by Lacey Pfalz
Last updated: 9:26 AM ET, Tue February 14, 2023
Marriott International, Inc. has seen its economic outlook continue to improve over 2022, as seen in its latest fourth quarter and year-end report, signaling once again a slow yet steady rise above the pre-pandemic average.
In comparison with the last quarter of 2021, RevPAR, or revenue per available room, grew 28.8 percent worldwide - international markets grew 45.1 percent, while the U.S. and Canada grew 23.6 percent.
While that same growth is smaller when compared with the fourth quarter of 2019, RevPAR did exceed the pre-pandemic level across the different markets, with the largest growth seen across the U.S. and Canada, at 5.2 percent.
"In our largest region, the U.S. & Canada, RevPAR increased 5 percent over the 2019 quarter, driven by further improvement in occupancy and an 11 percent increase in ADR (average daily rate). Leisure demand remained robust and group demand more than fully recovered, leading to fourth quarter group revenues 10 percent above pre-pandemic levels," said Anthony Capuano, CEO of Marriott International, Inc.
"Business transient demand was at nearly 90 percent recovery in the quarter, while ADR was 3 percent above 2019. Our successful negotiation of high single-digit special corporate rate increases for 2023 bodes well for continued price strength," he continued.
Earnings also follow suit. While net operating income in the same quarter in 2021 was $635 million, that number has now grown to $996 million. Additionally, adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, was $1.09 billion at the end of the year, compared to 2021's $741 million.
All of this growth economically is partially due to Marriott's addition of 65,000 rooms across 2022, for a total of 145 new properties. This expanded its net rooms by 3.1 percent, with the majority being in international markets.
The trend of expansion will continue into 2023; the company currently has over 3,000 properties in development. Marriott currently boasts nearly 8,300 properties worldwide.
"As we look ahead, while concerns about the macroeconomic environment persist around the world, booking trends to date remain robust and we have significant momentum in our business," continued Capuano. "With our industry-leading brand portfolio, powerful loyalty program, the largest global rooms distribution, and our incredibly dedicated associates, Marriott is well-positioned for strong growth over the coming years as people around the world further embrace their love for travel."
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