Marriott International’s Solid Global Performance in 2024

Marriott International, one of the world’s largest hotel companies, has reported strong financial results for the year 2024. The company saw solid global RevPAR (revenue per available room) growth, driven by strong demand across nearly all its regions.

Business Trends

In 2024, worldwide RevPAR increased 4.3% compared to 2023, reflecting ADR (average daily rate) growth of 2.8% and occupancy improvement of 1.0 percentage point. This increase was driven by strong year-over-year demand growth in nearly all Marriott’s regions.

Region	RevPAR Growth 2024 vs 2023
U.S. & Canada	3.0%
EMEA	9.1%
APEC	12.9%
CALA	8.8%
Greater China	-2.3%

The U.S. & Canada region saw RevPAR growth of 3.0% in 2024, led by strong demand from both group and transient customer segments. EMEA experienced 9.1% RevPAR growth, driven by strong demand across the region, aided by the 2024 Paris Olympics and other special events. APEC saw a 12.9% increase in RevPAR, driven by strong demand, including an increase in inbound travel. CALA had an 8.8% rise in RevPAR, while Greater China declined 2.3% due to lower domestic demand and an increase in outbound travel.

Marriott also launched a comprehensive initiative in 2024 to enhance its effectiveness and efficiency across the company, which is expected to yield $80 million to $90 million of annual general and administrative cost reductions starting in 2025.

System Growth and Pipeline

Marriott’s system grew from 8,785 properties (1,597,380 rooms) at the end of 2023 to 9,361 properties (1,706,331 rooms) at the end of 2024. This increase was driven by gross additions of 666 properties (123,389 rooms), including the addition of 16 properties (approximately 38,000 rooms) from its agreement with MGM Resorts International and 163 properties (approximately 9,000 rooms) from its agreement with Sonder Holdings Inc.

At the end of 2024, Marriott had nearly 3,800 properties and over 577,000 rooms in its development pipeline, with 229,000 rooms (40%) under construction or in the process of converting to Marriott’s system. Fifty-five percent of the rooms in the pipeline are located outside the U.S. & Canada.

In 2024, Marriott signed over 1,200 development deals globally for nearly 162,000 rooms, with approximately 34% of the rooms resulting from conversion opportunities. The company continued to strengthen its luxury portfolio and grow its midscale brands, and in December 2024, announced the expansion of its outdoor-focused lodging offerings.

For 2025, Marriott expects net rooms growth of 4 to 5 percent.

Financial Performance

Marriott’s fee revenues increased 7% in 2024 compared to 2023, driven by higher RevPAR, unit growth, higher co-branded credit card fees, higher residential branding fees, and higher fees from properties that converted from managed to franchised.

Fee Revenues ($ millions)	2024	2023	Change
Base management fees	$1,288	$1,238	4%
Franchise fees	$3,113	$2,831	10%
Incentive management fees	$769	$755	2%
Gross fee revenues	$5,170	$4,824	7%
Contract investment amortization	$(103)	$(88)	-17%
Net fee revenues	$5,067	$4,736	7%

Owned, leased, and other revenue, net of direct expenses, decreased 12% in 2024, primarily due to $65 million of higher termination fees recorded in the prior year.

Cost reimbursements, net (cost reimbursement revenue, net of reimbursed expenses) decreased significantly, reflecting lower revenues, net of expenses, for many of Marriott’s programs and services, as well as higher Loyalty Program expenses.

Other operating expenses increased, with general, administrative, and other expenses rising 6% due to higher compensation costs and higher guarantee reserves, and restructuring and merger-related charges increasing 28%.

Non-operating income and expenses saw mixed results, with interest expense increasing 23% due to higher debt balances, while interest income grew 33%.

Marriott’s provision for income taxes increased 163% in 2024, primarily due to intellectual property restructuring transactions, the release of a tax valuation allowance, and the release of tax reserves in the prior year.

Business Segments

Marriott’s business segments showed varied performance in 2024 compared to 2023:

Segment	Net Fee Revenues ($ millions)	Segment Profit ($ millions)
U.S. & Canada	$2,875 (+5%)	$2,640 (-3%)
EMEA	$575 (+11%)	$512 (+16%)
Greater China	$249 (-6%)	$186 (-11%)
APEC	$340 (+20%)	$280 (+15%)

The U.S. & Canada segment saw a 5% increase in net fee revenues but a 3% decrease in segment profit, due to lower cost reimbursement revenue, net of reimbursed expenses, lower owned, leased, and other revenue, net of direct expenses, and higher general, administrative, and other expenses.

EMEA’s segment profit increased 16%, driven by higher net fee revenues and lower general, administrative, and other expenses, partially offset by lower cost reimbursement revenue, net of reimbursed expenses.

Greater China’s net fee revenues and segment profit declined 6% and 11%, respectively, due to lower RevPAR.

APEC’s net fee revenues and segment profit grew 20% and 15%, respectively, driven by strong demand.

Liquidity and Capital Resources

Marriott has a $4.5 billion multicurrency revolving credit facility that supports its commercial paper program and general corporate needs. The company also issues commercial paper and has access to capital markets to fund its liquidity requirements.

Net cash provided by operating activities decreased by $421 million in 2024 compared to 2023, primarily due to a $300 million cash outflow for the settlement of a guarantee liability and reduced cash received from U.S. co-branded credit card issuers.

Capital expenditures and other investments increased by $298 million in 2024, primarily due to spending related to the Sheraton Grand Chicago acquisition and higher spending on Marriott’s worldwide technology systems transformation.

Marriott’s debt increased by $2,574 million in 2024, primarily due to the issuance of new senior notes, partially offset by the maturity of existing notes. The company’s long-term debt had a weighted average interest rate of 4.5% and a weighted average maturity of approximately 5.0 years at the end of 2024.

Marriott repurchased 15.4 million shares of its common stock for $3.7 billion in 2024 and expects to continue returning cash to shareholders through a combination of share repurchases and cash dividends.

Outlook

Marriott’s strong global performance in 2024, driven by solid demand across most of its regions, positions the company well for the future. The company’s initiatives to enhance efficiency and effectiveness, as well as its continued system growth and pipeline development, are expected to support its long-term financial health.

However, the company faces some challenges, such as the decline in RevPAR and profitability in Greater China due to macroeconomic conditions and increased outbound travel. Marriott will need to closely monitor and adapt to changing market conditions in this important region.

Overall, Marriott’s diverse global footprint, strong brand portfolio, and focus on operational excellence and cost management suggest the company is well-positioned to navigate the evolving hospitality landscape and deliver value to its shareholders in the years ahead.