Marriott International (MAR 0.18%), a global leader in hospitality, reported its first-quarter results on May 1, providing insights into its performance. While adjusted diluted EPS of $2.13 fell short of the $2.16 analysts had anticipated, the company's revenue of $5.98 billion surpassed the forecast of $5.95 billion. This quarter demonstrates Marriott's solid revenue-generating capability and marks a period of recovery, especially in international markets.
| Metric | Q1 2024 Actual | Estimate | Q1 2023 Actual | % Change(YOY) |
|---|---|---|---|---|
| Adjusted EPS | $2.13 | $2.16 | $2.09 | 1.9% |
| Revenue | $5.98 billion | $5.95 billion | $5.62 billion | 6.4% |
Marriott International at a glance
Marriott operates a vast and diverse portfolio of hotels and lodging facilities worldwide and is known for its innovation and attention to customer service. From luxury brands like The Ritz-Carlton to select-service brands like Aloft and Moxy hotels to extended-stay properties like TownePlace Suites and Residence Inns, Marriott caters to a broad range of consumer needs. The company's asset-light strategy, focusing on franchising and management contracts, has propelled its global expansion, making it a dominant player in the hospitality industry.
Success for Marriott hinges on continued innovation, global expansion, and leveraging its extensive brand portfolio. The Marriott Bonvoy loyalty program is a cornerstone of its strategy, driving customer retention and engagement. The 5-year-old program has 203 million members.
Quarterly highlights
This quarter saw Marriott pushing ahead and notching increases in revenue per available room (RevPAR). Worldwide RevPAR increased 4.2%. While the metric in the U.S. and Canada was up just 1.5%, international markets saw an 11.1% jump.
Marriott's expansion continued, with 46,000 new rooms added, reflecting its aggressive growth in the lodging sector. The company ended the quarter with roughly 1.6 million rooms. The company's development pipeline remains strong, underpinning future growth prospects.
On the financial front, Marriott returned significant capital to shareholders through dividends and share repurchases, highlighting its confident outlook and financial health. Adjusted EBITDA (up 4%) and revenue growth (6.4%) underscore the company's efficient operations and strong market position.
Looking forward
Looking ahead, Marriott's management team projects continued growth, with a positive outlook for RevPAR and net room additions. The focus remains on expanding its global footprint while enhancing digital engagement through the Marriott Bonvoy app, aimed at streamlining the customer experience and fostering loyalty.
Investors will want to closely monitor Marriott's progress on key initiatives, including further development pipeline expansion and leveraging technology to drive efficiency and customer satisfaction.
