Marriott Q4 2019 Earnings Report
Key Takeaways
Marriott International reported solid fourth quarter 2019 results, with adjusted diluted EPS of $1.57, a 9% increase compared to the year-ago quarter. The company's worldwide development pipeline totaled approximately 515,000 rooms at year-end.
Fourth quarter adjusted diluted EPS totaled $1.57, compared to fourth quarter 2018 adjusted diluted EPS of $1.44.
Fourth quarter 2019 comparable systemwide constant dollar RevPAR rose 1.1 percent worldwide.
Worldwide comparable systemwide RevPAR index grew 240 basis points in the fourth quarter.
Adjusted EBITDA totaled $901 million in the 2019 fourth quarter, a 4 percent increase compared to fourth quarter 2018 adjusted EBITDA.
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Marriott Revenue by Segment
Forward Guidance
Marriott provided a base case outlook for full year 2020, assuming comparable systemwide RevPAR on a constant dollar basis will be flat to up 2 percent worldwide.
Positive Outlook
- First quarter 2020 gross fee revenues will total $940 million to $950 million, a 5 to 6 percent
- First quarter 2020 adjusted EBITDA could total $853 million to $867 million, a 4 to 6 percent increase over first quarter 2019 adjusted EBITDA of $821 million.
- Full year 2020 gross fee revenues will total $3,960 million to $4,040 million, a 4 to 6 percent increase over 2019 gross fee revenues of $3,823 million
- Full year 2020 diluted EPS could total $6.30 to $6.53.
- Full year 2020 adjusted EBITDA could total $3,700 million to $3,800 million, a 3 to 6 percent increase over 2019 adjusted EBITDA of $3,575 million.
Challenges Ahead
- The base case outlook for first quarter and full year 2020 does not reflect any impact from the Coronavirus outbreak.
- First quarter 2020 incentive management fees will decrease slightly compared to first quarter 2019 incentive management fees of $163 million.
- Full year 2020 estimated gross fee revenues include roughly $10 million of unfavorable foreign exchange.
- Room additions for the current year could also be delayed as a result of the Coronavirus outbreak.
- Marriott cannot fully estimate the financial impact from the virus, which could be material to first quarter and full year 2020 results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income