Marriott International Inc. reported third quarter 2024 results, seeing a 3% increase in global RevPAR and a 2.1% increase in the U.S. and Canada.

Highlights include:

• Third-quarter 2024 comparable systemwide constant dollar RevPAR increased 3% worldwide, 2.1% in the U.S. & Canada, and 5.4% in international markets, compared to the 2023 third quarter;
• Third-quarter reported diluted EPS totaled $2.07, compared to reported diluted EPS of $2.51 in the year-ago quarter. Third-quarter adjusted diluted EPS totaled $2.26, compared to third-quarter 2023 adjusted diluted EPS of $2.11;
• Third-quarter reported net income totaled $584 million, compared to reported net income of $752 million in the year-ago quarter. Third-quarter adjusted net income totaled $638 million, compared to third-quarter 2023 adjusted net income of $634 million;
• Adjusted EBITDA totaled $1.2 billion in the 2024 third quarter, compared to third-quarter 2023 adjusted EBITDA of $1.1 billion;
• The company added roughly 16,000 net rooms during the quarter;
• At the end of the quarter, Marriott’s worldwide development pipeline totaled approximately 3,800 properties and 585,000 rooms, including roughly 34,000 pipeline rooms approved, but not yet subject to signed contracts. More than 220,000 rooms in the pipeline were under construction as of the end of the third quarter;
• Marriott repurchased 4.5 million shares of common stock for $1 billion in the third quarter. Year to date through October 31, the company has returned $3.9 billion to shareholders through dividends and share repurchases.

“Marriott had another solid quarter, highlighted by strong net rooms and fee growth, robust development activity and a 3% increase in global RevPAR,” said Anthony Capuano, president/CEO. “Third quarter international RevPAR rose 5.4%, led by meaningful gains in APEC and EMEA with resilient domestic and cross-border demand, as well as solid ADR growth. RevPAR in the U.S. & Canada increased more than 2% compared to the year-ago quarter, with ADR up 2.3%.

“Group remained the standout customer segment, with global group RevPAR rising 10 % in the quarter and on pace to rise 8% for full year 2024. RevPAR for the business transient segment continued to grow nicely in the quarter, while leisure transient RevPAR was flat year over year, but still well ahead of pre-pandemic levels.

“Given the breadth and depth of our portfolio and the meaningful benefits we deliver to owners and franchisees, demand for our brands remains strong. Through the first three quarters of 2024, we signed over 95,000 organic rooms, more than half of which are outside the U.S. & Canada. More than 40% of signed rooms are conversions, where we continue to have a lot of momentum, particularly with multi-unit opportunities.

“Net rooms grew nearly 6% over the last four quarters, and our development pipeline reached a record 585,000 rooms at the end of September. Our teams remain keenly focused on expanding our industry leading global portfolio, and we now expect full-year 2024 net rooms growth to be around 6.5%.

“Our business momentum is excellent, and we continue to evolve our business to support our numerous global growth opportunities. To that end, we have undertaken a comprehensive initiative to enhance our effectiveness and efficiency across the company. At this point in the process, we expect this initiative to yield $80 million to $90 million of annual general and administrative cost reductions beginning in 2025. In addition, we expect this work to deliver cost savings to our owners and franchisees.

“With our asset-light business model generating meaningful cash and our solid financial performance, we returned $3.7 billion to shareholders through share repurchases and dividends in the first nine months of the year, and now expect to return approximately $4.4 billion for the full year 2024.”

Base management and franchise fees totaled $1.1 billion in the 2024 third quarter, a 7% increase compared to base management and franchise fees of $1.1 billion in the year-ago quarter. The increase is primarily attributable to RevPAR increases and unit growth, as well as higher residential and co-branded credit card fees.

Incentive management fees totaled $159 million in the 2024 third quarter, an 11% increase compared to $143 million in the 2023 third quarter. Managed hotels in international markets contributed roughly 70% of the incentive fees earned in the quarter.

General, administrative and other expenses for the 2024 third quarter totaled $276 million, compared to $239 million in the year-ago quarter. The year-over-year change largely reflects a $19 million operating guarantee reserve for a U.S. hotel, which was negotiated in connection with the company’s acquisition of Starwood, and an $11 million litigation reserve.

Interest expense, net, totaled $168 million in the 2024 third quarter, compared to $139 million in the year-ago quarter. The increase was largely due to higher interest expense associated with higher debt balances.

Marriott’s reported operating income totaled $944 million in the 2024 third quarter, compared to 2023 third quarter reported operating income of $1.1 billion. Reported net income totaled $584 million in the 2024 third quarter, compared to 2023 third-quarter reported net income of $752 million. Reported diluted earnings per share (EPS) totaled $2.07 in the quarter, compared to reported diluted EPS of $2.51 in the year-ago quarter.

Adjusted operating income in the 2024 third quarter totaled $1 billion, compared to 2023 third-quarter adjusted operating income of $959 million. Third quarter 2024 adjusted net income totaled $638 million, compared to 2023 third-quarter adjusted net income of $634 million. Adjusted diluted EPS in the 2024 third quarter totaled $2.26, compared to adjusted diluted EPS of $2.11 in the year-ago quarter.

Adjusted results excluded cost reimbursement revenue, reimbursed expenses and restructuring and merger-related charges.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $1.229 billion in the 2024 third quarter, compared to third-quarter 2023 adjusted EBITDA of $1.142 billion.

The company added roughly 16,000 net rooms during the quarter. At the end of the quarter, Marriott’s global system totaled nearly 9,100 properties, with roughly 1,675,000 rooms.

At the end of the quarter, the company’s worldwide development pipeline totaled 3,802 properties with approximately 585,000 rooms, including 232 properties with roughly 34,000 rooms approved for development, but not yet subject to signed contracts. The quarter-end pipeline included 1,320 properties with more than 220,000 rooms under construction. Fifty-six% of rooms in the quarter-end pipeline are in international markets.

In the 2024 third quarter, worldwide RevPAR increased 3% (a 2.3 % increase using actual dollars) compared to the 2023 third quarter. RevPAR in the U.S. & Canada increased 2.1% (a 1.9% increase using actual dollars), and RevPAR in international markets increased 5.4% (a 3.3% increase using actual dollars).

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