by Donald Wood
Last updated: 9:46 AM ET, Tue August 2, 2022
Marriott International Inc. announced it had beaten Wall Street expectations for the second quarter of 2022 when it reported $678 million of net income.
The hotel giant reported an operating income of $950 million in the second quarter, compared to the reported operating income of $486 million in 2021. Adjusted operating income totaled $857 million, compared to the adjusted operating income of $406 million last year.
Second quarter adjusted net income totaled $593 million, up from the $260 million earned in the same quarter of 2021. The adjusted results excluded $11 million after-tax gains on investees' property sales and a $2 million after-tax gain on an asset disposition.
Base management and franchise fees totaled $938 million, compared to base management and franchise fees of $587 million in the year-ago quarter. Incentive management fees totaled $135 million in the second quarter.
"Marriott's second quarter results highlight consumers' love for travel," Marriott CEO Anthony Capuano said. "We reported outstanding results, as momentum in global lodging recovery continued."
General, administrative and other expenses totaled $231 million, compared to $187 million in 2021. Equity in earnings/losses for the second quarter totaled $15 million of earnings, compared to an $8 million loss last year.
Worldwide RevPAR increased 70.6 percent, while RevPAR in the U.S. & Canada increased 66.1 percent and RevPAR in international markets increased 87.8 percent.
"With demand increasing across all customer segments throughout the quarter, and nearly all countries easing travel restrictions, worldwide RevPAR1 surpassed 2019 levels in June," Capuano continued. "Second quarter average daily rate was robust, at seven percent above 2019 levels, and worldwide occupancy reached 68 percent."
During the second quarter, the company added 97 properties (16,917 rooms) to its worldwide lodging portfolio, including nearly 4,400 rooms converted from competitor brands and approximately 9,200 rooms in international markets. Marriott's global lodging system now totals more than 8,100 properties, with over 1.5 million rooms.
The company's worldwide development pipeline totaled 2,942 properties with more than 495,000 rooms at the end of the second quarter, including 1,014 properties with approximately 203,300 rooms.
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