“Marriott achieved excellent results in 2024, as we delivered best-in-class experiences that helped drive strong demand for our industry-leading portfolio of brands,” said Anthony Capuano, president/CEO, Marriott. “Full-year global RevPAR rose 4.3% and, with record gross room additions of more than 123,000, net rooms grew 6.8% to more than 1.7 million rooms worldwide at year-end.
He added, “In the fourth quarter, worldwide RevPAR rose 5%, driven by gains in both ADR and occupancy. International RevPAR increased by more than 7%, with APEC and EMEA leading the way and benefiting from strong leisure demand. RevPAR in the U.S. & Canada rose more than 4%, the region’s highest RevPAR increase of the year, with all customer segments growing versus the prior-year quarter.”
Q4 and FY2024 highlights include:
- Q4 reported diluted EPS totaled $1.63 and adjusted diluted EPS totaled $2.45
- Q4 reported net income totaled $455 million and adjusted net income totaled $686 million
- Q4 adjusted EBITDA totaled $1.286 million
- With record gross room additions of more than 123,000 in 2024, net rooms grew 6.8% from year-end 2023
- At the end of the year, Marriott’s worldwide development pipeline totaled nearly 3,800 properties and more than 577,000 rooms
- The company returned more than $4.4 billion to shareholders through dividends and share repurchases in 2024
“2024 was a terrific year for our development team,” said Capuano. “The company signed a record number of new deals, and our industry-leading development pipeline reached more than 577,000 rooms at the end of the year. For the full year, conversions represented more than one-third of our rooms signings and more than half of our room additions.
He added, “We continued to enhance our portfolio to deliver new travel experiences to our guests around the world. We advanced our presence in the midscale segment with the opening of 28 Four Points Flex hotels across EMEA and APEC and the debut of the City Express by Marriott brand in the U.S. & Canada. We also strengthened our non-traditional offerings with founding deals in the outdoor lodging segment with key players Postcard Cabins and Trailborn.
Q4 2024 results
Base management and franchise fees totaled $1.128 million in Q4, a 10% increase compared to base management and franchise fees of $1.026 million in the year-ago quarter. The increase is primarily attributable to RevPAR increases and unit growth, as well as higher residential and co-branded credit card fees.
Incentive management fees totaled $206 million in Q4, compared to $218 million in Q4 2023, with growth in APEC offset by declines in U.S. & Canada and Greater China.
Owned, leased and other revenue, net of direct expenses, totaled $100 million in Q4, compared to $151 million in Q4 2023. The decrease was primarily driven by a $63 million termination fee related to a development project in the year-ago quarter.
General, administrative and other expenses for Q4 totaled $289 million, compared to $330 million in the year-ago quarter. The year-over-year decline largely reflects lower administrative, bad debt and litigation expenses.
Interest expense, net, totaled $170 million in Q4, compared to $144 million in the year-ago quarter. The increase was largely due to higher interest expense associated with higher debt balances.
In Q4, the provision for income taxes totaled a $143 million expense compared to a $267 million benefit in the 2023 fourth quarter. The unfavorable year-over-year change is primarily due to Q4 2023 international intellectual property transactions resulting in $228 million of benefits and a $223 million release of a tax valuation allowance in the year-ago quarter.
Marriott’s reported operating income totaled $752 million in Q4, compared to Q4 2023 reported operating income of $718 million. Reported net income totaled $455 million, compared to Q4 2023 reported net income of $848 million.
Adjusted operating income in Q4 totaled $1.072 million, compared to Q4 2023 adjusted operating income of $992 million. Q4 adjusted net income totaled $686 million, compared to Q4 2023 adjusted net income of $1.055 million. Adjusted diluted EPS in Q4 totaled $2.45, compared to adjusted diluted EPS of $3.57 in the year-ago quarter.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $1.286 million in Q4, a 7% increase compared to Q4 2023 adjusted EBITDA of $1.197 million.
Selected performance information
Net rooms grew 6.8% from year-end 2023, as the company added roughly 109,000 net rooms globally during 2024, including more than 45,000 net rooms in international markets. At the end of the year, Marriott’s global system totaled more than 9,300 properties, with roughly 1.706 million rooms.
At the end of the year, the company’s worldwide development pipeline totaled 3,766 properties with more than 577,000 rooms, including 175 properties with roughly 29,000 rooms approved for development, but not yet subject to signed contracts. The year-end pipeline included 1,381 properties with more than 229,000 rooms under construction, including hotels that are in the process of converting to our system. More than half (55% of rooms in the year-end pipeline are in international markets.
In Q4. worldwide RevPAR increased 5% (a 5% increase using actual dollars) compared to the year-ago period. RevPAR in the U.S. & Canada increased 4.1% (a 4% increase using actual dollars), and RevPAR in international markets increased 7.2% (a 7.1% increase using actual dollars).
Company outlook
The company’s forecast for Q1 and full-year 2025 includes:
- Worldwide RevPAR growth between 3% and 4% in Q1 and 2% and 4% for the year
- Net rooms growth between 4% and 5% for the year
- Adjusted EBITDA between $1.170 and $1.196 for Q1 and $5.295 and $5.435 for the year
“Looking ahead, I am incredibly optimistic about Marriott’s future,” said Capuano. “With our unparalleled global rooms distribution and brand portfolio, leading loyalty program with nearly 228 million Marriott Bonvoy members and our dedicated associates, I believe Marriott is well-positioned to take advantage of the continued momentum in travel. With our powerful, cash-generating asset-light business model, we look forward to delivering strong, valuable growth as we continue to connect people around the world through the power of travel.”
Tags: Anthony Capuano, Marriott International Inc, Quarterly Results, year-end results
