MAR - Earnings call transcript Q1 2022 | Marriott International, Inc.

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Operator

Good day, everyone, and welcome to today's Marriott International's First Quarter 2022 Earnings. At this time, all participants are in a listen-only mode. Later you will have the opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note that this call may be recorded and I will be standing by if you need any assistance. It is now my pleasure to turn the conference over to Leeny Oberg, Chief Financial Officer and Executive Vice President of Business Operations.

Leeny Oberg

operator. you, Thank

I Laura begin, colleague take moment a many Before a wanted trusted remember call. this Paugh, us and and to of we on to valued to friend

in Laura's few tragically of our are most after accident was honest to and and you helpful, over Laura to we're knew weeks As honor family miss Marriott. was passed committed all her Laura ago. at incredible who know, and a away call car witty her unfailingly and smart, now spirit holding a And legacy her. them thoughts prayers. the I'll achievement greatest her turn Jackie. to We'll

Jackie Burka McConagha

Thank Quarter you, to welcome Call. morning, Marriott's and XXXX Leeny. First Good everyone, Earnings

not our and Oberg, considered Chief statements remind of properties defined differ risks other in constant not our are comparisons I and to comparable securities release facts updated Rate hotels will where described earlier Chief and today Executive XXXX. On everyone Daily all of Vice RevPAR with Executive Vice and Relations. are open comparable many not they XXXX the criteria XXXX and call Officer; Financial due President unless cause our COVID-XX. comparable subject be laws. Capuano, me Betsy that from were Officer which did will system Business operating and our actual even that by XXXX to RevPAR expressed our today for occupancy implied as issued Tony forward-looking between Statements comments. hotels materially comments if temporarily the our our unfold. effective for today reflect and These for future in Operations; the note not year could President, occupancy only those XXXX they numerous Investor uncertainties in and full as comments are ADR Dahm, results include March Please results and comments that of Leeny stated our historical and we've closed wide otherwise today are federal or to XX, statements meet in and are events as SEC our also currency filings as reflect under are press the Average

Additionally, to unless all otherwise comparing in comparisons year. the or pre-pandemic time stated, are XXXX each same period

Investor our find non-GAAP release can turn I financial our reconciliations in will now And to earnings all call to the You our measures Tony. of Relations and remarks today referred website. on over

Anthony Capuano

above policy, COVID have this strengthened to has cautiously travel. demand all of adopt XXXX, rise for morning. thank business be of recovered world, had improving. started Occupancy In XXXX. below joining still year. COVID-XX fully which demand RevPAR types after and our rapidly rebounded lagging global and counts the this you rose leisure, new XXXX. many with further decline, early slowdown employees swiftly was just XX% COVID the an worldwide during still with as demand, live than as impressive March, is strongly to of leading XXXX. less demand impacting for Omicron global to to and been room has countries already varying severe, a quarter all more during X% a in Global Leisure business around numbers rates office, year, are us is transient the first a returned the and Thanks, nights transient demand vaccination to leisure in but quarter degrees Jackie tending XX% of March group brief with above related ADR to X% first case variants but Recovery increase, greater

while In March, Monday of Saturdays down in that through leisure in on and Canada, down occupancy during the blend the Fridays mid single digits occupancy trips and XXXX. line and days, was in the and with the was trends on business that the shoulder are occupancy Sunday, and show nearly was the day Thursday week of teens, Wednesday rise. Additionally, U.S. to continue in March

a While levels. room gain was of growing world around compared XXXX U.S. XX%. basis in ADR well to XXX ago, and borders first the Cross-border is RevPAR nights, slowly of share restrictions. and demand Occupancy room the Canada, month, topped lift global XXXX. guests for accelerated the In X% pre-pandemic around over quarter, XX% within but travel as still below countries accounted of cross-border points XX% pre-pandemic the below X% travel quarter during March and their to more the reopen a nights of

Group rates. in remainder below the improvement compared Growth pre-pandemic March above Group XX% quarter. of in bookings a the While of March new remarkable was down of quarter recovery the a quarter was city, accelerated and primary, contributed that to to than XX% as more scales still chain the overall and progress the market widely year. varies recovery widespread in during the sharply in versus last in to U.S. tertiary Canada RevPAR types has the RevPAR is ADR RevPAR standout well extent XX% pace improvement for quarter during the In in meaningful from saw the year. all Luxury secondary fourth with first as was markets, meaningful XXXX demand Group quarter. fourth across city the

XX, XXXX of single As compared Group XXXX. to March for range was the digit pace in down high revenue of the remainder

levels. bookings to was additional short-term row for exceeded April Group in month bookings boost We a where also expect XXXX year year revenues. eighth in the the further the group

the recovered focused on Business gained Importantly, hotel bookings X% during to transient smaller while sized to down for accounts bookings in additional the our March all where Special new above corporate for strength managed China more in above been also have March XXXX levels, to performance regions stellar, remain year, the Special late quarter March experienced China, rise Middle in April. nights pre-pandemic compared where XX% to been other borders tend Africa, of recovery notably Internationally, the business risen Recovery quarter with ran with except cities, the second have in since lockdown recovery. severe, for the row. quarter. ADR last for corporate in have the ADR March in late advanced the UAE driving was made led had XX% This in from than XXXX which new compared demand RevPAR restrictions XX%. in fourth levels. improved that which Dubai RevPAR XXXX fully continued with dropped quarter. fourth March year. to recovered. of bookings. sales slowly momentum and was end of spectrum, in January most and in companies the Greater have RevPAR of including World was October larger Greater U.S. strengthened in the businesses, for this from made first a further to quarter, through quarter In room major the Shanghai now has At by the Expo significantly bookings East ADR, several surpassing opened in which teams transient be the

and In all hotel we've Russia, for XX all the have in impacted Europe developments a closed and accelerated the though country, offices war future demand. season. summer and in in There occupancies are properties the keeping eye high of Russia, as countries reduced region Europe. Ukraine paused yet travel outside the removed minimal of are and corporate currently We spring not open have openings. in Cancellations has our trends rest bookings are have across hotel new or the been But on modest. close restrictions,

Russia, in of which X% We our XXXX. our represented continue to well fees operations in global evaluate under

housing need are numerous help properties ways, remained we're at partners, Marriott those I'm including what platform horrific of again power countries with relief very was working impacted in neighboring can as on evident for quarter, of and teams to the countries. those focused to our help have humanitarian we The strengthening We and watching Ukraine been neighboring million in crisis the Marriott the concern, loyalty we proud our deep and mobilizing that XXX with members. doing in in our Bonvoy region. in in refugees

also as members there in travel our Of points of outside engagement demand has hotels. increase significant comes using a has course, and risen been member earning back, but

members in year-over-year. and interest more collaborations through our us companies and to spending, incredible cards with Bonvoy up with seen spend meaningfully interacting with Bonvoy thanks our global everyday also engagement co-branded card are like card Our both Uber. acquisitions new We've with

bookings, The Bonvoy ever first XX% direct which helped our best for pre-pandemic were profitability. app, XXXX, and digital drive meaningfully to our above the higher were up XX% downloads owner Digital also levels. by partially driven of compared quarter bookings franchisee first of quarter redesigned which marked quarter

and limited longer for of to March this Conversion construction ramp monthly chain remains additions a our each brands construction We are at associated a to XXX and to in the benefits year, labor the full this far bit for bottom of Average conversion being room signed number meetings globally breadth quarter. deals chain timelines of openings for top meaningful presented part of roster activity line two due so XX% bright just deals of disruptions our system. across properties and remain currently to we has the properties. Turning service committee first up Conversions the Despite new years supply scales, through friendly continued quarter given timelines over quarter accounted of record. lengthened our in increase. spot shortages, development, and expect XXXX. year, having service a development with

growth to X.X% anticipated to year leading to X% ahead, still deletions Looking X.X%, X% growth rooms we full net and growth to of X%. rooms expect approach of

bit, XXXX has activity the are be diminished XXXX first the throughout starts nicely additions but still ramp here are starting construction U.S. impacted new has starts the in they up to seen With has construction in been particularly the a the the by levels. up signing well below a industry picking to room financing While pandemic, ease expected in experienced industry notable gross quarter,

growth over the opportunities, recovery XX will global and our mid-single-digit pipeline our associates brands, net our benefit about financial extremely I momentum next rate, we to of the several the Marriott XXXX call over portfolio our in from I our remain the detail. largest future. that around the now and to pre-pandemic in best conversions, and environment, attractiveness improving our invaluable the With uniquely ahead. discuss over I is in given optimistic However, turn positioned development rooms program, growth numerous results confident properties believe of In Leeny feel return to the business, more Bonvoy our brands will to Marriott unparalleled our years, loyalty closing, activity, worldwide, strong we continued the global industry. our the

Leeny Oberg

Tony. you, Thank

$XXX totaled million of quarter XX% the ago, doubling down in Our year our compared came by quarter, RevPAR first almost to in global a overwhelmingly revenues results driven with higher Gross XXXX. from RevPAR. ahead expectations fee

non-RevPAR our Our hotels. hotels of primarily IMFs growth showed XX% our an were are U.S. card the industry-leading our the more gross IMF were credit XX% were related XX% up reached They strong Canada XXXX, franchise the from million in at rebounding driven luxury significantly from year higher at XX% or were comp in quarter. comp acceleration while once quarter totaling XX% due IMFs million comprise same to from our over of quarter. earned $XXX X% timeframe. up year-over-year, again during of the year-over-year meaningful IMF performance quarter, above properties. earned ago properties and Roughly $XXX than our first luxury and quarter Incentive fees resorts our at Fees in international fees. part IMF nicely Management first the of fees, XX% in luxury Over total the by

Omicron franchisees $XX operating compared cost G&A expense at other and timing with government XXXX. of generated the totaling containing leased profits a and and totaled to million to improved Europe. due Adjusted costs. the America down customer international hotels our variant. again in X% U.S., and portfolio the Latin of lower and the first in due $XXX Our and million results first owned quarter the positive on remain quarter in to travel to quarter while also million, deliver closely focused EBITDA subsidies Caribbean, and service, superior result only as the working We $XXX owners totaled

to U.S. XX% RevPAR margins nearly managed to profit despite compared XXXX hotels the quarter, in back were Our down first XXXX. levels

staffing great last While in for challenges made summer successfully we've positions. markets, in U.S. open industry certain primarily progress hiring since persist,

on years. eye cost close inflation, As always, benefit reduction our keeping we're we're could but a that wage efforts inflation mitigate in and optimistic future

vast we're the in As of seeing majority across demand in world. the very we rest XXXX, momentum customer look segments ahead of the we're pleased the markets to with positive around

on years numbers, of and reach the pleased than office continued even RevPAR many the to on greater Canada, our the additional employees increasingly guests reliance to travel meaningful cross-border our easing estimate that we volatility specific fully almost With to quarter year, and levels Canada, global restrictions milestone given In we're on after behavior in change But our see to the assuming too returning dependent is much recovered roughly in team's and in widespread focus a the were RevPAR high recent travel we'll We're positive of give and this restrictions to economic ago markets global environment the entirely optimistic across like sentiment, two regions, in for extremely U.S. or in we major more U.S. uncertainty travelers. a that occupancy countries visibility still began. RevPAR virus. China, ADR largest travel and do around no the XXXX the recovery guidance. There's which we international improve or more and earnings this pandemic markets, have global the in April, month. domestic ADR,

trends, hotel fully still versus though around some expect let of color, considerably continued to of be RevPAR Internationally, to that further and XXXX widely a full demand RevPAR current million and remaining quarters To XXXX given we in booking will recovery and U.S. Canada year RevPAR expect year across ADR in across could recovered, to be XXXX. the of me vary markets, million sensitivity expect types flat regions. levels, full levels the markets share fees. change RevPAR with yet the we the help your At While progress varies roughly still in X% modeling $XX across additional have $XX of not we XXXX current

inclusion non-RevPAR the seen, franchise the of linear related of relationship IMF As variability the we've fees. not given is and

core the now For spending of for $XXX $XXX XXXX. anticipated of to roughly well reduced includes now million factoring expense before full headquarters. interest still is our full to anticipate million, are received roughly could and maintenance full which million to new XX%. $XXX $XXX be capital is around other credit and be year card and to be to million million G&A slight still expected net be We year, still year cash use And million anticipated We $XXX the rate below tax from see payments $XXX investment the a our loyalty and for the companies. expenses

redemption With the managing driving meaningful We've and persist. trend profile. credit pickup progress in in flow, meaningful demand and we've our seen an expect cash made increase improving activity in to this expenses,

X.X as than to and and dividend outlook ratings, as in be to further, the progress, in ratio combination our a capital close confidence to to at the our resuming $X.XX business times anticipated. between we this and investing pleased and had EBITDA, of sooner of remain improving excess net target We repurchases. modest Given grade second shareholders X returning adjusted in strength debt are our cash our shareholder dividend, then we in we're very With that share returns our to share committed quarter, years. value, leverage of increases adjusted capital through to our shareholders investment a dividend two a resuming growth the first well

target our we leverage to year. to Assuming are share improve expect repurchases resume this we ratio continues that the within environment global and demand range,

are years. has thank past to model see all It's for the happy questions. travel full business the we're future take many optimistic International. navigate I us want the your hotels so challenges and Marriott Our and and future over helping and now Operator? demonstrated world the thrilling Tony the to again, to of teams over our I very of resilience of terrific two guests about

Operator

Thank you. Thank you. [Operator Instructions]

first question Steven from with will come Grambling Our Sachs. Goldman

Steven Grambling

just I everyone to echo thoughts want on line Hey, well Laura. my good extend as as on condolences morning. your to Leeny the

Leeny Oberg

Thank you, [indiscernible].

Steven Grambling

or properties in the about growth? be there Absolutely. might the as you China, through net or environment impact To development additions guess, things in on might year? any for not I the room particularly lockdowns, pipeline how conversions growth off, other unit amidst impact How thinking explicitly net start think we

Anthony Capuano

a answer question. Great ways. I'll it few

Greater that construction. know, are to in well As many projects entertain you us we of China they the under development when come

use evaluate of And we've and the pace of even LOIs during pretty so intake across intake, or one pace zero MOUs metrics steady to of policy growth we is impact the seen China. of COVID the MOU

the not has we've But source as of we're across to growth interruption conversion construction some U.S. starting seen which particularly for side, the time, in see active on rooms historically Greater real have We here China. some traction been first the seen

Steven Grambling

then fees up credit and comments earning to guidance complements the capital, forward? points the card some made concrete you of working just well you. the And as thinking as impacts we helpful. the that of as relates pull any about trajectory guardrails and should it there, on are versus follow and to That's that What maybe be Thank point one the given burning the Leeny.

Leeny Oberg

Sure.

card think we've actually XXXX. So and cards, us tremendously generally in fees as our I probably it's we up say, XXXX resilient heard force about few to as compared And you've been in the credit years. XX%, talked fees a QX saw over the steady credit past

up over are whole really last year well. a they and obviously So lot as

been of combination one card credit then things, and impressive. growth that we continue acquisition increase, two new card to also our So it's a spend overall given is see has

as forward, I that's that a continue you moving strength. So see think to

love loved is, people tends obviously be who travel. we that The other by thing card to are to a

the all Bonvoy you a again, travel, points incentive to think that I people And so there returning see earn. they with great as also that's

in overall, the are remember, think think paid flow, force always our the I continues, And it's this to not paid while continue be you quickly, and cash payables there a negative the that you'll that quickly. make recovery standpoint so One our as that capital. that that as trend company capital working are points that two itself case year. to from is will get a working about think business fees our we as the in fees as to show I be growth generally quite continue I'd have strong see on the So speaking, you

where continue to a we side. we cash as as cash of a higher was So And out, working it a capital us moved that on to result will loyalty the of thought use pointed slight you on source slight from of help have redemptions.

think that I on to expect know, as our we've for But U.S. You year talked you that is moves forecast should year these that RevPAR the will that that ties current the continue. about in numbers the in

Steven Grambling

Got it. Thanks so much.

Operator

you. Thank

next come with will Our Bank question Kelley from America/Merrill Lynch. of Shaun

Shaun Kelley

everyone. like thoughts morning, to good Hi, And prayers I'd and my Laura. for extend also

Anthony Capuano

you, Thank Shaun.

Leeny Oberg

Thank you.

Shaun Kelley

U.S. for there know, to Why Group we in? or the conservatism improvement there to yet. But year? we bit still, some just Leeny, provided in the appreciate, is Tony there's business or luxury you back remainder look at about mix it comments think yourselves out still for of outlook? see didn't there summer your that and the, as far might just you enough some travel the us flat puts we So, relate as think maybe and takes of if of your that around relative some give you would you through too Is fill outlook What and from as for outlook just over the on that be volatility we're and seeing goes maybe XXXX want and around extend holding help sort year back a to could levels the the not? more

Leeny Oberg

think… I Yes,

Anthony Capuano

conservatism windows. a that terms driven by in There's is the of in we've conservatism outlook, but what bit of booking seen that

been then windows into QX QX, So group and the even and booking we visibility much acute. less trend because the shortening have shorter bookings is towards generally have more

business bit And last three with at shared you short first the we're a quite saw quarter. we've transient. numbers that same the end windows. fact We've in about true with group really the leisure. the continued so strength good is dealing And booking again, the of to talked the quarters. strong We're about feeling we But with you

in of causing bullish think us forecasting. it's back of half to that year the I more be terms that's not murkiness visibility the in of

Leeny Oberg

what kind there's improvement And get that, tremendous just Shaun, start seen add that point in when we really of this to for out, we've have to the Group today. quarter, meaningful for we given. it's one the looking to quarter obviously RevPAR you in year to the flat bookings, really roughly have we while QX, a obviously guidance the further Tony's to Yes, you year see in that point, given

we've we would from adds about through agree talking the we some that today. we that standpoint, really but that move hopefully see So that what we're year, positivity seen, variability the as

Anthony Capuano

activity the bookings ahead the a look to just in year maybe in And month was illustrate April. of Canada April the and that we in the were further little where straight even in the eighth were year for U.S. Shaun, at we XXXX. Group where

So creates challenges for bit a looking but and into our QX. great into more news QX business,

Shaun Kelley

give a Understood, as as up, that's particularly larger you some corporate just give just remarks then for I I more think driver, an of format in But color improved think Marriott, the on follow and the April, large hotels. particularly You the said know, in did important and it urban you prepared you some well. bit could little activity? my and

by about would give or be So could kind much of super channel the end year, improvement how Thank the reach magnitude of a you that in us that talk balance of the just you. maybe helpful. think of sense

Anthony Capuano

course. Of

where business March. said nights down So XX%. about nights in business were in transient what obviously were down U.S. XX% remarks very improvement meaningful the transient quarter, we a we in in the XX% prepared over room That's and the Canada, fourth saw room between and as

more to we we've see seen while companies expect, pre-pandemic. companies. demand of we volume small medium coming slowly fully just medium hill from sized still were the larger to the might small from a sized recovered out to and has than continue effectively what where has back that you improvement and of the the But As companies to climb bit get

Shaun Kelley

you very much. Thank

Anthony Capuano

course. Of

Operator

Thank you.

Joe from with come will question next Greff JPMorgan. Our

Joseph Greff

Good very special morning, she'll extend too, like guys. was Laura person, I to a missed. condolences. my would be

Anthony Capuano

Thank you.

Leeny Oberg

morning, Good Joe.

Joseph Greff

of new costs forward in signing for it's it, of new higher projects its much front development how is developments describe maybe or if not the right word but stating to and projects? related financing pulling Tony, developers, to and any

Anthony Capuano

as biggest to Canada. in of acceleration It little a I an not flow past, in bit, starts. of in but really momentum believe, question, in up parallel capital the putting exactly that to a They that's give talked pent a they're general to seeing rule they debt starts And but owner to it's try don't ground. U.S. think your as single the on free statistics, franchisee that as the construction, do the increase to as about sector. time construction starts a investors the new community, and understand I bit The talked let me or last up and sure start opening seeing. in I'm confidence -- inspiring quarter a has based construction of more it given availability shovels think in starting impediment be some I our debt developer the long-term has particularly we're we a the development in community to shot. they're recovery on and about be we've actually tend and that demand, given could month the why based or likely a quarter, financing been what

Joseph Greff

fees think of coming I out line. the percentage non-RevPAR I fees that how of percentage that talk look to trajectory is and composition look year, of when at way you're next the the I then fees you within do going into kind year, question. fourth fees there? or at how mean other of when line, relates in at card you do non-RevPAR answering on you of this going franchise similar When franchising and look helpful to XX% credit not and the mean, you're it the fees, And about this yes, Leeny, quarter, other a know about that franchise you of quarter's that that's fee then a Right,

Leeny Oberg

that cards looking yes, So too how one it's to remember at But lumpy. really be then talking XXXX. is obviously, soon credit about to think I is residential for thing we're the

reminder, well as example, fees the and in million for for half residential last under before XXXX year, a in that, just it had So was year we of $XX that.

think and as of particular I Bonvoy has and that macroeconomic so a and us a overall steady performance. the to combination of it really quarter, big growth is two the give vary of, which of And terrifically is to think business those But you as growth. to up residences the think that what based the I But on she see down. remember a definitely know, first not that's sales our terms willing pace I love it strong consumer, strength been just XXX goes, credit we of is So it of signings in those card that number we a for of assuming does number of you and the for both connection half but not system. in the know, total percentage, the is, over what you're example, on seeing so well the picture, part, and part in we're then change that there's and in

of you remind pre-COVID growth better we seen to Just card credit out where that high now it. pre-COVID, we're coming that we've were is numbers obviously, than within the as single the digits

Joseph Greff

Thank you both.

Anthony Capuano

Joe. Thanks,

Operator

Thank you.

next with come from Securities. Truist question will Our Patrick Scholes

Leeny Oberg

Good morning.

Patrick Scholes

reiterate, much also tragic hear and certainly very be very I'm will also very Laura, morning. good sorry missed. she about Hi to I'm

Anthony Capuano

Thank you.

Leeny Oberg

you. Thank

Patrick Scholes

questions. have two I

specifically your talk you et is, region, you can development one X.X% forecast global growth, us by Europe cetera China, when X%, tell and what first to The North for are about and those America? percentages

Anthony Capuano

you the low growth And international our versus statistics. of as specific the of or XX% domestic We're see growing you the give several pipeline towards international terms we pipeline domestic, ago is, can the in of in U.S. percentage I'll composition growth. Yes, Betsy Jackie pace have relative higher What the I international. outside as twice of the a tell rooms pivoted the is quarters total of roughly rapidly

Leeny Oberg

entered which roughly the And pipeline, China XX% for Pacific is The I of would penetration the one of other at fairly at it, is and [indiscernible] APAC. Asia relative opened, we thing, portfolio, large Europe, pipeline remind of the look pipeline they, though is the just know, basically and when of then ways existing I say, fairly deal you existing had interesting you, you to where evenly between double the in kind the look split will can then conversion to actually quickly, vary. proportions similar very the and [indiscernible] conversions last a it so year current the

disproportionate about Middle of in the is it's lower makeup international. X% our then before, of Africa, where the pipeline. it's strength existing of a because about we've The obviously, East, our of our U.S., as bit other it's X% rooms, area to about And in pipeline talked but kind relative currently

Anthony Capuano

And point great that's Middle East Leeny. on a

if teens. you X% to pre-pandemic, about could at fact, year, rooms X.X%. East look and In Middle closer this they grow mid grew year, in grew back Last the they

Patrick Scholes

redemption good, Okay, in color, talked perhaps you the royalty thank you. in prepared my XQ I earlier about follow believe, upticks very April. in And in remarks, had then up question,

fees? is as think about a what a know, fees, sort Now, of what a a of how as you redemption as should percentage loyalty of we quantify percentage it

Leeny Oberg

the think, about the way ballpark I our of So of to it, nights. is total terms and in in best X% are redemption nights nights to overall of think X%

not see X% actually hotel then that total a But at the hotel someone at than to that when going rooms. very is it paid about is it or that think think RevPAR, best and is you just overall, obviously like that is is to it's lower to full, where can I about roughly rate daily more can the redemption that, somebody typical So rate. it a redemption average obviously be hotel, so of think way high be where

Patrick Scholes

appreciate you. the Okay. I detail, thank

Anthony Capuano

Thank you.

Operator

you. Thank

Our from Citigroup. will next Rose question come with Smedes

Smedes Rose

Hi, thanks. Like to call, to everyone how I about Laura. sorry else was on hear just I wanted the say

[indiscernible]. know, You

Leeny Oberg

Thank Smedes. you,

Smedes Rose

general, wage mean, of front? that ask around corporates around I you let speaking that? seeing about and I have up around I'm and really wondering from fears wanted significantly, of recession the concerns where bit turning have been have whomever feedback in you on if it's are in little just owners sure heightened from hearing this any heightened seeing more not what you're that kind any their pressure or you're sort if affecting stands I'm that a to or just then tightening with, And risk the you just phase. from people

Leeny Oberg

So on as pressures, wage I'll of the go kind then we we'll and start through this tag Smedes. team

in January XX You for U.S. a of about remember, know, us December salary was no you the the XX XX% there's average if hourly from to increase. that doubt

I'm positions. the more of levels subsidies we're comfortable have to are pace in filled, done, hiring bit frankly, get consistent I the to some more no U.S. availability to, hotels, work. doubt normal that and returns feeling finding that certain to being open world of So, an the had and really getting about there's basically as, now certain people easier meaningful to down the from workplace, everything winding a with what being talking that government places here. pre-pandemic And we we frankly, position back in require really a mean, that about relatively of did markets that positions time childcare, the of

worked Now, the great way certainly make hard front, the can as expect we I providing productivity you've measures the have with and to service that to wage managing we've continue think described, the on we incredibly benefits scheduling to to also sure on hotels guests. and we're pressures do best strong

that our so will down are gains similar. forward, XXXX, in as see margins to we expect meaningfully And managed which see been to to And continue move with our now, right to helpful. do RevPAR we've occupancy we that is be that hotels, thrilled even managed RevPAR compared

come XXX reprice So doubt But keep productivity recession that the glad really us managing ish things. we're out pretty night of a around in inflation. there's economy. points one, factors GDP big to point world it number will think I that these been basis help point saw margins. I guess offset terms though strong And help gains, we we our a because the a actually pretty maybe of some the we no I behind ADR, this that's to would every rooms in recently, front, really out Number tough two on even

in of for generally a chunks jobs additions that's rates You've the really for two U.S., participation seen looking the every got you've got greater you've available person job job, population. in strong

were markets think other I will seen consumer for world, because while export us economy really, reason be of to also that respects, strong. And You've they're in spending the COVID I along. to march U.S. really many continues tough, the of good continue in to there's parts think that think the

we obviously do, our we pent that think we to we'll and is as slowing see impact. still for continue there could up believe But that Now, demand have hotels. could what strong the demand a see Fed

Anthony Capuano

think domestically. I Europe. tug the between footprint, second and travel how it's then that's tug about a collaborate to in war both cultures. being new that meeting absolute said and now, particularly are XX% interaction was the Europe of to corporate anecdotally week really was for for XX% starting immerse managing And in question of with with into think and customers, attitudinally win travel the I pulled that last that to that colleagues, improvement costs benefits the by of and bit. statistics, or desire multinationals around travel here being I'll There's and employees mindful managers bit multinationals appetite transient, met whether meet about which going war statistically, are in-person you carbon multinationals your XX to of with business suggests with a of down across of I speak right forward. big a big part they thinking

Leeny Oberg

length up is bookings The the to you'd the interesting relative one Just of the one that, in is and average of size that I for is length new actually find main all point XXXX. to QX stay XXXX compared XX% other up data of group factors loop is stay. think QX

there that component meetings So people to customers have traveling, their view your to kind be a to of is I still these and point, compelling an is strong, seeing Tony's think important being business. collaborate and together of

Smedes Rose

Thank it. you, appreciate I

Operator

you. Thank

will from Our Richard Clarke Bernstein. with come next question

Richard Clarke

share that. condolences as about for to hear would my morning. also events, well the and yourselves sad very to like I Good to to Laura's family as

way, the terms in April question would anything sort disproportionately the of rest Passover particular different of you answer In timing question, of got pushed want where is higher to there of pushed about sort just or a in ask that America anything say April? performance of North or U.S. shape coming that April that out Easter how of slightly the you've a like think of the, And you higher? QX of first the reasonable visibility amount guidance

Anthony Capuano

didn't in yet. impact the see calendar, particular nothing the of terms any of timing Easter. particular particularly not Yes, from We --

I pace think acceleration. our view demand continued is generally recovery it's just of

Richard Clarke

helpful. in quarter. release, that that's received you government in mentioned the Okay, And then the the mentioned of you support just $XX million

through any that Just we written come is can where color support that received expect rest of of year? the and still to being more on the

Leeny Oberg

the to needed specifically places by think Thank to No, amounts time put some and processed much. very you during I data of were end that be is the of tail These it this kind then some required And various the seen applications we've submissions, that other Europe. government similar some of in subsidies. of immense governments. COVID in

related relates the on XXXX sorts there our support hotels, owned the this all to the the because portfolio, supported. XXXX of part much to of that are these then So leased government of associates expenses of and

today, -- you additional in would I forward. remember we going that not XXXX. we may million that about subsidies have of we've talked these expect subsidies So $XX Then we million $XX and had about here

Richard Clarke

you thank Okay, much. very

Operator

Thank you.

Katz come Our from next question Jefferies. David with will

David Katz

morning, everyone. good Hi,

Anthony Capuano

Good morning.

David Katz

like everyone's I'd for literally loss. to share And my condolences

Leeny Oberg

you, Thank David.

Anthony Capuano

David. you, Thank

David Katz

to wanted with start perspective. I a returns Leeny, capital just

I sat guess down when for it was model quarter, early You think we the to know, last I March.

importantly, this for could sort weren't kind stock cetera? can't and on obviously, what put more of potentially year much wait know, ability you're think its that points, You And, assert tell for or have now really weren't having about buybacks, data enrolling we us year of and looking this of grow? to we for you are. us sort to we you we et what in really, the our How Because we the to dividend own?

Leeny Oberg

see things did a coming I time how to absolutely. recovery this no, great recession, fairly of how out reminder, is -- pattern it ourselves Yes, is moving similar as is we a to which forward. the give couple to the

strength capital return Share short of payout to that get levels repurchase assuming we bookings pandemic. I our continue the the dividend to seeing fairly more that the obviously are that part and strategy. showing, So our that to the kind much is would expect we we it flexible back fairly, we will see order, obviously had that continue the in prior and are of

the cash so as to positioning that. volatility, net be gatekeepers. there, in our some good want generation to important to quickly. has, X to business range comfortable with kind there. feel And adjusted really get we very shape possible that squarely want we're close will, the I about our times with EBITDA And about talked an And got adjusted absolutely We that to in X.X we've feel my comments, in of part. model very debt comfortable that to and that's stay do But that we're we there we'll in range,

I are, dividend increase dividend we The when as that will as the you as acceleration once you of We're acceleration, and would keep talked forward. have will things it with need assuming move we'll $X.XX, whether continue, feel they just the little make want be continue thing the of we it's may to about, we're a repurchase. looking around all see more you a to single time the we've well we share there. that of timing it see think comfortable, whether that or because at literally I raise dividend, different. as comfortable we continues comfortable I think month both, the really So is pace bit every that to one we this expect very sure know, David, as pace

David Katz

we're than it follow share is what I and acceleration weekend. data of a seeing can weekend? midweek to seeing it. group of and relative keep of more to in points BT expected If terms on and midweek one and sort I you're are assume that, question, another where rather appreciate and clearly direction, travel I that's Understood, just quickly some an you Can up business accelerating. on group

well. as helpful be would that of Some

Leeny Oberg

absolutely. Sure,

were that a mid XXXX. down in right teens. Wednesday, interestingly, mid-single-digit Thursday down were and around were Fridays, levels. days we of to in definitely Saturdays and compared So, were they Monday seeing the The March shoulder more Sunday, they pre-pandemic bit through

February but What you classically where March. negotiated are corporate talked business of to improving from nicely you would as the terms are through Monday in classically to come we So can the again, Wednesday moved they Tony of that's see. to January last to XXXX, think that is nights, back earlier comparison the special about some probably

Anthony Capuano

then I quarter. And higher terms than bit the little was on think, the itself David, weekends of given pattern about manifest was on X% it in weekdays you rate. that in a ADR it see also

David Katz

Perfect. a lot. Thanks

Anthony Capuano

Of course.

Operator

you. Thank

Beynon Our Macquaire next from will Chad with Group. question come

Chad Beynon

Hi good morning.

Anthony Capuano

Good morning.

Chad Beynon

Laura's seen domestically, a Thoughts and prayers I family is need of there real some Thanks. the and pointed well. couple I ask us around the the of for know that from IMF. IMFs investments given and myself CapEx for you've years levels for we IMF from model. kind about pretty sensitivity just kind But partners? get growth factoring kind level of friends to where growth versus of for of expenses that particularly to your maybe RevPAR past on domestic any Leeny, pre-pandemic in question think as was to as see to we it of a wanted recovery back level we've

Leeny Oberg

Yes, sure.

to that So say, give you facts for perspective. would things I just you, couple a two

while the from so we the I from U.S. mid QX. the high only in in and really still down in those that's is for frankly, U.S. IMFs that down roughly teens coming RevPAR again, the They XX% million, in were the down pleased Canada with call millions $XX XXXX, were hotels $XXs only think again, and obviously that's

this In hotels So QX performance. XX% in at of while paid an it's the U.S. of IMF we're QX XXXX XX%. year, really impressive

hotels. luxury as a dollar hotels. we of profit to there can have with bit without where priority more a the In jump. to with will function, tell the in what jump that, you priority that your so I is fees, particular then way a go resort of owners can't not, a it point of point, know, actually much earn an demarcation owner's So It's point U.S. in of hotels the get percentage in aligned is there's and this we is obviously an with where you stronger kind many they're the one and to step they from much there base with, happens it because every that many international to

gains now So hold is weakness that and we that premium one of the the continue the these cities side XXXX still the on of IMF. and hotels on hotels the in one U.S. in margins I the right that able the this for of points pleased again, that that the hopeful that being during U.S., similar it whatever as that we're get to of manageable to in large rest to obviously in kind help that we're for big occupancy the see and year unfortunately us to in clinch really we're not more see ADR obviously made will year get particularly the is it. levels my will comments, to cities. continue us going that's we big margin to place will service But full for But if says to there's or particular the RevPAR that the performance

your as four at you If you forecast. remember, look only IMF you can year recognize

have the year we'll more also helpful. of to one which continue that's year, for forecast full will So through move the as other hotels, about these be we things the visibility

Chad Beynon

with with you for or of kind right bases to do more villas, same-store expand opportunities markets? and the organically homes are in think you there areas, level And consumer in and the resort years strength Okay, high just I then a the premium of you've past inroads, great, luxury couple guess and of made from offerings you these have elegant, inorganically on thanks. the demand or growing properties in the

Anthony Capuano

Yes, yes short and yes answer. is the

have the markets, were from types. appetite the an the development and for from our accelerate been guest very of Bonvoy I focused certain we we all customers, perspective, a thought our think, rentals in platform, to whole portfolio. resort act experiences both what trip accelerant of to whether it tremendous saw home we the pre-pandemic, continuing hearing Similarly, even we certain as would appeal for be a inclusive growth perspective because and on what Chad, of

I think has as to continue areas. Sunwing continue you And growth all will with in case, like did at look at all been of those we in to inclusive last the the deals look space. see what us always portfolio organic year

Chad Beynon

Anthony, Thanks, I it. appreciate

Anthony Capuano

My pleasure.

Operator

you. Thank

will from next Farley Our UBS. come with Robin question

Robin Farley

Great, thank you.

of on the condolences my add loss Laura. me Let terrible

Anthony Capuano

Robin. you, Thank

Leeny Oberg

you. Thank

Robin Farley

accelerating you year I wondering the you just know a relative one demand questions, you want make than year. great to pre-pandemic, is two sure the how your the where sure group I back, if if your more booked the further said with kind guidance? group -- to is, certainty XXXX in know, if little then don't maybe I make I RevPAR kind color is And I My know in? is understood the gave of for of comment just impacting a also about to coming understood Leeny, loyalty I that, I just program closer wanted thanks. on

Anthony Capuano

take Robin. first Great, one, the I'll

that The we which us that about about single confidence will window could about being we given remaining down up down we give digits, talked end we've for XX-ish improve talked as XXXX, although XX. meaningfully seen. the booking XXXX, the being So high first down three short-term that quarter quarters

beginning massive booking window books at about my XX% XXXX. and to about looking on of close XXXX, down think But we're the XXXX. we to into today, comment look take gap now we between there is what's opportunity that As the relative

Leeny Oberg

for it's worth Tony a bookings. the the rate said, we And to the on as in quarter Robin, for that we when group improved at to ago, noting look the rate year expect relative XXXX. for has continue year And XXXX the to would pace see

Anthony Capuano

When last up ADR XXXX about X%. was we pacing quarter group, talked you Robin, to about

today, we're sit about up we As X.X%. here

Leeny Oberg

question meaningful no about loyalty, impact. on And your

of about are So, redemptions pre-pandemic have loyalty been and nights X% our room now.

of and in what of scheme those overall how market hotels what kind with tier are doing, the they on they fit So depending are.

performance. impact So at no normally that's when from different any particular we look our RevPAR

Robin Farley

Thank Okay, great. all That's you. right.

Anthony Capuano

Thanks, Robin.

Operator

Thank you.

Vince from next Research. Ciepiel Our with come question Cleveland will

Vince Ciepiel

and manner at housekeeping a meeting guest I'm discussed where Laura. for back. to expectations, A in my the how owner condolences a and and question and you're I on curious balance hotels being reintroducing you expectations? past, you mentioned you profitability, guest the that's finding also year-to-date think profitability food do have managed thanks. Great, want I around know specifically express beverage, those in and with you're doing between

Anthony Capuano

to terms So that progress color we and that I'll trying right of I may provide to Leeny a margins. say, would answer balance. try in little good strike are making qualitatively

We towards that will be end solution housekeeping the landing on our second and announcing probably the of quarter.

think I markets right bit the we striking on of most right front of some recovered particularly been recover, In in that have we're some do to in where think urban still the slow demand work are path, doing of markets, more we has where but I strong a has the I demand balance. job quickly, a think to us.

Vince Ciepiel

that were that XQ on double came up in And results business, the then travel printed almost XXXX Great. levels. peer sharing space, second unrelated, that home earlier of just

So I'm you that that has where homes you by curious in of think business and go how your level the and Marriott here? how and from been made about villas investment kind of performing, you've space,

Anthony Capuano

Sure.

multi-bedroom think first the XXXX of been homes. we at to spare full, has find with not space. itself in XXX% composition listings. terms quarter, last still else. the quarter, is full portfolio about a relative But listings are of growth or multi-bedroom bit peers talked the XXXX anything we think of some distinguished I our the in ourselves today again, that remarkable. couches listings platform XX,XXX the are So pretty These or of because tiny rooms end had homes. the of Pre-pandemic, I We These to

coming As meaningful sheer very volume listings, growth in you that a the that uptick would we've seen exponential of in the of revenue expect with through sort platform.

Leeny Oberg

to would ecosystem, not you is relative has I And that same moving the of overall HBMI it our XX% from forward. of I'll investment this see we the near-term. financial overall a well of standpoint, earnings from think bookings about to size side it the [ph] reminder an financial strength the system. would a be part just on in I across is perspective to see the stream from profitability. great perspective, overall member, expect spectrum from been a small for just it as as part that turn important when and really really Marriott of kind way to and recognition our This meaningful But And the is both it, of the it of that of overall a Bonvoy extra expect or Marriott, our gives that in extremely

Jackie Burka McConagha

Operator?

Operator

at Thank time. this you. like It the call questions for closing we remarks. any would back turn Capuano appears over have additional further to to I no Tony or

Anthony Capuano

you, Thank operator.

you thank and and First, was words. how thanks. those as for look me for weeks coming today the condolences. know a friend and your the you for Have both participation heartfelt forward Thanks all thank day, let you your road great to I on we seeing a to a colleague, so Laura months. in special you interest and kind

Operator

event. and ladies gentlemen. today's you Thank This concludes

You now disconnect. may

Marriott International (MAR) 4 May 222022 Q1 Earnings call transcript