The following is a summary of the Marriott International, Inc. (MAR) Q1 2024 Earnings Call Transcript:
Financial Performance:
Marriott reported Q1 global RevPAR growth of 4.2% and occupancy of nearly 66%, up 100 basis points year-over-year.
Group, leisure transient, and business transient RevPAR grew in Q1 with increases of 6%, 4%, and 1% respectively.
Total gross fee revenues rose 7% to $1.21 billion and adjusted EBITDA grew 4% to approximately $1.14 billion in Q1.
Expectations of steady demand, strong international performance, and rooms growth have led to a raise in the full year 2024 guidance.
A 13% growth in the tracking of group pace for 2025 has been reported, due to a 7% rise in definite rooms and a 5% increase in Average Daily Rate (ADR).
There was a 9% increase in the pipeline year-on-year for Q1 2024 compared to Q1 2023, excluding MGM.
Business Progress:
The company reported significant progress in the digital and technology transformation of their major systems.
Marriott Bonvoy added 7 million members during Q1, reaching approximately 203 million members at the end of March.
An additional 46,000 net rooms were added in Q1, marking a distribution growth of 7.1%.
Developer interest is reported across new midscale brands including City Express by Marriott, Four Points Express, and StudioRes, with deals in progress across various regions.
Q1 saw a 25% year-on-year uptick in US construction starts and the company anticipates gains in occupancy and rates for the full year.
Plans are underway for the launch of new midscale brands aimed at boosting future conversion rates.
Marriott continues to invest in capital improvement for select properties and plans to sell and renovate the Sheraton Grand Chicago hotel in partnership with a new owner.
More details: Marriott International IR
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