %

The Ritz-Carlton


$324.94

0.6 %


65.7 %

1.5 %

pts.


$494.85

-1.7 %

W Hotels


$215.00

9.8 %


66.8 %

5.8 %

pts.


$322.06

0.3 %

Composite US & Canada Luxury1


$281.83

6.5 %


68.5 %

4.1 %

pts.


$411.56

0.2 %

Marriott Hotels


$167.88

16.9 %


70.6 %

5.7 %

pts.


$237.65

7.5 %

Sheraton


$151.65

17.5 %


68.5 %

6.8 %

pts.


$221.48

5.8 %

Westin


$172.73

12.3 %


70.1 %

4.2 %

pts.


$246.46

5.6 %

Composite US & Canada Premium2


$163.74

16.3 %


70.1 %

6.1 %

pts.


$233.64

6.1 %

US & Canada Full-Service3


$189.27

12.9 %


69.7 %

5.7 %

pts.


$271.40

3.7 %

Courtyard


$110.53

11.2 %


67.1 %

2.5 %

pts.


$164.71

7.0 %

Residence Inn


$150.54

7.5 %


77.5 %

0.8 %

pts.


$194.16

6.4 %

Composite US & Canada Select4


$123.41

9.9 %


70.4 %

2.1 %

pts.


$175.28

6.7 %

US & Canada – All5


$173.39

12.4 %


69.9 %

4.8 %

pts.


$248.07

4.7 %























Comparable Systemwide US & Canada Properties














Nine Months Ended September 30, 2023 and September 30, 2022



REVPAR


Occupancy


Average Daily Rate

Brand


2023

vs. 2022


2023

vs. 2022



2023

vs. 2022

JW Marriott


$219.51

10.4 %


71.6 %

5.4 %

pts.


$306.56

2.1 %

The Ritz-Carlton


$322.24

1.1 %


65.9 %

1.8 %

pts.


$488.79

-1.8 %

W Hotels


$215.00

9.8 %


66.8 %

5.8 %

pts.


$322.06

0.3 %

Composite US & Canada Luxury1


$266.22

6.4 %


69.2 %

4.1 %

pts.


$384.70

0.1 %

Marriott Hotels


$140.80

15.2 %


68.4 %

5.5 %

pts.


$205.83

5.9 %

Sheraton


$121.24

15.8 %


66.2 %

5.8 %

pts.


$183.26

5.6 %

Westin


$158.29

13.4 %


70.3 %

5.3 %

pts.


$225.17

4.8 %

Composite US & Canada Premium2


$143.11

14.0 %


68.4 %

5.6 %

pts.


$209.26

4.8 %

US & Canada Full-Service3


$157.17

12.5 %


68.5 %

5.4 %

pts.


$229.51

3.6 %

Courtyard


$112.28

9.9 %


70.3 %

2.8 %

pts.


$159.79

5.5 %

Residence Inn


$130.43

7.8 %


77.4 %

0.8 %

pts.


$168.47

6.6 %

Fairfield by Marriott


$93.77

8.0 %


70.7 %

2.0 %

pts.


$132.70

5.0 %

Composite US & Canada Select4


$111.60

9.1 %


72.7 %

2.2 %

pts.


$153.55

5.7 %

US & Canada – All5


$130.48

10.8 %


70.9 %

3.5 %

pts.


$183.93

5.2 %


































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.

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $












Comparable Company-Operated International Properties














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



REVPAR


Occupancy


Average Daily Rate

Region


2023

vs. 2022


2023

vs. 2022


2023

vs. 2022

Greater China


$93.41

48.6 %


72.5 %

14.5 %

pts.


$128.93

18.9 %

Asia Pacific excluding China


$116.21

35.2 %


70.7 %

9.3 %

pts.


$164.45

17.5 %

Caribbean & Latin America


$138.64

2.4 %


61.1 %

2.4 %

pts.


$226.76

-1.6 %

Europe


$226.46

10.6 %


75.5 %

3.2 %

pts.


$300.01

6.0 %

Middle East & Africa


$101.11

18.1 %


65.4 %

4.2 %

pts.


$154.50

10.5 %












International – All1


$121.93

25.8 %


70.5 %

9.0 %

pts.


$172.91

9.7 %












Worldwide2


$142.51

13.8 %


70.6 %

5.7 %

pts.


$201.76

4.6 %























Comparable Systemwide International Properties














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



REVPAR


Occupancy


Average Daily Rate

Region


2023

vs. 2022


2023

vs. 2022


2023

vs. 2022

Greater China


$87.31

47.4 %


71.3 %

14.5 %

pts.


$122.40

17.4 %

Asia Pacific excluding China


$117.73

36.4 %


70.4 %

8.6 %

pts.


$167.12

19.7 %

Caribbean & Latin America


$121.87

2.8 %


62.4 %

2.5 %

pts.


$195.43

-1.4 %

Europe


$175.50

9.8 %


74.7 %

3.2 %

pts.


$235.04

5.0 %

Middle East & Africa


$98.24

20.2 %


65.3 %

3.5 %

pts.


$150.50

13.8 %












International – All1


$120.43

21.8 %


70.1 %

7.6 %

pts.


$171.85

8.5 %












Worldwide2


$129.73

8.8 %


72.1 %

3.2 %

pts.


$179.84

4.1 %












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

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

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $












Comparable Company-Operated International Properties














Nine Months Ended September 30, 2023 and September 30, 2022



REVPAR


Occupancy


Average Daily Rate

Region


2023

vs. 2022


2023

vs. 2022


2023

vs. 2022

Greater China


$89.14

78.2 %


68.9 %

22.0 %

pts.


$129.41

21.2 %

Asia Pacific excluding China


$114.87

58.1 %


68.5 %

14.3 %

pts.


$167.63

25.2 %

Caribbean & Latin America


$165.92

17.8 %


63.4 %

4.9 %

pts.


$261.59

8.7 %

Europe


$188.49

25.0 %


70.5 %

9.0 %

pts.


$267.38

9.0 %

Middle East & Africa


$118.53

17.8 %


66.2 %

4.0 %

pts.


$178.96

10.7 %












International – All1


$119.30

42.0 %


68.2 %

14.1 %

pts.


$174.86

12.7 %












Worldwide2


$142.74

24.7 %


68.9 %

10.1 %

pts.


$207.02

6.5 %























Comparable Systemwide International Properties














Nine Months Ended September 30, 2023 and September 30, 2022



REVPAR


Occupancy


Average Daily Rate

Region


2023

vs. 2022


2023

vs. 2022


2023

vs. 2022

Greater China


$83.53

77.9 %


67.8 %

22.2 %

pts.


$123.11

19.8 %

Asia Pacific excluding China


$115.15

58.7 %


68.4 %

13.6 %

pts.


$168.42

27.1 %

Caribbean & Latin America


$141.96

18.2 %


64.4 %

5.2 %

pts.


$220.49

8.6 %

Europe


$146.12

25.8 %


68.6 %

9.8 %

pts.


$212.87

7.9 %

Middle East & Africa


$111.67

20.3 %


65.3 %

3.7 %

pts.


$171.06

13.5 %












International – All1


$115.90

38.7 %


67.4 %

12.9 %

pts.


$171.93

12.3 %












Worldwide2


$125.96

17.5 %


69.8 %

6.4 %

pts.


$180.34

6.7 %












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

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

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA

(in millions)












Fiscal Year 2023




First
Quarter


Second
Quarter


Third
Quarter


Total



Net income, as reported

$                  757


$              726


$              752


$           2,235



Cost reimbursement revenue

(4,147)


(4,457)


(4,391)


(12,995)



Reimbursed expenses

4,136


4,366


4,238


12,740



Interest expense

126


140


146


412



Interest expense from unconsolidated joint ventures 

1


1


3


5



Provision for income taxes

87


238


237


562



Depreciation and amortization

44


48


46


138



Contract investment amortization

21


22


23


66



Depreciation and amortization classified in reimbursed expenses

31


38


39


108



Depreciation, amortization, and impairments from unconsolidated joint ventures 

4


3


6


13



Stock-based compensation

37


56


54


147



Merger-related charges and other

1


38


13


52



Gain on asset dispositions



(24)


(24)



Adjusted EBITDA **

$               1,098


$           1,219


$           1,142


$           3,459













Change from 2022 Adjusted EBITDA **

45 %


20 %


16 %


25 %














Fiscal Year 2022


First
Quarter


Second
Quarter


Third
Quarter


Fourth
Quarter


Total

Net income, as reported

$                  377


$              678


$              630


$              673


$           2,358

Cost reimbursement revenue

(3,146)


(3,920)


(3,931)


(4,420)


(15,417)

Reimbursed expenses

3,179


3,827


3,786


4,349


15,141

Interest expense

93


95


100


115


403

Interest expense from unconsolidated joint ventures

1


2


2


1


6

Provision for income taxes

99


200


239


218


756

Depreciation and amortization

48


49


50


46


193

Contract investment amortization

24


19


22


24


89

Depreciation and amortization classified in reimbursed expenses

26


29


32


31


118

Depreciation, amortization, and impairments from unconsolidated joint ventures

13


3


7


4


27

Stock-based compensation

44


52


48


48


192

Merger-related charges and other

9



2


1


12

Gains on investees’ property sales

(8)


(13)


(2)



(23)

Gain on asset dispositions


(2)




(2)

Adjusted EBITDA **

$                  759


$           1,019


$              985


$           1,090


$           3,853





















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













MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

FOURTH QUARTER 2023

($ in millions)
















Range





Estimated
Fourth Quarter 2023



Fourth Quarter 2022 **


Net income excluding certain items 1

$            603


$            630




Interest expense

158


158




Interest expense from unconsolidated joint ventures

1


1




Provision for income taxes

190


198




Depreciation and amortization

47


47




Contract investment amortization

24


24




Depreciation and amortization classified in reimbursed expenses

36


36




Depreciation, amortization, and impairments from unconsolidated joint ventures

4


4




Stock-based compensation

52


52




Adjusted EBITDA **

$          1,115


$          1,150


$                                 1,090









Increase over 2022 Adjusted EBITDA **

2 %


6 %












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





and the limitations on their use.













1

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





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




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






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


and which may be significant.






MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

FULL YEAR 2023

($ in millions)
















Range





Estimated
Full Year 2023



Full Year 2022**


Net income excluding certain items 1

$          2,691


$          2,718




Interest expense

570


570




Interest expense from unconsolidated joint ventures

6


6




Provision for income taxes

696


704




Depreciation and amortization

185


185




Contract investment amortization

90


90




Depreciation and amortization classified in reimbursed expenses

144


144




Depreciation, amortization, and impairments from unconsolidated joint ventures

17


17




Stock-based compensation

199


199




Gain on asset dispositions

(24)


(24)




Adjusted EBITDA **

$          4,574


$          4,609


$                                 3,853









Increase over 2022 Adjusted EBITDA **

19 %


20 %












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





and the limitations on their use.













1

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





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





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






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




and which may be significant.






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

In our press release and schedules, and on the related conference call, we report certain financial measures that are not required by, or presented in accordance with, United States generally accepted accounting principles (GAAP). 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 and schedules 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. Adjusted operating income margin reflects Adjusted operating income divided by Adjusted total revenues. We believe that these are meaningful metrics because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.

Adjusted Net Income and Adjusted Diluted Earnings Per Share. Adjusted net income and Adjusted diluted earnings per share reflect our net income and diluted earnings per share excluding the impact of cost reimbursement revenue, reimbursed expenses, merger-related charges and other expenses, certain non-cash impairment charges, gains and losses on asset dispositions made by us or by our joint venture investees (when applicable). 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 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 for income taxes, merger-related charges and other expenses, and stock-based compensation expense for all periods presented. When applicable, Adjusted EBITDA also excludes certain non-cash impairment charges related to equity investments and gains and losses on asset dispositions made by us or by our joint venture investees.

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

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

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

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

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, application fees, relicensing fees, and certain other licensing fees.

SOURCE Marriott International, Inc.



Originally published at https://www.prnewswire.com/news-releases/marriott-international-reports-third-quarter-2023-results-301974981.html
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