Announcing its fourth quarter and full year 2023 results on February 13, Marriott International said it has registered robust growth in 2023 with its global RevPAR rising 15%, net rooms growing 4.7%, and its fee-driven, asset-light business model generating record levels of cash.

Anthony Capuano, President and Chief Executive Officer, of the US-based group, said: “Our team delivered excellent results in 2023, as demand for our industry leading portfolio of properties and offerings around the world continued to grow.

“In the fourth quarter, worldwide RevPAR rose 7%. International RevPAR grew 17%, with particular strength in Asia Pacific and Europe.

“In the US & Canada, fourth quarter RevPAR rose over 3%. Group revenue at our hotels increased 7% compared to the 2022 fourth quarter, driven by solid rate increases. While already significantly above 2019 levels, hotel leisure revenue rose again, up 2%.

“Business transient revenue at our hotels grew 3% from the year-ago quarter, with demand from large corporate customers continuing to make gains.

“Our development team had a stellar 2023, signing a record 164,000 organic rooms globally, including 37,000 rooms from our deal with MGM Resorts International, and our development pipeline reached a new high of roughly 573,000 rooms at year-end.

“During the year, we added nearly 81,300 rooms to our distribution, with one in four organic rooms from conversions.

“The power of Marriott Bonvoy loyalty program continues to increase, with 196 million members at year-end. We’ve continued to leverage our global portfolio and have expanded our co-brand credit card offerings, with 31 cards now across 11 countries. In 2023, global card spend increased a remarkable 11% over the prior year.

“In 2024, we expect another year of solid growth and significant shareholder returns. With normalising RevPAR growth around the world, we anticipate a worldwide full year RevPAR increase of 3% to 5% and net rooms growth of 5.5% to 6%.

“We expect this should yield adjusted Ebitda of approximately $4.9 billion to $5.0 billion for the year and enable us to return $4.1 billion to $4.3 billion to shareholders after factoring in $500 million to purchase the Sheraton Grand Chicago.”

Fourth Quarter 2023 Results

Marriott’s reported operating income totalled $718 million in the 2023 fourth quarter, compared to 2022 fourth quarter reported operating income of $996 million.

Reported net income totalled $848 million in the 2023 fourth quarter, a 26% increase compared to 2022 fourth quarter reported net income of $673 million. Reported diluted earnings per share (EPS) totalled $2.87 in the quarter, compared to reported diluted EPS of $2.12 in the year-ago quarter.

Adjusted operating income in the 2023 fourth quarter totalled $992 million, compared to 2022 fourth quarter adjusted operating income of $926 million.

Fourth quarter 2023 adjusted net income totalled $1,055 million, compared to 2022 fourth quarter adjusted net income of $622 million. Adjusted diluted EPS in the 2023 fourth quarter totalled $3.57, compared to adjusted diluted EPS of $1.96 in the year-ago quarter.

In the 2023 fourth quarter, worldwide RevPAR increased 7.2% (a 7.6% increase using actual dollars) compared to the 2022 fourth quarter. RevPAR in the US and Canada increased 3.3% (a 3.3% increase using actual dollars), and RevPAR in international markets increased 17.4% (an 18.7% increase using actual dollars).

Worldwide Portfolio

Marriott added 558 properties (81,281 rooms) to its worldwide portfolio during 2023, including approximately 17,500 rooms associated with the City Express transaction and more than 43,000 other rooms in international markets. Sixty-three properties (9,430 rooms) exited the system during the year. At the end of the year, Marriott’s global system totalled nearly 8,800 properties, with more than 1,597,000 rooms.

At the end of the year, the company’s worldwide development pipeline totalled 3,379 properties with roughly 573,000 rooms, including 126 properties with over 21,000 rooms approved for development, but not yet subject to signed contracts.

The year-end pipeline included 1,066 properties with more than 232,000 rooms under construction, or 41 percent, including approximately 37,000 rooms from the MGM deal.

– TradeArabia News Service