Marriott Q1 2024 Earnings Report
Key Takeaways
Marriott International reported its Q1 2024 results, which included a 4.2% increase in worldwide RevPAR and the addition of approximately 46,000 net rooms, including 37,000 rooms from its agreement with MGM Resorts International. The company's adjusted diluted EPS was $2.13, and it repurchased 4.8 million shares for $1.2 billion during the quarter. Marriott is raising its full year earnings guidance and expects to return between $4.2 billion to $4.4 billion to shareholders in 2024.
Worldwide RevPAR increased by 4.2%, with international markets showing particularly strong growth at 11.1%.
Adjusted diluted EPS reached $2.13, compared to $2.09 in the first quarter of 2023.
Approximately 46,000 net rooms were added, including roughly 37,000 rooms from the MGM Resorts International agreement.
The company expects to return between $4.2 billion to $4.4 billion to shareholders in 2024.
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Marriott Revenue by Segment
Forward Guidance
Marriott provided guidance for the second quarter and full year of 2024, including expectations for RevPAR growth and adjusted EPS.
Positive Outlook
- Comparable systemwide constant dollar RevPAR growth of 4% to 5% worldwide for the second quarter and 3% to 5% for the full year.
- Gross fee revenues are expected to be between $1,340 million and $1,355 million for the second quarter, and between $5,180 million and $5,280 million for the full year.
- Adjusted EBITDA is projected to be between $1,295 million and $1,315 million for the second quarter, and between $4,960 million and $5,090 million for the full year.
- Adjusted EPS – diluted is expected to be between $2.43 and $2.48 for the second quarter, and between $9.31 and $9.65 for the full year.
- Net rooms growth is projected at 5.5% to 6% for the year.
Challenges Ahead
- General, administrative, and other expenses are expected to be between $258 million and $253 million for the second quarter, and between $1,040 million and $1,020 million for the full year.
- Investment spending is projected to be between $1,000 million and $1,200 million for the full year.
- Guidance excludes cost reimbursement revenue, reimbursed expenses, merger-related charges and other expenses, or any asset sales that may occur during the year.
- Assumes the level of capital return to shareholders noted above.
- Assumes the level of investment spending noted above and that no asset sales occur during the year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income