Marriott Worldwide reported full-year 2023 and This autumn 2023 monetary outcomes. Highlights embrace:
- Fourth quarter 2023 comparable systemwide fixed greenback RevPAR elevated 7.2 % worldwide, 3.3 % in the USA and Canada, and 17.4 % in worldwide markets, in comparison with the 2022 fourth quarter;
- Fourth quarter reported diluted EPS totaled $2.87, in comparison with reported diluted EPS of $2.12 within the year-ago quarter. Fourth quarter adjusted diluted EPS totaled $3.57, in comparison with fourth quarter 2022 adjusted diluted EPS of $1.96;
- Fourth quarter reported internet earnings totaled $848 million, in comparison with reported internet earnings of $673 million within the year-ago quarter. Fourth quarter adjusted internet earnings totaled $1,055 million, in comparison with fourth quarter 2022 adjusted internet earnings of $622 million;
- Adjusted EBITDA totaled $1,197 million within the 2023 fourth quarter, in comparison with fourth quarter 2022 adjusted EBITDA of $1,090 million;
- The corporate added practically 81,300 rooms globally throughout 2023, together with roughly 17,500 rooms related to the Metropolis Specific transaction and greater than 43,000 different rooms in worldwide markets. Web rooms grew 4.7 % from year-end 2022;
- On the finish of the yr, Marriott’s worldwide improvement pipeline totaled practically 3,400 properties and roughly 573,000 rooms, together with over 21,000 pipeline rooms authorized, however not but topic to signed contracts. Greater than 232,000 rooms within the pipeline have been below development as of the top of 2023;
- For full-year 2023, Marriott repurchased 21.5 million shares of frequent inventory for $3.9 billion, together with 4.7 million shares for $965 million within the fourth quarter. The corporate returned over $4.5 billion to shareholders by dividends and share repurchases in 2023.
Anthony Capuano, president and CEO, mentioned, “Our workforce delivered glorious ends in 2023, as demand for our industry-leading portfolio of properties and choices world wide continued to develop. Full-year world RevPAR rose 15 %, internet rooms grew 4.7 %, and our fee-driven, asset-light enterprise mannequin generated document ranges of money.
“Within the fourth quarter, worldwide RevPAR rose 7 %. Worldwide RevPAR grew 17 %, with specific energy in Asia Pacific and Europe.
“In the USA and Canada, fourth quarter RevPAR rose over 3 %. Group income at our inns elevated 7 % in comparison with the 2022 fourth quarter, pushed by stable fee will increase. Whereas already considerably above 2019 ranges, lodge leisure income rose once more, up 2 %. Enterprise transient income at our inns grew 3 % from the year-ago quarter, with demand from giant company prospects persevering with to make positive factors.
“Our improvement workforce had a stellar 2023, signing a document 164,000 natural rooms globally, together with 37,000 rooms from our take care of MGM Resorts Worldwide, and our improvement pipeline reached a brand new excessive of roughly 573,000 rooms at yr finish. In the course of the yr, we added practically 81,300 rooms to our distribution, with one in 4 natural rooms from conversions.
“The ability of our unparalleled Marriott Bonvoy loyalty program continues to extend, with 196 million members at yr finish. We’ve continued to leverage our world portfolio and have expanded our co-brand bank card choices, with 31 playing cards now throughout 11 nations. In 2023, world card spend elevated a outstanding 11 % over the prior yr.
“In 2024, we count on one other yr of stable development and vital shareholder returns. With normalizing RevPAR development world wide, we anticipate a worldwide full-year RevPAR improve of three to five % and internet rooms development of 5.5 to six %. We count on this could yield adjusted EBITDA of roughly $4.9 billion to $5.0 billion for the yr and allow us to return $4.1 billion to $4.3 billion to shareholders after factoring in $500 million to buy the Sheraton Grand Chicago.”
Fourth Quarter 2023 Outcomes
Base administration and franchise charges totaled $1,026 million within the 2023 fourth quarter, a 9 % improve in comparison with base administration and franchise charges of $945 million within the year-ago quarter. The rise is primarily attributable to RevPAR will increase and unit development. Non-RevPAR-related franchise charges within the 2023 fourth quarter totaled $220 million, in comparison with $215 million within the year-ago quarter. The rise was largely pushed by larger co-brand bank card charges.
Incentive administration charges totaled $218 million within the 2023 fourth quarter, a 17 % improve in comparison with $186 million within the 2022 fourth quarter. Managed inns in worldwide markets contributed two-thirds of the motivation charges earned within the quarter.
Owned, leased, and different income, internet of direct bills, totaled $151 million within the 2023 fourth quarter, in comparison with $101 million within the year-ago quarter. Leads to the 2023 quarter included a $63 million ($47 million after-tax and $0.16 per share) termination price associated to a improvement venture.
Normal, administrative, and different bills for the 2023 fourth quarter totaled $330 million, in comparison with $236 million within the year-ago quarter. The year-over-year change displays a $27 million ($20 million after-tax and $0.07 per share) litigation reserve associated to a global lodge, in addition to larger performance-related compensation bills, skilled charges, and dangerous debt reserves.
Curiosity expense, internet, totaled $144 million within the 2023 fourth quarter, in comparison with $107 million within the year-ago quarter. The rise was largely because of larger curiosity expense related to larger debt balances.
Within the 2023 fourth quarter, the supply for earnings taxes totaled a $267 million profit, in comparison with a $218 million expense within the 2022 fourth quarter. The favorable year-over-year change is primarily because of worldwide mental property restructuring transactions accomplished within the quarter leading to $228 million ($0.77 per share) of advantages and a $223 million ($0.75 per share) favorable affect from the discharge of a tax valuation allowance.
Marriott’s reported working earnings totaled $718 million within the 2023 fourth quarter, in comparison with 2022 fourth quarter reported working earnings of $996 million. Reported internet earnings totaled $848 million within the 2023 fourth quarter, a 26 % improve in comparison with 2022 fourth quarter reported internet earnings of $673 million. Reported diluted earnings per share (EPS) totaled $2.87 within the quarter, in comparison with reported diluted EPS of $2.12 within the year-ago quarter.
Adjusted working earnings within the 2023 fourth quarter totaled $992 million, in comparison with 2022 fourth quarter adjusted working earnings of $926 million. Fourth quarter 2023 adjusted internet earnings totaled $1,055 million, in comparison with 2022 fourth quarter adjusted internet earnings of $622 million. Adjusted diluted EPS within the 2023 fourth quarter totaled $3.57, in comparison with adjusted diluted EPS of $1.96 within the year-ago quarter.
Adjusted outcomes excluded price reimbursement income, reimbursed bills and merger-related costs, and different bills.
Adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) totaled $1,197 million within the 2023 fourth quarter, a ten % improve in comparison with fourth quarter 2022 adjusted EBITDA of $1,090 million.
Chosen Efficiency Info
Marriott added 558 properties (81,281 rooms) to its worldwide portfolio throughout 2023, together with roughly 17,500 rooms related to the Metropolis Specific transaction and greater than 43,000 different rooms in worldwide markets. Sixty-three properties (9,430 rooms) exited the system in the course of the yr. On the finish of the yr, Marriott’s world system totaled practically 8,800 properties, with greater than 1,597,000 rooms.
On the finish of the yr, the corporate’s worldwide improvement pipeline totaled 3,379 properties with roughly 573,000 rooms, together with 126 properties with over 21,000 rooms authorized for improvement, however not but topic to signed contracts. The year-end pipeline included 1,066 properties with greater than 232,000 rooms below development, or 41 %, together with roughly 37,000 rooms from the MGM deal.
Within the 2023 fourth quarter, worldwide RevPAR elevated 7.2 % (a 7.6 % improve utilizing precise {dollars}) in comparison with the 2022 fourth quarter. RevPAR in the USA and Canada elevated 3.3 % (a 3.3 % improve utilizing precise {dollars}), and RevPAR in worldwide markets elevated 17.4 % (an 18.7 % improve utilizing precise {dollars}).
Stability Sheet & Frequent Inventory
At year-end 2023, Marriott’s complete debt was $11.9 billion and money and equivalents totaled $0.3 billion, in comparison with $10.1 billion in debt and $0.5 billion of money and equivalents at year-end 2022.
The corporate repurchased 4.7 million shares of frequent inventory within the 2023 fourth quarter for $965 million. For full-year 2023, Marriott repurchased 21.5 million shares for $3.9 billion. Yr to this point by Feb. 9, the corporate has repurchased 1.3 million shares for $300 million.
