Marriott Q2 2021 Earnings Report
Key Takeaways
Marriott International reported a strong second quarter in 2021, with significant improvements in RevPAR, net income, and adjusted EBITDA compared to the previous year. The company benefited from the ongoing recovery in lodging demand and strategic initiatives to engage with loyal customers.
Worldwide RevPAR increased by 262.6% compared to Q2 2020.
Reported net income was $422 million, a significant turnaround from the $234 million net loss in Q2 2020.
Adjusted EBITDA reached $558 million, compared to $61 million in the previous year.
The company added nearly 25,000 rooms globally, including approximately 13,000 rooms in international markets.
Marriott
Marriott
Marriott Revenue by Segment
Forward Guidance
Marriott anticipates the upward trajectory of the global recovery will continue, with business transient and group demand expected to increase in the fall. They expect gross rooms growth will accelerate to approximately 6 percent, with net rooms growth now expected to be towards the top end of the 3 to 3.5 percent range.
Positive Outlook
- Continued recovery in global lodging demand.
- Increase in business travel as workers return to offices.
- Strong growth in rooms signings and openings.
- Success of Marriott Bonvoy program with increasing membership.
- Positive impact from co-brand credit card fees and partnerships.
Challenges Ahead
- Uncertainties associated with COVID-19, including the Delta variant.
- Potential impact on travel demand due to government restrictions.
- Economic uncertainty in key global markets.
- Competitive conditions in the lodging industry.
- Potential adverse effects from data security incidents.
Revenue & Expenses
Visualization of income flow from segment revenue to net income