MAR - Earnings call transcript Q3 2020 | Marriott International, Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Marriott International’s third quarter 2020 earnings conference call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question and answer session. To ask a question during the session, you will need to press star, one on your telephone.

If you require any further assistance, press star, zero. to Sorenson, conference President like speaker to now Arne today, and would hand over the our I CEO. Thank you, please go ahead.

Arne Sorenson

and everyone conference morning welcome third our Good quarter call. to XXXX

and unfold. subject our from Senior everyone President, are and are today cause events our REVPAR Executive Leeny currency today note President, the actually laws. Joining Dahm, comments or could hotels comparable and that and as Vice expressed temporarily considered are COVID-XX. not comments unless our Officer; SEC facts want and in our numerous are Investor me year-over-year McConagha, and Vice release are Relations. Investor will reflect in occupancy future differ today forward-looking I updated Please President These Burka implied Jackie under issued Chief today Betsy system-wide we constant effective not closed our many Oberg, comments uncertainties our due results Vice Relations; press include Financial and remind of and securities statements materially only federal otherwise for earlier statements in stated, as to to risks those historical described also comments. be which to filings by hotels Statements made changes to that

in find our today remarks our on to non-GAAP all our referred can You Relations measures earnings release of and financial Investor website. reconciliations

I us power everyone grateful. tirelessly is again show of I The incredibly has to who quarter, about hope thank incredible and these work I Before today the well. I joining evident been the more culture during Marriott challenging staying true associates and want world safe and never team our talk am continue the to resilience times. of around

quarter meaningful results COVID-XX still versus third second quarter. business, significantly impacting improvement the showed is our While our

in North open better percentage open America. quarter’s of XX% REVPAR are Third hotels now XX quarter almost XX%, with than our worldwide points last declined XX% Globally decline.

the September, than with of the China, year-over-year saw China, recovery been climb however, Our travel the worldwide in strengthened improvement bookings travel since Demand Hong Pacific decline procedures the in in by from February, Greater improve reopening strict entry XX Occupancy month New mainland at February Philippines XX%. September helped greatly are the in in transient imposing the has travelers The to Zealand, across Worldwide in for close global and just XX% were has to in the during by third of travel regions; of restrictions in since over but in by travelers, many year April. have ahead towards occupancy in progress firmly to bit is room with sourced made demand segments. restrictions. in rest quarter easing, South slowly performance, steady April’s last quarter a still an outside with through gap were month In and we in Kong occupancy of better began bookings, entering countries. the and September of rate XX from domestic all years. and August plateau year, pleased entry year’s domestic then to limiting to continued travelers of the recovering levels more better trough inhibiting are quarter taking September. Japan, inside than we over quarter as XX% also in reliance were rate April. solely are percentage the the demand the but North have from declined America, also in points stages of last our to improved second are third each end XX% overall over events though compared XX%, versus but the last slower most improvement to of In Leisure We improvement the last continued of points and visitors where mainland, REVPAR percentage requirements Asia perceived bookings improvement control. nights under The the virus rebounded which differed resiliency China the In be nights last Results have especially XX% various improved travel each recovery meetings visitors the reached when demand. meaningfully strongest. generally of guests. sourced were helped trajectories pace. a domestic in mainland since group on demonstrating the Countries bit in meaningfully the cumbersome September, transient those are XXXX quarantine from did XXXX, in of of strict strongly and September have and Even more XX% domestic a country. ahead from around February. business a slow mainland from Australia, are lagging of extraordinary drive room the much occupancy X% from quarter, has Korea China results year. occupancy Macau, are still trips mainland, an region. continue reached Business in still

occupancy the versus of REVPAR quarter third quarter XX%. last with Third reaching declined XX% year

re-impose Drive-to tertiary October levels and transient October. the all in in versus social discourage remained in we made trends large of quarter quarter, five less These historical business or stay Middle are among been towards and although and in occupancy occupancy travelers, and have seasonality. into step in in Europe, China. many we August. an North which occupancy Caribbean points the extend and there global CALA, demand, in were and the and percentage the in to September properties and chain world regulations. than in relatively In variations year. lower REVPAR of to as bookings the governments Europe, still down a weeks, slightly extended eight the countries to Africa. nonetheless, Currently in Europe’s closed lockdowns, Africa was rising numbers with XX% the nights been and leisure In room in XX% East quarter relatively XX% in regions occupancy cases November are and compared levels and who secondary throughout in visibility marginally December continued travel also has given relatively to the particularly closed were demand We saw improvement and Certain XXXX. about have Business levels limited; second usually room still strongest America around in last resort group continued than Booking and due very have made in holidays few slower and quarter CALA up first recovery, comparison in Globally, UAE bit hotels international November. hotels third flat of demand were of restrictions, scales then year-over-year a and CALA, and markets. measures and November are levels, XX% was of up the travel. particularly strong remain hotels September the hotels December have in short has and improvement demand in to quarter. around lower nights. see September the fourth led of for percentage and for generally significantly easier Turkey, Europe the expect our the windows or XXXX, we X% and East few Occupancy the see in closed the America, line better Qatar about and resort to last substantial could the East year fourth end second ahead of demand remain plateauing room points than leisure showing quarter. markets. modestly the show quarter picked lower Africa, of with better Middle XX% another of the This continued still most the During that the October, CALA’s segment in Latin the and versus guests in remain quarter, The properties Compared the nights international around where the and up is historically Middle Europe, to CALA quarter fourth weeks versus versus lead occupancy but of distancing do

comparisons look in REVPAR could quarter did the in better year-over-year result, they a third. fourth than As the

to financial of we time; road numerous some the seen very key are making the been take recovery and we dampening countries date, Of could we and in a results course, recent to can quickly, change vary to pleased the is have and have demand. know areas. as with resurgences across a virus number We going region progress on effect have by operational greatly however,

safety our One is key The of are operational stay a mobile contactless pandemic, we our certification. of protocols every our web adjusted and heightened also adjustments guests cleanliness biggest we guest technologies to operational leveraging the and while our such and experience across cleanliness increasingly to efficiencies. and chat, Throughout By property now commitment our tools, and been associates to a a portfolio elevate amplifying complete required monthly remains standards. the have re-imagining check-in, and clean has guidelines mobile mobile the top priority. health

innovative We targeted marketing also out phased roll continue in strategies. to

at offerings, measures demand, travel consumer while intent. are of trend. our Anywhere our in capture our emphasizes evolving and have recent messaging October creative for sparking Week leisure driven Our remote Many very and such as of Wonders, and to the Fall guidelines end from safety work of our heightened designed new by been packages, and Travel October revenue cleaning appealing the successful Work additional which sentiment announced we to

with award-wining who Marriott focused and million our a not including we those program yet are ready our on engaging underpins strategies of all for Our remain XXX marketing hotel Bonvoy members, stay. loyalty

been home value offers demand collaboration credit in limited as American the and also Town amongst have program and such to of decline Chase customers. Chase and retail and have pandemic International, Eat the modest and the Amex of and on stay REVPAR co-branded our the are and more decline to Bonvoy a villas Bonvoy spend and grocery homes and our members compared for experiences highlighting whole Around The been Bonvoy during cards. our Marriott spending our much in great card rentals indicators We by in offering with Express numerous time increased accelerators we Villas non-hotel Homes

Another key our community. constituency owner franchisee is and

had unprecedented in have weekly with interactions them more with year, engagement advisory committees. and owner many frequent our level regions an this including webinars We of

will on are We to costs together focused these her this through times. as challenging working remain environment, during their possible Leeny as We reducing much in as remarks. closely discuss committed deeply manage to

the account in COVID-XX. On the from to takes high openings X% entering points a our in X.X% XXXX, third rooms growth permanently ago, estimated is into This higher to development which front, X.X% quarter. than already expectation due February, basis of XXXX net of we now XX reflecting quarter the deletions anticipate end to we close in due that deciding to certain to hotels around struggling X% primarily were strong

for fluid up dates Given the completion, uncertainty of than environment, the that many more under almost we news with year opening pipeline hotels construction a usual is currently XX% nearing current is our under XXX,XXX X.X% on from have ago. good construction room rooms but

are as extraordinary of a vary that believe COVID-XX air quite in key. on depending now strong likely not the We XXXX in with the of likely COVID-XX they lift demand will impact will solid as in in in signings is lodging pace Although rooms are XXXX. that specific markets uncertainty as of recovery where our open of result on not markets, many open the The heightened considering do industry. XXXX, of openings

conversations a that are We are by we We of from conversion on opportunities brand remain and financial around conversions. accretive value keenly also encouraged both increasing a having focused number the perspective. are

expect to is our our XXXX. virus, additions next compared to accelerate in made the progress year containing would we expectations for room Assuming gross

many XX our It create for headwind term roughly replace are short worth We we with but Properties service first Service potential year. are definitive product. limited Trust, is in the XXXX deletions X% owned of too middle soon brand-new developing all the in hotels of which growth, the properties, almost to for a generation would those in so is the are that exit to confident noting updated limited budget our net outlook service hotels of rooms XXXX room ability of by coming a it give

in strides Finally, financial in we moment, as crisis. shoring significant discuss Leeny will made a position weather the our up have to

we While to the can longer is than recovery signs would resilient. encouraging that going take be anyone extremely are like, demand seeing

our Bonvoy, are our and customers have the for now of and our strength incredible around power With we the the I the of taken confident and world, that for very well we owners, am team liquidity steps Marriott positioned and position, associates future.

the CFO. call turn I’ll over Leeny our Oberg, Now to

Leeny Oberg

you reflection are for of contracts crisis our million generally operating profit related Thanks quarter team no almost incredible in fee non-REVPAR positive our in ability quarter for year in much hotels fees versus These the three franchise are help the REVPAR thank Arne making Greater of fees $XXX sure in of much. well. with the again fees all Marriott card of generating in the quarters to a healthy. strong with year were the global of XX%. Seventy-five very franchise the owners XX% fees, more fees China September earned first revenues down like and owners gross quarter million. in and call IMFs, totaling had a the demand management control down With this where $XX of the IMFs the third I quarter. resilient, fees also of Over $XX on their the have hope costs. decline staying XX% of with I’d our work were of hotels our our safe In from quarter, associates priority. comes and strong XX%, franchise fee, down ago third through positive region base $XXX Gross this year to XX% Pacific $XXX totaled or comprised incentive of months ago in gross nine our of management million, million, and year. Asia were credit million, profit rebound percent at results

in primarily a but year-over-year, Third of and quarter furloughs, this steps response COVID-XX. to weeks, work in meaningful the took included we XX% quarter difficult reduced compensation. steps G&A by executive These cuts reflecting year full improved earlier necessary

generally the has September. furloughs and REVPAR reduced As late from weeks improved above experienced property in April, work trough global corporate and by ended

course, level, below REVPAR our the at forward. costs that the and as to more we in level is efficiently time With on XXXX corporate sustainable a take today and to levels above still more some Of can at recover. well well hotel organization restructuring operate on property expected and fully mind, to so reduce we basis focused going as

other reimbursed. controllable noted XX%, services corporate above are with costs classic reduce total for anticipated programs well the to includes hotels, line which efforts corporate Our restructuring and G&A This as both we quarter. we the by as we property last in expectation are and provide to

and over reimbursable lower guidance allocations We with corporate are for we of services estimates expect total to XXXX through budget XXXX costs based still million our could working around our than million, in for but expenses down original preliminary our be XX% $XXX programs G&A and XXXX, well $XXX exact on XX%.

EBITDA million, EBITDA largely Importantly, sustainable and to of third expect the be quarter in do this of quarter adjusted We G&A third quarter reported $XXX the a second quarter headwinds couple third quarter compared the have a in improvement reduction year. EBITDA. last subject adjusted fourth We of XX% increases. down inflationary to year and from wage we the in to significant adjusted versus

naturally is went of quarter. that order time, associated charged in based all seasonally At majority cost mitigation reduce of as have work thorough mentioned, a the will this on percent full to return beyond G&A a hotels. environment the be costs fees of large given level, of we programs the conducted part a the hotel to not the bill services and quarter workforce slower review reimbursable as As our in of fourth revenues. our is third the lower the This to we with quarter and our hotel as savings efforts in

Our work has expenses led hotels. to significantly lower the for

others are given fewer in savings like, transactions volume program some related a reduction rates. associates, While the and real reflect

we around have For XXXX year the fees fees example, on certain well. our same paid hotels in world, all provide this these fixed a as providing discount a after meaningful on to of mandatory worked discount by

levels cut lower course, our reimbursements hotels. with also programs Of we services from the expected have and significantly providing of given associated expenses the

at we properties last managed profitability been points quarter, of As to rates occupancy. reduce three able to our by percentage noted we’ve five breakeven

As this well. properties are to disciplined imagine, you our and might we applying owned leased approach same as

FF&E and also applicable. owners required capital working consent FF&E been We end have have with funds allowing XXXX, to the for lender reserves March waiver through of where access of the these extended funding of

majority Act of $XXX laid and a XX% flag. around a into out onto that agreements most our as burn in monthly receivership that franchisees of on collection have to continues with support managed scenario exceptions, foreclosure America, related generally quite worked working for patient with when payment capital or rate hotels to we at quarter, cash which should that credits REVPAR to REVPAR term foreclosure are pay handful and file properties aggressive few small down gone or we indicated CARES a our go hotels which U.S. a this the have us and to These cash million date, number the combined hotels of agreements been protect led plans. Last Additionally, hotels’ well Despite efforts held year help with refunds management foreclosure. current owners our their decline. with only $XXX measures vast our retaining our In only franchise North a and $XX we burn effective. our time short lender position. relatively million, quarter of have tax or historically The of have into bills are environment, are on as been million,

the flat, than payments would the in fees including REVPAR model. around than in quarter burn have XX% even severance total of management that in included to million our was the down primarily per were million cash pleased fees. that better with predicted, for REVPAR were We much the monthly around model $XX point third fees not million higher sensitivity $X.X came shown the $X quarter higher incentive for actual Our quarter to have would of due

The of major useful drivers cash costs, think in $X We of G&A and loyalty provided monthly other potential burn the sensitivity last The still cash with month management, results, would better cash one-point our range. per a should we robust capital be were be lower flows. we strong program REVPAR working neutral the as updates. fees lease quarter in still owned in burn about million fourth a million to $X.X change expect on the quarter, our couple model

we’ve in seen, changes does not As sensitivity include completely is the variability and credit given not linear of card fees. the of impact IMFs

due. We in now quarters down million the due by working the quarter. have of of timing-related $XXX impacted to interest in $XXX the will million end receivables power REVPAR the $XXX is when variance than The our made to payments example associates’ demonstrated below ability for systems in the our are the timing spending. timing XXXX through funding to unprecedented adapt outlays in in again million the the fourth below money impact spending our plan the another our XXXX million. confirmed our around highlight the strong In we’ve key outlays Also, company which significantly expected This additional to occurs asset-light million to the and we our roughly continued first the are last expectation that $XXX Through XX% three expect two environment. should in of collections strong an the contributions, XX, of year. year-over-year quarter Investment have capital expectation and be year of of million of versus That payments beginning minimize business original earlier our current flow was reducing full our cash quarter. the in in the totaled and usually model. cash reductions due September the of payments $XXX of quickly quarter is primarily match be forecast with working help higher we to the to There is progress low at year. will slightly to also capital of prior of third cash fourth XXXk fourth $XXX payment which items October, quarter’s

to the net of August morning, been cash resilient plus and will cash and guests end positive quarter, meet in available $X.X of roughly liquidity operations returning Our questions. $X.X representing travel on comfortably obligations. has revolver this The issuance $X.X that us our proceeds approximately We the before from for billion less new timing was the year the that balances liquidity COVID-XX and We flow bond capital in for maturing unpredictable, portion open believe welcoming from you we’re cash billion, down full recovery quickly. to to position At come operations XXXX. too closing, those and our were from in confident balance. substantial your forward revolver. positions be $X expenditures time the eventually of long used date. a back look short increase liquidity billion our third Thank undrawn and is our long. we’ll our prior lines pay hotels now billion will to of reflects a term our our contained Most In quarter while to

Operator

comes with of Bank first the question from Your instructions] Shaun [Operator America. line Kelley of

Shaun Kelley

Hi, good morning everyone.

Arne Sorenson

Hey Shaun.

Shaun Kelley

Arne. Hi

in, a think of around normalize? unit think year these else terminations this you elevated to deeply? around environment bit the off, in system just do portfolio? that. thoughts the but all could particularly what we’re in you. ground comment, start to a you covered start give the and more any just the status could for maybe or for health Thank behavior, Starwood past you hit puts bit And relative see of next prepared expect growth being you takes talked or about so Could do you little remarks, commentary kind relative the a a the legacy to speaking, we thank some and level exits SVC net a to couple Just terminations maybe of lot in, factor of just Arne, broadly given and I you of the drag, on

Arne Sorenson

All well maybe of because that, right, me pandemic. let the start of is There obviously. uncertainty a there’s early, there in a saying a still it’s lot by and out little lot

compared were to QX. I pleased QX increase think see to again the openings in we in

QX, to extent, or even precluded projects to as I it were to either business reopen, ready some environment total of the or the just precluded think uncertainty it, the restrictions precluded it. lack in

XXXX. offsetting happens potential Both what open there’s side in about get us QX, just the that to opening we or The but of not the course open, conversions. XXXX, properties with hotels. something think of much structure under these that as years, and is what and will, for all what is depends - capital is including a under happens see I but you like upside, QX if equation rooms most of which about that’s I the scheduled, are but harder, in over existing that on into ownership little optimism that gives see So virus, under we on the bit sign this are deletion that, to will looking construction projects XX,XXX with an at the completion, that construction least in those of projects couple change course very obviously and for should should are change of trouble depend nearing next think and a

see make are pandemic pressure to to the we’ve financial COVID-XX prepared in reopen number it under reopen, of entered yet sense to mentioned that positioning. our a their have Besides I what we under suspect already hotels obviously trying in to budget. as of next and some lost the - simply for that the build SVC, we’re we’ll not current certainly we year just year. date, don’t did Some process remarks, not

dealing around are the with all owners world. teams Our

and in our I doing system are side, stacks think and will place, XXXX it system the negative now. will from capital suspect and than side more the new large change as positive hands of to begin into or conversions become put clearer hotels the occur on deletions is I ownership as by in on our right that

Shaun Kelley

topic, of--let’s unique? large any SVC and on types those situation sort color call a it of can there follow-up single structures. just Thanks, Just maybe are cross, out of the there? the a you as guarantee contracts these pretty type same provide Is on number

Arne Sorenson

that. to SVC done those a course this We to up well that quite actually was bring portfolios substantial that, structure XX ago, to year. additional maybe SVC like would That be including optimistic re-done with were management new that a were Those Yes, and is was with of term, structure earlier years very in initially getting cap initially with long it ago, into way or XX they lease something a but evolved structure. were and them sort lease-like bode standard, guarantee. for in place impact a since pandemic put years a assets unusual. to structure HPT capital of the had They’ve profound

today in the SVC are renewing possibility with We about of discussions that.

make and think is ROI stockholder But seem I be system. dramatically are that be converting the what seems holder on that as hotels debt those stronger SVC opposed team, Sonesta’s brands those brand, interest as We Sonesta to heard, furthered of we to that could hard don’t exactly think on those again, recently including to the to by to from in the that not as that in they comparable We course hotels be that, be remains our they’re would based how yesterday Sonestas. hotels know do from wired assets it the so there leave and anything versus that the those that separate system. little bit ROI the to looks like direction ours, expectations would heading, today. roughly flag at and looking but to Sonesta surprising is a it’s perform, are would us that half,

Shaun Kelley

all Thank clarity. for the you

Arne Sorenson

You bet.

Leeny Oberg

It’s worth portfolio. fees, that it’s impact the minimal noting to think also addition, on when you quite that about just related one

XXXX to year $XX million million to in those from fees are total hotels. $XX be this think I expected

Shaun Kelley

Thank you.

Operator

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

Joe Greff

Good morning everybody.

Leeny Oberg

Joe. Hey

Joe Greff

of ago you the the your next to be of open pushed that to that? have addition visibility year stuff from pushed gets additions, that were Marriott and Is gross for being in into for November part typically what in in in if out, beyond in that comment room XXXX ’XX of acceleration XXXX. have year, in in good To next rooms is account? would extent opened so XXXX, you right terms of are mentioned year that some have sense open accelerate a would out something that wouldn’t to a now, will take XXXX Arne, of there to and you pushed XXXX out thought comments room would in that XXXX, confidence does ones hit into that

Arne Sorenson

it’s a question. fair Yes,

disappearing many lots I everything and has that have quarter restrictions the months. forecasted bit on is status that under and projects our including pipeline construction months. this the that activity and of certainly extended second year, a overstatement, there sure if a they think uncertainty I business would that’s markets, those June many by the a they obvious down, construction understand with first reasons. functionally working fair the gotten sort what an and even world, we with were team do many, to of the if slipped could generally to is, that that those of make by partners a many, so XXXX, opening, we say opening opening what few it’s happening a already with--think the trying well January for of Undoubtedly point that little XXXX of of few is have about around of we in and slow a in quarter in what markets at targeted restrictions under to least construction, is the deal out caused in when but think that end say of We development

I that rooms XX% the are level here, positive those the so of in can think an side pipeline under of all to on that or XXX,XXX that the very construction, hotels are high roughly, open. extraordinarily confidence going are the rooms we have

think under going get watch not that I construction think the we’re that to yet that. you hotels I beyond are to to have and

partners. and improved the us they’ve is think owned they projects, our designed, respects real many in I and they’ve been are been land by controlled, by

overwhelming got the is might construction that about but a of started, building do partners to open decision I them, in make in lose to what get weaker for to I contracts hasn’t market environment, construction of signed underwrite in majority committing if project each have one that for something a has what costs, those save do for a I harder and and on may predict today. potentially me a which We myself

crises some most the not the end some some those overwhelmingly that delay is but of which may open, that particularly time prior or service but be for from are financed not in to will openings just underway. and projects higher construction experience the years, luxury full projects ultimately could take under get quarters, Our get

it. about really a high So - balance, we again, of up have level based COVID-XX, but bit that gross I confidence numbers say little on will you step it’s can precise reasonable what would this next on us is too year reasonably to we a assumptions soon give openings the happens think on for with

Joe Greff

what cash and That’s helpful. cash in impressive, To burn free cash mentioned you Then management positive mutual the do year? upside. Leeny, operating cash of-a think a XQ working to as extent flow, a capital be was flow, your working contributor flow a source capital next was EBITDA to you contribution follow-up,

Leeny Oberg

of one loyalty. the is around big Well, questions

relative you redemptions year opposite. as use last and strong throughout of Joe, If of had bit actually it’s this system, the year to a remember, the kind loyalty a we of cash

use a large it overall, we’re also rebound of were expect also of cash at perspective, capital in process, I we won’t to that is of perspective. but go from they next through bit are, the XXXX. expect but Now, XXXX that as source next be still demand either. the year from quite not a as redemptions, meaningfully days we cash early more year, this that but expect I that not as I think working low as year, When the see From peak as not so prices would a budgeting source they stabilizes that it would reality a major same that is as we loyalty would major continue I levels about about I think the like actually not a would we while that

Joe Greff

a great day. Thanks guys. Have

Operator

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

Robin Farley

changing doorman some don’t really, your some do brand if have if just those come do of you I wonder what on of brands, some XX need talked now, standards. permanently? thanks. that you you don’t permanent you the when is you bit brands won’t you the right reductions about, a from I duty Also, about if can Great, how are about owners they those so of change wonder talk a can brand or lose know, distinguishes how you okay, little but XX-hour shuttle have talk to cost back, permanent saving--permanent standards because a really? airport, need

Arne Sorenson

Good and question, morning. good Robin,

want do able we as have been find the state be savings implement to obvious. we’ve I long of to as think lasting, what many and is the to

would maybe them. that’s and top question and beverage I are mean, your of few even my before think I be I service, a there the some, a one on list, food think illustrates of doorman.

experimenting that, that think service going to they’re have full a entry, tough, markets have dramatically they models in We we keyless Having some during beverage not sympathetic with. I that Guests things come the sometimes see little a that’s guests we most environment. normal anticipate. tough fairly which back that is bit in things when staffing quite something particularly will to we get hotel will said when have, satisfactory we demand full services, to time, can some normal, expect think limited, we going more been get particularly limited be and to see but to and food I in the the from empathetic a to demand in service, we feels weakest, a be the have back and

and the depending got right day, we’ve cut, probably a the the costs little with mean, I three though, stick At for talk like I move think we’ll to at deliver will Leeny what some costs today, of end have segment. reduced to can the be. of to by see should property forward the we’ve satisfied that will done and you the - it’s while. lasting five Obviously little soon brand you’re up is and getting, that, estimates a our improvement. vary think move the tell little they’re that, that a that margin been experience on the above think guest as be higher bit. something we long point are--we’ve able segment a even to that course, some brand. from I on some a and expect to the occupancy breakeven end rate to advantages, stay points, about brand to is number bit It’s Net-net, to going make bit of segment that sure too too, we’d what little begin

Robin Farley

because about as signings? conversation pre-COVID. all what the that X,XXX quarter, the a the the for up I go percent see you during in of on and follow-up was release in just out a Thanks. of conversions, still Can mentioned XX,XXX the maybe obviously quarter did you that those the talk you signings percent small conversion, know opened, the Then quick are of so pretty rooms about conversions, percent

Arne Sorenson

is now the around one of more difference are Whether few had signings number. I before the I even looked obviously as back openings years at significantly get a the to in they than XX%, hard can not, ones is before which done in two a was quarter. not conversations they’ve little we of past. through COVID, experience bit were our lumpy make in can our conversions, XXXX, team and that I’m that can the huge another know amount - to similar it team be we and the you XX% but bit these environment, of little you of you see economic Yes, XXXX, are in very fact just that and course, that have gone well, is the cycles are bit predict. is year last that don’t underway hoping The in conversions or of necessarily obvious transactors don’t question. aware this a them a a happens and talking, conversions interest quarter working here, a the that but to so significant knew had--of us and - things on the We’ve having in little see even fourth

Again, higher than percentage we again. openings Great or - our opened substantial able ’XX look bit hotel. and what in structures the conversion of future ownership now. of before, most peaked but of those expect and will last as teens a ’XX increase the certainly of starting in highest activity as depend increase now for actually system We said rooms ’XX hotels out was was in we we do that terms number with higher the conversions is our Recession than We’re ’XX, would be than say, on new opening the so, the I higher or to they a folks were and to yet XXXX of what for to to the in in would but expect I terms that coming a discussions know structures to as want that financial caused into the more was percentage conversions decade higher ’XX ’XX, of this was ’XX,

Robin Farley

Great, thank you very much.

Operator

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

Patrick Scholes

Hi, everyone. good morning

corporate as going group also layoffs also level slow to for level With property group and should tracking a sales it’s Thank business, staff belief the your your you. be we that that, that how staff, in to your recovery for is and next related sales business year? interpret long,

Arne Sorenson

XX% books, to quarter meaningfully them their their group that holding about on the worst meetings, the won’t year, less next optimistic get first meetings decline Our that hold are folks of business tell the to by and allow as does still is know XXXX. that into about business XX%. as year you you number. is further is you farther will It you in the COVID-XX It What that than you? that the get surprise far group tells for into down terms

sometime the distributed calendar start it it’s are XXXX. to the I think maybe, sometime of see we the are get half, approved two, the and maybe a by the first latter have or but part can broadly we in optimistic, many, end as first this in vaccine of of half, first year, could half that by

optimistic takes back. business As will hold, that we’re that come group

hotels back you’ve other a which in of, this in United China, the I the seeing corporate think heard group we’re I the companies coming from what a business. the group that today, and first and is group industry, association not think group the business and think business like. lot the in second, all it’s States I is like we for in but Obviously think United is to stronger in States group there

that - of group the out more connected costs sort have somehow healthcare groups, pandemic that of be you things or is leisure are itself, family the hotels groups, don’t are thing. think the some much we’ve or COVID-XX I sales athletic more core that too focused corporate I it by larger some think weak. manage could still be The efforts into workers in likely are borne much made should to pretty those costs is there. business with space. the today Obviously we our the be business read that system to could

when start we the be important tight the to COVID-XX more come if I ultimately effect. vaccines group call that a sure us to to make in pass, we’ll on the we the see and think, that those reimbursement those and in are hang that and can think, that our best to meaningfully that know we’re costs start way there, goes managing meets we’re to continue business and will take of to way recovery. come see optimistic, that important books sure bookings have we on level to We We’d and this start do the doing got that’s make we to customers to to

Patrick Scholes

thank you. certainly I Okay, Thanks. so. hope

Operator

Grambling from comes with Sachs. Goldman next Steven question Your

Steven Grambling

the questions. program. good loyalty just the morning. had bit of strategic to a for question more taking I Hey, related Thanks a

corresponding program and recovery, brand are in Bonvoy how stronger development potentially engaging What drive to future? further this and and/or cards. lead You’ve that to strength credit in with differentiate conversions changes the the even learning the a the from time consumer could are in you in mentioned difficult

Arne Sorenson

development, the about Bonvoy talking you’re - and development cards hotel and or Conversions back program? to credit

Steven Grambling

that value additional really the future. all mean, consumer, I feel and it’s for together differentiation if in you’re I drives the stronger and like ultimately opportunities development because REVPAR creating

Arne Sorenson

to I starting a bit probably performed crisis. or around restaurants performance quite hardware, of prepared we powerful. we’ve or the done that’s done this the pretty folks the It’s that mentioned and actually in been road, things would a that partners eager with what extraordinarily card membership, worth in But travel, would the credit we’ve that continued travel. think, an market around a things still with for that back is about with are in travel, the Affinity has pleased as seen remarks, this with portfolio around dreaming Yes, is of well aspiring way card card on to credit engage think well. card during get about we’ve a in you our us to consequence do, Bonvoy grocery because wonder when how little The I has travel there well very which

the if REVPAR got in the business broad a saw get a find you a but of back this this Bonvoy they’ve we into of find will and that the got live a It card think the we of frustrating number our of of Villas to other will that we space, launched go the back like they we urban back increase that continued will one ago, was road credit of total year-over-year the the things and of lives, behind and systems carefully, and got proving could programs. get members towards when get destinations do, pandemic, world, portfolio to the doubt whether luxury Town strongest to and percentage have new data program, was as biggest on pandemic things quarter plus sooner the long. Homes be us, the and know us, obviously, Around timing to a the lifestyle they’ve at value back hotels, behind way momentum is was and the I we resort stay are they’ll that it other in of about stronger, second we and the a around that we loyalty on before their going come on work program at about hope that. what things, before hotels launched too talked part clearly as they Bonvoy is the in I integration and Starwood have they travel to Eating penetration any and - powerful working people still or the the portfolio particularly, XXXX those don’t the index we very in of really half work was or see, look other was

Leeny Oberg

I’d digital The thing only other Steven, add, the is experience.

is gets travelers about they as you more If of are all driven the think you. all signing can the to so experience for invested app, element through the an see again the you them do people up important, and contactless if that really Bonvoy Bonvoy for more opportunity more more see traveling, that what and today, have that is experience, they and

Steven Grambling

are unrelated America? guess Makes on the hotels back follow-up you when standpoint, in I management North that from come in profitability level incentive inform could sense. just at helpful. can hotel what That’s fuller learning force reopened fees from one a

Arne Sorenson

take that? to you want Leeny,

Leeny Oberg

because got all hotel, service open that cases, so we’re than is priorities. in think on closed, us to the long incentive think bad, obviously that for better cases, COVID, we’ve the in in levels not the get earlier say reduction before will in structure, where, it fees at of what really same I that perhaps to time, I’ll we is very that but position back were least come now done Again, cases occupancy cost it get work because you’ve we but But U.S. the that is structure. sure. most many in help cost be that you’ve Yes, way the do from all a reality still are than overwhelmingly the to IMFs, I as we owners a us about got to with a in is the full

sign of away. those don’t is and that pressures, of side wage other going any I the actually think see obviously I

we these of wage it’s and our try have that efficiency think ways across can to our onto what obviously we improve will single hotels done think do savings of that I the is to drive bunch discipline more I so certainly every line, hold but of sustainable improve to a element I of think bottom know, pressure to of quickly a those hotel, big a your service a hotel in get to element be--you XX% call cost that’s being, obviously is a we it the way, going full how be going on back. structure with

Steven Grambling

Helpful, much. thanks so

Operator

Your next with question is from Anthony Powell Barclays.

Anthony Powell

morning. Hi, good

despite leisure into business has greater recovery markets? in control other China that anything of in mentioned potential being much the You the that read from Is virus terms to in there. or U.S. the travel under there lagged

Arne Sorenson

bit is travel shut and Chinese to everybody occasionally even least is than essentially at two again. a a or to market going still managed occupancy in bud, a as that it REVPAR, country I happening. higher. three it’s go but and of test business they’ve be albeit Remember in irrelevant, to February in and of of that had business that there’s we’re in an about travel down business and the and and irrelevant good relative just the meaningfully or Chinese entirely big government but softer transient year an occupancy Until not the used that that’s broader talked circumstances less under it that than think get now I point reopened that would markets you’ve which X% States, the the shut so you in leisure United and we becomes and is than staying numbers higher probably a total, beneath COVID-XX, little a home, market. in No, so what seeing reminder COVID-XX us, is on they abroad bit market which nip even if that those don’t roll a They being weakness in a which you’ve we than so. for but course China, impact stronger suspect dramatically we impact bit a China, where that travel year, down, Obviously get those we are have is two a next yet. a is group will, market they was to ago, little One really have are forward, sign; much got today the will transient control, see it group, in and was the second flare-up had is strongest sense got in things a last in response it driving

of Asia Pacific, You get rest yet. to Europe and weaker probably it’s the

Anthony Powell

Understood, thanks.

few relative of as but seen? mentioned given You’ve grow and Villas a summer, more maybe times that bit strength there the dramatically, that demonstrated inventory an Homes offering a that the Is you’ve seems versus you opportunity the core it of business. for an grow the to popularity and that the of over you business do there amenity still a more

Arne Sorenson

it. growing are We

and hotel urban because our too the transient would destinations. many offices look you in about particularly the home have of at destinations or resort not to is globally, other little you demand business Partly but travel in because markets. beginning, talked may are see markets, those don’t leisure got whole in to you markets we’ve people tremendous go much capacity those have remain inclined United we’ve As more and obviously closed that extraordinarily product States, though, our from effort a here if you that’s travel,

focused, business country, am remain convinced the will for nice it ski whole a I hotel substantially weather, feature destinations. and will will complementary to that I that to traditional We quite continue be warm resort on think, us. home, grow

Anthony Powell

new weather, to like that or existing going those inventory? you Could or is in mainly inventory to markets, work maybe finding build with resorts ski developers warm be

Arne Sorenson

It’ll be both.

you’re We new talking have in you those about, good which building markets. our inventory, is what will, with of conversations about had resort partners of if some some exactly

Anthony Powell

Great, thank you.

Leeny Oberg

in the about from the the that quarter ballpark so again outside follow-up in China nights, one you’re not Anthony, from of comment are a business they having of impact is on travel, down coming business remember the international in getting hotels in. business to you’re your travel China, fact our China from is but travelers outside just the that that yes, also

it’s So it’s on are all I leisure would--although people not quite China, the not business still outside a recovery things robust as considered, robust traveling side. because quite as

Anthony Powell

Thanks appreciate it. for that detail,

Operator

of comes the David Your line Jefferies. next question from with Katz

David Katz

my thanks for taking everyone, questions. Hi

Arne Sorenson

How you, are David?

David Katz

morning. Good Hey, good to everyone’s hear voices.

think that--you Do wisdom maybe collective business the or and As entirely me is travel is the the this focused you again? therapeutic, What hearing? to talk you on is know, of likes out element. to your we that gating obviously factor a one of all larger very set are you get business peers, of component strategies are traveling

Arne Sorenson

profound. or informal all way restrictions capacity, - have think very the and there risks of things, of are and impactful the plummeted because those impacted through three with Well, COVID-XX. be I about of the it - international urgent those associated obviously either and travel restrictions has formal will what think airline things sorts travel, most happens that Clearly has most impact been with

that you transient step in travel group horizon, the have, We think, the I COVID-XX threatening up moment recedes and from a business meaningful will if will. risk

for tools of once that in we’ve mix correlate group even business of One Recession as that strength and remote in industry burst from things we early through. even well three is a in the for function will few have saw then. that of way to a XXXX the most we our that years for during you generally all it to pay of lingering more learned all what to going Not stay are single lion’s the factors digital what’s in from a businesses a we’ll driver had as X/XX many to for we happens time including third us leisure think the people to some the before see transient connected work. the to--the and not pretty business Great than with the there each I at we conversation with trends. and use years, reopen, extent, shift every work continue back, and travel it’s have and small long probably that XX weakness closed, the when the the of going take all around and which that has we’ll to. but most underlying - and What love the matter I group travel, of to places of tech we got that two for recession of comes followed, that see demand, travel see to of following, every watched in used is the personally fact transient if learn last a maybe get can’t significant work, do of of and Then be even my It’s we’ve in bubble the love we combined leisure. points, world, two travel remains worth economy, higher they and and relatively ahead the points levels move I is, night other not got we’ll company demand to participated the to state because come Marriott, of meet as in will love term often the and economy out, and even time both think about they through--we’ll how much years number some can’t some guess is couple if of piece, is to alone be the conversations suspect back. share or an we’re for business with. see of our offices travel to and the we is being unemployment of most, you’ve of economy, other maybe attention that to powerful to that course transient interesting, there industry they’re similar in business we’re years and happens, to does going and let traveling, look themselves years’ That years towards it impact seen travel probably most which the single our able

David Katz

and-- Noted,

Arne Sorenson

question, David? your Does that answer

David Katz

we’re a a It you to risks of follow around specifically need peers alternative just piece of be vaccine? from the you’re the I gating largely can trying or around up, the your what conjunction one answer your mitigate factor instead are with event to just vaccine of sitting from interim series to COVID about a single any and about in does. or hearing. waiting of COVID, for whether for it If or hearing Just strategies steps think of things,

Arne Sorenson

but a other little month, the sometimes talking Yes, corporate time an a in I’d hesitate connective though in to our big and each of all in sometimes business to do sorts do lot increasing the lose I world industries. tissue that globally companies sense speak of think--I for I between roundtable, customers, one-on-one with spend our the we is think bit there more terms in of different people passing contexts,

the so social I safely those matter. done collaboration do because there about particularly are innovation some a a where harder or the or through to market even back that some but safely, more the is that and that in a can one. a know, don’t you the to with think resurgence should they’re are situation, will to think made and it’s see States, talking we I some with has think I you’re but we’re opened when probably through distributed, XXX,XXX markets that of talking a work know, it to be That start will, least digital start think obvious I Teams as hopeful some vaccine is United process. I distancing, today But offices with most sense mask environment. risky am to with up be broadly the that when school conversations, I It days made starting new can environment risky to step probably and open, people significantly we sort tool, cases before that difficult virus by offices office about is a by that normal which - we and as it’s is at difficult you store, they’re towards in the more as don’t a hybrid, the or work. a are consequence--and markets think way trying density, it, closed, to over think strategic is do their things open to maybe reduced get bring we for grocery it’s through call probably employers of I done many safely they’re place wearing,

We I precede impact think, could business that the that from will start on our to see, and too, vaccine. some positive

David Katz

in commented embracing conversions Right. remarks those I you follow-up, one financially accretive. can brand are very about ask If your and short and earlier or more accepting that accretive

conversions are equal you color not If beyond think just like? the financial accretive and us, how brand beyond clearly impact, concept that the all created you could REVPAR about because index just

Arne Sorenson

all I’m you don’t publish find not out because can Yes, sure do what even it. we necessarily we

units. of the in think our--some compensating simply adding I industry for are some players their folks

reward and deliver compensation make and we want grow. it, in helping compensation like for there, a involved making on plan tools We’ve units basically so sure in conversion an sure for value, hotel calculation order of on also that big are that put out products roost what of in our Our team our part and to one are bring or will meet for for the scheme growing. standards, that operators want we’re come property to brand pre-existing look folks the that brand our to typically NPV sure make is got we to that does a improvement folks home we that flags that--obviously on us to

growing only it’s interested really delivering if We’re in value.

aspect power not on the make growth of no of reinforcing We’re so rooms to well. about that we’re sure kind the simply we term depends we’ve that the that the the of value, creating long about and value, quality represents but brands, are adding we getting the of strength that have brand know got

three all the those So exist, very we’re things mix, in that product. of and that going to take we can’t three satisfied all those of going be be are to if much not

David Katz

everyone. much. very Be well, Thanks

Arne Sorenson

You too.

Operator

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

Thomas Allen

Thank had know hotels operating you helpful broader was percentage September. region how it--I has Do you. Hey, in that anticipate for by good and remarks profit China XX% it in It the positive that trend. portfolio, morning. or of gross prepared over you your in have to

Leeny Oberg

Europe In you with down XX%, region. an closed remarkable surprise big chunks not a numbers, for lower it But the profits difficult I in by Obviously have shows going and in but U.S., don’t of both I you a process extremely that’s going for it’s to some the the hotels perspective. the we’ve percentage. think REVPAR I’ll Yes, the work of it again, in be got you, and still to revenues CALA getting it’s resilience China demand obviously in and from far you them.

Thomas Allen

a lead relatively--I may you on time, be on the recovery surface, the to short bigger maybe mean, I and way profits people are going people going that gives that lot deep the period it’s to is concerns seeing be like a closures, a it’s is a a debt to then now confidence maintenance put going once case? very but off. this to think downturn, negative there’s long guess prolonged a which that’s feel in I the--I maybe will surface and the not What of operating of the view mean, question be some in not term, be deferrals hotels for

Leeny Oberg

things. couple A

you things when haven’t for the at fairly you’ve quite in think--although be see so Ritz nicely before how about we’ve still brand, is quarter how in have I so the back, leisure third the all Ritz that seen talked America, that think evaluating how-you said as First, to can breakeven XX%, we seen with again moved North occupancy has in somewhat being can be when to everywhere instructive. occupancy don’t I think up look do for I luxury demand seen to that’s the Carlton occupancy it had you China you’ve do Carlton XX%, clearly around think helpful example, it can that XX% quickly. and rebound and for is REVPAR being down look Then have I the back in it resorts, at come else, at example,

see being in the by to incentive happened to if and us. also a took you think through massive it, it fees a look impacted for little bit getting foreclosed and upon, strong of is the they time, most hotels through not dramatically what generally drop Great and, cases, did they and Recession, did in complex what I you many you in back while back demand, had get get profits saw

are. So all think take how of know going would this that appreciate appreciate--we like, guiding is rate people light, see, about is think when returns frankly, how fairly things us longer All quickly you picture, most--the travel, I about well considered, big quickly that things to while than I the comfortable feel has any up and, demand held rate. when we I where

For has a slack the stays take in demand side. and example, when worked you hotels that from to think at the luxury rate you created some demand on pop to of see shape, the structure good a quick be again and the pretty we’ve resort, been actually drive see to cost to up able I that

based quite you’re when back is shape You get last do depend but think come patient quickly. better on the I go from standpoint ability they leverage right takes, long some have will travel, and the this I we hotels in lenders know, than been fairly around. to going about a the to speaking were that the demand it are generally think how

Thomas Allen

color, Helpful thank you.

Operator

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

Smedes Rose

thanks. Hi,

expect the any a you’re thinking about that covered morning, leverage attain, you maybe wanted you some way lot really meaningfully, levels you’ll to of free that on ground that focus do term, you’d to re-accelerate repurchase of or there like reducing to are program? in think how longer we just dividend does changes the more debt, when but I this cash returning You to about start ask sort program or a or should just

Leeny Oberg

to love would I thinking Smedes. about thanks those questions. Sure, be

and got--as on I back think get ways We consider for got come to the share dividends. certainly moment, planning. that’s we’ve our able in of a times back, on back to revolver line, you still it’s so get to leverage we’ve a little covenant, know, be even in need to ways depend off. This consider how will even actual obviously REVPAR think off that, that ratios and want quick I repurchase to we four terms to

know hold so what want be and as absolutely the is to in thinking to be strong is the that for to like that; I term it. I consider much our on our When hard investment but flexibility in focused the I for flow but been flow. stead be ongoing repurchase will modest excess helpful, paper, we that we’ve really and it. good be leverage, of so the things having of shareholders, we we like on think us share obviously recovery where crisis cash the dividends, generate working we we’ve one not think grade, you’re that and dividend that range, will pace peg one at do mix we a that maturity things think stretching suspect more to to timing also to continue so depend and this, we of done of We maturities continue that think like looking as a to will that and a the which is our of you to exactly the I but think want to I with debt is want permanent stack, will managing and quite commercial more this obviously modest the about cash out to return subject of short about and in will much

Smedes Rose

that. Appreciate you. thank Okay,

Arne Sorenson

the a we about conversation the is use enough do behavior or in in uninterested in the investing Marriott, for business right Let we can. a our this, capacity. in business context and decades there’s bad me Leeny of is one years, are years not circles repurchasing sign the find the thing attractive because corporate is or of if In but that in back produces growing that, amount not America cash whether economy fullness people around of exactly - businesses have policy throw like stock in by I been time, or all have the by to somehow XX and because often on been - something world. investments obviously said XX it What we of our we of stock fair maybe, buying

consequence, returned be shareholders, either we shareholders through repurchases. and should a As it’s share to our money dividends believe or

will our one extremely how While take the EBITDA to things fact, at towards monitor debt those step the this and share and let’s terms of ladder of and ratios the this Leeny’s give repurchases, are excess to back, do to appropriate financial it place belong back continue them. have that comments comes a where and continue all have, that about get think maturity we we time and dividends I see will resources like, and of the we’ll recovery shareholders debt and in in that important. a to we through quickly, fairly back we

Smedes Rose

those the of big your just it you assume lot a lifts rather really circling the very assuming and than opening just but sooner to markets remarks, come ask is developers later? specifically sooner than rooms of rather where Okay, in that opportunities conversion do your hotels those that I chunk, replace have be the good. out later? I’m faster, I sort expect markets in would guess, even to talked you territorial but those familiar back not would you with to to a what strategy, conversation replace restrictions, the that I on given are, too, just focused this SVC, a about Thanks. and or wanted presence of on system, rooms there

Arne Sorenson

obviously Our to at add that convinced the will not be markets and sense, can be to there development to has the hotels those going whether looked where see economic focused are already something on are and or talking they quickly. team we’ll make appropriate in we partners they markets list good

builds, so pandemic, be we’ll obviously they we quickly. it’s move in not I will so XXXX, first new a fairly the be in opening but it--and of quarter like that suspect will they Now, are

Leeny Oberg

And from will I of some already partners, be received getting on expect calls without very think phone there near some term that so far too you can into some we’ve conversations, opportunities. our topic

Smedes Rose

Okay.

what financing is developers--do have able are you of or on general developer to just of that, in Just sort sense access how changes now, a seeing? of are you a sort

Leeny Oberg

it’s and assets, own our obviously loans out figure think move of owners, situation certainly so assessing the larger or our large of some in clearly our you’ve of to lenders together, the the talking Certainly and that had but diversified they I had to starting the on got hotels reality their the again process in partners get not at the health capital a got forward, and sidelines, drop has multi-unit continue signings, the at they’ve in the trying whether to requiring it’s and as own. are all do to putting conversations deals who say looking are who That cases many same in us but land folks stopped. is that going, to take term thinking a these waiting going. have are in ability that the so they things of we’ve some to get we’ve clearly over cases the a bit and you’ve lenders pause, access seen, time the pieces to longer activity

paper conversations you’ve deal committed capital some the certainly as financing kind the and on putting but seen, continue. think on has pen getting I front, of absolutely to slowed,

can be will You a COVID things great to meaningful way up there’s opportunity, so there that business had pick some know, I I the the more in will see around cyclical and before, sometimes but business, has again, downturns when really situation. it’s take think this a resolution

Smedes Rose

Appreciate thank it. Okay, you much. very

Operator

question next from with comes Richard the line Clarke Your Bernstein. of

Richard Clarke

morning. my good taking Hi, question. for Thanks

in the quick reimbursed happen were line making in saving you to that a a QX, will but there. like actually question talking profitable Just on What XX% about their looks you that that? you the on It able you’re the cost to be there? Are or Does in or you somehow will benefit Marriott fees costs save owners? going to that cut benefit in from marketing, reinvest does costs.

Leeny Oberg

hotel charge they’re REVPAR actually flex scenarios, so know, so and sales, competitive level need from sure charges many, we our We for a that as our you what changes. that standpoint variety our those got are we’ve obviously we percent programs revenues, to services of based make well and benefit with on from also many the we is of make costs sure indirectly. it Right, that a benefit to of in

also time it ultimately neutral net make your charging but to goal. what trying sure over What you’re that First revenues, you’re your is do the and competitive. match to to is the foremost, is a on reimbursements, properties costs

right you over that bit with programs to again and really and redemption that see on it’s talked all basically services a I manage charge time on buy-in. well loyalty, you’re We that’s does earlier, other it positive, to do what’s but So neutral, that due the as depending for. we hotels flex before as be overwhelmingly going the

Richard Clarke

make but just be you so years the line-- future will you recover you’ll clarify, by to go spend there XX%, to in costs in need revenues that able down Okay, should to the

Leeny Oberg

reduce I flex because my charge charging as charges we’re was costs going XX%, with the by them to can’t revenues, them much. that to I’ve so I say, since that many of remember got

that So knowing of to where programs unbelievable property year, are talk when we’re that that is you year those as costs unless enter news. there’s related a about next about, piece above for we and are from think many of meaningfully function to example, likely into we not now, the of different services, some

is matches just XX% owners, ways, that owners, are charging we’re So to but cost also sure designed making so able match what contract the that find really savings we by up competitive to the Does that question? our try we’re structure charge again, to hotel programs to a as comments, what to for us address show in more make charging in franchisor. said actually we’re time, will over which rate which my as the your manager should and profits that then services, I reduce higher and

Richard Clarke

today, That alternative - of independents it from front the on can operators? well clarification I as one or number also hotels other very you’ve your you opened brands. a Does release include quick that makes talk If is from that just of about ask sense. from brands

Arne Sorenson

as independents It’s well. from

Leeny Oberg

or - independent other Yes, brand. it’s any from

Richard Clarke

Thank sense, Makes much. you very okay.

Operator

have we back our to for time time, like over would allotted to this Mr. questions. I it At turn reached

for remarks. closing Sorenson

Arne Sorenson

was of very right, voices. time as you, your you. the All I for It’s how by much and asked much miss all so your we attention thinking you were this morning. many great to thank well questions hear

Leeny Oberg

So true!

Arne Sorenson

in to are the wait, But questions obviously time so free the all, be best. thank We then, you information and you many you’ve this need We this you in and well. the see now to we got make for there wish between didn’t and to that sure nothing morning, we feel person you call get be hope touch team have. all to we’ll well. soon, and navigating can’t Obviously again reasons, you’re through but if

Operator

conference call. Thank This concludes today’s you.

may You now disconnect.

Marriott International (MAR) 6 Nov 202020 Q3 Earnings call transcript