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Dec 31, 2022
Marriott Q4 2022 Earnings Report
Reported strong Q4 2022 results driven by RevPAR growth and strategic cost management.
Key Takeaways
Marriott International reported a strong fourth quarter in 2022, with comparable systemwide constant dollar RevPAR increasing by 28.8% worldwide compared to Q4 2021. The company's reported diluted EPS was $2.12, and adjusted diluted EPS was $1.96. Net income totaled $673 million, and adjusted EBITDA reached $1,090 million.
Worldwide RevPAR grew 5% compared to 2019, driven by a 13% increase in ADR.
U.S. & Canada RevPAR increased 5% over the 2019 quarter, driven by further improvement in occupancy and an 11% increase in ADR.
Group demand more than fully recovered, leading to fourth quarter group revenues 10% above pre-pandemic levels.
The company added 145 properties (22,589 rooms) to its worldwide lodging portfolio.
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 anticipates continued growth, though macroeconomic concerns persist. Q1 2023 is expected to benefit from easier comparisons to Q1 2022. Full year RevPAR is projected to grow between 6% and 11% worldwide.
Positive Outlook
- Global booking trends remain robust.
- Worldwide RevPAR was up 51.6 percent year over year in January.
- Gross fee revenues are expected to be $1,045 to $1,065 million for Q1 2023.
- Adjusted EBITDA is expected to be $980 to $1,005 million for Q1 2023.
- Adjusted EPS diluted is expected to be $1.82 to $1.88 for Q1 2023.
Challenges Ahead
- Macroeconomic environment persist around the world
- Less visibility in forecasting the company’s financial performance for full year 2023
- The low end of the range reflects a meaningful softening of the global economy beginning in the second quarter
- Worldwide RevPAR roughly flat compared to 2022 in the second half of the year.
- The high end of the range reflects relatively steady global economic conditions throughout 2023, with continued resilience of travel demand across customer segments and markets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income