Marriott says that its net income in Q4 2023 reached USD 848 million
Luxury hotels operator Marriott International says its Revenue Per Available Room rose globally by 7.2 pc in the fourth quarter of last year, with RevPAR rising the fastest in international markets, at 17.4 pc in Q4 2023 as compared to Q4 2022.
In a press statement, Marriott International says that its earnings per share also rose sharply by almost 30 pc to reach USD 2.87. Marriott says that its net income in Q4 2023 reached USD 848 million, compared to reported net income of USD 673 million in the year-ago quarter.
It adds that the fourth quarter adjusted net income totaled USD 1,055 million, compared to fourth quarter 2022 adjusted net income of USD 622 million.
The company says it added nearly 81,300 rooms globally during 2023, including approximately 17,500 rooms associated with the City Express transaction and more than 43,000 other rooms in international markets. Marriott International says that the net rooms grew 4.7 pc from year-end 2022.
It adds that at the end of the year 2023, its worldwide development pipeline totalled nearly 3,400 properties and roughly 573,000 rooms, including over 21,000 pipeline rooms approved, but not yet subject to signed contracts. More than 232,000 rooms in the pipeline were under construction as of the end of 2023.
Anthony Capuano
“Our team delivered excellent results in 2023, as demand for our industry leading portfolio of properties and offerings around the world continued to grow. Full year global RevPAR rose 15 pc, net rooms grew 4.7 pc, and our fee-driven, asset-light business model generated record levels of cash. In the fourth quarter, worldwide RevPAR rose 7 pc. International RevPAR grew 17 pc, with particular strength in Asia Pacific and Europe,’’ says Anthony Capuano, President and Chief Executive Officer.
“In the U.S. & Canada, fourth quarter RevPAR rose over 3 pc. Group revenue at our hotels increased 7 pc compared to the 2022 fourth quarter, driven by solid rate increases. While already significantly above 2019 levels, hotel leisure revenue rose again, up 2 pc. Business transient revenue at our hotels grew 3 pc from the year-ago quarter, with demand from large corporate customers continuing to make gains,’’ adds Capuano.
“Our development team had a stellar 2023, signing a record 164,000 organic rooms globally, including 37,000 rooms from our deal with MGM Resorts International, and our development pipeline reached a new high of roughly 573,000 rooms at year end. During the year, we added nearly 81,300 rooms to our distribution, with one in four organic rooms from conversions,’’ he adds.
“The power of our unparallelled Marriott Bonvoy loyalty programme continues to increase, with 196 million members at year end. We have continued to leverage our global portfolio and have expanded our co-brand credit card offerings, with 31 cards now across 11 countries. In 2023, global card spend increased a remarkable 11 percent over the prior year. In 2024, we expect another year of solid growth and significant shareholder returns. With normalising RevPAR growth around the world, we anticipate a worldwide full year RevPAR increase of 3 to 5 pc and net rooms growth of 5.5 to 6 pc. We expect this should yield adjusted EBITDA of approximately USD 4.9 billion to USD 5 billion for the year and enable us to return USD 4.1 billion to USD 4.3 billion to shareholders after factoring in USD 500 million to purchase the Sheraton Grand Chicago,” says Capuano.
