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Marriott International, a prominent hotel operator, on a notable Tuesday, 13 February 2024, disclosed its adjusted fourth-quarter profit, standing at $3.57 per share. This figure differs significantly from the $2.12 per share estimated by analysts. The divergence highlights the challenges and opportunities faced by companies in the travel sector as they navigate the aftermath of pandemic-induced travel patterns.
The company has also unveiled its profit forecast for 2024, sending ripples through Wall Street. However, the company's projection fell below the expectations set by analysts, prompting a closer look at the variables influencing this outlook. Marriott anticipates a full-year profit ranging between $9.18 and $9.52 per share for 2024.
Keep reading for in-depth details of the quarterly report for the three-month period ended 31 December 2023!
- RevPAR Growth
In the fourth quarter of 2023, Marriott witnessed a remarkable 7.2% increase in comparable systemwide constant dollar RevPAR on a global scale. This growth was distributed regionally, with a 3.3% increase in the U.S. & Canada and a substantial 17.4% surge in international markets compared to the same quarter in 2022.
- Earnings per Share (EPS) and Net Income
Reported diluted EPS for the fourth quarter totaled $2.87, demonstrating an improvement from the $2.12 reported in the year-ago quarter. The adjusted diluted EPS for the same period reached an impressive $3.57, compared to $1.96 in the fourth quarter of 2022. Additionally, reported net income surged to $848 million, a considerable jump from $673 million in the year-ago quarter. Adjusted net income for Q4 2023 reached $1,055 million, a substantial increase from $622 million in Q4 2022.
- Adjusted EBITDA
The fourth quarter of 2023 saw Marriott's adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) reach $1,197 million, surpassing the $1,090 million reported in the fourth quarter of 2022. This growth underscores the company's financial resilience and operational efficiency.
- Global Room Expansion
Marriott experienced significant room expansion, adding nearly 81,300 rooms globally in 2023. Net rooms grew by an impressive 4.7% from year-end 2022, reflecting the company's commitment to global presence and market share.
- Development Pipeline
As of the end of 2023, Marriott's worldwide development pipeline comprised nearly 3,400 properties and approximately 573,000 rooms. More than 232,000 rooms in the pipeline were under construction, highlighting the company's robust development plans.
- Share Repurchases and Shareholder Returns
For the full year 2023, Marriott undertook share repurchases, totaling 21.5 million shares of common stock amounting to $3.9 billion. In the fourth quarter alone, 4.7 million shares were repurchased for $965 million. The company returned over $4.5 billion through dividends and share repurchases in 2023.
