MAR - Earnings call transcript Q2 2022 | Marriott International, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone and welcome to the Marriott International Second Quarter 2022 Earnings Call. [Operator Instructions] Please note this call maybe recorded. It is now my pleasure to turn today’s program over to Jackie Burka. Please go ahead.

Jackie Burka

Thank you. welcome second and call. XXXX everyone morning, to quarter Marriott’s earnings Good

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

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

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

Tony Capuano

thank all this morning. and you Jackie for us Thank you, joining

to of experienced March. room XXXX compared of continued XXXX the rose We second of our year levels, also pleased outside the with above second occupancy greatest XX% above year, second just quarter XXXX demand the of pre-pandemic X for Group global an segments down Canada, XX%, quarter, points down the for just recovered Record the the Worldwide the same the the our to XXXX. percentage to was had just demand for leisure X% strengthened the the month levels, customer month June RevPAR transient in were more of to few for up around in back across points Demand leading over results, pacing to bookings global X% second regions brands quarter group June, were below remainder world. Group XXXX. X% At in percentage nights improved RevPAR of further had the are pre-pandemic XXXX. in has U.S. the to bookings Asia-Pacific By compared which for nearly XX% global revenue fully impressive robust pace ADR all than all with the year, RevPAR month new to fully during demand In to very end June those quarter. and the quarter, driven in by recovered RevPAR last improve. XXXX. a June quarter. with XX% acceleration. in the group down half leisure

up XXXX. bolster which Canada further group will to to slightly even half RevPAR bookings revenues, short-term could additional group lead being second and in even the expect We U.S. to compared

the at up in ADR group by risen trips. rate are numbers. Business driving year were for June our to group XXXX U.S. to for has hotels that room month and U.S. X% the pace year, made the in steadily the bookings. At and XX% new office business trends leisure team to focused the in rate, the quarter. Canada, in the below January, Day greater But Canada for had more levels. was been remains the just workers first down XXXX XX%. transient business which the returned above In albeit combine moderate a on bookings demand sales continuing and same transient strengthened, June, Our average in in week rising nights the as about of U.S. suggest versus in travelers also

nights, was Saturdays recover, was occupancy Thursdays still in through around and fully June, While Occupancy Monday points to on occupancy and percentage XXXX. typically occupancy recovered Sundays, has XX Wednesday below midweek continued and Fridays on major close of the shoulder travel nearly XXXX during known rising was their world driver was levels. the all opened quarter. having With around key countries recovery the to borders, cross-border as solid another

However, back cross-border not travel levels. still is to fully pre-pandemic

Greater remain from travel where place. still restrictions China, is there So, stringent in upside, especially additional

monitoring closely and macroeconomic are in we a signs demand. yet we While to trends, have lodging see slowdown of consumer global

fueling end travel, continued all and spending On of year. travel will markets And lifting most demand of opening types the to the around pent-up the as of towards we the high experiences Leeny borders the RevPAR employment of through contrary, in levels see the versus shift discuss, the expect world of travel. for goods, recovery restrictions sustained are and

our in new on members visits direct all road digital digital platform. back owner of Monthly Bonvoy in users app, more which with As engaging active bookings, are get increasing franchisee numbers, the help our highs and June. profitability, our travelers powerful reached million actively loyalty drive the and XXX

second result levels quarter the and points been globally, of more is platform from credit as introduced the collaborations. of numerous spend in hitting earning of stay our through a this hotel of of Bonvoy focus The and card response on global using initial the total both are a Remarkably, we number end new card credit rose card the acquisitions number In and the has second the with quarter. through tremendous. XXXX holders July, enhancing outside year. card in card Additionally, China record end co-brand members accounts of climbing the a XX%

to the of signed deals, a pace XXX pick continues quarter. second In up. we record to record the a development first another The following Turning deal second quarter front. quarter, activity

continue our conversion-friendly to roster labor Interest supply out with shortages, inflation bottom room across line the chain are number quarter. the hotels in pipeline conversion win interest despite the falling given Conversions quarter. expected of breadth of rooms strong for One out part is Marriott meaningful also Vietnam to highlight associated the chain a remains represented owner particularly add Additionally, X seek top XX% conversions and to a rising system. as recent the issues, landmark of of includes our the the levels. scales X,XXX signings of remains deals cost owners rates, below the Vinpearl, XX% historical to to Conversions benefits of in of and brands agreement system. represented system with added in new our portfolio. X to rooms deal The XX,XXX in the that roughly hotels being

the lengthened we year. supply and of due additions While a number to expect this shortages, still markets the in ramp year most bit room second the chain in labor to disruptions construction timelines of half have

to still X%. gross year, additions approach anticipated are For full the

now weeks XXXX. deletion Russia, rate a expect our announcement to are suspending for several Given X.X% we all that ago X% operations we in

expectation for X% the X.X%, our deletions represents remains X,XXX point. rooms deletion the to of percentage at Russia While of almost country X.X in outside

Russia Now as represented of a X.X% reminder, from fees under global fees well in XXXX.

impact the not Russia many financial recognizing of these and months now for fees We is de minimis. from been rooms leaving have

several for to X% depend rooms below net have we on in X% Construction for X pre-pandemic last and are return to to rooms years now starts, well currently to next limited before timelines begin Russia. the single-digit or here new really longer properties. our years confident rate. levels accelerate, So, a growth which over XXXX will over service full-service our be that mid in trailed particularly deletions X.X% We U.S. the the X could will factoring The largely for remain U.S. the hotel timing net the when just growth in years, for X.X% construction in XXXX

for And around our financial the to thank in very and now, all our growth the global for bullish builder the the am improving resilience. Their produce future will I largest prospects company the Looking moment affinity the taking their and to more to has ahead company’s results brands associates footprint overall. environment, of commitment the world. care detail. for our Leeny helped about turn I over and of am discuss with a call in development I our travel outstanding take and proud dedication industry, I our of strong and to guests so want results

Leeny Oberg

and quarterly in above sharply and rebound second Global Thank both financial EBITDA adjusted continued in X% were Record XXXX. reported you, to fees the quarter same quarter. results Tony. RevPAR Marriott outstanding global the

X% RevPAR global was to levels. quarter Second only down pre-pandemic compared

In very the a doubled strong travel RevPAR helped the the and this versus XXXX With has of Latin to XX% further January. return basis quarter June. X% results demand percentage Middle the swiftest has both at quarter June, to remarkable each up so and U.S. area. June. from secondary Compared XX month the above first opened regions the was of drive second. the month experienced this than was X% pre-pandemic tertiary, and of has of levels. cities Canada East RevPAR levels regions, growth primary, the topped been nights With largely came in to Caribbean strong from powerfully than June Looking percentage New see and to the and RevPAR more in Occupancy Europe the Africa back quarter U.S. in since than and the in in absolute like region due ahead in in group began. orders the York, international from in XXXX. second the in major pre-pandemic stronger versus our same demand. levels RevPAR America the across second in reaching in pandemic this X strengthened fully types, RevPAR expectations ADR point Europe, Canada, travel, year, in Canada time XXXX. recovery of in of XXXX, an market room year. improved our and Europe and all the occupancy X% the Cross-border where also and all increase on from points to guests quarter It more ADR first in international first U.S. anticipated and June RevPAR in up June come increased encouraging X% for recovered within

to Second EMEA in RevPAR in XXXX. compared XX% and rose quarter CALA XX%

improvement and recovered. mostly open than now rapid is the excluding RevPAR India the Asia-Pacific, saw fully during with region more quarter as China, second Australia

margins during and travelers another quarter regions U.S. of At hotel XX% the in lack quarter Greater result key fees, the second including totaled Japan, cities, in in while working earned recovery Second the travel percentage of which significant reaching quarter largest contain franchisees from U.S. Canada, focus. declined XX% largely of many continues second Over managed were growth higher in than the Profit Those owners in our down despite XXXX meaningful lockdowns IMFs card XXXX billion the RevPAR one costs inflation. restrictions compared growth of delivering IMF, our franchise to fee policy. company lag as XXXX. more rigorous co-brand superior Total to $XXX Incentive service in our quarter our driven rose more of quarter place area remains related Greater management X we non-RevPAR hotels RevPAR the the $X.X gross benefit with totaled due in RevPAR remain the million. operating than quarter did fees points year-over-year. $XXX China by we the and fees, higher of of customer rooms revenues and closely levels level to XX% that China XXXX a other by a the markets compared at was the than and in the and quarter wage its in where meaningfully fees. to driven second quarter, zero to in in million remarkable Shanghai or half Beijing. growth IMFs strict COVID our and given from credit a fact increased region. came of our

could and challenges essentially an staffing keeping of business we our wages Greater markets. release. and third our There benefits inflation full are vast persist majority for we in are the guidance higher expense. eye endemic, a in that other are efforts in in We especially degree momentum G&A is predictable, years. borders open accruals higher certain global well due quarter Yet world. optimistic the reduction industry in quarter in on providing remain now our totaled are and as China, this details and by cost $XXX offset expenses overwhelmingly demand the million positive full second primarily the still as incentive to COVID compensation robust With the and outlook, increased as it as travel customer The in than relates uncertainty the more across we segments year. somewhat to of press usual but ADRs around markets future encouraged

and we and could continue We end in and flat expect a of compared to driven the On down recovery down the compared could in year. and be Compared ADR RevPAR to and third the XXXX, the around each quarter global by be XXXX quarter to internationally. the range, to improving basis X% up through full the global it see could quarter up RevPAR full the worldwide third up U.S. XXXX, to for both in the XX%. Canada year RevPAR for X% X% year, mid-XX% to the in occupancy

expect are year, accruals well compensation million $X.X expenses anticipating expect peak million full well as in prior million to as to we of For travel million. expenses, of EBITDA we billion, to G&A now higher still $XXX our adjusted $X.X Difficulty]. to above the $XXX year XXXX. $XXX billion now full but due [Technical spending below full We investment year $XXX And of

of At for of capital headquarters. XX the is already in new debt Loyalty in includes EBITDAR. range in at low-end now factoring cash to have full slight be Xx to the bought received in addition the stock $XXX during card our of maintenance to the as adjusted our from second roughly paying a XXX still million the X.Xx companies. and quarter share. targeted adjusted the of second expected our million resumed to share July quarter, repurchases year the for in payments the guidance reduced before our use leverage per end quarter Our We dividend net of $X.XX of credit was

remains same. Our capital allocation strategy the

shareholder to our growth share committed increase value, modest will capital investment enhance grade make that investments of returning our a through dividend We repurchases. and a cash and to while shareholders any combination remain excess rating. We

investment provided recovery included our cash $X.X significant global the powerful than further to we to business this that needs, return model capital generating expect level we for year. outlook shareholders in billion more our Given and have is of beyond today. our This is returns guidance

program, take optimistic ahead, Looking our now am and to the Operator? breadth in of Bonvoy depth future. our our loyalty business. global well powerful I Marriott the portfolio, team are and is incredibly Tony happy the very unparalleled and I your best Marriott questions. given about positioned

Operator

question America. [Operator Instructions] first from of from will We take Bank our Kelley Shaun

Shaun Kelley

everyone. morning good Hi,

Leeny Oberg

morning. Good

Shaun Kelley

at and it maybe us put the Do you where you this your your for you little kind like on teaser solidly everything or it’s that? once for so, in from And you as range? we year I we of well? capital a longer relate to does around ago. off this wanted where end levers Leeny, – increase obviously, I sort left where where kind this to a XX give leverage that. XXXX start of Does every there? quarter mean Could the that this feel the to get middle much at And program. as term on off, would could quarter pretty of return you ourselves found just of relative of where take comes then a about what talk it keep you major together would the years goals or the

Leeny Oberg

back said I works. it terms your think fundamentally Sean, that in in you really best way of question the where it is to model were we the

excess that As given investment as and cash. want to we of comfortably available both our are to we the advantage well QX I we EBITDAR Xx that low-end in have model in obviously said And adjusted opportunities at of of statement, end keeps to us my X.Xx a flexibility keep the range. the at as and taking of you squarely terms in debt

exact continue you I have we move that So, approach see the taken us same think will time. for to forward some with

Shaun Kelley

are leisure, the across just weakness rate signs Could at where what the walking talk and a around you is recovery you occurred? maybe of specifically lot business have at ability know maybe little seeing a Tony, And that of day follow-up, just concern a particularly or to fear just the week’s there some of us patterns great resort through quick very or happened as would leisure lot demand incredible there gains the you some the Great. that kind and you commentary. a changed? the of you this a have on that areas color around faster transient softness consumer of have Any side, So group, lap of just of out bit properties little all stage? the

Tony Capuano

The Sean. we last Thanks, XX% The is up up to quarter. the nights the quarters, continue were first have already XX% in they really. short of answer demand in the and to were improve. not XXXX only leisure Leisure quarter that seen couple robust in room

remarks, more we blended see acceleration a day-of-the-week to to I bit trip and about talked more and continue see continue In of we So, little this patterns. my purpose.

as think cross-border I about quite to we well. encouraging then, travel. And lot not have a that’s international us finally, so And talked

those of are represents And leisure is back last levels. on were well. we thing the seeing where demand to we say comments I that about some While think upside are would the all we then as we not segment are improvement, pre-pandemic and

as But about winter early as for to see continue we We Labor relative at the see It’s well. Day, in on we to pre-pandemic. pricing we the a really power ADR holidays. increases were encouraging to look little continue where leisure double-digit side to instance, talk

Shaun Kelley

Very helpful. Thank you, both.

Tony Capuano

Shaun. you, Thank

Operator

comes from next JPMorgan. Joe from Greff Our question

Joe Greff

morning, Hi, everybody. good

Tony Capuano

Hi, Joe.

Leeny Oberg

Joe. Hi,

Joe Greff

Tony, been of hoping sort corporate pricing? thinking are been versus those of a rates. XXXX I in couple corporate I have corporate now you relatively non-events give was they maybe what the of the last demand of negotiations are maybe know And different us sense have you because been low. How rate they negotiations could for corporate past? has years, how

Tony Capuano

Of course.

since rates pandemic. special as we the know, beginning transient, rolled you So business for of corporate over the

We’re just for now starting the negotiation process XXXX.

again, single rates digits imagine we XXXX. but in high year-over-year so those being it’s can And up certainly early,

Joe Greff

from getting some Marriott Great. topics, when and accelerating, and And a about where XXXX, of then, to XXXX, net table? I’m of of meaningful growth impact Russia, looking you is does seeing Tony, it just now, owners kind time mentioned require longer of construction assistance third-party rooms financial But which you at look the net switching a thing. through that hotel more is during periods one-time growth of that XXXX a before for or sort you as at accelerate just sort it this are function rooms

Tony Capuano

I think, more much the latter.

which our use the same pandemic. smart try quarter. to you’ve we openings second had of quarter, and even quite pre signings peers the to our will conversion will is continue come conversions, know any It to discipline in I’m was in that and capital means for we us we do conversions. quite more the than thrilled I market conversion Now pleased on openings volume both with a for competitive

Marriott much think construction really a is as particularly the in U.S., an acceleration, a comment comment, slowing in seen and starts. as I see industry you have to this

although get and we levels ground. do over seen But to best I shovels that last continue drive have everything can do start think to XXXX. to we conversion we to we in the quarter, tick saw in Just to volume will our up, not the

was to know some spend little resolve the things to that privilege administration that time slow last to issues continue You I of to seeking supply administration chain may some had and about construction a we with spoke of the assistance week, the that starts. the the of one the

Leeny Oberg

they capital talked signings? follow-on, one your from to about signings record involve we this And And two of specific far those a Joe, greater-than-usual Marriott did question, of year. not for element so quarters just

Tony Capuano

just the Joe, both we in that rooms your there unit fine to than quarter-over-quarter in that XXX,XXX pipeline, growth and back our growth, globally mid-single-digit is signings to that then that couple to volume to the a fact that combined under And of more confidence maybe on point front the in things put in on fact the to net see continue we construction release. a strengthen accelerated question, we our conversion The continue had and openings ability to confidence. get have

Joe Greff

Excellent color. you. Thank

Tony Capuano

you. Thank

Operator

from question from next Securities. Patrick comes Scholes Our Truist

Patrick Scholes

everyone. for guidance. same May, half guidance or Hi, Would same – than last that good back or as higher of internal last say Question on you back higher, is morning, the half you your implied earnings? assumptions the

Leeny Oberg

rate no Yes, I that recovery in varying anticipated. it than accelerated it’s world. is. has There had occ the we faster think is originally And and in doubt of the both parts

it Europe I think I than then that. our the faster a topped ago. both to ago that expected quarter And better quarter than an expectations been cross-border a was encouraging see obviously think than expected. example, stronger yes, But incredibly a we before frankly, has as quarter is meaningfully

Patrick Scholes

medium-sized that much shifted perhaps gone. business research, to offset to looks great. and And how Then my back is lingering for like question, may that much data down the the the the permanently But has that question higher-end in do percentage Thursday businesses customer one has Sunday of a loss what corporate Okay, be And higher-end my smaller this and XX%. to travel customer, customer? about it from you with higher how think goes XX% follow-up nights.

Tony Capuano

of surprising levels encouraging bit They and businesses, about in back. volume. small days there they XXXX no been transient above think maybe business question a but back the improvement demand, When the we shoulder Well, development. are in rapid is are that has of occupancies the medium-sized a

even bigger we there, not rapid yet. the point we might out, are steady like. necessarily improvement, you as albeit back continue see As customers, But as corporate they quite to not

Patrick Scholes

very much. Okay, you thank

Tony Capuano

Patrick. Thank you,

Operator

Robin Our from comes next UBS. from question Farley

Robin Farley

see questions. the XX% I One to you XXXX been group XX% or in time Two that? have quarter ago Are it XXXX. starting is thanks. for at for down a on think may XXXX. group Great, below

Just that, how wondering right seems it if shaping wondering actually that ‘XX. group But is little stepping now? up of starting more could see that intuitive a some at be because than you’re bit sort to the up point higher

Tony Capuano

Sure.

maybe So I down for ‘XX give well. of ADR are provide and you in XXXX, revenue about can statistics, we couple as we color XX%. When But at for a X% versus is some interestingly, where may during look the bookings we bookings up XXXX. Leeny been would have in

pricing see ‘XX, even even we’re more into group, So as window continue we of expect to because half this shorter to prepared our you more we heard more that certainly And numbers strong continue back bookings. in see we improve and through booking the power. year as those optimistic, of Robin, to most the remarks, in and short-term

Leeny Oberg

So couple comments. I’ll a add of Robin,

benefit that the quarter, the major year, the quarter, group got is the year. June, of only in the in the the I for we’ve was down RevPAR where for really got in X% In month. theme think to us

has of need So revenue, at been group filling to for but year, while of is we’re which to I the we XX% to are still really down, think the this about kind pattern, in this nicely. look event terms the in the booking low on you in that much year actual think continue of closer what’s when books digits the rest the year, rest single currently, seeing we from next of

in from that for really ‘XX where in us great end some year. pretty it’s for the has ‘XX levels a half ago this different of that back exceeding in ‘XX, actually even fill-in not could quarter we’re seeing to versus ‘XX what up the and except we the seeing back business quarter, got levels we’re close quarter So of half the

Robin Farley

And rate, in nights in terms not total group revenues? terms room but group necessarily of that’s of exceeding just

Leeny Oberg

we in incredibly is definitely not are total group occ – It’s fill the right, Yes, where it revenue. It’s also that’s the rate. just fill business. been Again, as group But performing in. total rate seeing we obviously on it’s that has well. you’re

Robin Farley

From doing – you. seems pandemic thank then think and this how higher years other is it I be downturns, other of the what are conversion Thanks. guess, of conversions the how conversions, kind after? of a of the downturn? what of words, you’ve out follow. to about will question is a in which conversions, the sort you of are was seen a result X Okay. we may sort guess, tail terms should year that do year And I trajectory historically, the much Great, higher? nicely, just think really of when of or long there the demand In how

Tony Capuano

past, I severe be you reasons. owners. continue creative the few the saw business being impact early accommodating experienced to Number our in lenders on that distress, more we’ve was a downturn, where with conversions so much some the saw of downturns quite for bullish, of in trajectory the unlike Robin, the one, to than conventional you a lot

you changing So of market. a assets didn’t flood hands distressed necessarily in see the

more Luxury and And is environment. ever there have, potential I particularly number brands is performance the than any soft those that Autograph As be recovered, bullishness Collection and the we combine we’ve our of armed more brands, trajectory. one. two, it Number assets demand Tribute, and other robust have about in may transactors conversion-friendly play, that recessionary portfolio our there drives two in factors, my

Robin Farley

you. Thank Great.

Tony Capuano

Of course.

Operator

Our comes Rose from Smedes next question from Citi.

Smedes Rose

which and seen rate, even by you occupancies, potentially driven back next where there? to structural just in hopefully, of rate, if rate to flow-through of occupancies great we’re get which think such so I sacrificing just of to pre-pandemic year, going far levels are it? to it’s to in continues, sort world change like occupancy sort to but expect has wanted continues higher owners slowdown get do to strong with means kind would order see of a of ask a we’ve lower thanks. as conceptually, normalize, maybe it sort you have kind kind charge Or owners significant of to been recovery you the the Hi, as simplify

Tony Capuano

to response an believe to the rate. earlier occupancy in by mentioned Leeny as will we both be and driven recovery continue Well, do question,

to refer to her the pace bit to year. through beyond rate be of heard of recovery first with continue the also and the the ‘XX. we year. through some pleased occupancy You murkiness we expect But both do of improve a of the end rate this continue half end of And the

Leeny Oberg

other remember Smedes is and that comparing one to we’re ‘XX. comment, – So to that that

rate with kind So kept on numbers, has real adjusted that inflation not of up rates.

thrilled it don’t I to on while that, these are put back real So pricing and rate XXXX we’re are is frequent a very a off, to to it’s basis, inflation and want is fabulous that travel and think levels. we not they the that there rooms the and on that love basis regard, in reality see consumers

Smedes Rose

Okay. Thank Appreciate it. you.

Tony Capuano

you. Thank

Operator

Our comes Katz David from next from Jefferies. question

David Katz

Good my Thanks wanted question. I for morning, taking to… everyone.

Tony Capuano

morning. Good

David Katz

drill Good to down little on morning. a I travel. just wanted corporate deeper for

just in us respect share there those anything others, you color bit, in various could you that you urban much segments? to certain useful that your cities and flow are there If about little Is can a corporate. with versus picking is there out in up data so versus versus non-urban urban not

Tony Capuano

occupancy reasonably were early many of anecdotally In improvement we terms of this see the recovery of across rate. and destinations, by clients. hear a Well, what world, but we continue anecdotal, core. by the you, I trailed to and encouraging days from corporate the across a and leisure country be major tell clearly the some our both in the And urban dominated little what more significantly steady we may can urban in the saw of markets

think that occupancy is New when more had and major indicators big for an return for are driving which seeing the at decent at I look of more markets quarter. look you the And the we us, York, instance, demand. some to that We’re office, business in XX%

You at XX%; D.C., look Angeles, Washington, Francisco, San Los XX%. XX%;

are You markets of volumes the steady recovering trailing were in leisure those that seeing many demand of destinations.

David Katz

whether the you hasn’t that, other outcomes labor your you follow-up. be whether taking States just go or the you I force still international a a little as just be bit is element about comments and And and could the comment within helpful. are passing wages labor. it return they some that think, within would starting those seeing farther Understood. degree of or which to if whether kind to made, are what to yet and, might flat United continue to as Leeny, a quick in increase, And direction

Leeny Oberg

Sure. Yes.

of are it We when that. to – look the ‘XX, The U.S. not just kept this hourly is Canada, than And pace overall, and needed a positions is, of actually final trying one we slowed. wages regarding positions is bit things continuing if that see that at to I to is inflation, the and up. teeny go seeing now, higher staffing it up comment with increase of has we’re has And that to It we the trying slowed. compared we’re for I to fill look at think were that at fill normal were levels level. hotel has at the if, the XXX% example, interesting the to XX% XX%. Right reality

in there the the U.S. particular Asia but has market. of ‘XX really more that Outside in on I And where example, U.S., we’re in Pacific, some depends kind Europe back for probably we’ve seeing the not to So were seen say far definitely steady improved. less been to It the it’s of we shortage, varied. while have the and in much would It terms labor seen is wage it’s U.S., similarities really the pressures of the slowed. increases improvement, definitely is more

David Katz

Understood. Thanks very much.

Operator

Brandt next Barclays. Montour Our question from comes from

Brandt Montour

unpack taking Good dispersion demand end elasticities greater middle if questions. bit know leisure and your more more, luxury Thanks seeing are little and could Hello. your brands. and pricing a everybody. let you for between my if us maybe morning, Curious you

Leeny Oberg

So things. of a couple

is has strong. to a rate filling markets also average, New They, what were we’ve now resort luxury to stay But on the as those like weaker, in that quite York in necessarily of or Francisco, are high the in. easiest as think ways luxury hotels some San that are the markets. the continued very is about seen of that One previously markets not

So strong, to it the reality not like makes basis, quite look, while are it actually in a gains ADR that and as is opposite, the they just on strong. be luxury the blended continue

see earlier, portfolio that rate. continuing things of about to see overall think encouraging to think in talking occ I Tony And both most of the they one all encouraging particularly first second in also really to in the Renaissances was markets I the as now is the the the quarter. than gain premium the meaningfully the kind in Sheratons, recovering Marriotts, quarter more then and is luxury market, it’s were

see of So really continue we year, ADR depending but are in strong demand. gains the continued this we do additional we that really to luxury expect don’t rest on through

tide-floats-all-boats segments think what across which demand So is it I we’re of to strengthen. continuing is all seeing, view

Tony Capuano

we context think ‘XX. the to second give I saw in Canada, rate some and up the that, quarter XX% quarter in in And versus the U.S. luxury to just still

really luxury much terms of around solid how we luxury the in lots runway quarter another So for of have but pricing. questions

Brandt Montour

could helpful. just business corporate of then curious us large is biotechnology that. of give sense earlier the your I just demand you corporate faster And could world your other of average? reining for stage That’s travel, slices about follow-up that if than a in a mix and on much technology, how you think Thanks potentially accounts, companies was expenses when be of portfolio within

Tony Capuano

Yes.

the category XX% corporate the to maybe to versus talking But not clients. maybe So mix we over I the The large get to pre about all of bit time, higher in you’re than XX% a XX% the demand, continue now, to we bigger to XX% experienced transient think terms what steadily but way our try. which were And now pandemic. improve. SMEs that is range in SMEs expect corporate where of back represent it’s right business I’ll we of is closer clients about.

Brandt Montour

Tony. so Appreciate Thanks much it. Okay.

Operator

next from from Bellisario Our question comes Baird. Michael

Michael Bellisario

morning Good Thanks. everyone.

think you million growth might more question, in $XX out sensitivity just change fee change X I a ratio for of looking have environment? And of point modeling how that range? XXXX given then to is million the revenue $XX normalized updated a in First, to quick RevPAR. that What

Leeny Oberg

per of ‘XX. ‘XX in versus it’s Comparing RevPAR million $XX million $XX Yes. to point Sure. ‘XX, to

a in of world point expect depending the compared to per improvements not that of similar. are work. you We the obviously position what It yet to But it RevPAR happen. It’s be I know, to talk continue ‘XX. part of all somewhat on ‘XX, varies, more to would about as budgeting

closer get sets, You ‘XX. you RevPAR are comp differences point RevPAR But is of into comparing point probably of to on in in $XX weeds a point in the if million ‘XX etcetera. per it to a

Michael Bellisario

it. and for on are then Got then different versus booking or patterns helpful. maybe one some asking today same And group, can you the planners either maybe group That’s differently what provide on today how follow-up details are pre-pandemic? just

Tony Capuano

ask of will to flexibility. had in event meeting about good They bit. we where marks the demand one, I corporate are Number XXX Again, for which, continue I maybe tightening Sure. they this that like general into and essentially In would a just we smaller which our up called issues would And Exchange, most we days And you flexibility The just are maximum anecdotal. a as talk bit association hopeful We just are the two that notably. old sessions be us think had wishing they for them an we improves, level held I where pandemic. say hosted chance executive understand was heard and and question perpetuity, asked. intellectually. a they gave forums, to they flexibility some to themes the on high the attrition planners. during And show

company’s ESG on increasing loud association for both booking for corporate clear an number around only increasing focus efforts They is reports The those and other against heard are the and contracts. asking goals. publicly our and an we our stated of not goals, all progress theme but our things – on

Leeny Oberg

XX% is stat And size that for average bookings. up is new think I that – stay one almost as compared of interesting the is just for helpful other length to XXXX,

companies, continues to So, emphasize get this to wanting are all that associations, organizations together. again, I people their think

Tony Capuano

forgot us one from then purpose days the was asked meeting, on of easier tack of leisure reservation them pre make to will endure their pandemic. idea the end do they trip some perspective likely can to just fine confirmation or that another And well of the point about this to a The technology conversations blended everything I beyond to a it for Exchange, at which couple that from of post we

Michael Bellisario

helpful. Very Thank you.

Operator

Clarke Richard from comes question from Bernstein. next Our

Richard Clarke

morning. my Good Hi. question. for Thanks taking

Just back China the extent you not construction? So, mid-single how first that on now normal the is signings, environment of expecting your to to? To one for a digit unit but for much back get environment a normal is are China. growth to what bridge

Tony Capuano

couple embedded is there a questions So, of there.

and peak, our deal are off majority The the in our they projects are openings our of pipeline think of recovering. our vast owned. hotels are I operating domestically majority but vast volume and steadily the

And increased pauses travel hotels And so of many encouraging albeit those domestic domestic those of from across entities the volumes Central continue go certain domestic to are from China. benefit markets some into when Government benefiting lockdown. travel,

expectation our seen quarters. is And couple not the sort policy that COVID we of we of any zero but over lifting embedded in have steady so last a improvement, our have of wholesale guidance

Richard Clarke

your mean the that looking disposals kind so I any you do portfolio this whether of I is just I guys. follow-up, noticed on a if at year. potential there Excellent likely, says may. again? Thanks are owned any to quick capital much. come? you disposals depends Maybe returns that guidance Are

Leeny Oberg

not additional this numbers any but always gave are sales do assume the year. that looking, We I asset

Richard Clarke

Okay. Thank you.

Operator

Vince from comes question Cleveland next from The Research. Ciepiel

Vince Ciepiel

cost Thanks. to are experience are would into Really about see offerings, feels breakfast be from scaled-back about curious dig in encouraging consumer Bonvoy which how as housekeeping. I to know thinking certainly the the some about talking out the efforts reduction It can guest. ahead, the IMFs customer pressure. Great. changes average been surveys there I labor margins how But ahead. you helping offset like sounds be wage you that, has lagging,

So, the as things feeling is you do XXXX? recently, look how today you at summer think versus more guest of

Tony Capuano

guest encouraged and through but the really I by are surveys would a the in we say much we work satisfaction that monitor it’s metrics numbers. progress, particularly very intent-to-return

and pre-pandemic, where We have are made to we but meaningful back on those were quite steady not progress metrics. we

through just place standard, calls, recall – went our in the we teams As some of some the of business prior from depths And all you pandemic, quarterly are brand, quality Those those earnings now, audits, we surveys. guest suspended back reviews. may metrics. the in

I around it’s world on Bonvoy focused think manner keenly customers of the we which to return. our reflected encouraged. most in intent And in are All pretty to teams are our And the engage. continue loyal driving

they ambassador remained the tier, one Bonvoy, points active. those stay we at very our XX% nights, as about in within XXX transaction metrics of or see tier ‘XX, top has ambassadors and well. averaged had Our least improving

We the like out offers. certainty early new have housekeeping guests our and they that, returns protocols, the rolled is that our from

Vince Ciepiel

exceed going some differentials how loyalty Thanks for thinking more months? you ideal and group you a starting occupancy are as are I percentage how XX encouraging distribution then, over next to recover that, those to the mix next those within as contribution separately, fully. OTA day mean mix between consider between forward? corporate, about of are distribution, XX then see on And hitting of that the kind planning levels, leisure buckets are ADR ‘XX all-time all And that needs, the and the week Curious months, how of bookings color. you high. of three maybe maybe thinking business about digital

Tony Capuano

steady year in percentage total out came So, ‘XX, a of go reduction of the order, that nights looking like have in OTAs. room we will pre-pandemic, the reverse seen maybe at I

think would we it’s start moderating. first as During the with reasonable years total OTA the of X expect, trend the saw rose line rise, volume more pre-pandemic you but I in might of saw quarters to OTA that back pandemic, to bookings get to And we coming we the contribution expect rapidly. volume direct

your pandemic was absolute our grow may purpose in XX%, risen continue was X% was we pretty transient of and But XX% business segment really calls, before about was for business ‘XX about business tougher make have even you the much Leisure Group contract said this group rapidly that previous what by transient XX%. XXXX expect and us did. mix And our was at second segment segment. blending the see like. with in precision Leisure in leisure. XX% looks And see had first to it steady some I the to was was quarter, trip X%. numbers, remember, – XX%. to think already rapidly. to was around to round mix question I leisure more tell contract. In in most as was XX% growing transient. Back of that

Leeny Oberg

to I of it the encouraging about to think your see been has about group strength as question forward, very going think we and of And management strength the strategy, rate. group revenue

window the as transient in next then we quite about outcomes the So, years, booking for side, over And think economy there all that strength on the of about couple the possible is obviously, group the three encouraging. is weeks.

it unfold. tends and – will that things where wants frankly, we that in So, about vary back to which see ‘XX, was to and with as is, customers’ needs

Vince Ciepiel

all for detail. Thanks All that sense. make

Operator

from The Crow from – Bill next Wells question sorry, Kesten comes Fargo. Dori

Dori Kesten

Thanks. Good morning everyone.

Tony Capuano

Good morning Dori.

Leeny Oberg

Good Dori. morning

Dori Kesten

lagging Okay. you spend? Asia any noted Can just ‘XX? Pacific as to you then provide is more compared and in details on regionally, And of changes have leading outside who cross-border travel

Leeny Oberg

Sure.

we are in it, U.S. at sort were level travel. QX is still international clearly and international Obviously, around We was domestic back pre-pandemic, that percentage at number back thing And back which down several we number particularly bit we in of little being nights. China super a QX, we talk were did fell to from then interesting – pre-pandemic the north same not has at that, let’s X%. – level world high as X% pretty I that the the were of So, got were was moved cross-border XX% travel But and of cross-border up QX. much with the into Greater cross-border points, in XX% that hundred coming and to first, the close call to Pacific the, of travel. in basis XX% being very to Asia the particularly we based. The find travel if in of

you large into the was a travelers saw the helped of impact I obviously think then kind that and of very the coming had in biggest their RevPAR on shift influx which of that summer, dollar. opening Europe, And function a travel Europe more you comfort partly massive strong saw and U.S. a tremendously.

Tony Capuano

towards saw the accelerant requirement, international Dori, we inbound tail And travel. to I might back quarter government just going was the and testing be you that’s end add for the where cross-border another just on rolled it of that, the think U.S.

In that would that policy fact, they with visitors right thought came and after year billion incremental back the the the U.S. spend. X.X estimated that of out to about of million the announced, change half was drive in USTA $X

Dori Kesten

Okay. so Thank you much.

Operator

question James. comes Raymond Crow from next The from Bill

Bill Crow

Hi. everybody. Good morning

am have the but on visibility I end of just murkiness You Labor you the how talked year, curious, do Day? actually about beyond the much the

Leeny Oberg

at people about Columbus fill when are continuing transient, are got that to and you think the strong Day. have look in leisure are talked when of have as that you got bookings in it you and up the Labor as strong group not early but we they as continue we to obviously on holiday very short reminded booking willing seeing you again, be rate travel Well, I bookings you And window also look at December, Day overwhelmingly those, well before, And all for those across nicely. give periods. bookings and also Thanksgiving, to

of when very even The October, books the – are So, the bookings you into the is we relatively we either is the those while transient is at on on move low percentage September encouraging. we as pace I think that and what’s right on books, side. still that look

Bill Crow

Florida talked to thoughts holiday being are going in curious bookings? could basis it to RevPAR look I to about on digit what instead back down follow-up at compared bookings, your if XXXX on at on we interesting, if a July. I the XXXX, were Maybe it’s double And holiday am of X-year Wyndham that,

Leeny Oberg

can to ‘XX. ‘XX the and have back I for December December would Jackie get – versus you on to get I Betsy to specifics

comment make to again, end the overall for is bookings think see I year. continue strong I that of the the really that we will

probably on things of under the markets for that the as X%. period now, as waters in is bit, One start a a other ADR is issue. resorts but some that the percentage fill I of you that that starts some about is luxury to muddy right the little books talked the that good our see that’s that Remember as to in high luxury the reality of necessarily that aren’t

the big for quite encouraged. sweeping small small on making amount really probably we and So, it’s periods, statements think But we about really make the when continue holiday the that to be doesn’t books with pace sense.

Bill Crow

ask financing the given I say, construction to in on signings, one could the change environment? service development and If question perfect. That’s the of just signings, quick service costs full composition any select from

Tony Capuano

of sort are gearing our the which large have back our of what owners through and exactly their first we seen committees, development developers the multi-unit hotels expected, signings the up, in can service disproportionately select tell U.S., bit full What but terms approval a out service. is have may we On monthly of you volume I side, organizations coming the of here in volumes is development of a we approval driving long-term the that’s seen and would slowing of have seeing half some in volume of that we conversions because of select-service of high year. are the be

Bill Crow

your time. for Perfect. you Thank

Operator

And comes Duane Pfennigwerth Evercore from our last from question ISI.

Duane Pfennigwerth

think Hey. In a that taking a with period two to you we more you events relative question. like June down I taking Thanks have asked. you month a as of get type on group happened can events or my group kind that September? business to ‘XX. And a out expect gap down to threw just the would But like in maintain, the business-dependent on recovery, hold in two expect that for contrast was with group this Would most group month been competing Thanks happened leisure like you that question. narrow September? to the or And sense, June for summer. of

Leeny Oberg

just will So, comment. I one you give

won’t massive shift I the think be a shift.

is into X% as going fall the there When group was on we lot into down well. only the what’s And here from at of events social think to barely right QX. it a we now are still going be look I QX. books,

a So, I we the ends little up it when still XXXX actually relative bit. to group than we said possibility – think before, was QX down higher got have we as that

for demand And I going their of on seeing together. are the getting continue to corporate the as think you see social we to people events well. customers So, great part are

point just the swing in being The on comment is is quarter. and school. necessarily cleaver other more wouldn’t realities only vacations group a is that of it thing typically huge based us family of not will out I your in people a So, [ph] months a I because that seasonally business-oriented August for

think relatively the seasonally August, always which So, side. we have seen, I is period what light you should expect on group a more

Duane Pfennigwerth

much. very Thanks

Operator

we have. to our And that will I over turn the questions is all conference the speakers. now back

Tony Capuano

and exciting the on travel thank the for model. all resilience story you compelling us. thanks of all Well, soon, We for resiliency of about your Marriott’s to seeing and and you joining the It’s road interest. a look again business forward

Operator

today’s you conclude does program. This for Thank participation. your

Have You a may day. disconnect at time. any great

Marriott International (MAR) 2 Aug 222022 Q2 Earnings call transcript