MARRIOTT INTERNATIONAL REPORTS OUTSTANDING SECOND QUARTER 2022 RESULTS AND RESUMES SHARE REPURCHASES
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PR Newswire
BETHESDA, Md., Aug. 2, 2022
- Second quarter 2022 comparable systemwide constant dollar RevPAR increased 70.6 percent worldwide, 66.1 percent in the U.S. & Canada, and 87.8 percent in international markets, compared to the 2021 second quarter;
- Second quarter 2022 comparable systemwide constant dollar RevPAR declined 2.9 percent worldwide and 14.1 percent in international markets, while RevPAR increased 1.3 percent in the U.S. & Canada, compared to the 2019 second quarter;
- Second quarter reported diluted EPS totaled $2.06, compared to reported diluted EPS of $1.28 in the year-ago quarter. Second quarter adjusted diluted EPS totaled $1.80, compared to second quarter 2021 adjusted diluted EPS of $0.79;
- Second quarter reported net income totaled $678 million, compared to reported net income of $422 million in the year-ago quarter. Second quarter adjusted net income totaled $593 million, compared to second quarter 2021 adjusted net income of $260 million;
- Adjusted EBITDA totaled $1,019 million in the 2022 second quarter, compared to second quarter 2021 adjusted EBITDA of $558 million;
- The company added roughly 17,000 rooms globally during the second quarter, including approximately 9,200 rooms in international markets and nearly 4,400 conversion rooms;
- At quarter end, Marriott's worldwide development pipeline totaled nearly 2,950 properties and more than 495,000 rooms, including roughly 27,400 rooms approved, but not yet subject to signed contracts. Approximately 203,300 rooms in the pipeline were under construction as of the end of the 2022 second quarter;
- Marriott resumed share repurchases in the second quarter, repurchasing 1.9 million shares of the company's common stock for $300 million. Year-to-date through July 29, the company has repurchased 2.9 million shares for $448 million.
BETHESDA, Md., Aug. 2, 2022 /PRNewswire/ -- Marriott International, Inc. (NASDAQ: MAR) today reported second quarter 2022 results.
Anthony Capuano, Chief Executive Officer, said, "Marriott's second quarter results highlight consumers' love for travel. We reported outstanding results, as momentum in global lodging recovery continued. With demand increasing across all customer segments throughout the quarter, and nearly all countries easing travel restrictions, worldwide RevPAR1 surpassed 2019 levels in June. Second quarter average daily rate was robust, at 7 percent above 2019 levels, and worldwide occupancy reached 68 percent.
"In the U.S. & Canada, June RevPAR increased 3 percent compared to 2019. Among customer segments, group RevPAR saw the most meaningful acceleration in the second quarter, down just 1 percent to 2019 in June, compared to down nearly 30 percent in the first quarter. We have not seen signs of leisure travel abating, with leisure roomnights in the region more than 15 percent higher than second quarter 2019, and ADR meaningfully outpacing pre-pandemic levels. Europe also experienced notably strong RevPAR recovery, in large part due to the return of international visitors, with June RevPAR exceeding 2019.
"Marriott Bonvoy hit 169 million members by quarter's end. As our loyal guests get back on the road, penetration in the U.S. stood at 59 percent in the second quarter, topping 2019. Members are increasingly engaging with us during and outside of hotel stays. Second quarter co-brand credit card fees increased nearly 40 percent year over year, driven by continued strength in global cardholder acquisitions and cardholder spend, both of which achieved record levels in the quarter.
"On the development front, signing activity has accelerated in 2022, setting a second quarter record. We signed 23,000 rooms around the world in the second quarter, nearly 30 percent of which were conversions from competitor brands. Conversions continue to be a meaningful growth driver, comprising roughly 25 percent of room additions in the quarter.
"I am proud of the remarkable work our team has accomplished since the beginning of the pandemic. This has been the most challenging period in our company's history, but the resiliency of our associates and our business model have never been more evident. With our robust cash flow and profits, we resumed share repurchases during the second quarter, in addition to paying a cash dividend. Looking ahead, we are optimistic about our financial outlook and strong cash generation and expect to return more than $2.2 billion to shareholders through dividends and share repurchases in 2022."
Second Quarter 2022 Results
Marriott's reported operating income totaled $950 million in the 2022 second quarter, compared to 2021 second quarter reported operating income of $486 million. Reported net income totaled $678 million in the 2022 second quarter, compared to 2021 second quarter reported net income of $422 million. Reported diluted earnings per share (EPS) totaled $2.06 in the quarter, compared to reported diluted EPS of $1.28 in the year-ago quarter.
Adjusted operating income in the 2022 second quarter totaled $857 million, compared to 2021 second quarter adjusted operating income of $406 million.
Second quarter 2022 adjusted net income totaled $593 million, compared to 2021 second quarter adjusted net income of $260 million. Adjusted diluted EPS in the 2022 second quarter totaled $1.80, compared to adjusted diluted EPS of $0.79 in the year-ago quarter. The 2022 second quarter adjusted results excluded $11 million after-tax ($0.03 per share) of gains on investees' property sales and a $2 million after-tax ($0.01 per share) gain on an asset disposition. The 2021 second quarter adjusted results excluded special tax items of $98 million ($0.30 per share).
Adjusted results also excluded cost reimbursement revenue, reimbursed expenses and restructuring, merger-related charges, and other expenses. See pages A-3 and A-12 for the calculation of adjusted results and the manner in which the adjusted measures are determined in this press release.
Base management and franchise fees totaled $938 million in the 2022 second quarter, compared to base management and franchise fees of $587 million in the year-ago quarter. The year-over-year increase in these fees is primarily attributable to RevPAR increases due to the ongoing recovery in lodging demand, as well as unit growth. Other non-RevPAR related franchise fees in the 2022 second quarter totaled $204 million, compared to $160 million in the year-ago quarter, aided by $40 million of higher credit card branding fees.
Incentive management fees totaled $135 million in the 2022 second quarter, compared to $55 million in the 2021 second quarter. More than one half of the incentive management fees recognized in the quarter were earned at hotels in the U.S. & Canada.
Owned, leased, and other revenue, net of direct expenses, totaled $83 million in the 2022 second quarter, compared to $19 million in the year-ago quarter. The $64 million increase in revenue net of expenses year over year largely reflects the ongoing recovery in lodging demand.
General, administrative, and other expenses for the 2022 second quarter totaled $231 million, compared to $187 million in the year-ago quarter. The year-over-year increase primarily reflects higher incentive compensation.
Interest expense, net, totaled $89 million in the second quarter compared to $102 million in the year-ago quarter. The decrease is largely due to lower interest expense associated with lower debt balances.
Equity in earnings/losses for the second quarter totaled $15 million of earnings, compared to an $8 million loss in the year-ago quarter. The improvement largely reflects $13 million of gains on joint ventures' sales of hotels and improved results at joint venture properties due to the ongoing recovery in lodging demand.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $1,019 million in the 2022 second quarter, compared to second quarter 2021 adjusted EBITDA of $558 million. See page A-12 for the adjusted EBITDA calculation.
Selected Performance Information
The company added 97 properties (16,917 rooms) to its worldwide lodging portfolio during the 2022 second quarter, including nearly 4,400 rooms converted from competitor brands and approximately 9,200 rooms in international markets. Twenty-five properties (3,661 rooms) exited the system during the quarter. At quarter end, Marriott's global lodging system totaled more than 8,100 properties, with over 1,500,000 rooms.
At quarter end, the company's worldwide development pipeline totaled 2,942 properties with more than 495,000 rooms, including 1,014 properties with approximately 203,300 rooms, or 41 percent of the pipeline, under construction and 197 properties with roughly 27,400 rooms approved for development, but not yet subject to signed contracts.
In the 2022 second quarter, worldwide RevPAR increased 70.6 percent (a 69.1 percent increase using actual dollars) compared to the 2021 second quarter. RevPAR in the U.S. & Canada increased 66.1 percent (a 66.0 percent increase using actual dollars), and RevPAR in international markets increased 87.8 percent (an 80.4 percent increase using actual dollars).
Balance Sheet
At quarter end, Marriott's net debt was $8.3 billion, representing total debt of $8.8 billion less cash and cash equivalents of $0.5 billion. At year-end 2021, the company's net debt was $8.7 billion, representing total debt of $10.1 billion less cash and cash equivalents of $1.4 billion.
Marriott Common Stock
The company repurchased 1.9 million shares of common stock in the 2022 second quarter for $300 million at an average price of $157.38 per share. Year-to-date through July 29, the company has repurchased 2.9 million shares for $448 million at an average price of $152.99 per share.
2022 Outlook
Third Quarter 2022 vs Third Quarter 2019 | Full Year 2022 | ||
Comparable systemwide constant $ RevPAR | |||
Worldwide | flat to +3% | -6% to -3% | |
U.S. & Canada | +1% to +4% | -3% to flat | |
International | -3% to flat | -13% to -10% | |
Year-End 2022 | |||
Gross Rooms Growth | Approaching 5% | ||
Deletions1 | 1.5% to 2% | ||
Net rooms growth | 3% to 3.5% | ||
($ in millions, except EPS) | Third Quarter 2022 | Full Year 2022 | |
Gross fee revenues | $1,010 to $1,050 | $3,930 to $4,030 | |
Owned, leased, and other revenue, net of | Approx. $60 | Approx. $285 | |
General, administrative, and other expenses2 | $235 to $230 | $900 to $890 | |
Adjusted EBITDA3,4 | $927 to $972 | $3,682 to $3,792 | |
Adjusted EPS - diluted4,5 | $1.59 to $1.69 | $6.33 to $6.59 | |
Investment spending6 | $600 to $650 | ||
Capital return to shareholders7 | More than $2,200 | ||
1The increase in expected deletions compared to the company's prior expectation is due to the company's suspension of its operations in Russia. |
2 The change in expected expense compared to the company's prior expectation primarily reflects an increase in incentive compensation. |
3 See pages A-13 & A-14 for the adjusted EBITDA calculation. |
4 Adjusted EBITDA and Adjusted EPS – diluted for third quarter and full year 2022 do not include cost reimbursement revenue, reimbursed expenses, or restructuring, merger-related charges, and other expenses, which the company cannot accurately forecast, and which may be significant, and do not reflect any asset sales that may occur during the remainder of the year. Adjusted EPS – diluted for full year 2022 excludes impairments, gains on investees' property sales, and gains on asset dispositions reported in the first half of 2022. See page A-3 for the Adjusted EPS – diluted calculation for the first half of 2022. |
5 Assumes the level of capital return to shareholders noted above. |
6 Investment spending includes capital and technology expenditures, loan advances, contract acquisition costs, and other investing activities. The decline in expected investment spending compared to the company's prior expectation reflects lower maintenance capital spending. |
7 Assumes the level of investment spending noted above and no asset sales that may occur during the remainder of the year. |
Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings review for the investment community and news media on Tuesday, August 2, 2022, at 8:30 a.m. Eastern Time (ET). The conference call will be webcast simultaneously via Marriott's investor relations website at http://www.marriott.com/investor, click on "Events & Presentations" and click on the quarterly conference call link. A replay will be available at that same website until August 2, 2023.
The telephone dial-in number for the conference call is US Toll Free: 800-891-3968, or Global: +1 785-424-1675. The conference ID is MAR2Q22. A telephone replay of the conference call will be available from 1:00 p.m. ET, Tuesday, August 2, 2022, until 8:00 p.m. ET, Tuesday, August 9, 2022. To access the replay, call US Toll Free: 800-753-8831 or Global: +1 402-220-0687.
Note on forward-looking statements: All statements in this press release and the accompanying schedules are made as of August 2, 2022. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. This press release and the accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including statements related to the possible effects on our business of the COVID-19 pandemic (COVID-19); our RevPAR, rooms growth and other financial metric estimates, outlook and assumptions; travel and lodging demand trends and expectations; occupancy, ADR and RevPAR recovery trends and expectations; future performance of the company's hotels; our development pipeline, signings, rooms growth, deletions and conversions; our investment spending and capital return expectations; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including the risk factors that we identify in our Securities and Exchange Commission filings, including our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release.
Marriott International, Inc. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of more than 8,100 properties under 30 leading brands spanning 139 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company offers Marriott Bonvoy®, its highly-awarded travel program. For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com. In addition, connect with us on Facebook and @MarriottIntl on Twitter and Instagram.
Marriott encourages investors, the media, and others interested in the company to review and subscribe to the information Marriott posts on its investor relations website at www.marriott.com/investor or Marriott's news center website at www.marriottnewscenter.com, which may be material. The contents of these websites are not incorporated by reference into this press release or any report or document Marriott files with the SEC, and any references to the websites are intended to be inactive textual references only.
1 All occupancy, Average Daily Rate (ADR) and RevPAR statistics and estimates are systemwide constant dollar and include hotels that have been temporarily closed due to COVID-19. Unless otherwise stated, all changes refer to year-over-year changes for the comparable period. Occupancy, ADR and RevPAR comparisons between 2022 and 2021 reflect properties that are comparable in both years. Occupancy, ADR and RevPAR comparisons between 2022 and 2019 reflect properties that are defined as comparable as of June 30, 2022, even if they were not open and operating for the full year 2019 or they did not meet all the other criteria for comparable in 2019. Unless otherwise stated, all comparison to pre-pandemic or 2019 are comparing to the same time period each year. | |||
IRPR#1
Tables follow
MARRIOTT INTERNATIONAL, INC. | ||
PRESS RELEASE SCHEDULES | ||
TABLE OF CONTENTS | ||
QUARTER 2, 2022 | ||
Consolidated Statements of Income - As Reported | A-1 | |
Non-GAAP Financial Measures | A-3 | |
Total Lodging Products | A-4 | |
Key Lodging Statistics | A-7 | |
Adjusted EBITDA | A-12 | |
Adjusted EBITDA Forecast - Third Quarter 2022 | A-13 | |
Adjusted EBITDA Forecast - Full Year 2022 | A-14 | |
Explanation of Non-GAAP Financial and Performance Measures | A-15 | |
MARRIOTT INTERNATIONAL, INC. | |||||||
CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED | |||||||
SECOND QUARTER 2022 AND 2021 | |||||||
(in millions except per share amounts, unaudited) | |||||||
As Reported | As Reported | Percent | |||||
Three Months Ended | Three Months Ended | Better/(Worse) | |||||
June 30, 2022 | June 30, 2021 |
| |||||
REVENUES | |||||||
Base management fees | $ 269 | $ 156 | 72 | ||||
Franchise fees 1 | 669 | 431 | 55 | ||||
Incentive management fees | 135 | 55 | 145 | ||||
Gross Fee Revenues | 1,073 | 642 | 67 | ||||
Contract investment amortization 2 | (19) | (18) | (6) | ||||
Net Fee Revenues | 1,054 | 624 | 69 | ||||
Owned, leased, and other revenue 3 | 364 | 187 | 95 | ||||
Cost reimbursement revenue 4 | 3,920 | 2,338 | 68 | ||||
Total Revenues | 5,338 | 3,149 | 70 | ||||
OPERATING COSTS AND EXPENSES | |||||||
Owned, leased, and other - direct 5 | 281 | 168 | (67) | ||||
Depreciation, amortization, and other 6 | 49 | 50 | 2 | ||||
General, administrative, and other 7 | 231 | 187 | (24) | ||||
Restructuring, merger-related charges, and other | - | 3 | 100 | ||||
Reimbursed expenses 4 | 3,827 | 2,255 | (70) | ||||
Total Expenses | 4,388 | 2,663 | (65) | ||||
OPERATING INCOME | 950 | 486 | 95 | ||||
Gains and other income, net 8 | 2 | 5 | (60) | ||||
Interest expense | (95) | (109) | 13 | ||||
Interest income | 6 | 7 | (14) | ||||
Equity in earnings (losses) 9 | 15 | (8) | 288 | ||||
INCOME BEFORE INCOME TAXES | 878 | 381 | 130 | ||||
(Provision) benefit for income taxes | (200) | 41 | (588) | ||||
NET INCOME | $ 678 | $ 422 | 61 | ||||
EARNINGS PER SHARE | |||||||
Earnings per share - basic | $ 2.06 | $ 1.29 | 60 | ||||
Earnings per share - diluted | $ 2.06 | $ 1.28 | 61 | ||||
Basic Shares | 328.2 | 327.1 | |||||
Diluted Shares | 329.5 | 329.1 | |||||
1 | Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, and | ||||||
residential branding fees. | |||||||
2 | Contract investment amortization includes amortization of capitalized costs to obtain contracts with our owner and franchisee customers, and any related | ||||||
impairments, accelerations, or write-offs. | |||||||
3 | Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue. | ||||||
4 | Cost reimbursement revenue includes reimbursements from properties for property-level and centralized programs and services that we operate for the benefit of | ||||||
our hotel owners. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services. | |||||||
5 | Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses. | ||||||
6 | Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of capitalized costs incurred to acquire management, franchise, | ||||||
and license agreements, and any related impairments, accelerations, or write-offs. | |||||||
7 | General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses. | ||||||
8 | Gains and other income, net includes gains and losses on the sale of real estate, the sale of joint venture interests and other investments, and adjustments from | ||||||
other equity investments. | |||||||
9 | Equity in earnings (losses) include our equity in earnings or losses of unconsolidated equity method investments. | ||||||
MARRIOTT INTERNATIONAL, INC. | |||||||
CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED | |||||||
SECOND QUARTER YEAR-TO-DATE 2022 AND 2021 | |||||||
(in millions except per share amounts, unaudited) | |||||||
As Reported | As Reported | Percent | |||||
Six Months Ended | Six Months Ended | Better/(Worse) | |||||
June 30, 2022 | June 30, 2021 | Reported 2022 vs. 2021 | |||||
REVENUES | |||||||
Base management fees | $ 482 | $ 262 | 84 | ||||
Franchise fees 1 | 1,169 | 737 | 59 | ||||
Incentive management fees | 237 | 88 | 169 | ||||
Gross Fee Revenues | 1,888 | 1,087 | 74 | ||||
Contract investment amortization 2 | (43) | (35) | (23) | ||||
Net Fee Revenues | 1,845 | 1,052 | 75 | ||||
Owned, leased, and other revenue 3 | 626 | 295 | 112 | ||||
Cost reimbursement revenue 4 | 7,066 | 4,118 | 72 | ||||
Total Revenues | 9,537 | 5,465 | 75 | ||||
OPERATING COSTS AND EXPENSES | |||||||
Owned, leased, and other - direct 5 | 478 | 303 | (58) | ||||
Depreciation, amortization, and other 6 | 97 | 102 | 5 | ||||
General, administrative, and other 7 | 439 | 398 | (10) | ||||
Restructuring, merger-related charges, and other | 9 | 4 | (125) | ||||
Reimbursed expenses 4 | 7,006 | 4,088 | (71) | ||||
Total Expenses | 8,029 | 4,895 | (64) | ||||
OPERATING INCOME | 1,508 | 570 | 165 | ||||
Gains and other income, net 8 | 6 | 6 | - | ||||
Interest expense | (188) | (216) | 13 | ||||
Interest income | 11 | 14 | (21) | ||||
Equity in earnings (losses) 9 | 17 | (20) | 185 | ||||
INCOME BEFORE INCOME TAXES | 1,354 | 354 | 282 | ||||
(Provision) benefit for income taxes | (299) | 57 | (625) | ||||
NET INCOME | $ 1,055 | $ 411 | 157 | ||||
EARNINGS PER SHARE | |||||||
Earnings per share - basic | $ 3.21 | $ 1.26 | 155 | ||||
Earnings per share - diluted | $ 3.20 | $ 1.25 | 156 | ||||
Basic Shares | 328.3 | 326.9 | |||||
Diluted Shares | 329.8 | 329.0 | |||||
1 | Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, and | ||||||
residential branding fees. | |||||||
2 | Contract investment amortization includes amortization of capitalized costs to obtain contracts with our owner and franchisee customers, and any related | ||||||
impairments, accelerations, or write-offs. | |||||||
3 | Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue. | ||||||
4 | Cost reimbursement revenue includes reimbursements from properties for property-level and centralized programs and services that we operate for the benefit of | ||||||
our hotel owners. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services. | |||||||
5 | Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses. | ||||||
6 | Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of capitalized costs incurred to acquire management, franchise, | ||||||
and license agreements, and any related impairments, accelerations, or write-offs. | |||||||
7 | General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses. | ||||||
8 | Gains and other income, net includes gains and losses on the sale of real estate, the sale of joint venture interests and other investments, and adjustments from | ||||||
other equity investments. | |||||||
9 | Equity in earnings (losses) include our equity in earnings or losses of unconsolidated equity method investments. | ||||||
MARRIOTT INTERNATIONAL, INC. | |||||||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||||||
($ in millions except per share amounts) | |||||||||||||
The following table presents our reconciliations of Adjusted operating income, Adjusted operating income margin, Adjusted net income, and Adjusted diluted earnings per share, to the | |||||||||||||
most directly comparable GAAP measure. Adjusted total revenues is used in the determination of Adjusted operating income margin. | |||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||
Percent | Percent | ||||||||||||
June 30, | June 30, | Better/ | June 30, | June 30, | Better/ | ||||||||
2022 | 2021 | (Worse) | 2022 | 2021 | (Worse) | ||||||||
Total revenues, as reported | $ 5,338 | $ 3,149 | $ 9,537 | $ 5,465 | |||||||||
Less: Cost reimbursement revenue | (3,920) | (2,338) | (7,066) | (4,118) | |||||||||
Add: Impairments 1 | - | - | 5 | ||||||||||
Adjusted total revenues ** | 1,418 | 811 | 2,476 | 1,347 | |||||||||
Operating income, as reported | 950 | 486 | 1,508 | 570 | |||||||||
Less: Cost reimbursement revenue | (3,920) | (2,338) | (7,066) | (4,118) | |||||||||
Add: Reimbursed expenses | 3,827 | 2,255 | 7,006 | 4,088 | |||||||||
Add: Restructuring, merger-related charges, and other | - | 3 | 9 | 4 | |||||||||
Add: Impairments 1 | - | - | 5 | ||||||||||
Adjusted operating income ** | 857 | 406 | 111 % | 1,462 | 544 | 169 % | |||||||
Operating income margin | 18 % | 15 % | 16 % | 10 % | |||||||||
Adjusted operating income margin ** | 60 % | 50 % | 59 % | 40 % | |||||||||
Net income, as reported | 678 | 422 | 1,055 | 411 | |||||||||
Less: Cost reimbursement revenue | (3,920) | (2,338) | (7,066) | (4,118) | |||||||||
Add: Reimbursed expenses | 3,827 | 2,255 | 7,006 | 4,088 | |||||||||
Add: Restructuring, merger-related charges, and other | - | 3 | 9 | 4 | |||||||||
Add: Impairments 2 | - | - | 11 | 4 | |||||||||
Less: Gains on investees' property sales 3 | (13) | - | (21) | ||||||||||
Less: Gain on asset dispositions 4 | (2) | - | (2) | - | |||||||||
Income tax effect of above adjustments | 23 | 16 | 14 | 3 | |||||||||
Less: Income tax special items | - | (98) | - | (98) | |||||||||
Adjusted net income ** | $ 593 | $ 260 | 128 % | $ 1,006 | $ 294 | 242 % | |||||||
Diluted earnings per share, as reported | $ 2.06 | $ 1.28 | $ 3.20 | $ 1.25 | |||||||||
Adjusted diluted earnings per share** | $ 1.80 | $ 0.79 | 128 % | $ 3.05 | $ 0.89 | 243 % | |||||||
** | Denotes non-GAAP financial measures. Please see pages A-15 and A-16 for information about our reasons for providing these alternative financial measures and the | ||||||||||||
limitations on their use. | |||||||||||||
1 | Six months ended June 30, 2022 includes impairment charges reported in Contract investment amortization of $5 million. | ||||||||||||
2 | Six months ended June 30, 2022 includes impairment charges reported in Contract investment amortization of $5 million and Equity in earnings (losses) of $6 million. Six months | ||||||||||||
ended June 30, 2021 includes impairment charges reported in Equity in earnings (losses) of $4 million. | |||||||||||||
3 | Gains on investees' property sales reported in Equity in earnings (losses). | ||||||||||||
4 | Gain on asset dispositions reported in Gains and other income, net. | ||||||||||||
MARRIOTT INTERNATIONAL, INC. | ||||||
TOTAL LODGING PRODUCTS | ||||||
As of June 30, 2022 | ||||||
US & Canada | Total International | Total Worldwide | ||||
Units | Rooms | Units | Rooms | Units | Rooms | |
Managed | 633 | 216,227 | 1,327 | 337,992 | 1,960 | 554,219 |
Marriott Hotels | 108 | 58,565 | 189 | 55,188 | 297 | 113,753 |
Marriott Hotels Serviced Apartments | - | - | 1 | 154 | 1 | 154 |
Sheraton | 26 | 21,338 | 181 | 61,338 | 207 | 82,676 |
Courtyard | 169 | 27,259 | 108 | 23,421 | 277 | 50,680 |
Westin | 40 | 21,865 | 76 | 23,543 | 116 | 45,408 |
JW Marriott | 21 | 12,724 | 66 | 24,266 | 87 | 36,990 |
The Ritz-Carlton | 38 | 11,398 | 68 | 17,149 | 106 | 28,547 |
The Ritz-Carlton Serviced Apartments | - | - | 5 | 715 | 5 | 715 |
Renaissance | 24 | 10,607 | 56 | 17,476 | 80 | 28,083 |
Four Points | 1 | 134 | 80 | 22,336 | 81 | 22,470 |
Le Méridien | 1 | 100 | 70 | 19,524 | 71 | 19,624 |
W Hotels | 22 | 6,262 | 38 | 10,236 | 60 | 16,498 |
W Hotels Serviced Apartments | - | - | 1 | 160 | 1 | 160 |
Residence Inn | 76 | 12,199 | 9 | 1,116 | 85 | 13,315 |
St. Regis | 10 | 1,968 | 39 | 9,114 | 49 | 11,082 |
St. Regis Serviced Apartments | - | - | 1 | 70 | 1 | 70 |
The Luxury Collection | 6 | 2,296 | 47 | 8,269 | 53 | 10,565 |
Aloft | 2 | 505 | 44 | 9,735 | 46 | 10,240 |
Gaylord Hotels | 6 | 10,220 | - | - | 6 | 10,220 |
AC Hotels by Marriott | 7 | 1,165 | 70 | 8,613 | 77 | 9,778 |
Fairfield by Marriott | 6 | 1,431 | 59 | 7,929 | 65 | 9,360 |
Delta Hotels | 25 | 6,770 | 2 | 477 | 27 | 7,247 |
Autograph Collection | 8 | 2,508 | 18 | 2,579 | 26 | 5,087 |
Marriott Executive Apartments | - | - | 34 | 4,866 | 34 | 4,866 |
SpringHill Suites | 25 | 4,241 | - | - | 25 | 4,241 |
EDITION | 4 | 1,207 | 10 | 2,216 | 14 | 3,423 |
Protea Hotels | - | - | 27 | 3,296 | 27 | 3,296 |
Element | 2 | 640 | 12 | 2,273 | 14 | 2,913 |
Moxy | - | - | 5 | 887 | 5 | 887 |
TownePlace Suites | 6 | 825 | - | - | 6 | 825 |
Tribute Portfolio | - | - | 6 | 604 | 6 | 604 |
Bulgari | - | - | 5 | 442 | 5 | 442 |
Franchised | 5,065 | 728,380 | 831 | 169,136 | 5,896 | 897,516 |
Courtyard | 855 | 113,979 | 111 | 20,930 | 966 | 134,909 |
Fairfield by Marriott | 1,125 | 105,858 | 42 | 7,093 | 1,167 | 112,951 |
Residence Inn | 770 | 91,959 | 23 | 3,155 | 793 | 95,114 |
Marriott Hotels | 232 | 73,751 | 61 | 17,791 | 293 | 91,542 |
Sheraton | 153 | 47,828 | 70 | 20,238 | 223 | 68,066 |
SpringHill Suites | 499 | 57,771 | - | - | 499 | 57,771 |
TownePlace Suites | 475 | 48,424 | - | - | 475 | 48,424 |
Autograph Collection | 135 | 26,666 | 99 | 21,262 | 234 | 47,928 |
Westin | 91 | 30,818 | 26 | 7,717 | 117 | 38,535 |
Four Points | 157 | 23,761 | 62 | 10,336 | 219 | 34,097 |
Renaissance | 62 | 17,681 | 30 | 7,910 | 92 | 25,591 |
Aloft | 149 | 21,411 | 20 | 3,265 | 169 | 24,676 |
AC Hotels by Marriott | 97 | 16,004 | 40 | 7,422 | 137 | 23,426 |
Moxy | 26 | 4,913 | 80 | 15,154 | 106 | 20,067 |
Delta Hotels | 60 | 13,784 | 11 | 2,557 | 71 | 16,341 |
The Luxury Collection | 12 | 3,188 | 55 | 9,959 | 67 | 13,147 |
Element | 75 | 10,028 | 2 | 269 | 77 | 10,297 |
Tribute Portfolio | 45 | 7,019 | 24 | 3,020 | 69 | 10,039 |
Le Méridien | 24 | 5,548 | 17 | 4,419 | 41 | 9,967 |
JW Marriott | 13 | 6,247 | 11 | 2,714 | 24 | 8,961 |
Protea Hotels | - | - | 34 | 2,636 | 34 | 2,636 |
Design Hotels | 9 | 1,313 | 10 | 1,062 | 19 | 2,375 |
The Ritz-Carlton | 1 | 429 | - | - | 1 | 429 |
Bulgari | - | - | 2 | 161 | 2 | 161 |
Marriott Executive Apartments | - | - | 1 | 66 | 1 | 66 |
MARRIOTT INTERNATIONAL, INC. | ||||||
TOTAL LODGING PRODUCTS | ||||||
As of June 30, 2022 | ||||||
US & Canada | Total International | Total Worldwide | ||||
Units | Rooms | Units | Rooms | Units | Rooms | |
Owned/Leased | 26 | 6,483 | 38 | 9,199 | 64 | 15,682 |
Courtyard | 19 | 2,814 | 4 | 884 | 23 | 3,698 |
Marriott Hotels | 2 | 1,308 | 6 | 2,064 | 8 | 3,372 |
Sheraton | - | - | 4 | 1,830 | 4 | 1,830 |
W Hotels | 2 | 779 | 2 | 665 | 4 | 1,444 |
Westin | 1 | 1,073 | - | - | 1 | 1,073 |
Protea Hotels | - | - | 5 | 912 | 5 | 912 |
Renaissance | 1 | 317 | 2 | 505 | 3 | 822 |
Autograph Collection1 | - | - | 6 | 576 | 6 | 576 |
The Ritz-Carlton | - | - | 2 | 550 | 2 | 550 |
JW Marriott | - | - | 1 | 496 | 1 | 496 |
The Luxury Collection2 | - | - | 4 | 417 | 4 | 417 |
Residence Inn | 1 | 192 | 1 | 140 | 2 | 332 |
St. Regis | - | - | 1 | 160 | 1 | 160 |
Residences | 66 | 6,935 | 42 | 3,691 | 108 | 10,626 |
The Ritz-Carlton Residences | 39 | 4,317 | 14 | 1,131 | 53 | 5,448 |
St. Regis Residences | 10 | 1,082 | 9 | 1,065 | 19 | 2,147 |
W Residences | 10 | 1,089 | 6 | 546 | 16 | 1,635 |
Bulgari Residences | - | - | 5 | 514 | 5 | 514 |
Westin Residences | 3 | 266 | 1 | 9 | 4 | 275 |
Marriott Hotels Residences | - | - | 2 | 246 | 2 | 246 |
The Luxury Collection Residences | 1 | 91 | 3 | 115 | 4 | 206 |
EDITION Residences | 3 | 90 | - | - | 3 | 90 |
Sheraton Residences | - | - | 1 | 50 | 1 | 50 |
Le Méridien Residences | - | - | 1 | 15 | 1 | 15 |
Timeshare* | 72 | 18,839 | 20 | 3,862 | 92 | 22,701 |
Grand Total | 5,862 | 976,864 | 2,258 | 523,880 | 8,120 | 1,500,744 |
*Timeshare property and room counts are included on this table in their geographical locations. For external reporting purposes, these counts are captured within "Unallocated corporate and other." | ||||||
1 Includes five properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-brand under the Autograph Collection brand following the completion of planned renovations. | ||||||
2 Includes two properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-brand under The Luxury Collection brand following the completion of planned renovations. | ||||||
MARRIOTT INTERNATIONAL, INC. | ||||||
TOTAL LODGING PRODUCTS | ||||||
As of June 30, 2022 | ||||||
US & Canada | Total International | Total Worldwide | ||||
Total Systemwide | Units | Rooms | Units | Rooms | Units | Rooms |
Luxury | 192 | 53,167 | 395 | 91,130 | 587 | 144,297 |
JW Marriott | 34 | 18,971 | 78 | 27,476 | 112 | 46,447 |
The Ritz-Carlton | 39 | 11,827 | 70 | 17,699 | 109 | 29,526 |
The Ritz-Carlton Residences | 39 | 4,317 | 14 | 1,131 | 53 | 5,448 |
The Ritz-Carlton Serviced Apartments | - | - | 5 | 715 | 5 | 715 |
The Luxury Collection1 | 18 | 5,484 | 106 | 18,645 | 124 | 24,129 |
The Luxury Collection Residences | 1 | 91 | 3 | 115 | 4 | 206 |
W Hotels | 24 | 7,041 | 40 | 10,901 | 64 | 17,942 |
W Residences | 10 | 1,089 | 6 | 546 | 16 | 1,635 |
W Hotels Serviced Apartments | - | - | 1 | 160 | 1 | 160 |
St. Regis | 10 | 1,968 | 40 | 9,274 | 50 | 11,242 |
St. Regis Residences | 10 | 1,082 | 9 | 1,065 | 19 | 2,147 |
St. Regis Serviced Apartments | - | - | 1 | 70 | 1 | 70 |
EDITION | 4 | 1,207 | 10 | 2,216 | 14 | 3,423 |
EDITION Residences | 3 | 90 | - | - | 3 | 90 |
Bulgari | - | - | 7 | 603 | 7 | 603 |
Bulgari Residences | - | - | 5 | 514 | 5 | 514 |
Full-Service | 1,056 | 359,345 | 1,005 | 277,086 | 2,061 | 636,431 |
Marriott Hotels | 342 | 133,624 | 256 | 75,043 | 598 | 208,667 |
Marriott Hotels Residences | - | - | 2 | 246 | 2 | 246 |
Marriott Hotels Serviced Apartments | - | - | 1 | 154 | 1 | 154 |
Sheraton | 179 | 69,166 | 255 | 83,406 | 434 | 152,572 |
Sheraton Residences | - | - | 1 | 50 | 1 | 50 |
Westin | 132 | 53,756 | 102 | 31,260 | 234 | 85,016 |
Westin Residences | 3 | 266 | 1 | 9 | 4 | 275 |
Renaissance | 87 | 28,605 | 88 | 25,891 | 175 | 54,496 |
Autograph Collection2 | 143 | 29,174 | 123 | 24,417 | 266 | 53,591 |
Le Méridien | 25 | 5,648 | 87 | 23,943 | 112 | 29,591 |
Le Méridien Residences | - | - | 1 | 15 | 1 | 15 |
Delta Hotels | 85 | 20,554 | 13 | 3,034 | 98 | 23,588 |
Tribute Portfolio | 45 | 7,019 | 30 | 3,624 | 75 | 10,643 |
Gaylord Hotels | 6 | 10,220 | - | - | 6 | 10,220 |
Marriott Executive Apartments | - | - | 35 | 4,932 | 35 | 4,932 |
Design Hotels | 9 | 1,313 | 10 | 1,062 | 19 | 2,375 |
Limited-Service | 4,542 | 545,513 | 838 | 151,802 | 5,380 | 697,315 |
Courtyard | 1,043 | 144,052 | 223 | 45,235 | 1,266 | 189,287 |
Fairfield by Marriott | 1,131 | 107,289 | 101 | 15,022 | 1,232 | 122,311 |
Residence Inn | 847 | 104,350 | 33 | 4,411 | 880 | 108,761 |
SpringHill Suites | 524 | 62,012 | - | - | 524 | 62,012 |
Four Points | 158 | 23,895 | 142 | 32,672 | 300 | 56,567 |
TownePlace Suites | 481 | 49,249 | - | - | 481 | 49,249 |
Aloft | 151 | 21,916 | 64 | 13,000 | 215 | 34,916 |
AC Hotels by Marriott | 104 | 17,169 | 110 | 16,035 | 214 | 33,204 |
Moxy | 26 | 4,913 | 85 | 16,041 | 111 | 20,954 |
Element | 77 | 10,668 | 14 | 2,542 | 91 | 13,210 |
Protea Hotels | - | - | 66 | 6,844 | 66 | 6,844 |
Timeshare* | 72 | 18,839 | 20 | 3,862 | 92 | 22,701 |
Grand Total | 5,862 | 976,864 | 2,258 | 523,880 | 8,120 | 1,500,744 |
*Timeshare property and room counts are included on this table in their geographical locations. For external reporting purposes, these counts are captured within "Unallocated corporate and other." | ||||||
1 Includes two properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-brand under The Luxury Collection brand following the completion of planned renovations. | ||||||
2 Includes five properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-brand under the Autograph Collection brand following the completion of planned renovations. | ||||||
MARRIOTT INTERNATIONAL, INC. | ||||||||||
KEY LODGING STATISTICS | ||||||||||
In Constant $ | ||||||||||
Comparable Company-Operated US & Canada Properties | ||||||||||
Three Months Ended June 30, 2022 and June 30, 2021 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Brand | 2022 | vs. 2021 | 2022 | vs. 2021 | 2022 | vs. 2021 | ||||
JW Marriott | $231.91 | 85.6 % | 72.3 % | 24.7 % | pts. | $320.80 | 22.2 % | |||
The Ritz-Carlton | $362.15 | 56.9 % | 69.9 % | 21.0 % | pts. | $517.87 | 9.8 % | |||
W Hotels | $255.22 | 91.5 % | 70.4 % | 27.8 % | pts. | $362.60 | 15.9 % | |||
Composite US & Canada Luxury1 | $302.00 | 76.2 % | 71.5 % | 24.9 % | pts. | $422.63 | 14.9 % | |||
Marriott Hotels | $163.82 | 145.4 % | 71.7 % | 31.0 % | pts. | $228.51 | 39.4 % | |||
Sheraton | $159.10 | 161.9 % | 69.5 % | 35.5 % | pts. | $228.90 | 28.3 % | |||
Westin | $184.25 | 125.2 % | 72.7 % | 30.9 % | pts. | $253.54 | 29.3 % | |||
Composite US & Canada Premium2 | $164.67 | 146.7 % | 71.1 % | 32.6 % | pts. | $231.45 | 33.6 % | |||
US & Canada Full-Service3 | $194.18 | 117.6 % | 71.2 % | 30.9 % | pts. | $272.67 | 23.0 % | |||
Courtyard | $111.38 | 69.3 % | 70.2 % | 12.2 % | pts. | $158.75 | 40.0 % | |||
Residence Inn | $149.16 | 45.3 % | 80.2 % | 8.7 % | pts. | $186.01 | 29.6 % | |||
Composite US & Canada Limited-Service4 | $122.92 | 63.3 % | 73.4 % | 12.1 % | pts. | $167.51 | 36.3 % | |||
US & Canada - All5 | $177.42 | 106.4 % | 71.7 % | 26.5 % | pts. | $247.36 | 30.1 % | |||
Comparable Systemwide US & Canada Properties | ||||||||||
Three Months Ended June 30, 2022 and June 30, 2021 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Brand | 2022 | vs. 2021 | 2022 | vs. 2021 | 2022 | vs. 2021 | ||||
JW Marriott | $228.46 | 82.0 % | 73.4 % | 24.5 % | pts. | $311.06 | 21.2 % | |||
The Ritz-Carlton | $358.57 | 58.6 % | 70.0 % | 21.5 % | pts. | $512.40 | 9.9 % | |||
W Hotels | $255.22 | 91.5 % | 70.4 % | 27.8 % | pts. | $362.60 | 15.9 % | |||
Composite US & Canada Luxury1 | $287.44 | 77.4 % | 72.0 % | 24.8 % | pts. | $399.28 | 16.3 % | |||
Marriott Hotels | $138.67 | 103.8 % | 68.9 % | 24.6 % | pts. | $201.20 | 30.9 % | |||
Sheraton | $119.85 | 112.0 % | 65.6 % | 24.5 % | pts. | $182.65 | 33.0 % | |||
Westin | $164.16 | 113.9 % | 71.5 % | 28.0 % | pts. | $229.44 | 30.1 % | |||
Composite US & Canada Premium2 | $143.42 | 102.9 % | 69.0 % | 25.3 % | pts. | $208.00 | 28.5 % | |||
US & Canada Full-Service3 | $160.25 | 97.0 % | 69.3 % | 25.2 % | pts. | $231.22 | 25.2 % | |||
Courtyard | $112.24 | 52.6 % | 72.3 % | 11.6 % | pts. | $155.31 | 28.1 % | |||
Residence Inn | $127.70 | 33.5 % | 79.9 % | 6.1 % | pts. | $159.82 | 23.2 % | |||
Fairfield by Marriott | $93.87 | 33.9 % | 72.9 % | 7.4 % | pts. | $128.84 | 20.3 % | |||
Composite US & Canada Limited-Service4 | $110.59 | 42.5 % | 74.6 % | 9.0 % | pts. | $148.28 | 25.3 % | |||
US & Canada - All5 | $131.53 | 66.1 % | 72.4 % | 15.9 % | pts. | $181.79 | 29.7 % | |||
1 Includes JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, and EDITION. | ||||||||||
2 Includes Marriott Hotels, Sheraton, Westin, Renaissance, Autograph Collection, Delta Hotels, and Gaylord Hotels. | ||||||||||
Systemwide also includes Le Méridien and Tribute Portfolio. | ||||||||||
3 Includes Composite US & Canada Luxury and Composite US & Canada Premium. | ||||||||||
4 Includes Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four Points, Aloft, Element, | ||||||||||
and AC Hotels by Marriott. Systemwide also includes Moxy. | ||||||||||
5 Includes US & Canada Full-Service and Composite US & Canada Limited-Service. | ||||||||||
MARRIOTT INTERNATIONAL, INC. | ||||||||||
KEY LODGING STATISTICS | ||||||||||
In Constant $ | ||||||||||
Comparable Company-Operated International Properties | ||||||||||
Three Months Ended June 30, 2022 and June 30, 2021 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2022 | vs. 2021 | 2022 | vs. 2021 | 2022 | vs. 2021 | ||||
Greater China | $44.13 | -44.9 % | 43.1 % | -21.5 % | pts. | $102.42 | -17.3 % | |||
Asia Pacific excluding China | $79.22 | 156.3 % | 58.6 % | 28.9 % | pts. | $135.16 | 29.8 % | |||
Caribbean & Latin America | $126.33 | 76.6 % | 60.8 % | 20.2 % | pts. | $207.76 | 17.8 % | |||
Europe | $164.92 | 357.5 % | 69.6 % | 46.5 % | pts. | $237.13 | 51.9 % | |||
Middle East & Africa | $106.13 | 60.7 % | 60.3 % | 14.5 % | pts. | $175.94 | 22.0 % | |||
International - All1 | $91.80 | 64.4 % | 56.2 % | 13.4 % | pts. | $163.23 | 25.1 % | |||
Worldwide2 | $130.20 | 87.7 % | 63.2 % | 19.3 % | pts. | $206.07 | 30.4 % | |||
Comparable Systemwide International Properties | ||||||||||
Three Months Ended June 30, 2022 and June 30, 2021 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2022 | vs. 2021 | 2022 | vs. 2021 | 2022 | vs. 2021 | ||||
Greater China | $42.08 | -43.9 % | 41.8 % | -20.9 % | pts. | $100.73 | -15.7 % | |||
Asia Pacific excluding China | $79.01 | 151.5 % | 58.9 % | 29.1 % | pts. | $134.08 | 27.5 % | |||
Caribbean & Latin America | $108.21 | 87.5 % | 59.6 % | 20.7 % | pts. | $181.57 | 22.3 % | |||
Europe | $135.51 | 355.4 % | 67.5 % | 46.1 % | pts. | $200.79 | 44.3 % | |||
Middle East & Africa | $99.71 | 64.1 % | 59.9 % | 15.4 % | pts. | $166.49 | 21.9 % | |||
International - All1 | $90.91 | 87.8 % | 57.2 % | 18.6 % | pts. | $158.86 | 26.6 % | |||
Worldwide2 | $119.37 | 70.6 % | 67.8 % | 16.7 % | pts. | $175.99 | 28.6 % | |||
1 Includes Greater China, Asia Pacific excluding China, Caribbean & Latin America, Europe, and Middle East & Africa. | ||||||||||
2 Includes US & Canada - All and International - All. | ||||||||||
MARRIOTT INTERNATIONAL, INC. | ||||||||||
KEY LODGING STATISTICS | ||||||||||
In Constant $ | ||||||||||
Comparable Company-Operated US & Canada Properties | ||||||||||
Six Months Ended June 30, 2022 and June 30, 2021 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Brand | 2022 | vs. 2021 | 2022 | vs. 2021 | 2022 | vs. 2021 | ||||
JW Marriott | $210.91 | 98.6 % | 64.2 % | 24.7 % | pts. | $328.50 | 22.2 % | |||
The Ritz-Carlton | $342.13 | 77.5 % | 63.7 % | 22.8 % | pts. | $537.17 | 14.0 % | |||
W Hotels | $233.95 | 101.5 % | 60.6 % | 25.0 % | pts. | $386.22 | 18.2 % | |||
Composite US & Canada Luxury1 | $285.51 | 92.9 % | 64.1 % | 25.2 % | pts. | $445.56 | 17.0 % | |||
Marriott Hotels | $135.90 | 167.8 % | 61.9 % | 29.7 % | pts. | $219.52 | 39.4 % | |||
Sheraton | $138.59 | 218.6 % | 62.1 % | 36.4 % | pts. | $223.05 | 31.7 % | |||
Westin | $154.74 | 149.7 % | 63.4 % | 30.2 % | pts. | $244.22 | 30.5 % | |||
Composite US & Canada Premium2 | $137.42 | 173.9 % | 61.4 % | 31.2 % | pts. | $223.72 | 34.9 % | |||
US & Canada Full-Service3 | $169.23 | 137.7 % | 62.0 % | 29.9 % | pts. | $272.98 | 23.1 % | |||
Courtyard | $95.11 | 83.6 % | 62.7 % | 13.1 % | pts. | $151.78 | 45.1 % | |||
Residence Inn | $135.35 | 50.4 % | 75.4 % | 8.9 % | pts. | $179.43 | 32.6 % | |||
Composite US & Canada Limited-Service4 | $107.75 | 74.9 % | 66.9 % | 13.3 % | pts. | $161.10 | 40.0 % | |||
US & Canada - All5 | $154.77 | 124.5 % | 63.1 % | 26.0 % | pts. | $245.11 | 32.1 % | |||
Comparable Systemwide US & Canada Properties | ||||||||||
Six Months Ended June 30, 2022 and June 30, 2021 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Brand | 2022 | vs. 2021 | 2022 | vs. 2021 | 2022 | vs. 2021 | ||||
JW Marriott | $211.32 | 101.5 % | 66.2 % | 25.0 % | pts. | $319.19 | 25.4 % | |||
The Ritz-Carlton | $336.30 | 79.4 % | 63.4 % | 23.2 % | pts. | $530.71 | 13.6 % | |||
W Hotels | $233.95 | 101.5 % | 60.6 % | 25.0 % | pts. | $386.22 | 18.2 % | |||
Composite US & Canada Luxury1 | $269.60 | 95.9 % | 64.7 % | 25.3 % | pts. | $416.73 | 19.3 % | |||
Marriott Hotels | $116.53 | 122.5 % | 60.1 % | 24.2 % | pts. | $193.86 | 32.9 % | |||
Sheraton | $101.94 | 134.8 % | 58.0 % | 24.2 % | pts. | $175.62 | 36.9 % | |||
Westin | $140.20 | 136.7 % | 63.1 % | 27.7 % | pts. | $222.34 | 32.6 % | |||
Composite US & Canada Premium2 | $121.60 | 122.7 % | 60.4 % | 24.8 % | pts. | $201.26 | 31.2 % | |||
US & Canada Full-Service3 | $138.89 | 116.0 % | 60.9 % | 24.9 % | pts. | $228.00 | 27.7 % | |||
Courtyard | $96.01 | 64.5 % | 65.2 % | 13.0 % | pts. | $147.35 | 31.7 % | |||
Residence Inn | $114.57 | 37.4 % | 74.9 % | 6.9 % | pts. | $152.99 | 24.7 % | |||
Fairfield by Marriott | $81.65 | 45.5 % | 66.6 % | 10.2 % | pts. | $122.65 | 23.3 % | |||
Composite US & Canada Limited-Service4 | $96.38 | 51.1 % | 68.4 % | 10.6 % | pts. | $140.91 | 27.6 % | |||
US & Canada - All5 | $114.31 | 78.6 % | 65.2 % | 16.7 % | pts. | $175.20 | 33.0 % | |||
1 Includes JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, and EDITION. | ||||||||||
2 Includes Marriott Hotels, Sheraton, Westin, Renaissance, Autograph Collection, Delta Hotels, and Gaylord Hotels. | ||||||||||
Systemwide also includes Le Méridien and Tribute Portfolio. | ||||||||||
3 Includes Composite US & Canada Luxury and Composite US & Canada Premium. | ||||||||||
4 Includes Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four Points, Aloft, Element, and AC Hotels by Marriott. Systemwide also includes Moxy. | ||||||||||
5 Includes US & Canada Full-Service and Composite US & Canada Limited-Service. | ||||||||||
MARRIOTT INTERNATIONAL, INC. | ||||||||||
KEY LODGING STATISTICS | ||||||||||
In Constant $ | ||||||||||
Comparable Company-Operated International Properties | ||||||||||
Six Months Ended June 30, 2022 and June 30, 2021 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2022 | vs. 2021 | 2022 | vs. 2021 | 2022 | vs. 2021 | ||||
Greater China | $48.79 | -29.4 % | 42.6 % | -13.8 % | pts. | $114.47 | -6.6 % | |||
Asia Pacific excluding China | $68.62 | 109.4 % | 51.8 % | 20.4 % | pts. | $132.45 | 26.9 % | |||
Caribbean & Latin America | $128.74 | 109.3 % | 59.2 % | 23.7 % | pts. | $217.38 | 25.6 % | |||
Europe | $123.50 | 370.5 % | 56.3 % | 38.4 % | pts. | $219.54 | 49.1 % | |||
Middle East & Africa | $117.34 | 78.9 % | 63.2 % | 19.0 % | pts. | $185.75 | 25.1 % | |||
International - All1 | $84.82 | 68.1 % | 52.2 % | 13.0 % | pts. | $162.48 | 26.2 % | |||
Worldwide2 | $116.23 | 97.8 % | 57.1 % | 18.8 % | pts. | $203.50 | 32.5 % | |||
Comparable Systemwide International Properties | ||||||||||
Six Months Ended June 30, 2022 and June 30, 2021 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2022 | vs. 2021 | 2022 | vs. 2021 | 2022 | vs. 2021 | ||||
Greater China | $46.57 | -28.4 % | 41.7 % | -13.3 % | pts. | $111.73 | -5.5 % | |||
Asia Pacific excluding China | $68.61 | 104.3 % | 52.1 % | 20.2 % | pts. | $131.79 | 24.9 % | |||
Caribbean & Latin America | $104.65 | 119.2 % | 56.4 % | 22.7 % | pts. | $185.63 | 30.8 % | |||
Europe | $99.99 | 368.1 % | 53.4 % | 37.0 % | pts. | $187.41 | 43.8 % | |||
Middle East & Africa | $109.21 | 81.4 % | 62.3 % | 19.3 % | pts. | $175.32 | 25.3 % | |||
International - All1 | $80.95 | 87.1 % | 51.8 % | 16.6 % | pts. | $156.40 | 27.2 % | |||
Worldwide2 | $104.33 | 80.5 % | 61.2 % | 16.6 % | pts. | $170.45 | 31.5 % | |||
1 Includes Greater China, Asia Pacific excluding China, Caribbean & Latin America, Europe, and Middle East & Africa. | ||||||||||
2 Includes US & Canada - All and International - All. | ||||||||||
MARRIOTT INTERNATIONAL, INC. | ||||||||||
KEY LODGING STATISTICS - 2022 vs 2019 | ||||||||||
In Constant $ | ||||||||||
Comparable Systemwide Properties1 | ||||||||||
Three Months Ended June 30, 2022 and June 30, 2019 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2022 | vs. 2019 | 2022 | vs. 2019 | 2022 | vs. 2019 | ||||
Greater China | $42.08 | -52.2 % | 41.8 % | -25.7 % | pts. | $100.73 | -22.9 % | |||
Asia Pacific excluding China | $79.01 | -21.7 % | 58.9 % | -11.0 % | pts. | $134.08 | -7.1 % | |||
Caribbean & Latin America | $108.21 | 12.9 % | 59.6 % | -1.6 % | pts. | $181.57 | 16.0 % | |||
Europe | $135.51 | -4.3 % | 67.5 % | -9.0 % | pts. | $200.79 | 8.4 % | |||
Middle East & Africa | $99.71 | 15.6 % | 59.9 % | -3.0 % | pts. | $166.49 | 21.4 % | |||
International - All2 | $90.91 | -14.1 % | 57.2 % | -11.8 % | pts. | $158.86 | 3.6 % | |||
US & Canada - All | $131.53 | 1.3 % | 72.4 % | -5.0 % | pts. | $181.79 | 8.2 % | |||
Worldwide3 | $119.37 | -2.9 % | 67.8 % | -7.1 % | pts. | $175.99 | 7.2 % | |||
Comparable Systemwide Properties1 | ||||||||||
Six Months Ended June 30, 2022 and June 30, 2019 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2022 | vs. 2019 | 2022 | vs. 2019 | 2022 | vs. 2019 | ||||
Greater China | $46.57 | -47.4 % | 41.7 % | -23.7 % | pts. | $111.73 | -17.4 % | |||
Asia Pacific excluding China | $68.61 | -35.8 % | 52.1 % | -18.5 % | pts. | $131.79 | -13.0 % | |||
Caribbean & Latin America | $104.65 | -1.4 % | 56.4 % | -6.4 % | pts. | $185.63 | 9.9 % | |||
Europe | $99.99 | -18.4 % | 53.4 % | -16.4 % | pts. | $187.41 | 6.6 % | |||
Middle East & Africa | $109.21 | 13.6 % | 62.3 % | -3.7 % | pts. | $175.32 | 20.4 % | |||
International - All2 | $80.95 | -22.9 % | 51.8 % | -15.9 % | pts. | $156.40 | 0.7 % | |||
US & Canada - All | $114.31 | -6.1 % | 65.2 % | -8.0 % | pts. | $175.20 | 5.4 % | |||
Worldwide3 | $104.33 | -10.8 % | 61.2 % | -10.4 % | pts. | $170.45 | 4.4 % | |||
1 The comparisons between 2022 and 2019 reflect properties that are defined as comparable as of June 30, 2022, even if in 2019 they were not open and operating for the full year or did not meet all the criteria for comparable in 2019. | ||||||||||
2 Includes Greater China, Asia Pacific excluding China, Caribbean & Latin America, Europe, and Middle East & Africa. | ||||||||||
3 Includes US & Canada - All and International - All. | ||||||||||
MARRIOTT INTERNATIONAL, INC. | ||||||||||
NON-GAAP FINANCIAL MEASURES | ||||||||||
ADJUSTED EBITDA | ||||||||||
($ in millions) | ||||||||||
Fiscal Year 2022 | ||||||||||
First | Second | Total | ||||||||
Net income, as reported | $ 377 | $ 678 | $ 1,055 | |||||||
Cost reimbursement revenue | (3,146) | (3,920) | (7,066) | |||||||
Reimbursed expenses | 3,179 | 3,827 | 7,006 | |||||||
Interest expense | 93 | 95 | 188 | |||||||
Interest expense from unconsolidated joint ventures | 1 | 2 | 3 | |||||||
Provision for income taxes | 99 | 200 | 299 | |||||||
Depreciation and amortization | 48 | 49 | 97 | |||||||
Contract investment amortization | 24 | 19 | 43 | |||||||
Depreciation and amortization classified in reimbursed expenses | 26 | 29 | 55 | |||||||
Depreciation, amortization, and impairments from unconsolidated joint ventures | 13 | 3 | 16 | |||||||
Stock-based compensation | 44 | 52 | 96 | |||||||
Restructuring, merger-related charges, and other | 9 | - | 9 | |||||||
Gains on investees' property sales | (8) | (13) | (21) | |||||||
Gain on asset dispositions | - | (2) | (2) | |||||||
Adjusted EBITDA ** | $ 759 | $ 1,019 | $ 1,778 | |||||||
Change from 2021 Adjusted EBITDA ** | 156 % | 83 % | 108 % | |||||||
Fiscal Year 2021 | ||||||||||
First | Second | Third | Fourth | Total | ||||||
Net (loss) income, as reported | $ (11) | $ 422 | $ 220 | $ 468 | $ 1,099 | |||||
Cost reimbursement revenue | (1,780) | (2,338) | (2,950) | (3,374) | (10,442) | |||||
Reimbursed expenses | 1,833 | 2,255 | 2,917 | 3,317 | 10,322 | |||||
Loss on extinguishment of debt | - | - | 164 | - | 164 | |||||
Interest expense | 107 | 109 | 107 | 97 | 420 | |||||
Interest expense from unconsolidated joint ventures | 2 | 1 | 2 | 2 | 7 | |||||
(Benefit) provision for income taxes | (16) | (41) | 58 | 80 | 81 | |||||
Depreciation and amortization | 52 | 50 | 64 | 54 | 220 | |||||
Contract investment amortization | 17 | 18 | 21 | 19 | 75 | |||||
Depreciation and amortization classified in reimbursed expenses | 28 | 27 | 28 | 28 | 111 | |||||
Depreciation, amortization, and impairments from unconsolidated joint ventures | 10 | 9 | 5 | 7 | 31 | |||||
Stock-based compensation | 53 | 43 | 43 | 43 | 182 | |||||
Restructuring, merger-related charges, and other | 1 | 3 | 4 | - | 8 | |||||
Adjusted EBITDA ** | $ 296 | $ 558 | $ 683 | $ 741 | $ 2,278 | |||||
** Denotes non-GAAP financial measures. Please see pages A-15 and A-16 for information about our reasons for providing these alternative financial measures and the limitations on their use. | ||||||||||
MARRIOTT INTERNATIONAL, INC. | |||||||
NON-GAAP FINANCIAL MEASURES | |||||||
ADJUSTED EBITDA FORECAST | |||||||
THIRD QUARTER 2022 | |||||||
($ in millions) | |||||||
Range | |||||||
Estimated |
| ||||||
Net income excluding certain items 1 | $ 517 | $ 551 | |||||
Interest expense | 100 | 100 | |||||
Interest expense from unconsolidated joint ventures | 1 | 1 | |||||
Provision for income taxes | 161 | 172 | |||||
Depreciation and amortization | 45 | 45 | |||||
Contract investment amortization | 20 | 20 | |||||
Depreciation and amortization classified in reimbursed expenses | 29 | 29 | |||||
Depreciation, amortization, and impairments from unconsolidated joint ventures | 5 | 5 | |||||
Stock-based compensation | 49 | 49 | |||||
Adjusted EBITDA ** | $ 927 | $ 972 | $ 683 | ||||
Increase over 2021 Adjusted EBITDA ** | 36 % | 42 % | |||||
** | Denotes non-GAAP financial measures. See pages A-15 and A-16 for information about our reasons for providing these alternative financial measures and the limitations on their use. | ||||||
1 | Guidance excludes cost reimbursement revenue, reimbursed expenses, and restructuring, merger-related charges, and other expenses, which the company cannot accurately forecast and which may be significant, except for depreciation and amortization classified in reimbursed expenses, which is included in the caption "Depreciation and amortization classified in reimbursed expenses" above. Guidance does not reflect any additional asset sales that may occur during the year. | ||||||
MARRIOTT INTERNATIONAL, INC. | |||||||
NON-GAAP FINANCIAL MEASURES | |||||||
ADJUSTED EBITDA FORECAST | |||||||
FULL YEAR 2022 | |||||||
($ in millions) | |||||||
Range | |||||||
Estimated |
| ||||||
Net income excluding certain items 1 | $ 2,076 | $ 2,160 | |||||
Interest expense | 390 | 390 | |||||
Interest expense from unconsolidated joint ventures | 6 | 6 | |||||
Provision for income taxes | 619 | 645 | |||||
Depreciation and amortization | 195 | 195 | |||||
Contract investment amortization | 85 | 85 | |||||
Depreciation and amortization classified in reimbursed expenses | 113 | 113 | |||||
Depreciation, amortization, and impairments from unconsolidated joint ventures | 27 | 27 | |||||
Stock-based compensation | 194 | 194 | |||||
Gains on investees' property sales | (21) | (21) | |||||
Gain on asset dispositions | (2) | (2) | |||||
Adjusted EBITDA ** | $ 3,682 | $ 3,792 | $ 2,278 | ||||
Increase over 2021 Adjusted EBITDA ** | 62 % | 66 % | |||||
** | Denotes non-GAAP financial measures. See pages A-15 and A-16 for information about our reasons for providing these alternative | ||||||
financial measures and the limitations on their use. | |||||||
1 | Guidance excludes cost reimbursement revenue, reimbursed expenses, and restructuring, merger-related charges, and other expenses, which the | ||||||
company cannot accurately forecast and which may be significant, except for depreciation and amortization classified in reimbursed expenses, which is | |||||||
included in the caption "Depreciation and amortization classified in reimbursed expenses" above. Guidance does not reflect any additional asset sales | |||||||
that may occur during the year. | |||||||
MARRIOTT INTERNATIONAL, INC. | |||||||||||
EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES | |||||||||||
In our press release and schedules, and on the related conference call, we report certain financial measures that are not required by, or presented in accordance with, United States generally accepted accounting principles ("GAAP"). We discuss the manner in which the non-GAAP measures reported in this press release and schedules are determined and management's reasons for reporting these non-GAAP measures below, and the press release schedules reconcile the most directly comparable GAAP measure to each non-GAAP measure that we refer to. Although management evaluates and presents these non-GAAP measures for the reasons described below, please be aware that these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for revenue, operating income, net income, earnings per share or any other comparable operating measure prescribed by GAAP. In addition, we may calculate and/or present these non-GAAP financial measures differently than measures with the same or similar names that other companies report, and as a result, the non-GAAP measures we report may not be comparable to those reported by others. | |||||||||||
Adjusted Operating Income and Adjusted Operating Income Margin. Adjusted operating income and Adjusted operating income margin exclude cost reimbursement revenue, reimbursed expenses, restructuring, merger-related charges, and other expenses, and certain non-cash impairment charges. Adjusted operating income margin reflects Adjusted operating income divided by Adjusted total revenues. We believe that these are meaningful metrics because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below. | |||||||||||
Adjusted Net Income and Adjusted Diluted Earnings Per Share. Adjusted net income and Adjusted diluted earnings per share reflect our net income and diluted earnings per share excluding the impact of cost reimbursement revenue, reimbursed expenses, restructuring, merger-related charges, and other expenses, certain non-cash impairment charges, gains and losses on asset dispositions made by us or by our joint venture investees (when applicable), the income tax effect of these adjustments, and income tax special items. The income tax special items primarily related to the income tax benefit arising from the favorable resolution of pre-acquisition Starwood tax audits in the 2021 second quarter. We calculate the income tax effect of the adjustments using an estimated tax rate applicable to each adjustment. We believe that these measures are meaningful indicators of our performance because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below. | |||||||||||
Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("Adjusted EBITDA"). Adjusted EBITDA reflects net income/loss excluding the impact of the following items: cost reimbursement revenue and reimbursed expenses, interest expense, depreciation and amortization (including depreciation and amortization classified in "Reimbursed expenses," as discussed below), certain non-cash impairment charges related to equity investments, benefit (provision) for income taxes, restructuring, merger-related charges, and other expenses, and stock-based compensation expense for all periods presented. When applicable, Adjusted EBITDA also excludes loss on extinguishment of debt and gains and losses on asset dispositions made by us or by our joint venture investees. | |||||||||||
In our presentations of Adjusted operating income and Adjusted operating income margin, Adjusted net income and Adjusted diluted earnings per share, and Adjusted EBITDA, we exclude a one-time cost in the 2022 first quarter related to certain property-level adjustments related to compensation, charges incurred under our restructuring plans that we initiated beginning in the 2020 second quarter to achieve cost savings in response to the decline in lodging demand caused by COVID-19, and transition costs associated with the Starwood merger, which we record in the "Restructuring, merger-related charges, and other" caption of our Condensed Consolidated Statements of Income (our "Income Statements"), as well as the loss related to the debt extinguishment in the 2021 third quarter, which we recorded in the "Loss on extinguishment of debt" caption of our prior period Income Statements, to allow for period-over period comparisons of our ongoing operations before the impact of these items. We also exclude non-cash impairment charges (if above a specified threshold) related to our management and franchise contracts (if the impairment is non-routine), leases, equity investments, and other capitalized assets, which we record in the "Contract investment amortization," "Depreciation, amortization, and other," and "Equity in earnings (losses)" captions of our Income Statements to allow for period-over period comparisons of our ongoing operations before the impact of these items. We exclude cost reimbursement revenue and reimbursed expenses, which relate to property-level and centralized programs and services that we operate for the benefit of our hotel owners. We do not operate these programs and services to generate a profit over the long term, and accordingly, when we recover the costs that we incur for these programs and services from our hotel owners, we do not seek a mark-up. For property-level services, our owners typically reimburse us at the same time that we incur expenses. However, for centralized programs and services, our owners may reimburse us before or after we incur expenses, causing timing differences between the costs we incur and the related reimbursement from hotel owners in our operating and net income. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively. Because we do not retain any such profits or losses over time, we exclude the net impact when evaluating period-over-period changes in our operating results. | |||||||||||
We believe that Adjusted EBITDA is a meaningful indicator of our operating performance because it permits period-over-period comparisons of our ongoing operations before these items. Our use of Adjusted EBITDA also facilitates comparison with results from other lodging companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. Our Adjusted EBITDA also excludes depreciation and amortization expense, which we report under "Depreciation, amortization, and other" as well as depreciation and amortization classified in "Contract investment amortization," "Reimbursed expenses," and "Equity in earnings (losses)" of our Income Statements, because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. Depreciation and amortization classified in "Reimbursed expenses" reflects depreciation and amortization of Marriott-owned assets and software, for which we receive cash from owners to reimburse the company for its investments made for the benefit of the system. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We exclude stock-based compensation expense in all periods presented to address the considerable variability among companies in recording compensation expense because companies use stock-based payment awards differently, both in the type and quantity of awards granted. | |||||||||||
MARRIOTT INTERNATIONAL, INC. | |||||||||||
EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES | |||||||||||
RevPAR. In addition to the foregoing non-GAAP financial measures, we present Revenue per Available Room ("RevPAR") as a performance measure. We believe RevPAR is a meaningful indicator of our performance because it measures the period-over-period change in room revenues for comparable properties. RevPAR relates to property level revenue and may not be comparable to similarly titled measures, such as revenues, and should not be viewed as necessarily correlating with our fee revenue. We calculate RevPAR by dividing room sales (recorded in local currency) for comparable properties by room nights available for the period. We do not consider interruptions related to COVID-19 when determining which properties to classify as comparable. The comparisons between 2022 and 2019 reflect properties that are defined as comparable as of June 30, 2022, even if in 2019 they were not open and operating for the full year or did not meet all the other criteria for comparable in 2019. We present growth in comparative RevPAR on a constant dollar basis, which we calculate by applying exchange rates for the current period to each period presented. We believe constant dollar analysis provides valuable information regarding our properties' performance as it removes currency fluctuations from the presentation of such results. | |||||||||||
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SOURCE Marriott International, Inc.
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