Marriott
International today unveiled its third-quarter
results for 2024, showing a solid increase in revenue per available room
(RevPAR) and continued growth in its hotel portfolio worldwide.
For Q3, Marriott
reported a three percent year-over-year increase in comparable systemwide
RevPAR globally, driven by a 5.4 percent boost in international markets as
compared to Q3 2023. In the U.S. and Canada, RevPAR rose by a more modest 2.1
percent.
Diluted earnings
per share (EPS) for the quarter was $2.07, compared to $2.51 in the third
quarter one year ago. Adjusted diluted EPS, however, reached $2.26, up from
$2.11 the previous year.
Reported net
income came in at $584 million, down from $752 million in the same period last
year. Adjusted net income, however, totaled $638 million, showing a slight
improvement from last year’s $634 million.
Adjusted earnings
before interest, taxes, depreciation and amortization (EBITDA) for Q3 2024
reached $1.23 billion, reflecting a rise from $1.14 billion in the third
quarter of 2023, signaling Marriott’s resilience in a competitive market.
In terms of its ongoing
expansion, the hospitality giant added approximately 16,000 net rooms to its
portfolio this quarter. By the quarter’s end, Marriott’s global development
pipeline included around 3,800 properties, equating to 585,000 rooms, with
34,000 of those rooms already approved but awaiting contract finalization. Over
220,000 rooms are currently under construction.
Marriott
repurchased 4.5 million shares of common stock during Q3 for a total of $1
billion. Year-to-date, the company has returned $3.9 billion to shareholders
through dividends and buybacks.
“Our business
momentum is excellent, and we continue to evolve our business to support our
numerous global growth opportunities,” Anthony Capuano, Marriott’s President
and Chief Executive Officer, said in a statement. “To that end, we have
undertaken a comprehensive initiative to enhance our effectiveness and
efficiency across the company. At this point in the process, we expect this
initiative to yield $80 million to $90 million of annual general and
administrative cost reductions beginning in 2025.”
These cuts will reportedly
involve job reductions at the corporate level, changes which are expected to be
implemented by the close of Q1 2025.
During an earnings
call, Capuano revealed that the company is looking at roughly $100 million in one-time
restructuring costs in 2024’s fourth quarter. “The company is quite different
than the last time we looked holistically at the organization,” he said. “We’ve
more than doubled in size over the last decade.”
“With meaningful
growth opportunities around the world across our more than 30 brands, we’re
confident these efforts will make us even more competitive,” Marriott’s Chief
Financial Officer, Kathleen Oberg, said.
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