Marriott International (MAR) Q4 2024 earnings summary

Executive summary

• Achieved strong 2024 results with 6.8% net rooms growth and over 4% global RevPAR increase year-over-year.

• Fourth quarter worldwide RevPAR rose 5%, with ADR up 3% and occupancy up over one percentage point; U.S. & Canada RevPAR up 4.1%, international up 7.2%.

• All regions exceeded prior RevPAR expectations, with notable strength in APAC and EMEA; leisure segment led growth.

• Expanded portfolio to over 1.7 million rooms and 577,000 pipeline rooms, with conversions and record new deals driving growth.

• Returned over $4.4 billion to shareholders through dividends and share repurchases in 2024.

Financial highlights

• Q4 total gross fee revenues grew 7% to $1.3 billion, driven by higher RevPAR, room additions, and a 13% increase in credit card fees.

• Q4 adjusted EBITDA was $1.29 billion, up 7% year-over-year; full-year gross fees and Adjusted EBITDA both increased 7%.

• Q4 reported net income was $455 million; adjusted net income was $686 million.

• Full year 2024 reported diluted EPS was $8.33; adjusted diluted EPS was $9.33.

• G&A expenses declined 12% year-over-year in Q4, aided by lower bad debt and litigation costs.

Outlook and guidance

• 2025 net rooms growth expected at 4%-5%; global RevPAR growth projected at 2%-4%.

• Full-year gross fees anticipated to rise 4%-6% to $5.4-$5.5 billion; Adjusted EBITDA expected to increase 6%-9% to $5.3-$5.4 billion.

• Adjusted diluted EPS guidance for 2025 is $9.82-$10.19, with an effective tax rate of ~26%.

• Capital return to shareholders in 2025 expected to be approximately $4 billion.

• $1B-$1.1B investment spending planned for 2025, with a third each for technology, owned/leased portfolio, and contract investments.