Marriott International (MAR) Q2 2024 earnings summary

Executive summary

• Q2 2024 delivered strong results with global RevPAR up 4.9% year-over-year and net rooms growth of 6%, reaching 8,969 properties and 1,658,659 rooms at quarter-end.

• All U.S. and Canada chain scales posted positive RevPAR growth; international RevPAR rose 7.4%, led by APEC and EMEA.

• Group, leisure transient, and business transient segments all saw increases in both room nights and ADR.

• Marriott Bonvoy membership surpassed 210 million, with record-high member penetration and new collaborations such as Starbucks driving engagement.

• Development pipeline reached over 3,500 hotels and 559,000 rooms, with more than half outside the U.S. & Canada.

Financial highlights

• Q2 2024 revenues were $6.44 billion, up from $6.08 billion; net income was $772 million, up from $726 million; adjusted EBITDA grew 9% to $1.32 billion.

• Gross fee revenues rose 7% to $1.34 billion, with base management and franchise fees up 9% to $1.15 billion.

• Co-branded credit card fees increased 10%; residential branding fees and non-RevPAR franchise fees also rose.

• Adjusted EPS increased 11% to $2.50; reported diluted EPS was $2.69.

• Operating income for Q2 was $1,195 million, up from $1,096 million.

Outlook and guidance

• Full-year 2024 RevPAR growth expected at 3%-4% worldwide, with international markets outpacing U.S. & Canada.

• Net rooms growth forecast at 5.5%-6%; full-year gross fees projected at $5.1-$5.2 billion.

• Adjusted EBITDA guidance is $4.95-$5.015 billion; adjusted EPS guidance is $9.23-$9.40.

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

• Guidance narrowed due to weaker demand in Greater China and softer U.S. & Canada expectations.