Marriott exceeds Q4 expectations with strong performance driven by global travel demand and expansion

From Nasdaq: 2025-02-11 10:48:00

Marriott International, Inc. (MAR) reported strong fourth-quarter 2024 results, with adjusted earnings and revenues surpassing expectations. The company saw a year-over-year increase in revenue but a decline in earnings. Quarterly revenues reached $6.42 billion, exceeding the consensus estimate of $6.39 billion.

Marriott’s full-year performance in 2024 was driven by global travel demand and portfolio expansion. The company experienced a 4.3% increase in global RevPAR and added over 123,000 rooms. Marriott’s development pipeline now stands at 577,000 rooms, with significant growth in various segments.

The company’s adjusted earnings per share (EPS) of $2.45 beat the expected $2.38, while revenues from Base management and Franchise fees showed positive growth. RevPAR for worldwide properties increased by 5%, driven by gains in occupancy and average daily rate.

Looking ahead, Marriott anticipates continued growth in 2025, with gross fee revenues expected to increase and adjusted EBITDA projected to rise. The company aims to capitalize on its global presence and loyalty program to drive growth in the upcoming periods.

Marriott’s global development pipeline includes 3,766 hotels under construction, demonstrating the company’s commitment to expansion. Total revenues for 2024 reached $25.1 billion, with adjusted EBITDA at $4.98 billion. The company expects to see further growth in 2025.

In the first quarter of 2025, Marriott forecasts gross fee revenues between $1.24-$1.26 billion and adjusted EBITDA in the range of $1.17-$1.2 billion. The company expects worldwide system-wide RevPAR to increase by 2-4% in 2025. Adjusted earnings per share for the full year are estimated to be between $9.82-$10.19.

Marriott currently holds a Zacks Rank #3 (Hold) and remains optimistic about its future outlook. The company’s strategic initiatives and strong performance position it well for continued success in the hospitality industry.



Read more at Nasdaq: Marriott Q4 Earnings & Revenues Beat Estimates, RevPAR Rise Y/Y