MAR - Earnings call transcript Q1 2019 | Marriott International, Inc.

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Operator

Good afternoon, and welcome to Marriott International's First Quarter 2019 Earnings Conference Call. At this time, all participants have been placed in the listen-only mode. After today's prepared remarks, there will be a question-and-answer session. [Operator Instructions] I would now like to turn the call over to Arne Sorenson, President and Chief Executive Officer. Please go ahead, sir.

Arne Sorenson

everyone. afternoon, Good first our earnings call. conference Welcome quarter to XXXX

Investor Oberg, President Senior and Joining Senior President, me Financial Vice Leeny are Director, Dahm, Betsy Paugh, today Chief Executive Officer; Relations; and Relations. Investor Vice Laura

future First which let of today Securities to forward-looking in not as results are risks Laws. considered in that could These facts SEC are subject under described our and our from to and numerous comments materially historical statements those remind implied me or everyone cause comments. many Federal filings, statements our differ are uncertainties expressed by

Forward-looking unfold. are results merger-related statements will press excluding Page effective In on our of we results related will and our and we updated refer and that non-GAAP revenues comments largely results May to today, appear today remarks be costs expenses. issued XXXX, release, appear discussion GAAP XX, adjusted reconciliation pages. today, the that but today earlier in the on about only earnings will talk our events the AX along reimbursement actual the with not release as

in Of Web remarks course, find release to earnings reconciliations also all you non-GAAP referred measures on our of our site. financial and can our

results, Before made about the a diagnosis. last cancer let proceeding announcement week about to minute talk our we take me to talk about my

associates investment from all from of around I'm They for messages many the it before. cancer. pancreatic that of Marriott's team and As community and is the partners times Hopkins we it X well the proven. seen world. I Thankfully, the medical we as course the business this Stage as operable, have mentioned, at treatment Johns have community is has early, of that support believe grateful caught

are soldier going With the we strong Marriott support of on. to an extraordinary executives, team of

prior to totaled XX,XXX After quarter XXX,XXX rooms roughly Hong development last month, compared St. XX end growth. or the openings, the remainder of were XXX,XXX double are X.X quarter-end embedded rooms from XXX,XXX pipeline rooms pipeline in quarter at years already totaled our landmark XXXX. our construction Kong. the construction we compared under of XXXX the nearly XX% Net year-ago number room our opened rooms our largest equivalent number under the rooms this years pipeline room Almost construction, our of in rooms under year. the current XX,XXX the rooms opening another our industry. of X.X growth. our almost of first quarter. openings in Regis pace the from of property, represents to The represents storey Now, at the of hotel, At Gross gross pipeline openings first in

committed of legacy for the upscale XX% only quarter Sheraton is Starwood pipeline brands pipeline. second and to In XXXX, quarter first of Sheraton Hotels development brand Bradenton, Our rooms under existing or signed than renovation. roughly of our the luxury brands, the in account new built including upper size XX in Sheraton to Sheraton's our portfolio Among deals, has brand. for More Florida. Hotel Sheraton new the Marriott and the three new we a XXX-room is opened four

X.X the Our limited-service pipeline, includes rooms, ago. service nearly pipeline pipeline in limited in brands, rapidly. more Outside size brands limited are number upscale years X.X its than Globally, times North five brands is service XXXX. largely nearly our now growing XXX,XXX rooms times our those of America,

to urban high around in modular rises construction a these multi-brand We approaches the of are growing variety brands complexes. hotel to world with from markets

these three prefer we still under continue deals in And talent in globally U.S. We one is construction more to developing while than growth Marriott existing better Brand. franchisees meaningful. According owners will five be see in modest, flags. We one are to distribution designs the markets, that prototype are Fairfield because to that today is of one development evidence our Inn make and globally to for the smaller happen, suit opportunity and new STR, TownePlace the with suites add our and our hotels fly rooms more construction flagged will brands. under

the news in to expect in of two XXXX continue growth and X.X%. total approximately Marriott revenue to for enrollments formed we the more sales Alibaba. late over China markets quarter while net rooms XXXX. Less ago, We there see our in first of in joint improve tripled to new property guests. than We several of in China designed with Bonvoy deleted quarter. new In The first XXXX, quarter of prior Bonvoy year a visited about channel year-over-year, rooms newly with deletions March. I the Chinese from venture X.X% service rooms XXXX Marriott doubled and X% years level than Alibaba big is to the Alibaba

the Marriott Bonvoy collection reached worldwide, that we offers compelling XXXX. At XX% most are sign-ups up came announced found our new year-end first and largest of around In of XXXX, our the from China. XXX in initiative. quarter conducted rate one loyalty hotels roughly rental membership the welcome program rentals We loyalty who home Bonvoy used our our over excited survey Worldwide, in of of first Approximately Marriott a we million XX to guests at rose world. in members quarter. hotels We new months. responded had these nearly experiences. the the at end and revenue prior the a million home members the from redemption in to hotels quarter, double-digit X recently

and pilot in for were our length XX% the leisure. average across guests America. Europe, members, than Bonvoy rental and typical Caribbean, in hotel were traveling we and International, for European U.S., in our of launch villas stay homes to and a triple With more pilot XXX During number The Marriott pilot, by Latin of few European luxury Marriott our destinations access XX% guest. and offering to that growing the homes XXXX, cities, a villas decided nearly over successful in of over was guests available a premium which the was home

full amenities travelers homes. residencies, kitchens including selection guided with providing commitment Our other and our of to

desire to hotel selection complement influenced markets. our Our similarly core offerings our of

We property managing to roughly leisure are companies markets these and management drive brands April, competitive of of evolving and home with are already landscape, in our new travel highly expertise are of enhance product rental should these earning and Expedia's multi-year XXXX. who a with by should Marriott In estimate with Home technology loyalty stay strong into and new which in in Marriott. portfolio. enhance launching packaging leverage for throughout ultimately believe to our enable leverage platform Marriott we the loyalty fully will XX% rental the for curated any a and select our of new Bonvoy homes, will loyalty travel integrated our experience, fourth agreement launched work Marriott, program redeeming be program. to an our experiences Expedia, and value increase signed Vacations to quarter points greater members us share a member our business for our we allow opportunity wallet We

increased X.X%. in worldwide company-operated impressive our from the first will we changes economics improved house the In quarter, expect franchisees hotels the relationship. the an owners overall and for With agreement, profit see comparable

Starwood While with our benefit merger. is largely complete, integration hotels to continue from the the synergies associated

of more the the XX% side, the quarter, reduced our Starwood our Hotels discounting our channels. increased now across of represent XX% room digital and system Revenues booked first our revenue bookings than and in the at Legacy over increased proportion globally increased coming Direct bookings quarter app we year-over-year. over revenue digital on at On from hotels in XX% mobile nights.

our growth tenths even booked a it by X% a quarter few yielding While of worldwide percentage hotel likely helped points. RevPAR on as our business depressed revenues by first declined OTS OTA profitability,

index RevPAR global XXX Our points the basis quarter. in rose

the X% was in by Let's and depend impact digit region ongoing in our China quarter, the that China, constant systemwide headwinds quarter. growth major offset on talk South but in with in and Pacific Island. and briefly in on results manufacturing. RevPAR in in growth performance India, economic expect in trade somewhat Korea China. Island second about of markets South In the Hainan Korea, dollar market somewhat U.S., Asia RevPAR Hainan RevPAR rely Future weaker in the Indonesia, fewer the particularly Greater the negotiations, strong will Japan, mid-single RevPAR the region was markets we region's, Thailand, from increased

systemwide While at on increase constant RevPAR the UAE the X% At forecast negotiations, Cairo resorts growth rose in in growth demand demand. Dubai strong same increased RevPAR and European Africa, outcome supply on time, our RevPAR and a Sea dollar mid-single sharply those X% XX%. the full-year will we declined for by Eastern the await Red Pacific the declined flat in of the year-over-year. assumes Eastern Middle RevPAR rate XXXX. In digit Asia

supply to again we Ramadan travel business region likely For expect albeit Xth, demand in than the decline less quarter. cities we in last will second in the the significantly Saudi second Significant but the holy Dubai in some the May to XX in growth stronger persist, which days push earlier year, started year. should later see quarter, should in is than from RevPAR Arabia. quarter EMEA first

Brazil believe and America digit several will most In vest by increased Caribbean RevPAR X% year-over-year. with At expect in markets systemwide Travelers with Caribbean many U.S. same during to X% to uncertainty weather the in and to of Carnival islands. Ali RevPAR RevPAR system-wide in Europe region. U.K. many will many RevPAR strong the full-year. home RevPAR record demand, destinations. and in on a a continue City mid-single dollar Paris, X% in strong the the loyalty EMEA quarter. time, the quarter, In rate in European increased redemptions, second For full-year, kept demand continued we U.S. due numbers RevPAR markets. very first yellow warm as constraining on We the in RevPAR rose considerable at Europe a Europe Venice the the Latin London expected travelers Central increased in growth rate this beginning U.S. quarter, in Ben month X% in rose in demand for single decline Brexit Rio the digit Airlines growth lift increase at constant strong the In constant at region, traveled Janeiro. low nearly the was with demonstrations in de strong avoided dollar

down While Mexico continued RevPAR and travel took X%. warnings

Looking ahead, in digit RevPAR moderate North RevPAR competitor as the and will America low a we the in quarter reopen a full-year growth hotels second Kayla at was bit System-wide in the expect quarter fourth nearly increasing quarter. labor Caribbean. rose single rate Houston and January. the by Tough in federal and Florida first to impact NOI. in RevPAR strike hurricane comparisons partial from constrained and the recovery government lingering X% shutdown in the

been strong have North index nearly would these Easter. our increased we growth quarter. Group Excluding in XX U.S. the better the factors, estimate basis Francisco points reported number, in and city-wide America points basis X% across impact the on XXX timing RevPAR RevPAR in roughly our the and demand Atlanta San favorable of RevPAR system-wide than first of increased the a

present timing group will quarter, the the and While behind for impact be a government hurricane shutdown Easter us. headwind in negative should business second

for full-year booking revenue pays group Our is XXXX the flat.

and the in New quarter first bookings for XXXX increased in April. surged

expect Group for RevPAR year. higher we will So the be

America, to Quarter First overall March. largely corporate accounts North in due largest quarter, in transit from the Rose flattish first demand RevPAR RevPAR was XXX X% Transient but our weak in

Marriott to X% X% will X% across and tiers. expect created company. we quarter value We a lodging a American franchising for as is managing to second powerful by increase the highest portfolio, X% Given in North full-year. and RevPAR the the dynamic

card space we of With and sign the frequent credit the credit Starwood million in quarter a sophisticated lodging program Incidentally truly and our with position that $XXX acquisition, ups can we This year in residential year-over-year. XX% credit range branding. million guests and a even travel to in engaged program, traditional the to residential card more rose $XXX are travelers card we in profitable opportunities expect pursue an we experiences. outside earn loyalty our such first recognized fees. the as branding more The unparalleled business wide loyalty unique are

and such drive unit business. growth additions to RevPAR should shareholders, our addition, light even as returns we In higher to opportunities retain our asset approach

Leeny universe. included morning has year-end. Laura at announced not not a for Paugh. space. history and to take hospitality best over company Marriott began call She did Marriott to moment from our for Investor this in day me entire XX only Relations. one. entire the us, involvement calls, Laura earnings just recognized retire mentor, even the been turning companies extraordinary in nearly has Investor When Marriott of the years has She of Paugh she years as leader, over me a let Investor she like literally recognize built relations Relations the at have quarterly do that many Laura to We one other a Oberg, public will modern Before this of such by discipline as Not a partner, this investor Relations. friend in professionals you been XX our

All expertise. you, Laura. grateful Thank of her are service us and for

Now, our outlook, first performance to quarter and let for turn some more about over thoughts things me Leeny.

Kathleen Oberg

during very her accomplishments year. great rest you, retirement our Thank shareholder to meaningfully I insights Well, would value me our over like appreciation the get answers too the contributions the her of countless and to know for celebrating a deep Arne. and years. and deal. will will doubt to contributed join her express all wishing my determination personally you have to this dedication in strategic right happy Company. miss I no I Her Laura's

fees. our hotel guidance Now, or diluted higher windfall fee benefits the expected discrete resorts fees a the than tax EPS year year-over-year, of the X% card fees totaled $XX during $X.XX alone $X.XX due quarter XXXX, of per and with to in our from California that card the sales. year growth on gains X% midpoint tax was share the to fees for items Florida earnings increased adjusted line. Recall $XXX fees unit $XX in totaled prior compared This while strong $X.XX X% largely to onto first to at performance favorable results, the $X.XX up and their ago other million, on quarter and Gross credit and Credit largely $X.XX branding increase strength over adjusted margin season. quarter. other good incentive totaled better million totaled included revenues of due non-property million. Incentive $X.XX and

to prior net fees. first first $XXX With plan $XX compared leased totaled million net unfavorable $XX million lower the year for termination million impact the from stronger and from totaled Owned US year a exchange General G&A dollar, the of included prior in administrative a first revenue quarter, year-over-year revenue, $XX of due expenses $XX reflected quarter to the $XXX the nearly other foreign decline expenses fee quarter $X million contribution. and supplementary quarter. million of expense XXXX million hedges. of savings in of in retirement million

associated EBITDA adjusted in totaled incident with recoveries. consistent insurance X% million netted security X% last guidance, year-over-year $XX our rose of XX% year's quarter million, quarter in growth to not $XXX $XX to First while the included with adjusted first EBITDA, million data against expenses

billion, gross quarter to expect for increase revenue a million X% over fee X% the total second year. prior will We the $X.XX $XXX to

unfavorable lower card Our branding to second estimate higher quarter revenue credit modestly due fee but renovations fees incentive property and assumes exchange. fees foreign

$XXX million of direct be should quarter revenue second We G&A expect in $XXX will owned to and roughly net other expenses the total million while $XX leased million.

asset gains These quarter year in in quarter $X.XX quarter. yield the second that should $X.XX hotels. $XXX prior second X% completed. diluted the share assumptions total XXXX beyond further million the the of the last $XXX flat included no million for assumes to EBITDA that earnings year. a Adjusted from over up have second to $X.XX already sale guidance those been Recall per Our to sales in

such fees leased a our from to could leased in million and admin earnings the X% last strikes homes we the million revenue be the quarter. Recall year will $XXX the unchanged for year to quarter. by total from roughly $XX expected markets gross several diluted higher at in XXXX XXXX, rate and $XX expected Last should XXXX fees to our million credit year-over-year. million for for due year. increase the immaterial. is and $XXX revenue, and joint sale roughly over net fee last year year totaled were a Marriott share incentive expect for bit be Termination residential XXXX. constrained million bad billion debt in million from will $X.XXX XXXX. gross will fees over that guidance from in total other with incentive branding EBITDA the in $XX decline prior and These million owned to other line, venture year, digit about total prior $XXX believe Owned $XX in believe million forecast in Results that fees $X.XX XX% We and $X.XX direct should we villas XXX EBITDA XXXX, our and card to our will owned yield $XXX are to our $XXX to fourth to should assumptions million prior for and mid-single this of stronger million business full-year improved expense, million totaled due $XX fees to the included estimate For expect X% fees. to estimate XXXX, to continue increase adjusted assets. $X.XX about included $XX G&A than million our the of in $X.XXX and gains Adjusted expense spending. billion per last higher over

we share sales through time. during May systems include We billion should initiatives and loan maintenance over XXXX. revenues billion further X Roughly This $X.X advances, investments. return repurchases and timing nearly at related costs in to asset spending roughly X shares to XXXX guidance $XXX relates through the no million X assumes for of to spending. repurchased million discussed million not equity least to includes quarter, quarter continue year and and $XXX for be could the The contract expect that the year. a does and expenses. $XXX last total spending reimbursed to As dividends nearly capital of Investment investments remainder million of investment total impact our including merger shareholders reimbursed January expenditures, $X our from

shape. Our to credit of X in within X.X March At remains targeted balance times was XX, standard debt ratio our sheet debt-to-EBITDAR. great our adjusted

statement We have XXXX cash our and flow times income forecast a modeled target. X.X at

few add like Now, Laura, would remarks. to a

Laura Paugh

Arne talk you for Investor with and the is best the say about management colleagues. Leeny, is is a of kind both including thanks nature at people [indiscernible] only senior collaborative IR talented working a not we team. effort many the and not have throughout of but at the the many, Thanks, very When Marriott Relations story. job part things team have culture all the my Marriott organization, to some I including it said. that gifted broad

very a have We good in time IR.

As I tell are you love a engaged just working as the we laugh can We Arne and lot. smart and Leeny think forthcoming they seen. with they

many The happiest you. I back, here the helped will the my Marriott, phone in when part always have have market of rings months. next and seeing is and of economy you hope the I working and I IR years result, move the company. I've the end be other talk want evaluated face and best deliver through your done of vacations conferences or despair I'm exuberance all and as person in the I've know forward you seen many to to the from in about OTAs meetings I of summer unreasonable meaningful to you irrational and few pressure at job IR. competitors our with the to you look year

answer your let's So questions.

you followup one as many to that that's of limit ask you can if speak and we as possible. one question to we possible, So yourself

We your now. questions take will

Operator

of [Operator the David from Katz Instructions] line first Our question of comes Jefferies.

David Katz

afternoon, Hi, everyone.

Arne Sorenson

David. Hey,

Kathleen Oberg

afternoon. Good

David Katz

head, I just am to five probably like, of in to were scenario, all don't and quite them. I have and And you best, a of admit how altered did generation remains to where to this think those be I call have about meeting, four I draconian at sort of out any I X% struggling calling what into choppy. but of range were be under I strong. to thinking am remember down, process loud. just about we want had wishing decision got my RevPAR to to some that out penciled started the you or you the what wide have cash we not started just it have it, wanted your wish to of again get the yet, the and just metrics a bit we And for is talk If industry but talk powerfully X%, questions circumstances? if a would I your kinds would paint was start analyst or cash

Arne Sorenson

Lenny Yes, I think can – jump here. in

place guess best and do fairly own shared for harbinger disappointing model a calibration investor with to can say and I than the the some that terms We shared don't it And in been to you going at in probably respects, predictably us your I have a the think one relations we assumptions just refer would was make is while have you to one that of other of we many meeting, not with then. you through thematically close. we model what of be financial month you March and that I some the quarters. a of a is than that the that last few environment different

would today, I think steady goes for thematically the say few it's next quarters. she as So, we

XXXX. see of broadly that RevPAR a around growth. poking us that strikes or is broadly good -- for when between and have for X.X% to first two very the news of holidays the been talked continue strong like along sort some group, But We quarter we example for hurricanes April about for shy a and in are adjust bookings and We good might We there tenth performance month. too. that in

let's be the while expect keep going few of pace to so, been and going whatever you we we think at going think think are of now quarters. modeling just should to appropriate all sort caution I that forecast And us last whatever have make is you our over is appropriate, for you do the would

Kathleen Oberg

a and of our your less second look as lowest as the as point dependent on a being security well fees fees. year I'll obviously the we then we the things, all, at ended in even I'll that is rooms. -- in internationally one, incentive card with did we I’ll couple analyst growth assume both X% part we meeting. talked North far in decline are the thing And when classic what actually a great David X% out only The did about add do American of at RevPAR recession, that of And you up net growth talk model credit

And it that you at see rooms fee clearly franchise continue and bodes and think less for were recession. stream, really so, we when sturdy to well I looking growth strong management a volatile strong cash if generation a

David Katz

my of you I there? And made in quickly some What's reference one back literally I the have sure in follow-up just which that prior expense, bad not quarters. seen to Great. that is debt looking am we

Kathleen Oberg

For sure. hotel end and what that part of a of terminated part with you G&A, that's is up when say let's happens. obviously That's

our number. we getting You But is you in the obviously costs the to million way Africa, one-off describe That's is of But international hotel overall company really I from your is end $X all the in the then small related imagine, part think That's year might company, a overall East, said It's bit for we to that the and as of It debt as bad Asia-Pacific. number not forecast Middle few a bad situations about debt. as little immaterial. situations. way It is up in is of back. increase lumpy. that a line. have for reimbursed G&A be G&A for the G&A the can this easiest

David Katz

best. and the again, Thank all you, Understood.

Arne Sorenson

you. Thank

Kathleen Oberg

you. Thank

Operator

comes next Shaun Kelley Bank America. from question of of Our

Shaun Kelley

I an to recovery, say everyone. Hi, best good on and Arne to on wishes would incredible career. yes, afternoon, my Laura speedy congratulations a what's like to been you

quarter, performance will you we the going look look that as Starwood question the the metrics through provide, us -- legacy to to think the that my on numbers through over the So you just brands. we RevPAR be saw were that standout I

something most discounting, of bit these may least on side path? the I saw think, that? some I we patterns. numbers legacy that so the that of mentioned prepared on did full-service bounce just scale But, what know should performances at we you have we the under-perform brands. the want RevPAR I reduction Marriott in you you forward remarks performance, of seem as little at continue and could chain or think those your of some going expect always of some averages Arne, that in elaborate to pick a a And about around, your little and drive integration to

Arne Sorenson

Yes.

factors into there are this. we start a And going think I here fair few think, geographic are it’s one the a things, I different perfectly that But is of distribution. question. with

-- So if Smith for difference point performance were X% XX in look X Smith see down in wide the the XX you Travel a QX, and U.S. industry RevPAR Top between numbers you markets others. at top to roughly full in markets one all Travel percent according RevPAR.

were The other markets up X%.

we legacy, markets, that Hawaii, carryover bit particularly other strike that and this. is top Marriott brand's we XX where that much brands of in part Marriott's think I of in inevitably Marriott things industry to look couple compared entirety look our some markets. the look little are more some So whole. think in of is you've One you the compared its got are those we I And find when when of versus legacy Obviously, at in a between as at are not uniquely. X a at point or window. the portfolio happening. a Marriott concentrated industry some the difference a will performance That's Starwood longer to in can you RevPAR others Starwood When brands, see that's brand's bookings you the

First Starwood Hotels. they quarter strike was that impact had -- disproportionately continued even impacting some though the strikes is were done

in together, as probably our it's if around drivers portfolio the for all international a business of second QX. remarks were the be a other gone probably not in from that prepared disproportionate third individual unified revenue beneath whole once We with you party those cost impact more digital probably reservation a some we maybe is strategy, management whole. channels on little Marriott difference you discount The for a Starwood packaging those the impacts XX on would about those And deeper the had OTA called to changes the is were. things portfolio points the course there the that probably the and shift tens had reliant averages bit. assets. I more will the than system point Interestingly, have. to are bit and of down have Hotels Marriott thought But in list in Hotels. stories combined the That's OTA OTAs, one principle we on will think discounting. it. portfolio reliance individual of you OTA's on out the roll And X% are Starwood Hotels some as are did as few a the an Starwood is

Shaun Kelley

down I my quick think I I originally changes know follow-up there the now? context what envisioning opportunities right are any that think the you process? deliver integration kind deal road guess you when just contemplated be about guys was of in then able the those probably to And you just to were some broader revenue actually you would And synergy the how was of about think

Arne Sorenson

and combined the is ripe I being is got time program loyalty marketed. the mean think in we that. I for have launched. market It Yes,

sign ups. strong card We have credit got

got wallet growth. have strong We share

be I the it's can think think now revenue the future. I to lot we to a look deliver upside. at there is about optimistic And time

Shaun Kelley

you very much. Thank

Arne Sorenson

You bet.

Operator

from Jared the Wolfe Research. line Our of next Shojaian from question comes

Jared Shojaian

taking my everybody. Hi, question. Thanks for

Arne Sorenson

Jared. Hey,

Jared Shojaian

peers same sizeable a index points. as XXX saw pretty out increases questioning the basis here. your line RevPAR well. Just to mean I up And, we being with stick called from

right you So today of the now. meaningfully that branding are in you proposition the about the And idea, really guess value the just Because I on bit independence losing RevPAR harder? then do conclusion that today there's share the give how been? think rates it's ever versus to value more owners royalty does than past? for presumably, that there's a And ability push little

Arne Sorenson

look meaningfully, unbiased substantial and by the be branding, then we with owner think very our that less program hear the word deliver be take system XX% cost, some you partners won't the but X% a us under talked You of need something today value otherwise, of to but at reservation And and Wouldn't brand. efficient nice? value obviously our that loyalty case happening plugging towards them of of hotels business development would the the a we're to construction with to we've it, those be global pipeline. industry for you system a with, we statistics, delivers what's extraordinary about our about heading don't I at about like into them franchisee if think

I see owners with the real-estate, they of can you think their them. strength feet, So moving investors, because see of

get everybody, the and we defensive don't think technical RevPAR too to on sounding get don't and I to to thing want other want we index. remind

it got really how a a particularly but there not is urban tool, the how set, an out markets, where and to assess wake hotels. many important looking of of index found In the RevPAR we hotels, performing. acquiring that in its in portfolios number our many competitive concentration, some Our competitive hotel of there is because are when full-service Starwood, will you're we've measure it's significant have these is performing at individual our include that only of particularly of own be sets

seeing against we're some we others in markets own measuring have so, exclusively, And not our are hotels, because in. some extent, are don't got to others that who competing our we there. performance similarly, to are exist in And we've that

we of markets, And not consequence, competition, maybe impact or broadly newly are secondary, All or in those midst integration, some against you tertiary we take points about to that of index have XXX of of don't a in markets, United ramping massive managed hotels distributed all States our in brands. if brands so, we in And as weaker the put and the those maybe both in relatively midst the of the of gratified the growth, that, the markets. of of think a basis globally in quarter the actually some the are about things still together, 'XX. first

Jared Shojaian

year, too the growing much slower growth. thank And quarter far, one I years. your last I X% it's unit the and pipeline, pipeline was but several into the is data quarter-over-quarter this year just down gross Great, worth know pipeline shouldn't than read for time you. in the on it we think quite so first a

from right you're about can And that? maybe So you developers now? talk hearing what

Arne Sorenson

modest. very the think don't I

States, in led And said steady the on flattish. in the sort things the necessarily at well year, don't negative from years Always calculated reauthorization having pipeline circulars a trend. said United the first quarters I X.X% of growth, combined, opened think a We in that we the we we're think of in QX bit will quarter in and for probably is be all franchise particularly now quarter the ahead, QX. more coming QX and end quarter. a States decline little of is part that see modest to got we the most organic we couple times other pipeline that that in but than through the least it a have of signings go to or we've typically slowest do because state that, those of United states, the is you've

flat we'll ramp poking of in to and of and I more sort in construction and Even meaningful world. cost increases will cycle. expect are quarter-over-quarter financing think instead absolute substantial building of high for of construction I levels, is be the rest I recovery lot the quite a even at continuing the the in labor We share, U.S., in to and maybe the going up what and a little flat momentum development returns see but along bit on momentum, in though the take think year-over-year levels, XXth length growth a year good. is bit example, or don't are of Xth happens depend with

Jared Shojaian

my you, for All deserved, thank quick well you, recovery. a you Laura, wishes Arne, best and and to to right, congratulations

Arne Sorenson

you. Thank

Laura Paugh

you. Thank

Operator

question JP of next comes from Greff Our the Joe line Morgan. of

Joe Greff

but good those calls. was I to are Good morning, old conference afternoon. say going

Kathleen Oberg

you… Thank

Joe Greff

is Friday. wish X.XX you guess we miss we X seriously, I PM on Arne than congratulations, More heartfelt, you. PM a better Laura and will definitely best the

Laura Paugh

Thank you.

Joe Greff

the markets, XX what the service? would most is And full top of construction? financed have or question, I U.S. is pipeline questions have that question answered, but or America under pipeline, my percentage North of development one regarding be been My of what percentage

Arne Sorenson

have to go We on this. you will to back

meaningfully about the in I is the that segment. [technical in higher think percentage for only, upper is luxury which mid which a us we pipeline enough difficulty] the and luxury U.S. it's scale, upscale than upper XX% the don't I have that, upper healthy mid towards am is global mix, scale certain pretty lower that of so really close? principally is lean space. not upscale and U.S. Am I

Laura Paugh

In looking it's pipeline, pipeline global of North the America about pipeline XX%. XXX,XXX we're overall about - of [technical difficulty] XX% it's the when

Joe Greff

much. so you Thank

Arne Sorenson

give don't information you other the markets, we can versus I top And here. the XX think but we've got with

Laura Paugh

Obviously, service… full

Joe Greff

Okay, thanks.

Operator

Our next of question Beckel comes line Bernstein. from of David the

David Beckel

Arne with has question, the to a do also Thanks or lot question QX my career. Laura sentiments guidance. I'd for well-wishes cadence on results and My a QX given tremendous echo to the congrats question. like RevPAR first

sort half there's And any half that what giving be you generally, gives calendar. of of a course the RevPAR reaccelerate a demand more -- one-time pretty seemingly issues, year? the there Of that with acceleration, particularly confidence the of to items aware little talked other strength group back U.S., healthy the the there materialize, to some about but respect through and will bit confidence timing some you sort of implies, in but back you are there will

Arne Sorenson

can blamed that we Yes, probably points. is is there be full I I think two often range is, I our And one of annually we thing keep suppose. mean for,

could less first were one the range in X at each put but precise point, you're more is of guess, so that And to if it opposite forecast after one quarter. in get the that to to that they that going or would more, comparably the in still RevPAR the And We're you along, range. it think fundamental of our obviously and we as actually bottom were because to And narrow we year too, year single I point the sort quarter the went the started essentially be to maybe the more book, hit either the of if likely, internal, quarters end three. take I is top right that. we said here middle the

being that group the quarter, bookings the fourth we've of hopefully course in tells be so, comparability when issues. most strikes, and fourth XXXX. quarter in to basically obvious bookings trends we're in which XXXX, fourth and of you in quarter the not will at that And struggle looking but the had The through year-over-year

suggest first of about because All is to things the of we of bookings comparability a place sort and best prediction we make. of three us part, where that that midpoint in the think can that because maybe does a years to a two And the issues those it It get of were economic in last one going two not not in than scenario. in to different the but different sitting have of kind we're a better are quarters second, today. quarters, dramatically bit environment and to have it's saying we here

David Beckel

I for give Thanks the $XXX why follow-up, there. to by you color Great. as a the it's increased about little just And color CapEx increase? a quick a Can know million.

Kathleen Oberg

a up improvement hotel for for that fantastic meaningful result brand. actually going about a well which be bring up of combination midpoint, in a and in that will That's brand management particularly owners, a the over Sure. it Basically, valuable systems tool, initiatives $XXX property really higher as bit little program million to agreement. is we're from reimbursed loan a as, to time will standard our

David Beckel

very you thank Great, much.

Operator

Our Smedes Citi. the next of of Rose question from line comes

Smedes Rose

Arne, to to in -- Fairfield offline hear that mentioned going I hands and design opening without Thanks. the you Glad up - new be you. look here remarks catching ends. wanted forward and to for same Laura with good we just is and TownePlace not ask your to

that with targeted to for guess more developers two you asking products. markets maybe smaller already sort your trying answering I that to for those products that what's is mean the are those that it some be of of just at or wondering targeting unfilled pipeline are what Are smaller I competitive demand for do. think markets. the does I'm kind you

Arne Sorenson

to it's franchisees some in both. a from and course want in I ability a tertiary have of while for had we rooms to But same the the Fairfield think actually into issue, heard of the I positioning place of at instead expand that markets secondary and or the we've had, the number either our we've they there, better shrink at rooms a number XX even hotel. XXX markets those of is XXX, where sense rooms there

that's public in shrinking that's not you're a that little the probably commensurate built bit a a that in you're over putting space with If product way market.

select that so And to those do we've which true to want might the in you obviously you'll grow tertiary than is United the less companies many to partners them a something, probably that effective sure to who the lot other companies in see different participate of those got if that want there and that we there, be cost and space, States. but markets, service got you can competing we've make are for at distributed competitive markets we And in product brand, with with see something look the particularly.

Smedes Rose

systems, some is… OTA hotels Okay, just the Expedia maybe all strokes it's more rooms lowering more the up like the maybe of way can How the maybe contractors more just a provide control in the into thanks. kind new contract. are it's broad over, about Expedia And the more changes you commissions just put -- the than that the of sounds some. just and listening just to It little then sort just, nuance come than

Arne Sorenson

doesn't some that transfer customer continue each We can we look that's, look to and of inventory certainly, too will owners. the level course expect of another of the suppose opposite grateful do new in think you is. I here can are similarity up We that necessarily is got on which now, we Expedia, effectiveness. it I want on and every we own pricing think understand the have even we of some look the other offered those is table a economic things I think extent data would cost for the have at we way with understand and we in with be our of the ability, XX what them, the a is for to to Expedia level commission. to systems but inventory, to I customer been see, our where yield on deliver in round make for sure probably what ability our mean clearest control, our obviously That's inventory the with I one-off who know it relates Expedia, we've don't the And contract but renegotiated but to contracts platform. that OTA to there nearly I we're we are for platform as or is were to years we benefits

to We say have we about this today. also much we are don't think

us solution You'll idea effective have think our stay is but space, to do maybe that space deliver to economics cost tuned, we us of some a but the available solutions to Expedia, attractive are have make in which we in of an that more for with today. also to them both they incremental with some to actually place them than can us

And so accomplish to look outcome can forward with seeing the we what we're and got pleased we've it. that with

Smedes Rose

you. thank Okay,

Arne Sorenson

You bet.

Operator

the from comes Barclays. Powell question of Anthony next Our of line

Anthony Powell

you Laura Hi years. to happy well-wishes well-wishes, openness and the for Anthony your thanks over help everyone Friday, and

house was America pretty profit positive modest the North margin in RevPAR increase quarter. So on in that the

projection do I X% think growth XX points growth few to of XX% years. currently hotel your that the the to level incentive from believe think over of upside you've merger margin you lead targeted are that you to next fee could basis

Kathleen Oberg

goal And quite we goal do achieved to Anthony, from it's it and basis we've and points RevPAR things, 'XX. if of our to in acquired since couple 'XX frankly, that at So, in basis do apart basically XX again in least of Starwood, have margin XX points every 'XX. of again year 'XX, improvement of our

seen what productivity PSF property So with making is have synergies we've in to in what frankly quite thrilled from it been with the above I through the reality. that we've do and that purchasing think synergies from to to been hard program properties we've loyalty put the the or able work to whether a

to and the continue see I the hotel. seeing do that we the So fees come process you're of forth And incentive in the think benefit.

Anthony Powell

Got it.

years. that. Investor Is over I of upside may the few in to Day, in said or to growth that still X% there XX% be the So target next your, the think you

Kathleen Oberg

using is Analyst Meeting the now for think I Yeah, what right. Security just you've in got

Anthony Powell

it. Got

just more. Okay, one

Kathleen Oberg

one beat We, certainly it. hope more to

Anthony Powell

amenity of terms scale rental core do customer this home to that's think, over the next on for just more And an really or or offering meaningful it. Got this is for something in business, years. you few the

Arne Sorenson

mean want number space. we have what a taking Well strategy tell. offer , we not, that times going are we I know we're we I, to to, this then obviously different in

of that Our to and is from experience. brand rental excuse home must villa a bad stand behind nobody a experience going us kind

or that host, Marriott the blame to a you something happened cleaner going not to in else, going they're put that space. product not You're in me say was

on we'll of that size an long thing make one that's business have we'll so And the term. impact

is from we're looking the we're we're meaningfully at at thing extra The looking looking different at apartment which at something we're second looking really we're is studio a not whole market, not for We doing home bedrooms, makes in, reasons. think traditional gap we room a we're on complementary more to skill that the space them obvious also helps it hotel it if think hotel yet will. a you

in market spaces a better We and the wouldn't and of we be can XXXX. off. think of that you expect way. those, obviously place arguably the that in One not we've that excited will are ahead. the We in the both really to extended tell for to of single we're define about financial material smarter years that's of hotels are this the public that we in; more learn But had think the family solves can we whether an we the are about do market gaps family traveling a space. really we hotel eager don't big a I that model we even to there Outside them may a grow learn larger nuclear this families it because build always what is easiest is together something there It are not together. be though till win that in or necessarily places it anything get and can we impact

Anthony Powell

you. thank Great,

Arne Sorenson

bet. You

Operator

Raymond Bill Our comes Crow from next question the line James. of of

Bill Crow

appreciate what limited I'm the And consumer Arne, them discerning my newly or they work, on folks. - but significant you me is of select I really afternoon already Good share years space that's more question your to appreciate is today said, properties. at and for service whether think I obviously the efforts. whether disadvantage properties opened XX been the and that's they're put better service sure to sentiment not looking older a a trying

Arne Sorenson

question. I select right can service think range They've typical beverage that mean select good and got full very hotels offer, question, food presence Good got hotel competitive, service that can a offer hotel it reasons, continue kinds space and they've markets. the a they of can advantage. be service lots I often meaningful quite It's for in particularly function they to I think the got of have

I to you locations in and if lower of and right a bar generation. space same been & there these past in If respects, at by name we've might be some time and be few. the Element they're the Beverage they same can see lobby hotels that the they a brands about with I Aloft place. select space a have urban to number just AC interesting, I that maybe space come better think That or Moxy a flex think in mind then they existed first got in can give are even and and energized or they alternative relatively rated think the Food in lively market

well how are be this we watch our and trap experimenting to see want them franchise to is a altogether mouse as of think I this one we'll obviously so so, and works. say, pretty partners this new brands part interesting reason growing And see these pretty,

positioned all if there these and they're and brands. truly ultimately think I if hotels can successful be their right

time. and development that's return per also weight newer of well. what are are some flow ultimately main little their where to footage, hold urban for stronger of the make less is return return still of growth deliver to value have them settles both value terms that punch is their that in think kinds longest but going rate it's And little the assets select costs, cash on above often extraordinarily will current which the a I to their a and about cash and be locations think preservation bit main the capital brands I ability going hold percentage going going square about return over may and depend but to that to

Bill Crow

it you. I'll Okay, there. leave Thank

Arne Sorenson

You bet.

Operator

Our the SunTrust. Patrick next comes line from question of Scholes of

Patrick Scholes

afternoon. Good

a quick Well Laura, reiterate congratulations. also Arne just for deserved. me recovery Let and

Laura Paugh

Thank you.

Patrick Scholes

in question, benefits a that's A less I certainly about is to continue hit you the something quarter. well taking talked this Is we then owned including bit as IMS? third-party year OTAS. of to expect yours, as hotels the guess, the side, it on think flip that of occupancy had a fair also throughout and use would it

Arne Sorenson

I think off we seen, this even of yielding certainly the we in have few third-party mean We Marriott probably we started our business. reservations quarters. have of integration predicted the before Marriott last I need platforms, do of that the when didn't Legacy we some portfolio the to some -- inventory sites of

the further past. the will in year, of And get did suspect so we into we what we some I see as lapping

few performance some tenths what business, maximize as one brought on with watch swoop you a important, if I obviously little which we're impact think want turn to is sacrifice of the is compared And sort talked which is we'll profitability and of bit in us. most to It before. What and makes we've not line incremental platform the before, probably compete driving if the reservations think RevPAR quite more most top measure, sure of we to in -- bottom is on aggressive about Hotels we is the bit said available and the is you profits you we do, industry. is profitability Starwood we've this well the that to going set though, to make are enhanced line. see what we it's is way from so mean hotel which long-term going to up a as single sense away that, one of hotels Capital. want we're accelerated, owner approach a don't the the to drive this. Well, kind for measure, is to onto fell we're I it probably

Kathleen Oberg

only second add The not to expect would it I to that that only of impact materially not profit. is your would the additional part expect I to question,

Patrick Scholes

Thank clear you definition. for the

Operator

Robin Our the comes next from line question Farley UBS. of of

Robin Farley

and that Laura. best obviously want talk always add I something thank my you. Laura I've Great, wishes quite been many when Arne this. doing to I'm leaving I to of learn for -- the Laura I years as

of diminished let so think stop understanding So all industries us going, the for I by you can well are be her of that but deserved.

could in disruption still the metrics management for you it incentive like might be single-digit something more than declines your full-year is of my guidance fees. and you incentive up mentioned for QX, fee. So question but in then incentive is versus one you the give renovation I -- seems just that's renovations, if -- I'll the color paying quarter hotels wonder are of what guidance North with kind was us previous management mid that America, give sometimes management percent on the phenomenon, kind for that

talk to just sort about the you in wonder an us necessarily like, of not I issue to So what's how, later could that. but specific if QX, quarters about

So, you. thank

Kathleen Oberg

absolutely. Sure,

about So percentage incentive up in in let's basis ownership versus points. 'XX, it was on XXX first fees. And QX, talk 'XX,

too kind trend the for It's direction. So, relative all XX% discussion margins, the and International versus with Relative in a a get nicely about I year 'XX of to is quarter, 'XX XX% first growth. point full-year, soon over the think up but the into of was last having, year moving to we've us to fits ago, so been 'XX. also that Hotel right percentages for clearly

QX albeit bad in that's bit on little than fees in FX, to on a have So incentive mentioned quarter we quarter fees ago expected incentive less that of the ago, one XX. a we XX things it's we is I FX, a going expected things QX, said couple a and

do Now be to first-half. which expect closer clearly in FX XX. the got to that FX We negative impact, hits incentive we've fees impact largely

QX. to that you the getting we we in had of be chunk that a add QX. expecting that on were incentive change layer then renovations get the incentive strong it overall of fees and of extra that's in where top direction and of this resorts on fees, Easter that a And QX bunch in the this and then, the are you to So reality in

Robin Farley

Thank Okay, great. you. That's helpful. very

Operator

comes of Our Stanley. the Allen next from Morgan question of Thomas line

Thomas Allen

speedy luck best in on and afternoon and good Hey, a Arne wishes Laura recovery, retirement. good your

Laura Paugh

Thanks.

Arne Sorenson

Thank you.

Thomas Allen

a you're beginning current implying? your embedded about the and two Is the another years in growth, growth, and Is pipeline. a guiding that in then and two years what hotels at in So prepared just half remarks, for that construction, you saying in of it? X% the that to the X.X% you're for talked half

Arne Sorenson

growth. not don't years' forecasts, Yes, -- exactly. guess we number. the went tested net of that of in of deletions looking I five look you simply is volume and deletions. the unit Yes, net at X.X% so. the really rooms looks We're I updating that know but at obviously, growth about And worth pipeline, the and back it

Thomas Allen

a -- in you a the And the today's it lot steady pipeline. just pace got of pace, stuff assuming, of just so, opening, just

Kathleen Oberg

all obviously pipeline in consistent it room would but about security expect talked or with consistent expect XX openings what analyst is which higher XXX. we it with be It's than meeting, the you'd 'XX, XXX this you in in

Thomas Allen

then what from and owners? heard villas, And you homes you have perfect. Okay, since announced just

Arne Sorenson

number homes year. substantial going what doing villas we is significant interested hotels every when is size where by or and of compare They're curious, But either the this, itself even of with number of you week. last course, were it a obviously open to the not we system in XXXX we're today, increase deeply hotel a we it from they're have the the

future? forward, And with than less we about in on monolithic. board what not to are think be doing and really as what a the are interest, I them make might we're communicating going question owners our And go today, so, I sure it's taking doing we we think we're their

to they'd many of it thing. of every exactly rational in point that are the So would our were exactly doing step one there shoes, take. acknowledge same I is if be say the that view. be do has us a to them And same them they for think wrong that this of

value that broadly, loyalty which it's can of I and the homes of this of but grow the but customer sure with the And program to is of the and the benefit else appreciate of I program, think can they of as just maybe capture they have to they'd not us, hotel make know they to enhance that business, loyalty business. they our a think generally us, view, benefit the owners villas possibly is that have point nobody so grow as much which with like also can. base

think through that's that of be they with with put and very But a this sure that able our that all think set necessarily can have. conversations too understand philosophically we've I and to you owners I'm well. not the a, world constructive them got grinder I they navigate we'll

Thomas Allen

Helpful, thank you.

Operator

next Baird. Michael of Our Bellisario comes of from one question

Michael Bellisario

afternoon. Good

Arne Sorenson

there. Hi,

Michael Bellisario

All to the best and of Laura. both you, Arne,

Laura Paugh

Thank you.

Michael Bellisario

You gave us a X% number.

of you smaller and I different did the between accounts for smaller it's booking larger that the of with behavior any in mean, on some of side terms any largest transient I kind and see trend your think accounts. your difference saw? customers is you

Kathleen Oberg

good. Yes, our They services, the of were that. like things areas, of were I say anything. Kind professional They up like meaningfully. happily, notable, biggest customers wouldn't some

would any think was that services of and the certainly, some professional expect, of versus don't up trends the particular smaller, very larger the so So, strong. I but areas you example there

Michael Bellisario

it was I group was then customer kind And of of forward-looking April, you being mentioned, called a in their what profile you aggressive surgeon think more with bookings? bookings the that that

Kathleen Oberg

surge the as in the both always one very were see for very that from in What talking was And to which was group quite which we pleased corporations. that were that associations it cover we to government was I as can encouraging. all strong group of about. was That was things well was that think it corporates. the future periods, range obviously the Well, they're year a for to everything bookings, actually is the year

Michael Bellisario

you. Thank helpful. That's

Arne Sorenson

bet. You

Operator

Kevin from Company. comes on Kopelman Cowen and question next Our this of

Kevin Kopelman

thanks all, first wishes of and Laura. congrats to to And best Hi, you, lot. a Arne,

Arne Sorenson

Kevin. Thanks

Laura Paugh

Thanks, Kevin.

Kevin Kopelman

kind you Thanks. a flow free expecting quarter you're had about year? for flow that and the how that one. quick one-time had payment talk you seeing you're cash just cash the in free that first of I trend Can and trends

Kathleen Oberg

The referencing. payment, you're one-time

Laura Paugh

profit You just costs to sharing insurance about year? last talk related

Kathleen Oberg

sharing profit year Yes, profit. first That a quarter. was ago, within

kind because respect, was G&A $XX of So were about that down by talking we in million. in year-over-year the year trend obviously weighted last

be our talking profit the about working sharing changes. from could capital You

Kevin Kopelman

Sorry, outflow and the about for benefits. accrued I'm payroll talking

Kathleen Oberg

Yes, yes.

Kevin Kopelman

Yes. aware. You're

Kathleen Oberg

Yes. QX. function we into that we And year, all, this but accounts. a our out QX from accrued associate's actually as timing then profit-sharing just fact And of that for quarter it supplemental is remember, our moved we to first the paid of also benefit in last you second up

you working because that's use normal, in in looks of of worth timing capital, and million heavy, cash at flow. particularly the differences the to QX about look relative it cash So when $XXX of

Kevin Kopelman

about it? loyalty first been I typically, think, And the Got a how different in a year this and of have program talked just then you did follow-up it on might and source your has cash quarter. strong redemptions be you

there to outlook this the year? So any for change

Kathleen Oberg

haven't to And question. so any the as first good so terms the of question, change, off to otherwise, your expressed fundamental obviously sales. in of rest really Yes, the quarter, no asset flow of again, same it's assumed we the earlier we your cash, overall of kind finish in

where pretty and quarter million, we Yes, also as a between of loyalty more little a would higher negative be net cash I use say income. $XX year it's But ago. might that's $XXX similar. So million to offset compared by neutral this were bit

in maybe than so together $XX place. $XX million in kind more up million, change. borrowings, to put exactly being we And you would I that higher end debt same slightly ever and the with So so all really fine-tuning all fundamental say any of those the of are

Kevin Kopelman

Thanks it. Okay, got so much.

Kathleen Oberg

Thank you.

Operator

comes from Golladay next of question Capital Wes one RBC of Our Markets.

Wes Golladay

got I everyone. on just quick a question conversions. Hello,

has Are Now an integrating. been interest brands? that convert to you Marriott bond launched. to programs The boy increase been have seeing promoters in

Arne Sorenson

bit. comparable. and certainly if I up least for not conversions I a demand think the Yes, it's new for think at is steady, build both

feedback our I is think owners the positive. we're getting very from

not lift, think unanimous already, margin questions obviously, incremental think there margin, is performance but broad lift about, of about absolute come that they're built that revenue have maybe what which the I because the delivering we've I recognition not but broad revenue understanding only there's which a of been mix talked we're here. cost revenue an more I we've behind it. is effective. sources, And think should And not

prospective we're very our current the And with conversations so, and are robust. partners of level having

Kathleen Oberg

East are we conversion And margin. for the the the some of in on like pipeline as brands strong activity is more Middle our challenge, as certain very well we're markets attractive, benefits that of see very as the with going of revenue RevPAR encouraged sample, there where viewed

Wes Golladay

limited to their bit of Hey, can is service, that I looking trend And to I pronounced. the want do And was the some related assume service this more gap more -- underperformance how little year. at I expect efforts get relief that to Is one you true? last -- quarter the full the the a year? question? between throughout

Arne Sorenson

partly goes of Yes, good on, limited for little -- between but the difference I The product, segments maybe don't think I which dramatic suppose on. working a as we're courtyard, see maybe question. partly in bit for us, the a the age year distribution, I it's geographic performance services, a

Wes Golladay

Thank you thanks and wishes everything. best very for much, and

Arne Sorenson

you. Thank

Kathleen Oberg

you. Thank

Operator

of will question Ciepiel of Vince final line Cleveland Our Research. come from

Vince Ciepiel

wallet, the sharing. home Arne pretending share and deal second start and one to best of with And to Thanks. Great. they're to wishes related both had I on Laura. And questions. Marriott two both

base increasing of Starwood, in Starwood and of properties, had on get? XX% could I'm you've Marriott of Starwood What legacy now of type bases members, of this members? you think first members, inning at we're now. you obviously the of and guess overlap business wallet So do loyalty Marriott, curious capturing what it kind those loyalty legacy legacy staying way vice think of Marriott share of How loyalty is, of seeing think the I I a that noted you're high maybe simple is within versa?

Arne Sorenson

Well, the we actually know sure answer. I'm not

are seven the we was And done what points comments Starwood with calculation contribution was calculations higher so have And differently. when the hotels, same. and anywhere to that us looked than there's there or that of penetration of through some and like finish a Marriott came a that looks in you loyalty OTA room And contribution point whole of now, synthesized into because then number was loyalty the principally eight a things was we earn at to for couple for the interesting Hotels. it, second we in. calculation attached loyalty absolute there what the has lot don't, so but beverage, food it way from things arcane more in for and points can example, calculation. to and don't The go their about the where in Marriott was, they're It Hotels Starwood actually, a those maybe the the does count of loyalty, one, a whether an channel Starwood done or bunch they maybe eligible you on acquired that

As of our we our that are about said, we're from at will think all loyalty number rooms XX% of programs. We coming grow.

were are and to choose it or that folks they inning, selection disproportionately redemption there'll be programs linkage did from than bit think closer day means we forth sort see just have not has are have in now gone at go now months don't broader a destination our legacy they I they of did share when impact hotel what some the customers customers in the single of either means Rewards Marriott to first maybe think, who be a are a we're going that in I meaningfully in for both portfolio. that of options -- to to are prepared having in Starwood in you customers, And have significantly. both which driven there'll end and pleased close volume the are to them. to on directions, trading might be whatever some will, seen up back hotel and that net We of may that before driven means put on few We one. Marriott sites, SPG time the to if we separate looking And little I seeing for for now the drive two going And think and should early other options the program last and our one the loyalty farther remarks very farther wallet well, before. allowed that

that seeing I are that think of a sign the is choices value are available. that the that people powerful

it, the terms very and tried put lift an from would lift available of say game program. early bandwidth ending the I I revenue in in the on but to the it's so, And

and obviously you in try the lot morning so were us meeting had We Okay, we're and operator us. these much for an fit to I board day. Thank shareholders with do reasons. you our We guess the obvious this patient meeting the told in same for trying last. things very awful being and morning

for afternoon. so, waiting And thanks until Friday

for appreciate us, interest again, you us. your have Once we in Congratulations, For Laura. but… quarters few here we'll another

Laura Paugh

to Day Mother's everybody. happy you, Thank

Arne Sorenson

you your Happy make celebrate. you mothers take spouses weekend. Mother's and of sure Have a our one whoever hotels Day, or good everybody, is or to mother-like your to

Operator

call. Thank ladies gentlemen. conclude you, does This today's and

disconnect. now may You

Marriott International (MAR) 10 May 192019 Q1 Earnings call transcript