MAR - Earnings call transcript Q2 2019 | Marriott International, Inc.

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Operator

Good morning. My name is Samantha and I will be your conference operator today. At this time, I would like to welcome everyone to the Marriott International’s Second Quarter 2019 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. Instructions]. [Operator you. Thank like Sorenson. now the over call I to Arne to would turn Please go ahead.

Arne Sorenson

everyone. second Good conference to Welcome morning, our call. quarter earnings XXXX

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

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

statements events with will XXXX, Forward-looking earlier and release are unfold. issued be August we today our as updated X, the not along actual in effective press that comments only today

remarks talk of In revenue reimbursed on related costs discussion we our earnings that pages. to today, appear the results the release, will Page excluding merger-related non-GAAP results on and about our reconciliation the adjusted expenses. today appear AX largely results GAAP refer and will but

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

make quarter than move slower economic about reported quarters. quarter, reflected less than weaker lodging we the growth the a of past lower the when Demand results. as for in U.S. basis we the couple STR industry by with lodging year-over-year, up the Before the our few about anticipated points growth U.S. demand X% XX let specifics economy about than me observations clearly to Global is year began.

compared growth growth markets, the and in markets supply in these markets. in higher in the increased X.X% plus relatively X.X% RevPAR U.S. a only tertiary to secondary largest STR’s with XX Combined quarter

quarter. and Marriott’s American our Despite select with all had demand. made a systemwide sales group in – group luxury XXX next to booking revenue quarter a America second North rate low rose business for across periods Gross at increased North climate, future X% is the digit quarter booking North corporate improvement the single systemwide and and bookings related service solid basis the portfolios. largely points RevPAR up months index our for strong RevPAR gross increased all in X.X% American XX premium in team the pace

Hotels group legacy New completed from bookings the hotels organizations strong XXXX. the of sales at early these our our quarter particularly Starwood as in were occurred integration in that benefited

stronger July. North American group were sales in even

performance disputes, performance to we the manufacturing RevPAR believe On reflecting as trade of seen and upside meaningful also Hotel Marriott like steady and the of cut in these Greater Tianjin fine the the growth Starwood in management Kong and side, in Shenzhen over systems revenue constrained tune in RevPAR growth continuing is RevPAR additional transient Hong in growth. moderating Shanghai. XXXX. since have brands. quarter, further in there We destinations legacy X.X% incorporate like RevPAR improvement rose we China demonstrations With markets quarter Political fourth

the Megan tourists quarter. in Venice. team women’s By quarter. the At X% room in India travelers in enjoyed our in by U.S. and way, again nearly entire index national hotels Elsewhere RevPAR In and transient X% World robust impressive Biennale rose the with an show Japan tournament. the U.S. rose Rapinoe Cup Europe, booked as time, on to in the FIFA nights and the the Women’s to RevPAR congratulations demand Greater our China Asia, trends in same up sharply for continued

nights Yu through the XX% Europe Chinese programs. increased the Europe more service greater share to also attracted in a Room sold enjoying outbound quarter. from hospitality our guests China, business strong as Chinese guests are of to our Li traveling personalized

also Mexico and Chinese demand. Our Egypt, hotels in Malaysia, significant saw in increases

increased basis performance dollar Starwood. constant global a on our basis since RevPAR our index XXX the acquisition by X.X% second in points, than RevPAR strongest more and quarter hotel of increased comparable Globally,

leading remain we this, markets, a We profit growth company and for and as we delivering maintained productivity. benefit moderates. costs on rising even quarter, are in operated focused as owners RevPAR flattish second across leveraged and our profitability Despite franchisees. house system increased margins in our many Labor scale

In lower-cost hotels intermediaries group proportion addition lower direct charges, and to our growing transient lower rates from significant bookings. savings loyalty of a on and procurement and benefited commission

the to in nearly digital helped by OTAs on XX% Property revenues Systemwide direct bookings globally, third digital Alibaba X% the one in direct represent second property joint revenue our transient over revenue in successful now of increased revenue in revenue second increase hotel of second In quarter. our market and XX% worldwide booked declined China, venture the XX% quarter alone. that quarter.

programs marketing and and and margins the covers new programs are support. structure is services at of also year, owners franchisees our at and Our reservations, including paying this services and XX launched fund improving sales beginning a single that hotels, roughly technology amount now

pricing is and understand it our easier vast focus drive savings of hotel new share owners. of returns the will our we is simplified The on expect helping and development. majority This to owner for forecast generate and transparency

global and Our pipeline of quarter. million a than record than rooms, X% higher a rooms ago nearly higher system year last the roughly the worldwide quarter at reached second and X% X.XX totaled end XXX,XXX our

continuing X.X embedded quarter another competitor our years pipeline XX,XXX were of new growth. brands. of represents than of more growth. XX% equivalent the are in In a rooms. rooms of XX,XXX of at our our remainder to expected the and The deals conversions to clip. X.X franchisees openings, rooms and open pipeline room openings rapid we Over under-construction At from Owners quarter, gross our of pipeline second the pace sign added represents years

roughly X% to East. to prior In will reflecting North a XXXX, guidance, in and the opening modest distribution more X.X% we bit than of rooms’ expect our worldwide increase by room net X.X%, America delays Middle deletions, X% our

XXXX for cancellations project seen openings. not have We

and of past multiple Over shortages, increasing using reflect projects few properties periods new labor number of construction lengthened the brands. larger years, and a room proportion

in construction delays end. quarter growth have our in term XXX,XXX While under totaled rooms moderated our rooms construction XXXX, near pipeline

under construction Given depth XXXX pipeline, meaningfully. significant accelerate of the openings expect will in we our

our continue luxury expand lodging. in We to lead

We competitor. have next under XXX,XXX our properties over XX% luxury construction. or of our already the A leading luxury rooms portfolio luxury opened properties of nearly development, with under luxury XXX are double XXX pipeline

far have and a projects incremental was transient Worldwide As and luxury XX around quarter year. solid world growth properties luxury another demand in in the opportunity. XX expect the to XXXX, leisure leisure meaningful end we open of opened offers and by second believe we the

XXXX, leisure to destinations which global the ahead villas now and Bonvoy by our X,XXX expect set Ritz-Carlton are and running bookings Europe. of Today, in In Cruise X,XXX Lauderdale from on will homes Marriott International, experiences offer Marriott tours Barbados. and homes and Yacht sail in our XXX,XXX May expectations. launched in its Fort nearly we early first Americas activities has cruise

like added all-inclusive acquired and we portfolio build, And Rica, Marriott joined members in and rapidly space. to our to These new would us resorts see Dominican is our signing The market this which addition, all-inclusive five project located projects first management our space. our in for to in in intention grow yesterday, Mexico announced new be growing Starwood. when in agreements Bonvoy all-inclusive we Costa all-inclusive the After the will Republic.

newbuild Americas, full and Europe, portfolio and destinations in leveraging our Southeast expand both property to the popular, our luxury and expect leisure in projects with brands. all-inclusive service Asia We conversions, well-established

region points Asia has strategy. strong Pacific end app quarter the a signups element second Year-to-date, leisure occupancy on totaled Bonvoy the Bonvoy new with membership in key our and $XXX in Marriott basis of quarter member penetration quarter. in bookings the XXX roughly XX%. Bonvoy alone Marriott million increased rose Marriott at the

about bullish We are Marriott’s future.

our owners, for franchisees and our the benefit leverage to shareholders. guests, continue of We scale

Our people and franchisees to strong to Owners our and culture already front remains focused center. brands important are distribution add and getting continue on hotels most our broad better.

radiation from surgery with far. but appreciate the many doctors I are far over about and performance Leeny you. treatments so almost chemo still gone quick you update. so to I I let and is ahead, and so our everything have outlook, all and words they Before have well. kind the health completed progress pleased give support unscheduled. of call second a quarter The to have I my me turn talk

Now Leeny second quarter. for the

Leeny Oberg

Arne. you, Thank

share was slightly This gains that asset quarter a For $X.XX growth guidance diluted included compared XXXX XXXX, second of quarter. of the adjusted in EPS the our guidance. of to on midpoint the from Recall the of adjusted per $X.XX to totaled midpoint a second earnings the over ago our $X.XX despite RevPAR sales. $X.XX year below $X.XX quarter, a global in

$XXX million year-over-year totaled totaled sold the signups unit from U.S. up up year, million fee card impact reflected of spend. unfavorable of due revenues X% revenue exchange million due other decline from higher prior billion higher in to to quarter the With quarter, $X credit expenses fee branding Credit impact leased, net Owned, net the fees of fees. hotels card totaled the the net in hedges. new $XX nearly over driven largely XX% second revenue year, prior a stronger growth, and quarter, $X foreign largely and Gross of a and growth RevPAR $X by second and dollar, million renovations.

of in totaled in to $XX other million the and non-operating fees $X leased expected profits to the were than compared Owned, due Termination year. in expenses. million quarter timing prior the stronger quarter

consistent with The our quarter EBITDA second million guidance. totaled $XXX adjusted

growth of unfavorable and $X EBITDA in million adjusted and hotels profits million lower exchange year-over-year under impact Our foreign hedges. $X by renovation constrained was and from net

the by related the deductible incident data EBITDA, While accrual last not recorded adjusted non-tax $XXX security in included second we Commissioner’s proposed for a UK fine year. million the to in the Information quarter disclosed we Office

and We and as the is to of defend to respond have our vigorously the position. fine before said, amount have right finally respond the we we intend determined

the North in Looking both ahead, end and in lower our RevPAR of range to fourth that increase fourth quarter. albeit we the expect third at X% the American X% will quarters,

by The quarter comparisons the be impact third easier the should helped year the be of and while strong Jewish the helped holidays fourth business on last strikes. quarter by books, should to group shifting

we half digit Asia cautious reflecting the demonstrations corporate and political low Kong. single second expect continued the In RevPAR in in demand growth China Pacific in region, Hong

the in where have significant we At Japan be upside India could time, demand distribution. also and same we there believe

helped modestly by We the Ramadan RevPAR timing be East Middle expect in the of third will quarter. and the quarter, and the lower flattish in fourth region in Africa growth

strong half, we but hold to growth second the year’s likely last U.S. to rate single region second For Europe, Europe Russia will in Cup digit the low to travel World half. comps mid will to expect a remain tough in in the RevPAR

at on easier half RevPAR second Mexico in leisure In Latin a Caribbean strong the low single America we demand comparisons and Caribbean. the ongoing expect will region, in digit the in rate grow and

increase will both the to yielding RevPAR to X% systemwide In X% summary, year. the worldwide we growth X% fourth X% quarters expect RevPAR third for and in full

$X.XX our the Incentive hotels outlook, the credit XXXX, our impact year. the foreign X% full could more in million be foreign modest China gross card up billion, exchange. total card U.S. X.XX the the service conservative full X% $XXX to last we for unfavorable and This lower year. for RevPAR branding fee and year to at We and renovations, believe year, growth For impact due prior credit is fine modestly of tuning will flattish fees believe fees reflecting the hotel could estimate. $XX billion than full midpoint the at $XXX revenue total million of RevPAR million guidance to to a exchange over fee negative

Owned, leased to reflecting in and roughly of for net $XX $XXX termination expense year, million lower the could million compared roughly XXXX. direct fees total revenue other

joint assumptions diluted for XXXX $X.XX total These in gains $X.XX $X.XX million sale G&A $XXX for should consistent guidance. that to earnings to XXXX assets. from yield owned XXXX. full of and year our Recall million the with per $XXX the share included prior venture

total should X% X% to roughly over billion, XXXX X.XXX XXXX billion increase in EBITDA. adjusted $X.XXX EBITDA Adjusted to

growth, rate growth year-over-year reflects and branding fees. EBITDA adjusted growth in higher unit modest Our RevPAR and

adjusted year by exchange termination create impact we foreign basis headwinds, more growth our more than of estimate lower combined $XX At the and points. fees negative EBITDA same depressing XXX million than a rate full time,

our release outlines press for fourth and the Our quarters. earnings expectations third

continued Third decline markets. likely quarter in due and the largest comparison RevPAR U.S. to modest Cup incentive growth fees a to tough last will World year’s

growth comparisons fourth In and We year’s fee a America move quarter and fees in should in unit third branding North the also easy incentive quarter. from strikes benefiting increase contrast, decline expect last in fee should higher. to residential branding international

XXXX As does and guidance always, or merger-related reimbursed include not are expenses. costs revenues

that spending roughly spending of be maintenance should $XXX and $XXX XXX over investment million time. for Total could total million to the year $XXX million million recycled to reimbursed $XXX million including or

early public the should designs for well be hotels, of and space rooms Phoenix is new includes completed the renovation by Our Sheraton and Downtown and underway XXXX.

already long-term We marketing begun the agreement. subject a to have management hotel

running XXXX the ahead offered significantly expectations Marriott the Bonvoy experiences improved are by and explore in of locations program. point redemptions as new members

will As should negative we the net but improve a program cash at few we in XXXX the of be expect than more loyalty XXXX. in beginning a result, of $XXX the million significantly year, expected impact the

approach We EBITDA beyond million XX and from the in X those billion repurchases expect repurchased shares This than in January billion asset August for already cash through guidance. $X no XXXX. and through return we our X.X shareholders more and XXXX dividends will to second current assumes reflects share sales completed

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

So let’s questions. your answer

we ask that questions up. possible We’ll you limit to now. speak one that question many So as yourself and we with as take you one can of follow your

Arne Sorenson

are Operator, there? you

Operator

question line first the Your from of from of Bank America. comes Kelley Shaun

Shaun Kelley

glad could bit get just more you. positive growth started Thank color unit with good update Arne, side to morning, a Hi, a Maybe there. and on health. hear little your we the everyone.

year I described a little Day. us these in super specifically an just on year, the color contraction unit that guys think more on outlook levels for allow Can comfortable that acceleration this we in at you around are you for Analyst issue confidence net last year? why next sort towards then both What you the last in materially? ran data of of And of end bit some be QX, give your guys delays similar a seeing should improve longer-term that three-year overall should growth? into to

Arne Sorenson

a projected much pipeline bit, predictability to obviously see the predictability looks the little essentially hotels we're the a here. the ago, that like basis We experienced we a under this that do points XXXX. And open. years in these of couple actually And feel Well, and year the from an can makes of in from precise respects, see beyond I construction we the we're that meaningfully should what in earnings can for growth doesn't and amount on fair notwithstanding XXXX indication can That of accelerate in the data, have think that. quarter hotels is like. it many openings assumptions about what be down we we exactly mean bringing when based fact experiencing have XX midpoint because what don't that we've quarter

tight I very least at the obviously markets, even what tight we're non-prototypical is what of have a bulk our a markets. doing limited-service work. you segments, do we're labor U.S. portfolio, is half see what we We of when construction think bit And at in or doing over look

labor or talking So urban an But urban AC urban the an to market not Courtyard an that RevPAR by an in much to suburban urban that time a seeing looks tight market. job. or tight we're very a market, Courtyard the about probably market to construction that lines the and construction we're little a bit to modest increase. same about talk is we're tending exacerbated cross-markets, or from Moxy continue And custom Aloft the

we've change and other pipeline, deletions also is put this, portfolio from we here. adds East – look our obviously quarterly which, news I we from remarks, a that out in prepared think at in in prior our bit see cancellation of we called quarters. the of is that something don't when good Middle course, our the

highly East. areas big think is Middle are East market, America Middle and diverse. I a primary North two the the

have And in like in further markets. RevPAR of and suspect RevPAR a growth You've of in lot negative line some combination the extraordinarily well. negative time now. markets fact Cairo market construction is performing those The modest, growth supply the very Saudi the extending Emirates and got that growth I

Shaun Kelley

is like precise, normal? some Thanks, you with have follow-up, still just see new XXXX Arne. can bit But acceleration, kind more even a sort you of to time of just then forecast? assuming construction that, just And as line the longer into little this factored be a the a

Arne Sorenson

Yes and yes.

Shaun Kelley

very you much. Thank

Operator

Your next Golladay line RBC Markets. comes question Capital the of Wes from from

Wes Golladay

Hey, everyone. morning to good

Arne Sorenson

Good morning.

Leeny Oberg

Hi.

Wes Golladay

results the definitely results due much you Bonvoy Looking with that hi, – Alibaba, the China, the of versus the have the marketing in partnership competitors. some at How is looking to strength at versus Fliggy?

Arne Sorenson

Well, as that's – – is that probably – that will as in much already. delivered is be coming of future to opposed the

year future. profound the has portfolio Shanghai, impacts got off in hotels even But much that think principally about probably open partnership that great look anything, And is China. XX very I very We're as luxury and talked we've is at so we've think if The don't actually like a strength in think I about optimistic great the in it. start. we're full-service which is and as some before. you about it And Alibaba ramping the a a seeing Shanghai, had performance I spaces. into we're business, far. the market we're a in When roughly business to Chinese

And that a the luxury markets, across we portfolio. have full-service you I look you see think really when and powerful

index We that for think the increases for strong of space, the we've Chinese been service And program strong got, that we and much loyalty last select more our got but familiarity, in strong with continue performance we've years recent the in customer take expanding brand are I us. RevPAR to number preference portfolio so really has strong in China. quarter-after-quarter

Wes Golladay

the year, a – drive but you. looking grow to loyalty What to will this at you to is quarter that program, then next going it that? And benefit year cash quickly mentioned or Okay. usage this

Leeny Oberg

an on of cost either door is that more redemptions to had things cash the generates as were folks annual program needs loyalty our typically out the or a program. look, than in we take the – bit for loyalty points go we This year, the basis. that several we cash earn if Because So unusual.

some of versus XXXX into timing you integration XXXX. fell that First had expenses all,

Second the Bonvoy, you year that – a We of of in had pretty of did was all, half the remember spend to marketing meaningful introduction of if the unusual timing. combined the you program. relative typical first

over not new that and starts this trying as and is then from and certainly And seen various next not to that of have is time down introduced third we've some been items unusual out not hotels And the certainly year. the we redemptions do program higher these – expect last that, combined have least to calm folks portfolios. year

Wes Golladay

Got Thanks. it. me. from That’s all

Operator

Your next question with Farley UBS. the Robin from comes of line

Robin Farley

Great. than will want that it line in redemptions expected Thanks. higher on of credit Two or to fees the just come than the over previous questions. down less you your the Will and what usage cost fewer about lower you nights? raise just following that expectation One a where the being with on them And will get then card up Thanks. the or is maybe fee of rate kind negotiations? ideally? just as award follow-up. Or sign-ups do redemptions just comment guidance. you'd lower the time. Is you

Leeny Oberg

Thanks, Robin.

of that gone from that the really that introduced. card the money first well. across fee credit higher we coming one the the that's door no two we've overall fine-tuning on overall expectations in you business. into the and – the pleased And the They've than systems of in We've if think as I really combination the we've got then of been the So combination side, cards, the that year. the of in sign-ups with cards remember, a redemptions just the has been really all the particularly the new the of you – loyalty the of and spend This nothing actually huge is trends relative so cards. in platforms. this card surprised integration with the standpoint, And business programs growth two on to just sign-ups, our look business fundamental in the credit

of that XXXX, that more pattern. a door periods. But higher not of kind redemptions higher is at there of move expensive normal see is that time. than And numbers some properties bit a even we a means more we we more only over folks trends balance the expectations. out at the already we cash confident can as see will that settling And into out high-occupancy did into are out that of going but But obviously bit of the

Robin Farley

you. great. Okay, Thank

Operator

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

Jared Shojaian

everyone. taking morning, Thanks good for question. my Hi,

Arne Sorenson

morning. Good

Jared Shojaian

growth morning. – next to some magnitude relative a elaborate the Can you more impact. hitting management last owners' think little rates of realistic good it, a call it RevPAR you some environment, low just you plus plus maybe cited a year then year sort rate? thinking, But at, the of we as incent bit Or I growth that the still are and And line growth reduction? RevPAR on changed? RevPAR can on the what is fee close growth IMF of you your priority? Can the unit full of about grow think renovation to kind hurdle

Leeny Oberg

– So, – percentage fees question. in this that of earning me ago. QX of to think is talk let versus hotels a And XX% helpful that's year because owners was XX% year incentive first I your the

So meaning of threshold. the environment fewer that you impact see hitting are can that hotels that is

I XXXX, for would the bit. which slightly will think expect full but down margins slightly that year percentage guidance, RevPAR the a that U.S., given in in actually impact you for would see we year, our that the

well Internationally, RevPAR on growth we've a great growth as as both rooms basis. stronger got relative new

it's see soon a to And I year, you'll numbers obviously are the And for think there on strong continued that So have too I think next bearing. we say on RevPAR. actually IMF. penetration where side will

incentive quarter you've that into FX you we that's on those more change than to back year you an well guidance we half And the where ago. together, put budget impact the expected more two think able got get as when of gave the you overall. will a RevPAR we had as the from a the we IMF, lower on guidance fee talk of When the that. that reality get about As standpoint the about from being be process, is

Arne Sorenson

shouldn't many down difference States, add kind the you Smith mind, to about other of surprise one the to that of And talked the in is at big franchised where in RevPAR portfolio, fees United numbers and XX incentive our rest. think for rest XX the the XX I keep know fees going get markets significant and where seeing talked then hotels performance a the we're top in growth into of a which is to in here, points, of of X.X markets. just modest of industry U.S. supply is as X.X come being the thing It markets, number markets those higher than That's XX being the we it. more that top and you tend chunk convention the top the of impact up top the you managed to those about. on of out are. But incentive the Travel center I'd when portfolio we is have rest growth Leeny opposed factors the look disproportionate distribution thing one in margin RevPAR

Jared Shojaian

might Okay, expect you of great. about Arne, seen your how specifically you we then project incremental how recession? online? never What's normal over level compares actually how how And talk that any that in look that evolved XXXX saw – next that time? in attrition has XXXX Thank and to you. that comes to really the And and pipeline, And can what maybe you haven't attrition percentage for cancellations. a a you noted

Arne Sorenson

be the in look a about to around in our back would it. you ours, with have forward stronger it's hang than gratifyingly, out But recessionary moving we shot with projects the decided frame respects, got limiting Yes. when suddenly careful the have hoop you've see, again of the the taking to we Because they're pipeline project Because which if recession. a enough, attrits. some not and during can't – land, small a of example, proceed environment, who and control economy partners mean many you But long more got of I comes may they the this. back. those percentage, times. cancel at projects come would you've deep in for And time over you

time, cancel but pipeline range we go I would new approving through will are or in indefinitely deals, new also XX%, the of which probably are fullness and in culling think sort course, projects we every of XX% signing the defer. adds, of that our we're And deals. you're deals quarter, and of

cancellations, made seeing we we to in zero So the pace many change are time, from not are there the the not prior of last are but suggest that of a comments number cancellation periods including years.

Jared Shojaian

Okay. Thank much. very you

Arne Sorenson

Okay.

Operator

from Your JPMorgan. the of Greff Joe next with question comes line

Joe Greff

morning, everybody. Good

Arne Sorenson

Hi.

Leeny Oberg

Hi, Joe.

Joe Greff

is Can this talk the pipeline, what that to sequential Two the development new brand that see questions. One all-inclusive what nice there. driving on you beyond are increase announced about and geographies morning? deals

Arne Sorenson

most and sure across and large, across and the global. very I are times are you will. not experiencing seeing darn that country pretty appetite development and some overstating But every I'm That's countries to you is double-checking economic seeing either globe. strong every region necessarily because obviously this. markets you every The growth. to make up. just healthy for essentially segment segments across times, see by – look you've very I'm or we the industry got if which But It's are think tougher say of sort that tougher here not the notes

Joe Greff

And comments North many does how you then How Middle talking it out projects break delays? regions? and to, the construction And with those Great. delays. on the about back America, East Arne, Africa are your between

Arne Sorenson

U.S. obviously the still at you for in nearly they're about projects market projects. probably spread, we're Well, development look biggest monitoring and the us if pipeline. And that XX% where is is X,XXX of those

service and they States the the doing the Middle but you math in in X,XXX a talk we're here, States. of So thirds are impact, United you're and is one I'm maybe projects where two East as third in Africa. little we that probably United And about hotels. if seeing talking the roughly disproportionately the bit will, select

Joe Greff

Thank you much. very

Operator

question of Anthony comes next Your from the Barclays. line Powell with

Anthony Powell

Hi, good morning.

Arne Sorenson

morning. Good

Anthony Powell

U.S. talked over markets? about a We've U.S. Europe years. going in travel growth been the is the in the other lot could think international destinations a strong markets for top the from have top Do forward? that that have XX a XX the and seen impact outbound You just substituting negative how slower few you past travel And

Arne Sorenson

the is an probably impact. margin impact that, the in I It's possible on think do that it's the that maybe biggest summertime.

markets. just supply of U.S. at of rooms were more interestingly, in basis up numbers. top Rooms growth up growth industry the X.X%. Travel the see X.X% top XX supply XX X.X% are difference. words, rest data. in of XXX available, sold XX rest you and they markets the in and were is in U.S. about the other both of These And think the look points and We I were rest the versus top up Smith an the this

relative think So you probably those. look I difference at the explains the bulk that it. And of between

I than supply leisure international a that bit clear. a possible peak think little would abroad, is But of of else. during anything coming more bit little And movement dynamic American that very don't I times of lost travel probably you've the share the got think the to traveler U.S. too. that's think the maybe we've of it's significant that I here,

Leeny Oberg

between X% from U.S. Anthony, stable the the share had to the stayed and of X.X% over outside coming last year. international really visitors

as of from growth down Europe tremendous seeing an still well thirds in from close Europe the travelers. And we're that's still China, come X.X% places to Europe. under although So then of visitors example, two those like

there's movement steady. maybe a fairly the there, So numbers are while little at and here the margin,

Anthony Powell

new highlighted you the think brands. various brands all are behind legacy and you've at the outperform over in the And Starwood actually start to growth it. improvement few RevPAR you integration next issues Do Got Thanks. the quarters? just

Arne Sorenson

Generally, yes.

are legacy SPG much stabilized, look been to it's has sign with that has franchised very of SPG this has has managed weeks. XX index see – the Whether the portfolio obviously, they're We've last stabilized. or force good system getting the integration those that grown we a the stabilized. comfortable the at week-by-week. And sales XX think hotel I gratified teams hotels systems. increasingly hotels, operated, And

the quite future. And optimistic so we're about

Anthony Powell

you. Thank Great.

Arne Sorenson

bet. You

Operator

Rose Citi. next question from comes Your Smedes of the line with

Smedes Rose

morning. Hi, good

Arne Sorenson

Good morning.

Smedes Rose

space. I inclusive little about your into wanted more a all to ask you expansion

in owners Would of Marriott that new that project kind with look you this this space some as with your will Now a tuck-in will grow platform Is to other you’ve to opportunities? more, anticipate initiatives? that brand come that have a and you you conversion we independent kind will of resort. support of done underway, multiyear

of how unfolding do years? the that next And over you see couple

Arne Sorenson

about forecast will don’t this we popular get today business market increasingly world obviously the for in Asia-Pacific. markets you’ve well Broadly do in you that as Mediterranean brands a area, markets are over Yes, well. is those as Basin But how as Caribbean time. the know And biggest for we bit in leisure got traveler. well-known have the among growing our it it, but is

where I see team think that, markets that we European hotel, all we to few of allows And talk the so these point in branded I we’ll setting we comparator development as see system. see our join should suspect should new convert builds physical popular, all-inclusive our of is from hotels both conversions inclusive hotels, a a if hotels.

growth. see so this think that I is And organic we’ll

with some about have at space a the come. decided looked have strong last in this have in managed the to them excited that of we’re and years number time I this at not organic very good we’ll to their over few growth have with think this opportunities partners years really in point proceeding space there. M&A score in performance proceed to And We

Smedes Rose

few you owners or are of home anything just be may belt I seeing Okay. you sharing your on overall just about the of the in platform? talk ask additions on be wanted or are neutral? to positive, negative, And And months hearing then you from not you to to what if their could there’s may terms

Arne Sorenson

how this business said that remarks by start the that tiny our many is other homes X,XXX in small let’s We still is. of platforms how are we’ve compared it recently to there. into prepared and got Well recognizing out

Although when them interestingly, end various tend smaller numbers home portfolios there. to you out and portfolios, higher end at the to slice those higher rentals have portfolios look be folks than tried meaningfully gross are that into of

in shoot are sharing appreciative a and when too circumstances quality with they crap linkage, often heard too one by And confirmed space large leisure I and thesis. is And they're having are traveling very home are firstly or far a we’ve customers and we've home a appreciative our customers it of our think the brand that what already having has just experimenting of secondly, very firstly. a in that in so rental discovered And experience those it. good larger from not. family or about which behind groups whether it's will service often sense far they the or a be makes loyalty

the us Again, something And we that we quality is and in of overwhelming the have telling of it choice, you more working way because, States are they're a want got a relatively really us in United grow of something count think linkage, delivering think, loyalty seeing they're that. associated And supply deliver bookings. not with particularly makes but coming interested being Bonvoy will. Marriott if can you how but small you which with on. it competing crapshoot, whether and ends what I majority we're And to is our for so the we through will sort the this are program out we're and far, our this up owners,

I XX% and think at bedrooms which a above our moment, hotel obviously and are room. distinct from the are two quite of units

But have we'll forecast we're with you And the this about don't understand but future, any growing. optimistic we sure they and for how transparent really be yet. make we're about them

Smedes Rose

Okay. Appreciate Thank you. it.

Arne Sorenson

You bet.

Operator

the from question Next Katz of David comes Jefferies. with line

David Katz

everyone. morning good Hi,

Arne Sorenson

David. Good morning

David Katz

Arne good voice. to hear your

Arne Sorenson

Thank you.

David Katz

maybe bit about general quarter. I wanted a to ask of question more a the

in a economy. process something if any the made what And whether adjustments talk in that's trying there sort range about? the in I an wonder having of of is We integration on category that initiatives today guidance underway. to you've just case happening is the are broad all impact exactly your of In that sort and of whatsoever of you second is any some could

Arne Sorenson

I Yes, differently. and in you tell think whether me Leeny jump mean, here

conditions, particularly QX anybody the basically to at we've left, guidance. that quarters not obviously very, specifically we've XXX% QX where what to given heavy both for economic with anticipated of conditions, got very, would we've compared we anything I until that's guidance majority integration for I or out come or related. And because numbers that think ago. never obviously But came to midpoint on a certainly quarter similarly, two quarters look QX only when a this specific of bit QX attribute, QX, very the and in a quarter reported, quarter we light demand

it's adjustments environment, in an that by some or significant the we've far disagree? a U.S. our piece that made worse think in I continuing being in balance is little because EPS have, internal that. of the It any think the related does integration story. piece efforts But not sort most And markets bit of I down for FX RevPAR of an you economic much RevPAR IMF and are got driven lower material EBITDA flavor the bit. coming the of year the by But are Leeny very too. little a they to expectations respects

Leeny Oberg

no Yes, agreed.

David Katz

temporary just we're a in and models. right and short trying I other of about hear, through this if this are really? more way? opportunity, one it are How and accommodations. the can a faddish read rentals, we ask opportunity more hear is And and actually you home hybrid are to in we notion And about more in more we boundaries engaging hearing alternative the talk sort of question – we’re of Or looking more where think at just big

Arne Sorenson

I a reason it concluded it think mean, the I not fad. we're is is temporary we've in

at the I space these units and some the the been got space, is quite to that's way we some of from making this of a the as that broader this If years. last these And in us platforms. decent participants going rental Airbnb this here economics booking Yes, to become to Expedia well name travel it's on is think three and you fad but in sector for is home look clear, that stay. the in that their are obvious platform players tomorrow, something disappear to clear companies, other other number sector as have lodging watching in painfully crystal not is millions

at are sector. if or we these broadening that travel because seeing home they've of travel number technology same platforms, different aspects the evolution other of usefulness from the other to time either of think the into a of of I sector home sharing started elements at sharing across the spaces of

umbrella, thought the year had probably value Bonvoy we our about the particularly us, Marriott and actually pilot program, already travel. provide when this and space, look you And was get it probably we bring space sort members, sharing the a home we the experimented said good of if last will, of to number this home we areas Marriott with quarter of at us said And feedback when a to in this Bonvoy and we for were see to ago different loyalty a XX% of And value sharing. that approaching we we across in. could an space giving started

because economics So our we simply they a for we got can it over presence, into solutions purposes. fad we not we test, we travel to more think can place members make but think not And loyalty a can when as a time. provide good a we we where different and got it's it as into have

David Katz

Thank you very much. Good luck.

Arne Sorenson

Thank you.

Operator

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

Thomas Allen

demand Can you I up But said bit on for group totally you me. the had bookings in the economic the in than a at X% was XQ. things periods, Thanks. two really are following quarter. future don't think, sense you highlighted same also make softer logically you that up those Just why happening environment, time, expected to explain strong they

Arne Sorenson

distraction you more it some a of is, with Yes, in the than ultimately mean, a some was they're was fair Not as a And will, until signing place the you way to November because look And We've consequence The I organization post-closing put a And disruption with by in last distraction a which and sales relevant to for in almost I if obviously least probably three been which you a back or see if later. portfolio here think, is think culminating which their which got we've early mean serves. change and group. the a inevitably. end up in over in has part at that's ago. up put you and behind year integrated internal year years, memory some works particularly is salesforce XXXX, of built, is And our in question. sale auction well if in process lapping closed something us. acquisition been Starwood stabilized has I XXXX, that then team respects. agreement and I four

them offer as second in And the portfolio, I just a thing, we've handful, our got think, then see like. that of our the And group some brand a experience. those but if system our beginning all the group got variability a roll propelling, not handfuls couple ability are variability variability, alternatives you price of will, to customers that we space you bookings States think to and we've that look together the the of within increasingly give I the things at United and and location

we've I got to group year-over-year think in been roughly in a XX% from X%. roughly factor also to performance commission that has at you shift when look payments there

or that see depending So some helped we what year-over-year in on month can looking sort which stabilize baselines. good we both we're at the will of the healthy at here the in just respects. to against look when we're of of And this, those not looking measuring at, because growth comparisons. was XXXX, XXXX, comparison comparison also hurt be you're But

the So, we're were it. because gratified we it by of two about. it's I But it's probably by. think I've dynamic something – talked think more I our is don't encouraged that factors than story industry

Thomas Allen

the follow-up, but Arne. a signed. lot just sense. you of quarter my approximately XX,XXX And you then Last yet we when XX,XXX at as That makes not look approved, pipelines Thanks rooms. had rooms had

from highlighting? worth the that's going about big addition expecting there I that we’re anything So assume else there’s on but I XX% have all-inclusive, a

Leeny Oberg

Yes, as kind forth. you of and Thomas, know, bounce back they

at rooms. last statistic that XX,XXX example, for same year quarter, look second you was If the

of in yet So not terms signed. approved but

down and up signing go the final of kind they of depending contract. the on the exactly timing So of

Thomas Allen

sense. a Makes lot of

of it beginning beginning the in on that at the year of and of So end year. the the the middle closing versus kind the

Leeny Oberg

Exactly, yes.

Thomas Allen

Okay, thank you.

Arne Sorenson

franchise timing of quarter the often sign certainly second. the you the first at you deals did in than of Because fewer

Thomas Allen

you. Thank sense. makes Totally

Operator

Patrick line of Suntrust. question Your next Scholes from comes the with

Patrick Scholes

Hi, good everyone. morning

Arne Sorenson

morning. Good

Patrick Scholes

that America, property looks look plans I'm level by Thanks. hotels? on especially Just much operate bit the underperformer. taking can results, curious at folks improvement just North be company those in of you are for like that RevPAR property it a a explained pushing any an the how was of Sheraton

Arne Sorenson

to the Sheraton it's encourage numbers, good America. Sheraton wide is system a particularly North first would the at managed a not Sheraton Yes, percentage. look portfolio numbers question. you The as I quite managed in small

to I to get in And the and be there think, impacted any significantly the you North which quarter. are Sheraton by of we reported X.X% numbers But which so risk for going look American location smaller I you're the portfolio. is that portfolio, performance, think, precise at fair, if negative

going number of got into things a You've that.

well think probably the Sheraton brand brand that of performing the numbers. of the with probably I it's worth mentioning North better globally index flat the strength quite than a is about sign the that's in And American quarter.

program. probably the more North some underway, we some activity think a pull enough then jettisoned which loyalty substantial to is may out which we've of or have than And comp some you've And we've do course, in renovation got shifting those got single the I outside. U.S. hotels America not may set. be in of proportionally hotels

customers now numbers that and towards brand think across a more experimenting got they're got a probably that. more revert that have with see more choice we've I so these the And brands will time over bit we And bit mean.

Patrick Scholes

There's quick do I'm been a housekeepers. media just lighthearted your a housekeepers? tension tip little a a tipping Then about Thank wondering, you. of you bit Okay. Arnie, question. follow-up

Arne Sorenson

can't I and housekeepers, leisure imagine many, absolutely I many have And travel years. for that. tip business and

Patrick Scholes

Okay. Thank you.

Arne Sorenson

bet. You

Operator

of the Sachs. next from comes Steven with Goldman question Grambling line Your

Steven Grambling

Hi, thanks. Two quick follow-ups.

Arne Sorenson

Great.

Steven Grambling

Good.

such international you America. I put you hold as and been assets, sales, owned Europe additional owned kind the holding of South America thinking on selling? are the think South had in particularly previously bit and as of First on assets some better, in asset markets about potentially a How

Leeny Oberg

expect future. We do sales Steven. assets thanks in the So additional certainly

on very work in the that you the continue that we've Phoenix they're to terms to timing. several talked fact market and We others about we predict As got got impossible we've know of hard on.

that are of improvement, And it's ripe importantly buyer as out, the And even is some financing like. just the to the reality structural asset may thing that et but those Steven, much asset. where ones them, unusual not South probably the still have some just terms ground got like RevPAR it say don't on part think some probably to in we we what ultimately that aren't be the though geography I'll sell. I still think something that find work not the that there But in but other a got bit that as you'll these to based category. a the of markets of I just the characteristics of there assets America still cetera, transaction think of is more we several interesting environment, point and issues. that challenging environment to we've in the Not looks couple through can't, fit environment, leases, probably of makes

Steven Grambling

and owner out past. in Fair enough. bit is contracts significant us it it the and perhaps think referenced a detail bit or to how talk give Can as more how And to calls, different maybe other on could you we become? base had some there changing gears a little similar you bit, other had like it called about on markets? India And more Today seems that market

Arne Sorenson

the this maybe they've – we Yes, details. about check can if we're got

another few or development probably today. that the operating think open and XXX India probably pipeline. dozen about And XXX in we're I hotels are in

with got country opposed as obviously have particular tend of to city a very and whole. They often We country, which as very of region have of economy hotels to and big India a the culture. within It's owners, and a us. or across power good have got a stable to many the multiple a diverse

And so different you end somewhat up from place. with to place partners

are love growth growing the India The community China happening small. the fairly United obviously over a year-over-year. how India. in is States maybe XXX,XXX in bulk just the mean, owns and to country States, from small, in a the talk hotel that still meaningfully you quite what's much from the think stats come think expatriate growth I'm India hotel to sense of rooms of friends The is is rooms compared small, their there two terms, with yet United gives of India. million the is but our of at capita in one least which I economy, And about Indian is the of per I lodging I U.S. when to in it's business I it

We open So are of we market also are years strong bullish that hotels very hotels quite a it. think leading the we in terms are economy the but getting share prospects and ahead. for coming both brands that in development the on in are we strong think pipeline,

Steven Grambling

Great, much. thanks so

Arne Sorenson

bet. You

Operator

next comes Cleveland of from the Vince line with Your Ciepiel Research. question

Vince Ciepiel

Hi. to versus transient. to I wanted group back come

group And group their I transient and flattish. quarter curious maybe transient worked range? And within XQ. three X% what year, this as then was you domestic those, think but how X% they I you checkout last up full missed was about was for targeted to and I think think do

Arne Sorenson

global number. number not vary a American dynamics North of part part minus X%. the of a to call world. the is these that modestly QX in was it group QX very for Obviously from Yes, the But group much world negative,

and up transient And and so the and the group RevPAR the that both posted. leisure between numbers would the difference business, transient make we

Vince Ciepiel

maybe getting up. outlook second more Great, a implies thanks. And then little it the a bit half pick into

you compares already come July? much curious have easier of Just how see to that in started related through that's and to

Arne Sorenson

phenomenon. the in some is World in helped of out a which So by was little hurt QX was post experienced there have you of strike timing the We European by holidays. of a at the no activity do which strikes we terms QX, will is of large Jewish course we year-over-year modest. shifting and if timing be Russian those holidays. United tell the this of that the year. numbers holidays. Fourth relevant but bit to end the called was bit we by quarter has that the Cup, And extraordinarily it most comparisons I significant there States, can't was, and thing tail QX would that

But quarter. are none those principle those at play think third in the are large, the yet of factors by I and comparisons.

Leeny Oberg

shifting. of you've a Believe it got or of not QX a week also bit day in

Arne Sorenson

Okay.

Leeny Oberg

also a but Not is you've only in holidays, week of shifting helpful. got QX day that

Vince Ciepiel

Thanks.

Operator

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

Bill Crow

and Good Leeny. morning, Arne

Leeny Oberg

Is it morning. – good

Bill Crow

indicator to a the of is the it consumers’ part? redemptions Is leading leisure on ask on front unreasonable weakness if the increased points redemptions

Leeny Oberg

don't I think so.

be continued worldwide properties. to I business if anything see the in robust. And think we've general leisure our for

low this well, also lower in as that you think, I U.S. very seeing again, GDP for economic got and general trends you and unemployment. the in are expected, see is although, consumer strong you've example, which growth spend

So from are their the taking people prospects. on our pretty recently they're vacations, in go good seeing are And that we about feeling was perspective, hotels and doing I'm well. their stay stock vacations. that told market people

that And And of the opportunity I great data new happening. vice hotels we merger for is the think exactly when out versa. to Marriott members try had programs, have seen SPG tremendous had and that you you that the legacy in a what's

make those your hotels. at hotels, get that view I sure and expensive was an was and bookings make staying your early given some there their using opportunity points vacation there great think, think, to also a So you've in I got for

as it in particular of a sign see weakness. a don't we So

Bill Crow

vacation. Sounds like summer my

Arne Sorenson

you Thank Bill.

Bill Crow

X% Arne, into I there the as to than X% industry that be tell look But a out crapshoot think that today could a RevPAR that environment should is today making you different we you there would any anything XXXX? predictions clearly. anything is see

Arne Sorenson

is estimates wouldn't it them best – of mean set or there. I we out our put No. obviously best it's our

now. haven't obviously other a from to conference XXXX. than said analyst Now and We'll probably we get our quarter in about that anything XXXX

have we long uncharted balance, period the growth QX, numbers at sort that at balance, we who think had we've or And occupancy. a and whether be that quarter-after-quarter. we a low you lots and pricing can got a requires territory. involved And aggressively industry you RevPAR fair in to in look internal debates And we're look in is the and that's we've see bit the if run time it's to to increase which I really of basis, we've basis. in thing is of or a some continue of single-digit not that little ADR going interesting have got are day-to-day company the which in on in in folks hotel had modest interesting not one decrease numbers individual industry a the competing of amount hotels modest and a U.S. in on of the

bring ourselves going X%-ish X%? trade it stabilize to XXXX Or sort of to around it we down? X.X% or a we some get is and ask single growth obviously, all be not the got is going to as we strength environment?" or at back these and going? we to something GDP wars watch together. learn thing as do "Where's think Or question X% something going are look obviously, good is us I X% the are GDP is, GDP for beyond balance the get whether And stays And not to precise to or to most more clarification of normalized Is going that else at. that important things GDP growth. still for But that

Bill Crow

your it. for thanks Alright, appreciate I thoughts.

Arne Sorenson

You bet.

Operator

You ahead. the Please of comes Brian go from line Dobson Nomura. next question with

Arne Sorenson

morning. Good

Brian Dobson

question. morning. thanks for Good taking Hi, my

of out you competitors China elaborate year? the you heading Do think on there could hearing your weakness into your have on ground in next Some well. called you're from as people regarding what trends

Arne Sorenson

have a not were of than as whole. were last think a China our a as that's they the they I were Obviously, insightful, quarter in China were don't meaningfully they as RevPAR our good as RevPAR terribly were We But strength. the industry anything in as better that's year. numbers I not and think. And ago numbers good sign

more the very at that averages somewhat when growth. think And a look up you're you seeing so country, big that's I rolling modest across sign economic that

trade right China with sign I that things in topical travel think, quarter, and example. being for one Hong market. very happening obviously war being streets but into Hong is got what's today the in well positive a Kong, Kong We’ve the second another fairly Hong on Kong now, not performed

GDP And Chinese we'll see does it there does war, trade for the for it GDP get and Hong you does And growth? exports that biggest imports, mean growth? think Chinese what question Not it so the I is Kong to what mean mean I weakens. suspect when for what but

more they in to evaluated some together make bit a of the China be still and And past. in years got think experienced their sure consumer-driven things and than economy. got albeit our levers obvious And got context those in that you've has I And of to to a stimulate you've got try more markets in China, to you've but some think have by good China industries modest, I pull has continuing they China. for of also China growth. a continue other than put GDP towards But that makes all perform economy and risks that China but shift industry better in outbound

Leeny Oberg

I'll The to is to robust. that really only there thing our growth be that add continues rooms

So on strong look new owners as demand of general we again of our for openings and signings, hotels the the to at part ours. pace continues be these rooms of

Brian Dobson

helpful. in to a your balance bit consider Okay, shares? you of then aggressive getting That's sheet, terms thanks. little more retire would And

Leeny Oberg

a least $X in a $X fundamental reflection a to cash EBITDA You of comments a And comments had our bit. noticed really continue not you expected. slight that billion. billion view just refine bit moderation quarter in But use difference point we but loyalty we reality probably numbers. a the our our know, to that going And as approaching more little return to we from is capital on our than our that's in of at made program capital more we the dropped working

spending We a also bit. refined our investment numbers little

want leverage is would were I to to which quarter range, similar our we to our we’re generally and is comfortably we where quite be. where say So a that X X.X in approach

Brian Dobson

Okay, much. thanks very

Operator

with question next from Baird. comes Your line the Bellisario of Michael

Michael Bellisario

everyone. morning Good

Arne Sorenson

good morning. Hey,

Michael Bellisario

Marriott question, a in to Just deal? prior follow-up on first all is there any inclusive the investment

Arne Sorenson

of material, money, remember key modest some don't context that, be might I not There certainly. in the

Michael Bellisario

to about the maybe thinking jump-starting Okay. finish the invest And change Got just across of growth along kind get thinking about same lines then projects line? how it. sheet, needing in you're to your or and dollars any balance using

Arne Sorenson

No.

of terms the no. organic pipeline, In

I work from financial of majority with our essentially deals – think to our with with us continue And no in We the come excuse participation me. partners. us,

are reposition places where brands. Sheraton like mean I couple to think that the a Phoenix do obviously would most some to one things done. we've recent there we is the of I

albeit we trying material I I in prove some in or long-term But like are two, bet to some calculated points be nothing that would could of sense. think think prove of proof to sheet, any terms and quite modest the balance a the of our that see to we would strengthen. we size taking brands that reposition on

Michael Bellisario

you. Thank

Arne Sorenson

bet. You

Operator

from Company. line with of next the Kopelman Kevin Cowen Your question comes and

Kevin Kopelman

Great, thanks for question. taking my

Leeny Oberg

morning. Good

Kevin Kopelman

couple follow-ups. you back of are half America globally the a of of yielding programs? travel how more thinking versus OTA in agents, your did international? of the And that On as for you, look channel down kind Just about online X% how you in terms were roll they the North advanced out

Arne Sorenson

are or them OTA but which business we taking it more down not somebody when on to generally, necessarily I U.S. is are it when is I've not But and you've was the getting well. suspect we that rest the very don't. we that world than it I talked the from about we think with make whether it about, got exactly most yielding. need should much right. in of that's the working sure test And factor me partners And our working what

Kevin Kopelman

down you'll keep yielding you even Do think as of of you kind over that? kind as even you lap

Arne Sorenson

Yes We we'll the our Bonvoy we penetration. direct talked forward. as I about have about mean growth did know. go growth in that talk Marriott I we've channels, our to don't digital in the watch

less those us those the should we on trend of time think make third platforms. continue both over dependent that should I they way think if things continue lines party

in order underlying is we essentially take take it I here, and it it. when need think us, at story same have these but to to the do don't I an not valuable to the got economic trying best when sort evaluate. to can But of watch from you've partners we think which time we'll business that particularly are we

Kevin Kopelman

talk of I XXX,XXX, Last follow-up quick pipeline. you new a years, just signings? a, the about approvals you're gross couple just on about or Can then trends believe. and And Thanks.

an year, but and bit. approvals First give the us half Can a just down year? of on for kind you of little and signings the this for environment update strong outlook

Arne Sorenson

certainly in Yes, us a towards but globally. us, how pipeline shift is I towards And quality alone, think think has I we've climate, got seeing to moderate not folks, particularly think we've brands. economic robust quality. saying the got generally we've the sure there of continued is maybe we been are right Marriott a portfolio more make the got in And pleased by incoming I

few the look I Hotels, what’s you around and you at many the relatively America. Moxy look brands the When last has at by world, really powerful lineup years. at markets those AC happened you Element closed the in been underrepresented the we Marriott, including Starwood in with they end are think brand also Aloft unrepresented acquisition, since North on and look or

And brand the a It's for me. say, I partners a interesting portfolio. in Marriott now think number that's of who seeing pretty we're our

the of be suburban for So are loyalty in the in I markets urban. good given as the markets. to to element benefit reservation brand program system the selective one opposed in brands I They There's more like. to obviously market. a get and urban value and the that take want And

has I as demand that so pipeline that's the it the think reasons robust has. of And one stayed as

Kevin Kopelman

Thanks Fantastic. Thanks Leeny. Arne.

Arne Sorenson

bet. You

Leeny Oberg

Take care.

Operator

line the Macquaire. Your final of question Beynon from comes with Chad

Chad Beynon

good profit and about gross We've the margin. Thanks transient? compress morning. from to harder months heard making it's Can couple really domestically in of continues taking changes maximize and leisure many Any with and trends you've competitors this of booking there? talk your on for my that that question. Hi major your you window seen broadly forecast it to past RevPAR

Leeny Oberg

at narrow to would the side I major, bit. a I little the not on enough does noticeable. mean say really But Certainly it transient margin not be

Arne Sorenson

I got have probably as bit think, And if you've you've bookings window, little lengthening I the group been think – a got group the good. of talked of about we've anything,

near is QX, what's that it data over even is be frustrations for its data quite don't by we're longer that always and still. has much for the we is very longer because QX when have, term for to certainty put at and gives Leisure expectations don't But forward-looking that that us One And we example, more obviously of business we can is the come. of group a It have bit much us transient booking. large, transient business, to transient looking together in and relevant particularly our which QX, QX. than the been. have we business about to set years

Chad Beynon

Great. And China couple the there's going There's trade the then on and then a economic things. that on. declines Thanks. are there's of war

Or are You've on and war sales? resolution beverage after closely you What picture? do there? you. tied the reverse talked is what's going GDP the a that's about RevPAR. think finalized? that seeing about to more with What food lot could you Thank trade a And

Arne Sorenson

than Yes, we're China. at rates seeing probably F&B grow higher modestly in rooms revenue

importance particularly and a that going the And got in food a think beverage and even to sign shift bit they cities, of I the past. population, Chinese consumer the towards is the the a years probably economy towards of some do of resources to and that's from has more consumer. these key local things in again, skew didn't a

the of think and to opposite. maybe there's So beverage space the compared in I food hotel, rest don't incremental risk just the the

Chad Beynon

Thank you very much.

Arne Sorenson

us. to morning. forward on travel. your look and We for welcoming in appreciate Come stay Marriott your Alright your interest thank with patience time you this everybody and you

Operator

conclude today's does conference This call.

your lines. You may now disconnect

Marriott International (MAR) 6 Aug 192019 Q2 Earnings call transcript