Marriott International (MAR) 4th Annual Morgan Stanley Travel & Leisure Conference summary

Leadership and financial strategy

• Newly appointed CFO brings over three decades of experience across finance, risk management, technology, and strategy roles, emphasizing continuity in financial discipline and capital allocation for long-term growth.

• Focus remains on investing in areas that deliver sustainable shareholder value and maintaining a disciplined approach to capital deployment.

Demand environment and outlook

• April RevPAR grew just over 1% year-over-year, with U.S. and Canada up over 4% and international RevPAR down 6% due to Middle East weakness.

• Summer bookings in the U.S. and Canada are pacing up, with Europe showing stable demand and rate increases; U.S. outbound travel to Europe is slightly down but offset by growth from Canada and China.

• Leisure and group segments remain strong, with group RevPAR up over 5% in Q1; Middle East remains a key swing factor, expected to impact full-year RevPAR by 100-125 basis points.

• Full-year global RevPAR is projected at 2%-3%, with slightly lower growth expected in the second half of the year.

Development and growth strategy

• Development pitch leverages unmatched scale, loyalty platform, and strong distribution channels, with a focus on technology and AI to drive premium results.

• Net rooms growth projected at 4.5%-5% for the year, with mid-single digit growth expected thereafter.

• International markets, especially Asia-Pacific and Greater China, are key growth drivers, with more than half of the 618,000-room pipeline outside the U.S. and Canada.

• Growth is supported by a strong developer network, allowing expansion without significant increases in G&A.