Marriott International (MAR) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong global travel demand, with net rooms up 6% year-over-year and RevPAR rising 4.9% worldwide, led by international markets, especially APEC and EMEA.

• System reached 8,969 properties (1,658,659 rooms) at Q2 end, with 61,300 net rooms added in H1, including 37,000 from MGM Resorts.

• Loyalty program membership exceeded 210 million, with record-high member penetration and new collaborations such as Starbucks.

• Group, leisure, and business transient segments all posted year-over-year RevPAR gains, with group RevPAR up 10% globally.

• Owner preference for the brands remains strong, with 75% of new signings in international markets and conversions accounting for 37% of room additions.

Financial highlights

• Q2 2024 revenues were $6.44 billion, up from $6.08 billion in Q2 2023; adjusted EBITDA grew 9% to $1.32 billion.

• Net income for Q2 2024 was $772 million, up from $726 million; diluted EPS was $2.69, adjusted EPS $2.50.

• Gross fee revenues increased 7% year-over-year to $1.34 billion; base management and franchise fees grew 9% to $1,148 million.

• Co-branded credit card fees up 10%; residential branding fees significantly higher.

• Incentive management fees totaled $195 million, with strong growth in APEC and EMEA, but declines in Greater China.

Outlook and guidance

• Full-year 2024 global RevPAR growth expected at 3%-4%, with international markets outperforming U.S. and Canada.

• Net rooms growth for 2024 expected at 5.5%-6%.

• Gross fees for 2024 projected to rise 6%-7% to $5.1-$5.2 billion; adjusted EBITDA expected to increase 6%-8% to $4.95-$5.015 billion.

• Full-year adjusted EPS guidance narrowed to $9.23-$9.40.

• Capital return to shareholders projected at approximately $4.3 billion for 2024.