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Jun 30, 2023
Marriott Q2 2023 Earnings Report
Reported strong second-quarter results, driven by increased demand for global travel and successful growth strategies.
Key Takeaways
Marriott International reported a strong second quarter in 2023, with significant increases in RevPAR worldwide and in international markets. The company's growth strategies, including the addition of new rooms and the strategic licensing agreement with MGM Resorts International, are proving successful. Marriott is raising its full-year rooms growth and earnings guidance, expecting to return $4.1 billion to $4.5 billion to shareholders in 2023.
Second quarter 2023 comparable systemwide constant dollar RevPAR increased 13.5 percent worldwide, 6.0 percent in the U.S. & Canada, and 39.1 percent in international markets, compared to the 2022 second quarter.
Second quarter reported diluted EPS totaled $2.38, compared to reported diluted EPS of $2.06 in the year-ago quarter. Second quarter adjusted diluted EPS totaled $2.26, compared to second quarter 2022 adjusted diluted EPS of $1.80.
Second quarter reported net income totaled $726 million, compared to reported net income of $678 million in the year-ago quarter. Second quarter adjusted net income totaled $690 million, compared to second quarter 2022 adjusted net income of $593 million.
Adjusted EBITDA totaled $1,219 million in the 2023 second quarter, compared to second quarter 2022 adjusted EBITDA of $1,019 million.
Revenue by Segment
Forward Guidance
The company’s updated guidance for full year 2023 reflects relatively steady global economic conditions through the remainder of 2023, with continued resilience in travel demand. RevPAR growth is expected to remain higher internationally than in the U.S. & Canada, where there has been a return to more normal seasonal patterns, and year-over-year RevPAR growth is stabilizing.
Positive Outlook
- Worldwide RevPAR growth of 6% to 8% for Q3 2023 and 12% to 14% for full year 2023.
- U.S. & Canada RevPAR growth of 2% to 4% for Q3 2023 and 7% to 9% for full year 2023.
- International RevPAR growth of 17% to 19% for Q3 2023 and 28% to 30% for full year 2023.
- Net rooms growth of 6.4% to 6.7% by year-end 2023.
- Capital return to shareholders of $4.1 billion to $4.5 billion for full year 2023.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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