Q3 2024 Marriott International Inc Earnings Call Transcript
Key Points
- Marriott International Inc (MAR) reported a nearly 6% year-over-year growth in net rooms, indicating strong development activity.
- Global RevPAR increased by 3% in the third quarter, driven by solid rate growth with ADR up 2.5%.
- The company experienced a record quarter of enrollments in its Marriott Bonvoy loyalty program, reaching over 219 million members.
- Marriott's development pipeline grew by 5% to a record 585,000 rooms, showcasing robust signing activity.
- The company anticipates $80 million to $90 million in annual pretax general and administrative cost reductions beginning in 2025, enhancing profitability.
- Greater China RevPAR declined by 8% in the third quarter due to macroeconomic pressures and weak domestic leisure demand.
- The company expects to incur roughly $100 million in charges related to restructuring and merger-related activities in the fourth quarter of 2024.
- Fourth quarter RevPAR growth in the US and Canada is expected to be impacted by the US election, with a forecasted negative impact of 300 basis points in November.
- Marriott's gross fee growth is anticipated to be lower than expected due to softer performance at certain hotels under renovation.
- The company faces challenges in Greater China, with continued weak demand and pricing trends expected to result in negative RevPAR growth for the full year.
Good day, and welcome to today's Marriott International Third Quarter 2024 Earnings Conference Call. (Operator Instructions) I will now turn the call over to Jackie McConagha.
Thank you. Good morning, and welcome to Marriott's Third Quarter 2024 Earnings Call. On the call with me today are Tony Capuano, our President, and Chief Executive Officer; Leeny Oberg, our Chief Financial Officer and Executive Vice President, Development; and Betsy Dahm, our Vice President of Investor Relations.
Before we begin, I would like to remind everyone that many of our comments today are not historical facts and are considered forward-looking statements under federal securities laws. These statements are subject to numerous risks and uncertainties as described in our SEC filings, which could cause future results to differ materially from those expressed in or implied by our comments.
Unless otherwise stated, our RevPAR occupancy, average daily rate and property level
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