Marriott International Reports First Quarter 2022 Results and Reinstates Quarterly Cash Dividend
- First quarter 2022 comparable systemwide constant dollar RevPAR increased 96.5 percent worldwide, 99.1 percent in the U.S. & Canada, and 88.5 percent in international markets, compared to the 2021 first quarter;
- First quarter 2022 comparable systemwide constant dollar RevPAR declined 19.4 percent worldwide, 14.5 percent in the U.S. & Canada, and 31.7 percent in international markets, compared to the 2019 first quarter;
- First quarter reported diluted EPS totaled $1.14, compared to reported diluted loss per share of $0.03 in the year-ago quarter. First quarter adjusted diluted EPS totaled $1.25, compared to first quarter 2021 adjusted diluted EPS of $0.10;
- First quarter reported net income totaled $377 million, compared to a reported net loss of $11 million in the year-ago quarter. First quarter adjusted net income totaled $413 million, compared to first quarter 2021 adjusted net income of $34 million;
- Adjusted EBITDA totaled $759 million in the 2022 first quarter, compared to first quarter 2021 adjusted EBITDA of $296 million;
- Marriott resumes cash dividends, with the Board of Directors declaring a $0.30 per share dividend payable on June 30, 2022, to shareholders of record as of May 16, 2022;
- The company added roughly 11,800 rooms globally during the first quarter, including approximately 5,300 rooms in international markets and a total of more than 2,500 conversion rooms;
- At quarter end, Marriott's worldwide development pipeline totaled nearly 2,900 properties and more than 489,000 rooms, including roughly 20,800 rooms approved, but not yet subject to signed contracts. Approximately 201,400 rooms in the pipeline were under construction as of the end of the 2022 first quarter.
Marriott International, Inc. (NASDAQ: MAR) today reported first quarter 2022 results.
Anthony Capuano, Chief Executive Officer, said, "During the first quarter, we saw the largest surge in global demand since the pandemic began in 2020. Worldwide occupancy1 rose dramatically from 45 percent in January, impacted by the Omicron variant, to 64 percent in March, less than 10 percentage points below pre-pandemic levels. Rates further strengthened, with worldwide Average Daily Rate for March exceeding the same month in 2019 by 5 percent.
"In the U.S. & Canada, RevPAR improved significantly in February and March, particularly across our urban markets, driven by occupancy and rate gains across all customer segments. Internationally, RevPAR gains were notable during the quarter in every region except for Greater China given the stringent travel restrictions resulting from the country's dynamic zero-COVID policy. The Middle East and Africa region was again the furthest recovered, with first quarter RevPAR up 12 percent compared to 2019.
"Globally, robust demand trends continued in April, and going forward we expect leisure travel to remain strong, business travel to accelerate and cross border travel to gain momentum, supporting solid ADR performance. In the U.S. & Canada, we reached a milestone in April, as we estimate that RevPAR for the month was fully recovered to 2019 levels. RevPAR in the U.S. & Canada for the remaining quarters of this year is expected to be roughly flat with 2019 levels. While there is currently more volatility in our international regions, assuming no major change in the global economic environment or the behavior of the virus, we are increasingly optimistic that the global RevPAR gap compared to pre-pandemic levels will continue to narrow meaningfully in 2022.
"Owner preference for our brands remains strong. We signed over 19,000 rooms in the quarter, nearly half of which were in international markets. Our momentum around conversions continued, accounting for 22 percent of room additions in the quarter. Roughly 80 percent of those conversion rooms were in the high-value upper upscale and luxury tiers. For 2022, we still expect gross rooms growth approaching 5 percent and deletions of 1 to 1.5 percent, resulting in anticipated net rooms growth of 3.5 to 4 percent.
"I am very pleased to share that we are resuming capital returns to shareholders sooner than anticipated. Our focus on maximizing cash flow, managing expenses, and improving our credit profile, combined with strong first quarter results, has resulted in our Board of Directors declaring a $0.30 per share quarterly cash dividend payable at the end of the second quarter. Assuming the demand environment continues to improve and that we are within our target leverage ratio range, we also would expect to resume share repurchases in 2022.
"Our teams have navigated these challenging times incredibly well, and I think we can all look forward with real optimism. I believe Marriott remains extremely well-positioned to benefit from the continued recovery and to experience strong growth for years to come."
1 | All occupancy, Average Daily Rate (ADR) and RevPAR statistics 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 March 31, 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. |
First Quarter 2022 Results
Marriott's reported operating income totaled $558 million in the 2022 first quarter, compared to 2021 first quarter reported operating income of $84 million. Reported net income totaled $377 million in the 2022 first quarter, compared to 2021 first quarter reported net loss of $11 million. Reported diluted earnings per share (EPS) totaled $1.14 in the quarter, compared to reported diluted loss per share of $0.03 in the year-ago quarter.
Adjusted operating income in the 2022 first quarter totaled $605 million, compared to 2021 first quarter adjusted operating income of $138 million. Adjusted operating income in the 2022 first quarter excluded impairment charges of $5 million.
First quarter 2022 adjusted net income totaled $413 million, compared to 2021 first quarter adjusted net income of $34 million. Adjusted diluted EPS in the 2022 first quarter totaled $1.25, compared to adjusted diluted EPS of $0.10 in the year-ago quarter. The 2022 first quarter adjusted results excluded $11 million after-tax ($0.03 per share) of impairment charges and a $6 million after-tax ($0.02 per share) gain on an investee's property sale. The 2021 first quarter adjusted results excluded $3 million after-tax ($0.01 per share) of impairment charges.
Adjusted results also excluded cost reimbursement revenue, reimbursed expenses and restructuring, merger-related charges, and other expenses. These items totaled a $31 million after-tax loss ($0.10 per share) in the 2022 first quarter and an after-tax loss of $42 million ($0.12 per share) in the 2021 first quarter. See pages A-2 and A-9 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 $713 million in the 2022 first quarter, compared to base management and franchise fees of $412 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 and unit growth. Other non-RevPAR related franchise fees in the 2022 first quarter totaled $170 million, compared to $141 million in the year-ago quarter, aided by $36 million of higher credit card branding fees.
Incentive management fees totaled $102 million in the 2022 first quarter, compared to $33 million in the 2021 first quarter. Roughly half of the year-over-year increase in incentive management fees recognized in the quarter was earned at hotels in the U.S. & Canada.
Contract investment amortization for the 2022 first quarter totaled $24 million, compared to $17 million in the year-ago quarter. The year-over-year change largely reflects impairments of investments in management and franchise contracts in Russia and Belarus.
Owned, leased, and other revenue, net of direct expenses, totaled $65 million of profit in the 2022 first quarter, compared to a $27 million loss in the year-ago quarter. The $92 million increase in revenue net of expenses year over year largely reflects the ongoing recovery in lodging demand from the impacts of COVID-19, as well as $33 million of subsidies received from international government COVID-19 assistance programs.
General, administrative, and other expenses for the 2022 first quarter totaled $208 million, compared to $211 million in the year-ago quarter.
Interest expense, net, totaled $88 million in the first quarter compared to $100 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 first quarter totaled $2 million of earnings, compared to a $12 million loss in the year-ago quarter. The improvement largely reflects an $8 million gain on a joint venture's sale of a hotel in the U.S.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $759 million in the 2022 first quarter, compared to first quarter 2021 adjusted EBITDA of $296 million. See page A-9 for the adjusted EBITDA calculation.
Selected Performance Information
The company added 75 properties (11,799 rooms) to its worldwide lodging portfolio during the 2022 first quarter, including more than 2,500 rooms converted from competitor brands and approximately 5,300 rooms in international markets. Sixteen properties (3,494 rooms) exited the system during the quarter. At quarter end, Marriott's global lodging system totaled more than 8,000 properties, with nearly 1,488,000 rooms.
At quarter end, the company's worldwide development pipeline totaled 2,878 properties with more than 489,000 rooms, including 998 properties with approximately 201,400 rooms under construction and 127 properties with roughly 20,800 rooms approved for development, but not yet subject to signed contracts.
In the 2022 first quarter, worldwide RevPAR increased 96.5 percent (a 95.5 percent increase using actual dollars) compared to the 2021 first quarter. RevPAR in the U.S. & Canada increased 99.1 percent (a 99.1 percent increase using actual dollars), and RevPAR in international markets increased 88.5 percent (an 84.8 percent increase using actual dollars).
Balance Sheet
At quarter end, Marriott's net debt was $8.5 billion, representing total debt of $9.5 billion less cash and cash equivalents of $1.0 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.
Investment Spending
Marriott anticipates that full year 2022 investment spending will total $600 million to $700 million. Total investment spending includes capital and technology expenditures, loan advances, contract acquisition costs, and other investing activities.
Marriott International, Inc. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of more than 8,000 properties under 30 leading brands spanning 139 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world.
MARRIOTT INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED | ||||||
FIRST QUARTER 2022 AND 2021 | ||||||
(in millions except per share amounts, unaudited) | ||||||
As Reported | As Reported | Percent | ||||
Three Months Ended | Three Months Ended | Better/(Worse) | ||||
March 31, 2022 | March 31, 2021 | Reported 2022 vs. 2021 | ||||
REVENUES | ||||||
Base management fees | $ 213 | $ 106 | 101 | |||
Franchise fees 1 | 500 | 306 | 63 | |||
Incentive management fees | 102 | 33 | 209 | |||
Gross Fee Revenues | 815 | 445 | 83 | |||
Contract investment amortization 2 | (24) | (17) | (41) | |||
Net Fee Revenues | 791 | 428 | 85 | |||
Owned, leased, and other revenue 3 | 262 | 108 | 143 | |||
Cost reimbursement revenue 4 | 3,146 | 1,780 | 77 | |||
Total Revenues | 4,199 | 2,316 | 81 | |||
OPERATING COSTS AND EXPENSES | ||||||
Owned, leased, and other - direct 5 | 197 | 135 | (46) | |||
Depreciation, amortization, and other 6 | 48 | 52 | 8 | |||
General, administrative, and other 7 | 208 | 211 | 1 | |||
Restructuring, merger-related charges, and other | 9 | 1 | (800) | |||
Reimbursed expenses 4 | 3,179 | 1,833 | (73) | |||
Total Expenses | 3,641 | 2,232 | (63) | |||
OPERATING INCOME | 558 | 84 | 564 | |||
Gains and other income, net 8 | 4 | 1 | 300 | |||
Interest expense | (93) | (107) | 13 | |||
Interest income | 5 | 7 | (29) | |||
Equity in earnings (losses) 9 | 2 | (12) | 117 | |||
INCOME (LOSS) BEFORE INCOME TAXES | 476 | (27) | 1,863 | |||
(Provision) benefit for income taxes | (99) | 16 | (719) | |||
NET INCOME (LOSS) | $ 377 | $ (11) | 3,527 | |||
EARNINGS (LOSS) PER SHARE | ||||||
Earnings (loss) per share - basic | $ 1.15 | $ (0.03) | 3,933 | |||
Earnings (loss) per share - diluted | $ 1.14 | $ (0.03) | 3,900 | |||
Basic Shares | 328.3 | 326.7 | ||||
Diluted Shares 10 | 330.0 | 326.7 | ||||
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. | ||||||
10 | Basic and fully diluted weighted average shares outstanding used to calculate earnings (loss) per share for the period in which we had a loss are the same because | ||||||
inclusion of additional equivalents would be anti-dilutive. |
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 | |||||
Percent | |||||
March 31, | March 31, | Better/ | |||
2022 | 2021 | (Worse) | |||
Total revenues, as reported | $ 4,199 | $ 2,316 | |||
Less: Cost reimbursement revenue | (3,146) | (1,780) | |||
Add: Impairments 1 | 5 | - | |||
Adjusted total revenues ** | 1,058 | 536 | |||
Operating income, as reported | 558 | 84 | |||
Less: Cost reimbursement revenue | (3,146) | (1,780) | |||
Add: Reimbursed expenses | 3,179 | 1,833 | |||
Add: Restructuring, merger-related charges, and other | 9 | 1 | |||
Add: Impairments 1 | 5 | - | |||
Adjusted operating income ** | 605 | 138 | 338% | ||
Operating income margin | 13% | 4% | |||
Adjusted operating income margin ** | 57% | 26% | |||
Net income (loss), as reported | 377 | (11) | |||
Less: Cost reimbursement revenue | (3,146) | (1,780) | |||
Add: Reimbursed expenses | 3,179 | 1,833 | |||
Add: Restructuring, merger-related charges, and other | 9 | 1 | |||
Add: Impairments 2 | 11 | 4 | |||
Less: Gain on investee's property sale 3 | (8) | - | |||
Income tax effect of above adjustments | (9) | (13) | |||
Adjusted net income ** | $ 413 | $ 34 | 1115% | ||
Diluted earnings (loss) per share, as reported | $ 1.14 | $ (0.03) | |||
Adjusted diluted earnings per share** | $ 1.25 | $ 0.10 | 1150% | ||
** | Denotes non-GAAP financial measures. Please see pages A-10 and A-11 for information about our reasons for providing | |||||
these alternative financial measures and the limitations on their use. | ||||||
1 | Includes impairment charges reported in Contract investment amortization of $5 million in the 2022 first quarter. | |||||
2 | Includes impairment charges reported in Contract investment amortization of $5 million and Equity in earnings (losses) of | |||||
$6 million in the 2022 first quarter. Includes impairment charges reported in Equity in earnings (losses) of $4 million in the | ||||||
2021 first quarter. | ||||||
3 | Gain on investee's property sale reported in Equity in earnings (losses) in the 2022 first quarter. |
MARRIOTT INTERNATIONAL, INC. | ||||||
TOTAL LODGING PRODUCTS | ||||||
As of March 31, 2022 | ||||||
US & Canada | Total International | Total Worldwide | ||||
Units | Rooms | Units | Rooms | Units | Rooms | |
Managed | 636 | 218,211 | 1,308 | 333,745 | 1,944 | 551,956 |
Marriott Hotels | 108 | 58,561 | 186 | 54,404 | 294 | 112,965 |
Marriott Hotels Serviced Apartments | - | - | 1 | 154 | 1 | 154 |
Sheraton | 27 | 23,113 | 182 | 61,382 | 209 | 84,495 |
Courtyard | 169 | 27,259 | 108 | 23,418 | 277 | 50,677 |
Westin | 40 | 21,865 | 75 | 23,170 | 115 | 45,035 |
JW Marriott | 21 | 12,712 | 63 | 23,405 | 84 | 36,117 |
The Ritz-Carlton | 38 | 11,410 | 67 | 16,927 | 105 | 28,337 |
The Ritz-Carlton Serviced Apartments | - | - | 5 | 715 | 5 | 715 |
Renaissance | 24 | 10,607 | 57 | 17,587 | 81 | 28,194 |
Four Points | 1 | 134 | 77 | 21,681 | 78 | 21,815 |
Le Méridien | 1 | 100 | 69 | 19,147 | 70 | 19,247 |
W Hotels | 22 | 6,262 | 36 | 9,784 | 58 | 16,046 |
W Hotels Serviced Apartments | - | - | 1 | 160 | 1 | 160 |
Residence Inn | 76 | 12,199 | 8 | 982 | 84 | 13,181 |
St. Regis | 10 | 1,968 | 39 | 9,153 | 49 | 11,121 |
St. Regis Serviced Apartments | - | - | 1 | 70 | 1 | 70 |
The Luxury Collection | 6 | 2,296 | 50 | 8,795 | 56 | 11,091 |
Gaylord Hotels | 6 | 10,220 | - | - | 6 | 10,220 |
Aloft | 2 | 505 | 43 | 9,560 | 45 | 10,065 |
AC Hotels by Marriott | 7 | 1,165 | 68 | 8,260 | 75 | 9,425 |
Fairfield by Marriott | 7 | 1,539 | 55 | 7,573 | 62 | 9,112 |
Delta Hotels | 25 | 6,770 | 2 | 477 | 27 | 7,247 |
Autograph Collection | 8 | 2,494 | 16 | 2,451 | 24 | 4,945 |
Marriott Executive Apartments | - | - | 34 | 4,866 | 34 | 4,866 |
SpringHill Suites | 26 | 4,360 | - | - | 26 | 4,360 |
EDITION | 4 | 1,207 | 10 | 2,122 | 14 | 3,329 |
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 | 5,026 | 720,230 | 818 | 166,821 | 5,844 | 887,051 |
Courtyard | 852 | 113,557 | 110 | 20,618 | 962 | 134,175 |
Fairfield by Marriott | 1,116 | 104,981 | 42 | 7,093 | 1,158 | 112,074 |
Residence Inn | 771 | 92,006 | 21 | 2,818 | 792 | 94,824 |
Marriott Hotels | 230 | 73,053 | 61 | 17,980 | 291 | 91,033 |
Sheraton | 151 | 45,711 | 70 | 20,358 | 221 | 66,069 |
SpringHill Suites | 491 | 56,809 | - | - | 491 | 56,809 |
TownePlace Suites | 473 | 48,192 | - | - | 473 | 48,192 |
Autograph Collection | 133 | 26,288 | 98 | 21,067 | 231 | 47,355 |
Westin | 91 | 30,817 | 25 | 7,575 | 116 | 38,392 |
Four Points | 158 | 23,901 | 63 | 10,517 | 221 | 34,418 |
Renaissance | 62 | 17,681 | 28 | 7,483 | 90 | 25,164 |
Aloft | 146 | 21,001 | 21 | 3,394 | 167 | 24,395 |
AC Hotels by Marriott | 94 | 15,567 | 41 | 7,503 | 135 | 23,070 |
Moxy | 26 | 4,913 | 79 | 14,940 | 105 | 19,853 |
Delta Hotels | 57 | 12,542 | 10 | 2,414 | 67 | 14,956 |
The Luxury Collection | 12 | 3,188 | 51 | 9,331 | 63 | 12,519 |
Element | 73 | 9,725 | 2 | 269 | 75 | 9,994 |
Tribute Portfolio | 43 | 6,766 | 24 | 3,104 | 67 | 9,870 |
Le Méridien | 24 | 5,543 | 16 | 4,127 | 40 | 9,670 |
JW Marriott | 13 | 6,247 | 9 | 2,305 | 22 | 8,552 |
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 March 31, 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 | 64 | 6,807 | 40 | 3,484 | 104 | 10,291 |
The Ritz-Carlton Residences | 38 | 4,234 | 14 | 1,131 | 52 | 5,365 |
St. Regis Residences | 10 | 1,082 | 9 | 1,045 | 19 | 2,127 |
W Residences | 10 | 1,089 | 4 | 359 | 14 | 1,448 |
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 |
Sheraton Residences | - | - | 1 | 50 | 1 | 50 |
EDITION Residences | 2 | 45 | - | - | 2 | 45 |
Le Méridien Residences | - | - | 1 | 15 | 1 | 15 |
Timeshare* | 72 | 18,839 | 20 | 3,862 | 92 | 22,701 |
Grand Total | 5,824 | 970,570 | 2,224 | 517,111 | 8,048 | 1,487,681 |
*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 March 31, 2022 | ||||||
US & Canada | Total International | Total Worldwide | ||||
Total Systemwide | Units | Rooms | Units | Rooms | Units | Rooms |
Luxury | 190 | 53,039 | 384 | 88,822 | 574 | 141,861 |
JW Marriott | 34 | 18,959 | 73 | 26,206 | 107 | 45,165 |
The Ritz-Carlton | 39 | 11,839 | 69 | 17,477 | 108 | 29,316 |
The Ritz-Carlton Residences | 38 | 4,234 | 14 | 1,131 | 52 | 5,365 |
The Ritz-Carlton Serviced Apartments | - | - | 5 | 715 | 5 | 715 |
The Luxury Collection1 | 18 | 5,484 | 105 | 18,543 | 123 | 24,027 |
The Luxury Collection Residences | 1 | 91 | 3 | 115 | 4 | 206 |
W Hotels | 24 | 7,041 | 38 | 10,449 | 62 | 17,490 |
W Residences | 10 | 1,089 | 4 | 359 | 14 | 1,448 |
W Hotels Serviced Apartments | - | - | 1 | 160 | 1 | 160 |
St. Regis | 10 | 1,968 | 40 | 9,313 | 50 | 11,281 |
St. Regis Residences | 10 | 1,082 | 9 | 1,045 | 19 | 2,127 |
St. Regis Serviced Apartments | - | - | 1 | 70 | 1 | 70 |
EDITION | 4 | 1,207 | 10 | 2,122 | 14 | 3,329 |
EDITION Residences | 2 | 45 | - | - | 2 | 45 |
Bulgari | - | - | 7 | 603 | 7 | 603 |
Bulgari Residences | - | - | 5 | 514 | 5 | 514 |
Full-Service | 1,046 | 356,408 | 994 | 274,773 | 2,040 | 631,181 |
Marriott Hotels | 340 | 132,922 | 253 | 74,448 | 593 | 207,370 |
Marriott Hotels Residences | - | - | 2 | 246 | 2 | 246 |
Marriott Hotels Serviced Apartments | - | - | 1 | 154 | 1 | 154 |
Sheraton | 178 | 68,824 | 256 | 83,570 | 434 | 152,394 |
Sheraton Residences | - | - | 1 | 50 | 1 | 50 |
Westin | 132 | 53,755 | 100 | 30,745 | 232 | 84,500 |
Westin Residences | 3 | 266 | 1 | 9 | 4 | 275 |
Renaissance | 87 | 28,605 | 87 | 25,575 | 174 | 54,180 |
Autograph Collection2 | 141 | 28,782 | 120 | 24,094 | 261 | 52,876 |
Le Méridien | 25 | 5,643 | 85 | 23,274 | 110 | 28,917 |
Le Méridien Residences | - | - | 1 | 15 | 1 | 15 |
Delta Hotels | 82 | 19,312 | 12 | 2,891 | 94 | 22,203 |
Tribute Portfolio | 43 | 6,766 | 30 | 3,708 | 73 | 10,474 |
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 | 4,516 | 542,284 | 826 | 149,654 | 5,342 | 691,938 |
Courtyard | 1,040 | 143,630 | 222 | 44,920 | 1,262 | 188,550 |
Fairfield by Marriott | 1,123 | 106,520 | 97 | 14,666 | 1,220 | 121,186 |
Residence Inn | 848 | 104,397 | 30 | 3,940 | 878 | 108,337 |
SpringHill Suites | 517 | 61,169 | - | - | 517 | 61,169 |
Four Points | 159 | 24,035 | 140 | 32,198 | 299 | 56,233 |
TownePlace Suites | 479 | 49,017 | - | - | 479 | 49,017 |
Aloft | 148 | 21,506 | 64 | 12,954 | 212 | 34,460 |
AC Hotels by Marriott | 101 | 16,732 | 109 | 15,763 | 210 | 32,495 |
Moxy | 26 | 4,913 | 84 | 15,827 | 110 | 20,740 |
Element | 75 | 10,365 | 14 | 2,542 | 89 | 12,907 |
Protea Hotels | - | - | 66 | 6,844 | 66 | 6,844 |
Timeshare* | 72 | 18,839 | 20 | 3,862 | 92 | 22,701 |
Grand Total | 5,824 | 970,570 | 2,224 | 517,111 | 8,048 | 1,487,681 |
*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 March 31, 2022 and March 31, 2021 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Brand | 2022 | vs. 2021 | 2022 | vs. 2021 | 2022 | vs. 2021 | ||||
JW Marriott | $189.66 | 117.3% | 56.0% | 24.7% | pts. | $338.56 | 21.7% | |||
The Ritz-Carlton | $321.89 | 108.7% | 57.4% | 24.6% | pts. | $560.94 | 19.3% | |||
W Hotels | $212.45 | 115.1% | 50.7% | 22.2% | pts. | $419.42 | 20.6% | |||
Composite US & Canada Luxury1 | $268.84 | 116.2% | 56.6% | 25.6% | pts. | $474.84 | 18.6% | |||
Marriott Hotels | $107.67 | 211.5% | 52.0% | 28.4% | pts. | $206.99 | 41.5% | |||
Sheraton | $115.86 | 349.8% | 53.7% | 36.6% | pts. | $215.66 | 43.1% | |||
Westin | $124.89 | 198.2% | 53.9% | 29.6% | pts. | $231.53 | 34.8% | |||
Composite US & Canada Premium2 | $109.57 | 228.8% | 51.5% | 29.6% | pts. | $212.96 | 39.6% | |||
US & Canada Full-Service3 | $143.78 | 171.7% | 52.6% | 28.7% | pts. | $273.55 | 23.2% | |||
Courtyard | $78.65 | 108.9% | 55.1% | 14.1% | pts. | $142.79 | 55.3% | |||
Residence Inn | $121.40 | 57.3% | 70.6% | 9.2% | pts. | $171.89 | 36.9% | |||
Composite US & Canada Limited-Service4 | $92.15 | 93.4% | 60.2% | 14.6% | pts. | $153.08 | 46.5% | |||
US & Canada - All5 | $131.59 | 154.7% | 54.4% | 25.4% | pts. | $242.05 | 35.7% | |||
Comparable Systemwide US & Canada Properties | ||||||||||
Three Months Ended March 31, 2022 and March 31, 2021 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Brand | 2022 | vs. 2021 | 2022 | vs. 2021 | 2022 | vs. 2021 | ||||
JW Marriott | $193.97 | 131.0% | 58.9% | 25.5% | pts. | $329.45 | 30.9% | |||
The Ritz-Carlton | $313.79 | 111.4% | 56.7% | 25.0% | pts. | $553.57 | 18.3% | |||
W Hotels | $212.45 | 115.1% | 50.7% | 22.2% | pts. | $419.42 | 20.6% | |||
Composite US & Canada Luxury1 | $251.55 | 122.6% | 57.3% | 25.8% | pts. | $438.90 | 22.3% | |||
Marriott Hotels | $94.14 | 157.9% | 51.2% | 23.8% | pts. | $183.88 | 38.2% | |||
Sheraton | $83.24 | 177.0% | 50.1% | 23.7% | pts. | $166.13 | 45.8% | |||
Westin | $115.97 | 179.4% | 54.5% | 27.4% | pts. | $212.92 | 38.8% | |||
Composite US & Canada Premium2 | $99.45 | 159.6% | 51.7% | 24.3% | pts. | $192.20 | 37.5% | |||
US & Canada Full-Service3 | $117.21 | 149.2% | 52.4% | 24.5% | pts. | $223.72 | 32.6% | |||
Courtyard | $79.55 | 84.8% | 58.0% | 14.4% | pts. | $137.16 | 38.8% | |||
Residence Inn | $101.25 | 42.8% | 69.8% | 7.7% | pts. | $145.05 | 27.1% | |||
Fairfield by Marriott | $69.08 | 64.9% | 60.0% | 12.9% | pts. | $115.05 | 29.6% | |||
Composite US & Canada Limited-Service4 | $81.91 | 64.7% | 62.1% | 12.3% | pts. | $131.89 | 32.1% | |||
US & Canada - All5 | $96.78 | 99.1% | 58.0% | 17.4% | pts. | $166.82 | 39.3% | |||
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 March 31, 2022 and March 31, 2021 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2022 | vs. 2021 | 2022 | vs. 2021 | 2022 | vs. 2021 | ||||
Greater China | $53.80 | -6.9% | 41.9% | -5.7% | pts. | $128.30 | 5.7% | |||
Asia Pacific excluding China | $58.29 | 66.6% | 45.0% | 11.7% | pts. | $129.59 | 23.4% | |||
Caribbean & Latin America | $130.79 | 152.4% | 57.5% | 26.7% | pts. | $227.39 | 35.5% | |||
Europe | $81.16 | 401.9% | 42.7% | 30.3% | pts. | $190.20 | 45.7% | |||
Middle East & Africa | $128.71 | 97.7% | 66.1% | 23.5% | pts. | $194.82 | 27.3% | |||
International - All1 | $78.47 | 75.1% | 48.2% | 13.0% | pts. | $162.88 | 28.0% | |||
Worldwide2 | $102.61 | 114.1% | 51.0% | 18.6% | pts. | $201.25 | 36.0% | |||
Comparable Systemwide International Properties | ||||||||||
Three Months Ended March 31, 2022 and March 31, 2021 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2022 | vs. 2021 | 2022 | vs. 2021 | 2022 | vs. 2021 | ||||
Greater China | $51.21 | -6.2% | 41.3% | -5.4% | pts. | $123.87 | 6.0% | |||
Asia Pacific excluding China | $58.32 | 62.0% | 45.1% | 11.2% | pts. | $129.18 | 21.8% | |||
Caribbean & Latin America | $100.83 | 166.6% | 53.1% | 24.6% | pts. | $190.02 | 43.2% | |||
Europe | $63.76 | 400.3% | 38.9% | 27.7% | pts. | $163.81 | 44.6% | |||
Middle East & Africa | $117.61 | 99.4% | 64.5% | 23.2% | pts. | $182.20 | 27.7% | |||
International - All1 | $71.11 | 88.5% | 46.2% | 14.8% | pts. | $153.85 | 28.3% | |||
Worldwide2 | $89.18 | 96.5% | 54.5% | 16.6% | pts. | $163.56 | 36.5% | |||
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 March 31, 2022 and March 31, 2019 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2022 | vs. 2019 | 2022 | vs. 2019 | 2022 | vs. 2019 | ||||
Greater China | $51.21 | -41.9% | 41.3% | -21.3% | pts. | $123.87 | -12.0% | |||
Asia Pacific excluding China | $58.32 | -48.4% | 45.1% | -26.1% | pts. | $129.18 | -18.6% | |||
Caribbean & Latin America | $100.83 | -13.5% | 53.1% | -11.4% | pts. | $190.02 | 5.1% | |||
Europe | $63.76 | -37.9% | 38.9% | -23.8% | pts. | $163.81 | -0.1% | |||
Middle East & Africa | $117.61 | 11.5% | 64.5% | -4.9% | pts. | $182.20 | 20.0% | |||
International - All2 | $71.11 | -31.7% | 46.2% | -19.8% | pts. | $153.85 | -2.4% | |||
US & Canada - All | $96.78 | -14.5% | 58.0% | -10.9% | pts. | $166.82 | 1.7% | |||
Worldwide3 | $89.18 | -19.4% | 54.5% | -13.6% | pts. | $163.56 | 0.8% | |||
1 The comparisons between 2022 and 2019 reflect properties that are defined as comparable as of March 31, 2022 even if in 2019 they were not open and operating for the full year or did not meet all the criteria for comparable in 2019. | ||||||||||
2 Includes Greater China, Asia Pacific excluding China, Caribbean & Latin America, Europe, and Middle East & Africa. | ||||||||||
3 Includes US & Canada - All and International - All. |
MARRIOTT INTERNATIONAL, INC. | |||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||
ADJUSTED EBITDA | |||||||||
($ in millions) | |||||||||
Fiscal Year 2022 | |||||||||
First Quarter | |||||||||
Net income, as reported | $ 377 | ||||||||
Cost reimbursement revenue | (3,146) | ||||||||
Reimbursed expenses | 3,179 | ||||||||
Interest expense | 93 | ||||||||
Interest expense from unconsolidated joint ventures | 1 | ||||||||
Provision for income taxes | 99 | ||||||||
Depreciation and amortization | 48 | ||||||||
Contract investment amortization | 24 | ||||||||
Depreciation and amortization classified in reimbursed expenses | 26 | ||||||||
Depreciation, amortization, and impairments from unconsolidated joint ventures | 13 | ||||||||
Stock-based compensation | 44 | ||||||||
Restructuring, merger-related charges, and other | 9 | ||||||||
Gain on investee's property sale | (8) | ||||||||
Adjusted EBITDA ** | $ 759 | ||||||||
Change from 2021 Adjusted EBITDA ** | 156% | ||||||||
Fiscal Year 2021 | |||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | 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 | ||||