Marriott International Inc (MAR, Financial) released its earnings report for the third quarter of 2023 on November 2, 2023. The company reported a significant increase in key financial metrics, including an 8.8% increase in comparable systemwide constant dollar RevPAR worldwide, 4.3% in the U.S. & Canada, and 21.8% in international markets, compared to the 2022 third quarter.
Financial Highlights
Marriott reported diluted EPS of $2.51 for Q3 2023, compared to $1.94 in the year-ago quarter. Adjusted diluted EPS totaled $2.11, compared to $1.69 in Q3 2022. The reported net income for the quarter was $752 million, a significant increase from the $630 million reported in the same quarter last year. Adjusted net income totaled $634 million, compared to $551 million in Q3 2022.
Adjusted EBITDA for the quarter was $1,142 million, compared to $985 million in Q3 2022. During the third quarter, the company added approximately 17,200 rooms globally, including roughly 13,000 rooms in international markets and more than 4,900 conversion rooms. At the end of the quarter, Marriott’s worldwide development pipeline totaled more than 3,200 properties and nearly 557,000 rooms.
Share Repurchase and Dividends
Marriott repurchased 4.8 million shares of common stock for $950 million during the third quarter. Year to date through October 31, the company has returned $3.7 billion to shareholders through dividends and share repurchases.
Company Outlook
Marriott anticipates that the 37,000 rooms related to its deal with MGM will now be added to its distribution in early 2024. As such, the company now expects full year 2023 net rooms growth of 4.2 to 4.5 percent.
CEO Commentary
Anthony Capuano, President and Chief Executive Officer, said, “We are extremely pleased with our results in the quarter. Worldwide RevPAR1 grew 9 percent year over year, reflecting robust demand around the world. International RevPAR increased 22 percent, with particular strength in Asia Pacific. Both occupancy and rate contributed to global RevPAR gains in the third quarter, and cross-border travel continued to rise."
Marriott International Inc (MAR, Financial) is based in Bethesda, Maryland, USA, and encompasses a portfolio of nearly 8,700 properties across more than 30 leading brands in 139 countries and territories.
Explore the complete 8-K earnings release (here) from Marriott International Inc for further details.
