Marriott International Announces Impressive Q4 and 2023 Year-End Financial Results

Marriott International reports strong financial growth in Q4 and full year 2023, with significant increases in RevPAR, net room growth, and record cash levels.

Marriott International, Inc. (Nasdaq: MAR) today unveiled its financial achievements for the fourth quarter and the entirety of 2023, marking a year of robust performance.

Anthony Capuano, President and CEO, highlighted the company's exceptional performance in 2023, driven by increasing demand for Marriott's industry-leading property portfolio worldwide. The year saw a 15% increase in global RevPAR, a 4.7% growth in net rooms, and the generation of record cash levels through the company's fee-driven, asset-light business model.

The fourth quarter witnessed a 7% increase in worldwide RevPAR, with international markets, especially Asia Pacific and Europe, showing a 17% growth. In the U.S. & Canada, RevPAR increased by over 3% during the same period, supported by a 7% rise in group revenue and continued growth in hotel leisure and business transient revenue.

2023 was a landmark year for development at Marriott, with the signing of a record 164,000 organic rooms globally, including a significant deal with MGM Resorts International. This pushed the development pipeline to a new record of approximately 573,000 rooms. The addition of nearly 81,300 rooms to Marriott's distribution highlights the company's robust growth, with a notable portion coming from conversions.

The Marriott Bonvoy loyalty program continued to expand, reaching 196 million members by year's end. The program's success is complemented by the growth in global co-brand credit card offerings, now totaling 31 cards across 11 countries, and an 11% increase in global card spend over the previous year.

Looking ahead to 2024, Marriott anticipates sustained growth and substantial shareholder returns, expecting a 3 to 5% increase in worldwide full-year RevPAR and a net room growth of 5.5 to 6%. This growth is projected to lead to an adjusted EBITDA of approximately $4.9 billion to $5.0 billion, allowing for a return of $4.1 billion to $4.3 billion to shareholders, inclusive of $500 million for the purchase of the Sheraton Grand Chicago.

The fourth quarter of 2023 saw a 9% increase in base management and franchise fees, reaching $1,026 million, largely due to RevPAR increases and unit growth. Incentive management fees also saw a significant increase, contributing to the overall positive financial outcome for the quarter.

Marriott's commitment to growth and innovation, coupled with strategic investments and an expansive development pipeline, positions the company for continued success in the global hospitality industry.

Read offical statement here