Marriott Q3 2022 Earnings Report
Key Takeaways
Marriott International reported strong third-quarter results, with global RevPAR more than fully recovered, rising nearly 2 percent above 2019 levels. The company's award-winning loyalty program, Marriott Bonvoy, hit 173 million members at the end of September. Bookings across all customer segments remain strong, contributing to the ongoing momentum in the business. The company expects to return more than $2.7 billion to shareholders through dividends and share repurchases for full year 2022.
Third quarter 2022 comparable systemwide constant dollar RevPAR increased 36.3 percent worldwide, 28.5 percent in the U.S. & Canada, and 66.1 percent in international markets, compared to the 2021 third quarter.
Third quarter 2022 comparable systemwide constant dollar RevPAR increased 1.8 percent worldwide and 3.5 percent in the U.S. & Canada, while RevPAR declined 2.4 percent in international markets, compared to the 2019 third quarter.
Third quarter reported diluted EPS totaled $1.94, compared to reported diluted EPS of $0.67 in the year-ago quarter. Third quarter adjusted diluted EPS totaled $1.69, compared to third quarter 2021 adjusted diluted EPS of $0.99.
Third quarter reported net income totaled $630 million, compared to reported net income of $220 million in the year-ago quarter. Third quarter adjusted net income totaled $551 million, compared to third quarter 2021 adjusted net income of $327 million.
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Marriott Revenue by Segment
Forward Guidance
Marriott International expects continued demand growth around the world in the fourth quarter and anticipates that global RevPAR could increase 2 percent to 4 percent compared to 2019. For full year 2022, the company now expects to return more than $2.7 billion to our shareholders through dividends and share repurchases.
Positive Outlook
- Comparable systemwide constant $ RevPAR Worldwide +2% to +4% (Fourth Quarter 2022vs Fourth Quarter 2019)
- Comparable systemwide constant $ RevPAR U.S. & Canada +4% to +6% (Fourth Quarter 2022vs Fourth Quarter 2019)
- Gross fee revenues $1,070 to $1,090 (Fourth Quarter 2022)
- Adjusted EBITDA $1,007 to $1,037 (Fourth Quarter 2022)
- Adjusted EPS – diluted $1.77 to $1.84 (Fourth Quarter 2022)
Challenges Ahead
- Comparable systemwide constant $ RevPAR International -2% to flat (Fourth Quarter 2022vs Fourth Quarter 2019)
- General, administrative, and other expenses $235 to $225 (Fourth Quarter 2022)
- Gross fee revenues $4,017 to $4,037 (Full Year 2022)
- Adjusted EBITDA $3,770 to $3,800 (Full Year 2022)
- Adjusted EPS – diluted $6.51 to $6.58 (Full Year 2022)
Revenue & Expenses
Visualization of income flow from segment revenue to net income