Marriott International, Inc. MAR reported fourth-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year, while the bottom line declined from the prior-year quarter.
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Marriott posted strong results in 2024, driven by steady global travel demand and strategic portfolio expansion. Full-year global RevPAR rose 4.3%, supported by record gross room additions of more than 123,000 and a 6.8% increase in net rooms.
The company’s development momentum remained strong, with the company signing a record number of new deals and its development pipeline reaching 577,000 rooms. Conversions accounted for more than one-third of signings and over half of room additions.
Marriott strengthened its midscale segment with the launch of 28 Four Points Flex hotels in EMEA and APEC and introduced City Express by Marriott in the U.S. & Canada. It expanded into outdoor lodging through partnerships with Postcard Cabins and Trailborn. Given a vast global footprint, a loyalty program comprising nearly 228 million Marriott Bonvoy members, and an asset-light model, the company remains well-positioned to capitalize on travel demand and drive growth in the upcoming periods.
MAR’s Q4 Earnings & Revenue Discussion
Marriott International, Inc. Price, Consensus and EPS Surprise
Marriott International, Inc. price-consensus-eps-surprise-chart | Marriott International, Inc. Quote
Marriott’s adjusted earnings per share (EPS) of $2.45 beat the Zacks Consensus Estimate of $2.38. It reported adjusted earnings of $3.57 per share in the prior-year quarter.
Quarterly revenues of $6.42 billion beat the consensus mark of $6.39 billion. The top line moved up 5% on a year-over-year basis.
Revenues from Base management and Franchise fees were $333 million and $795 million, up 4% and 13% year over year, respectively. Increased RevPAR, residential and co-branded credit card fees and unit growth backed this uptick. We estimated the metrics to be $334.8 million and $779.1 million, respectively.
Incentive management fees were $206 million, reflecting a fall of 6% from $218 million reported in the prior-year quarter. We projected the metric to be $195.5 million.
RevPAR & Margins
RevPAR for worldwide comparable system-wide properties rose 5% (in constant dollars) year over year. The upside was backed by a 3.2% increase in average daily rate (“ADR”) and a 1.2% increase in occupancy, year over year.
Comparable system-wide RevPAR in the Asia Pacific (excluding China) increased 12.5% (in constant dollars) year over year. Occupancy moved up 2.3% year over year, while ADR rose 9.1% from the 2023 level. Comparable system-wide RevPAR in Greater China declined 1.7% year over year.
On a constant-dollar basis, international comparable system-wide RevPAR increased 7.2% year over year. Occupancy and ADR gained 2% and 4.2% year over year, respectively. Comparable system-wide RevPAR in Europe gained 7.2% year over year. RevPAR in the Caribbean & Latin America and Middle East & Africa rose 7.3% and 9.7%, respectively, from 2023 levels.
Total expenses increased 5.6% year over year to $5.68 billion, owing to a rise in reimbursed expenses. Our estimate was pegged at $5.4 billion.
Adjusted EBITDA amounted to $1.29 billion, compared with $1.2 billion reported in the prior-year quarter. We predicted the metric to be $1.25 billion.
Balance Sheet
At the fourth-quarter end, Marriott's total debt totaled $14.4 billion, compared with $13.6 reported in the prior quarter. Cash and cash equivalents, as of Dec. 31, 2024, were $0.4 billion compared with $0.3 billion as of 2023-end.
Year to date (through Feb. 7, 2025), the company repurchased 1.2 million shares worth $350 million.
Unit Developments
At the end of the fourth quarter, Marriott's worldwide development pipeline totaled 3,766 hotels. As of the quarter's end, about 1,381 properties with more than 229,000 rooms were under construction.
MAR’s 2024 Highlights
Total revenues in 2024 came in at $25.1 billion compared with $23.7 billion in 2023.
Adjusted EBITDA in 2024 came in at $4.98 billion compared with $4.7 billion in 2023.
In 2024, adjusted diluted EPS came in at $9.33 compared with $9.99 reported in the previous year.
Marriott’s Q1 & 2025 Outlook
For the first quarter, management anticipates gross fee revenues in the range of $1.24-$1.26 billion. Adjusted EBITDA is expected to be between $1.17 billion and $1.2 billion. MAR estimates first-quarter EPS to be between $2.2 and $2.26.
The company projects worldwide system-wide RevPAR to increase 2-4% year over year in 2025.
For 2025, Marriott reduced its gross fee revenue expectations to $5.37-$5.48 billion. General and administrative expenses are now projected in the range of $965-$985 million.
Adjusted EBITDA is expected to be between $5.3 billion and $5.43 billion. The company now envisions 2025 EPS in the band of $9.82-$10.19.
MAR’s Zacks Rank
Marriott currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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