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Dec 31, 2019
Marriott Q4 2019 Earnings Report
Reported solid results driven by rooms growth and RevPAR index gains.
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.
Marriott
Marriott
Marriott Revenue by Segment
Revenue by Segment
Mgmt & Franchise Fees Revenue
CapyFin.comIncentive Mgmt Fees Revenue
CapyFin.comOwned/Leased/Other Revenue
CapyFin.com 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