Maryland-based luxury hotel franchise Marriott International has released its third-quarter 2024 financial results, reporting drop in its operating income as well as net income.

According to a press statement by Marriott, which manages nearly 1.7 million rooms across 9,100 properties worldwide, its operating income totalling USD 944 million, compared to USD 1.099 billion in Q3 2023, a drop of over 14 pc year-on-year. The hospitality firm says its net income for the quarter was USD 584 million, a sharper fall of over 22 pc down from USD 752 million in the same period last year.

Marriott says that its adjusted operating income rose to USD 1.017 billion, with adjusted net income at USD 638 million. Adjusted EBITDA reached USD 1.229 billion, marking an increase from USD 1.142 billion in Q3 2023.

Marriott claims that it has recorded a 3 pc year-over-year increase in global revenue per available room (RevPAR), led by significant growth in international markets.

Marriott says its development pipeline and the strength of its diversified portfolio position it for continued growth, with expected net room growth of around 6.5 pc by year-end. 

Anthony Capuano

“Marriott had another solid quarter, highlighted by strong net rooms and fee growth, robust development activity and a 3 pc increase in global  RevPAR. Third quarter international RevPAR rose 5.4 pc, led by meaningful gains in APEC and EMEA with resilient domestic and cross-border demand, as well as solid ADR growth. RevPAR in the US and Canada increased more than 2 pc compared to the year-ago quarter, with ADR up 2.3 pc,” says Anthony Capuano, President and Chief Executive Officer.

Marriott says its RevPAR in international regions rose by 5.4 pc, with the Asia-Pacific (APEC) and Europe, Middle East, and Africa (EMEA) regions showing particularly strong performance. 

Marriott says its global pipeline of new developments also reached record levels, with nearly 585,000 rooms across 3,800 properties in various stages of construction or approval. 

More than 95,000 rooms were signed in the first three quarters of 2024 alone and over 40 pc of these rooms are conversions, driven by multi-unit agreements and Marriott’s appeal to owners seeking to rebrand existing hotels under its umbrella.

Operational Initiatives and Cost Reductions

To enhance operational efficiency and profitability, Marriott has undertaken a comprehensive initiative aimed at cutting general and administrative costs by USD 80 million to USD 90 million annually starting in 2025. This initiative is also anticipated to reduce costs for Marriott’s owners and franchisees.