by Lacey Pfalz
Last updated: 9:30 AM ET, Wed July 31, 2024
Marriott International, Inc.’s second quarter results reported growth in all regions of its business, except China, as well as a lower year-end revenue prediction due to slower performance in China and the United States.
RevPAR, which is a key hotel metric that measures revenue per available room, increased 4.9 percent globally from the second quarter of last year. It grew a little slower in the U.S. and Canada, at 3.9 percent, while it grew the most internationally, at 7.4 percent.
Shareholders earned about $2.69 this quarter, still up from last year, which saw a diluted EPS of $2.38. Marriott repurchased 4.1 million shares of common stock for $1 billion this quarter, and year-to-date has returned $2.8 billion to shareholders. Marriott expects to return $4.3 billion to shareholders by the end of the year.
Its second quarter reported net income is $772 million, an increase from last year’s second quarter, which was $726 million.
Despite the growth in revenue and income, Marriott has lowered its RevPAR growth range for the full year, largely in part due to a “weaker operating environment” in China, and a lessening of leisure travel in the U.S. and Canada.
Yet international markets are growing, and especially in development.
Marriott added 15,500 net rooms during its second quarter, with another 3,500 properties totaling over 559,000 rooms still in development. Fifty-seven percent of rooms in Marriott’s development pipeline are in international markets.
“Owner preference for our brands remains strong,” said Anthony Capuano, President and Chief Executive Officer of Marriott. “We signed nearly 31,000 rooms in the quarter, 75 percent of which were in international markets. Our momentum around conversions continued, accounting for 37 percent of room additions in the quarter. We continue to expand our industry leading global portfolio, and our expectation for net rooms growth remains at 5.5 to 6 percent for full year 2024.”
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
