Marriott International Reports Second Quarter 2024 Results With its expanded operations, robust revenue growth, and good financial performance across worldwide markets, Marriott International has released its Q2 2024 results. By Priyal Dutta 01 Aug 2024 in Hotels New Update Due to consumers' persistent preference for travel, Marriott posted impressive second-quarter performance, with net rooms up 6% year over year and worldwide RevPAR increase of approximately 5% Listen to this article 0.75x 1x 1.5x 00:00 / 00:00 Follow Us Share A Look at the Q2 2024 Results Marriott International, Inc. announced its financial performance for the second quarter of 2024. Anthony Capuano, President and CEO, Marriott International President and Chief Executive Officer Anthony Capuano said, “Marriott reported strong second-quarter results, with net rooms up 6 per cent year over year and worldwide RevPAR growth of nearly 5 percent, as consumers prioritised travel. International RevPAR increased more than 7 percent, with Asia Pacific excluding China leading the way, posting an impressive 13 percent RevPAR increase from the year-ago quarter. In June, Marriott announced a strategic collaboration with Starbucks “In the U.S. and Canada, second-quarter RevPAR grew nearly 4 percent, with all customer segments growing compared to the prior-year quarter. Group RevPAR rose almost 10 percent yearly, with both rate and occupancy increasing in the mid-single digits. At the end of the quarter, the company had 3,509 properties with over 559,000 rooms, including 1,127 properties with more than 209,000 rooms under construction “With a membership base of over 210 million members and growing, Marriott Bonvoy is a critical competitive advantage. We remain focused on enhancing the loyalty program’s benefits and finding new ways to engage with our members on and off-property. In June, we announced a collaboration with Starbucks. The number of members who have linked their accounts already exceeds our expectations. In the quarter, Marriott added about 15,500 net rooms, increasing its global portfolio to nearly 9,000 properties and approximately 1,659,000 rooms “Owner preference for our brands remains strong. We signed nearly 31,000 rooms in the quarter, 75 percent in international markets. Our momentum around conversions continued, accounting for 37 percent of room additions in the quarter. We continue to expand our industry-leading global portfolio, and our expectation for net room growth remains at 5.5 to 6 percent for 2024. The International Revenue Per Available Room (RevPAR) increased by more than 7 percent “With solid financial results and strong cash generation, we have already returned $2.8 billion to shareholders year-to-date through July 29. We expect to return approximately $4.3 billion to our shareholders in 2024 through share repurchases and dividends.” Second Quarter 2024 Financial Results Marriott International reported its second quarter 2024 financial results, highlighting a 9% growth in base management and franchise fees, which reached $1,148 million, compared to $1,057 million in the same quarter of the previous year. This increase was primarily driven by growth in RevPAR (Revenue Per Available Room) and unit expansion. Additionally, non-RevPAR-related franchise fees totalled $234 million for the quarter, up from $206 million a year earlier, mainly due to a 10% rise in co-branded credit card fees and an additional $13 million from higher residential branding fees. Incentive management fees for Q2 2024 amounted to $195 million, slightly up from $193 million in Q2 2023, despite challenges in Greater China and unfavourable foreign exchange rates. Notably, over 60% of these fees were generated from managed hotels in international markets. After accounting for direct expenses, revenue from owned, leased, and other operations was $99 million for the second quarter of 2024, compared to $103 million in the same period last year. General, administrative, and other expenses totalled $248 million in Q2 2024, compared to $240 million in the previous year. Net interest expenses increased to $164 million from $141 million, driven by higher debt levels. Marriott’s reported operating income for the second quarter of 2024 was $1,195 million, compared to $1,096 million in Q2 2023. The company’s reported net income for Q2 2024 was $772 million, up from $726 million in the same quarter last year. Reported diluted earnings per share (EPS) rose to $2.69 from $2.38. On an adjusted basis, Marriott’s Q2 2024 operating income was $1,120 million, compared to $1,043 million in Q2 2023. Adjusted net income for the quarter was $716 million, compared to $690 million in the previous year, with adjusted diluted EPS of $2.50, up from $2.26. Adjusted results exclude cost reimbursement revenue, reimbursed expenses, and merger-related charges. Adjusted EBITDA for Q2 2024 was $1,324 million, compared to $1,219 million in Q2 2023. All client segments saw growth in the second quarter of RevPAR in the United States and Canada when compared to the same period last year, with growth of about 4% Performance and Development During the quarter, Marriott added approximately 15,500 net rooms, bringing its global portfolio to nearly 9,000 properties and roughly 1,659,000 rooms. At the end of the quarter, the company's development pipeline included 3,509 properties with more than 559,000 rooms, of which 1,127 properties with over 209,000 rooms were under construction. Approximately 57% of these rooms are in international markets. Worldwide RevPAR for Q2 2024 increased by 4.9% year-over-year (4.0% in actual dollars). In the U.S. & Canada, RevPAR grew by 3.9%, while international markets saw a 7.4% increase (4.2% in actual dollars). #Marriott #Marriott International #hotel Subscribe to our Newsletter! Be the first to get exclusive offers and the latest news Subscribe Now Related Articles Latest Stories Read the Next Article