MAR - Earnings call 4 2023 | Marriott International, Inc.

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

Operator

Good day, everyone, and welcome to today's Marriott International Q4 2023 Earnings Call. [Operator Instructions] Please note, this call is being recorded. [Operator Instructions] It is now my pleasure to turn today's program over to Jackie McConagha.

Jackie McConagha

Thank you. Good morning, everyone, and welcome to Marriott's fourth quarter 2023 earnings call.

and me Officer; Tony Financial Leeny Executive President, with and our Officer call Vice Vice Executive our Chief Oberg, Development; the today Investor Capuano, are President and President On of Dahm, Relations. Betsy our Chief

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

RevPAR reflect our that results refer level unless note hotels. occupancy, to system-wide Please for property comparable property our And ADR revenue level constant of customer and revenues currency comments across different revenues. segments stated, discussion otherwise

the and today actual we comments and our not earlier only events be will and press updated as are effective release Statements unfold. issued

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

to will over the call now I And turn Tony.

Anthony Capuano

you, and Thank morning, Jackie, everyone. good

team Our results XXXX. fantastic in produced

and diverse brands. flow solid nearly momentum continue world of to We business cash and net rooms demand and portfolio XX% to Full leading our earnings around growth. for leading strong our XX-plus year excellent thanks global travel was the to in experienced RevPAR X.X%, grew

end and driven in to year, Canada. group XXXX. At by XX% standout revenues in quarter, roughly in and ADR. shaping In basis, of the nights globally the year both pacing and of gains driven XX% the group up by to have was fourth in XXXX XX% which quarter, U.S. a robust nights, year in on again year-over-year the globally room Compared another X% customer solid the equal up and were revenues last year-over-year, U.S. Canada increased is global and and X% X% room occupancy. And RevPAR rose nearly full ADR segment. over year-ago Group, group the increases comprised

for with Leisure above the the XX% coming XX% with segment leisure quarter fourth in nearly same transient global in grown the COVID, out quarter Even revenue Fourth far, global nights has, the year-ago in of the of rose global transient this In nights fastest room revenues strong leisure This accounted quarter. by Canada, remained has XXXX. growth X% quarter, X%. quarter worldwide. transient resilient. leisure over growth, to demand X% a U.S. room were leading up revenues and the

fourth corporates XX% medium-sized quarter. contributed And corporates lagging, and volume while transient to they robust. post Business of increases. Demand room in the from nights remain small- large global are still continued

Solid revenues gains X% drove in the globally and ADR up transient U.S. business Canada. X% and in

Bonvoy year. of loyalty the room highs U.S. in million reached penetration and the Canada program new the in to members nights grew of Member Marriott XX% powerful at over ]. Our the [ quarter globally end XXX fourth global XX% and at

Our to digital key at particular drivers cost growth in a lower remained and our of channels mobile owners.

app year. XXXX in more Bonvoy in Marriott nights the XX% contributed room than Our prior

digital our all stays other a numerous successful our have including credit our the engagement through technology we collaborations, members across remains experience multiyear also and co-branded our transformation customer hotel the Enhancing priority. Marriott of channels improving on with focused outside booking are Bonvoy We through cards, underway.

member cards for credit XX%. the Our acquisitions had spend card grew year, XX XX year across card of portfolio growing countries and last record global

license management, franchise challenging development record and XXX environment front, the agreements signed the in representing and On despite financing approximately XXX,XXX organic XXXX, in we Europe, rooms. U.S. a a

in pipeline. our Additionally, roughly we ended high new the a of with rooms year XXX,XXX

are global an in XXXX strong We already expect to and another off incredible signings of year start.

accounting XXXX, since in a acceleration XXXX. the year growth organic for of to highest signings. growth We of last X.X%, additions and again net rooms saw meaningful Conversions XX% room organic XX% in also room helped

rooms around we includes net growth X%. from to anticipate XXXX, X.X% This of rooms For MGM. XX,XXX

end set properties Marriott March. to the New with of the our first the January, these The rooms at by of expected became available be York, available York remaining middle at channels New of on

it While other adding Vegas in days, incredibly amazing enhancing across the pleased U.S. our early cities very to properties is We're initial pace. our excited we distribution booking with and about are the Las these portfolio and

meeting We in X.X% X-year year-end year-end compound annual XXXX. X% we to our at growth net remain rooms the from September XXXX in confident to rate discussed of investor

we're focus the on we progress in making space. lodging mid-scale As our globally expanding owners, guests, high-growth significant and franchisees for offerings

Latin numerous Middle in Express the East City in discussions and and region, CALA are We America, Express for for in Africa. Europe, and deal or Points the Caribbean Four

U.S., Here Myers, in the deals first around Fort celebrated have additional for groundbreaking StudioRes XXX we January, in and over the under in markets. Florida in potential discussion XXX

conversions. transient and strive build we for we're a mid-scale options U.S. As to new our offer on both more new for also brand working stakeholders,

At scale, our the of portfolio. end and luxury that than had has added XX to we In XX closest and over expanded. luxury larger we XXXX, luxury currently deals new upper hotels record XX% new chain distribution with lead our our is competitor, the next signings

types we remain offerings am optimistic the all and to and We valuable position. experiences impact In as to of even the travel. demand of properties lies the the world expanding what offering around travel can and connect to The for The on XXXX the determined a our from are we through industry-leading fundamentals power strong and the best was most waned. banner focused about continue closing, Marriott, portfolio has guests year of are brands outstanding, and remains for rebound while broadest deepest industry ahead. people engaged and pandemic the our so for I grow global

world me to want work. excellent let over the results our for I now financial teams in more detail. the their discuss call dedication thank to remarkable around to And Marriott turn and Leeny our

Kathleen Oberg

our walk financial through I'll you Tony. strong results. Thank XXXX you,

primarily U.S. RevPAR International in higher ADR. X% driven In a rose increased ADR. and to by and due fourth gain in XX%, point X quarter, percentage the X% Canada an year-over-year, over RevPAR rise occupancy

Greater increase. last quarter RevPAR and rose Pacific, year-over-year China, comparisons largest XX% COVID-look in the in the experienced to lockdowns excluding grew RevPAR quarter, China. ago by again XX% Pacific year of easy Asia helped the in Asia

significant XX% million, fees, gross Pacific. Fourth to billion, higher reflecting credit revenues in fee quarter card another reaching XX%, additions $XXX IMF, driven in total quarter co-brand grew $X.XX our management rose Asia growth RevPAR, strong fees. room Incentive by of increases and or

gross prior the that IMFs rose record higher were XX% XX%, in XXXX. full For peak our year, with than fees nearly

and fees, primarily due in higher direct $XX termination net Owned, termination included substantially revenue, million leased $XXX other and quarter development of million with a to the expenses, associated project. reached the of

international property G&A was an fees, which included intellectual costs hotel, million well of our of a performance-related reserve compensation, for as litigation $XX million in with $XXX an as higher increase associated bad debt restructuring timing impacted expense, professional by and transactions.

to adjusted EBITDA grew billion. quarter Fourth nearly XX% $X.X

full year, the For than adjusted XXXX. EBITDA higher XX% in was

our tax to of that excellent benefit tax in global a planning million tax evolving due had This over discrete tax laws, efforts reflect $XXX of Thanks to was favorable we team's items million restructuring the quarter. $XXX IP rate valuation above expectations tax the to due related effective The strategies jurisdictional a quarter our and fourth allowance. shift. international year's than release to previous last mix was of slightly higher and

the our wage quarter profit margins both XXXX compared for a benefit XXXX, U.S.-managed hotels strong performance. maintained despite inflation, meaningful At the and the in and level, in to year, and hotel we

years. surveys customer score highest its guest in continues our intent rise. X monthly our to indicate Importantly, recommend over December, to that satisfaction In score achieved

XXXX, once again model business activities in with $X.X generated provided asset-light Our cash billion almost significant XX% up year-over-year. of by operating cash

was the into after the we XXXX. Our flow amendments be from we roughly companies entered source factoring in neutral. program In loyalty of cash, XXXX, from of payments a loyalty even reduced final resulting card credit expect the cash in to year

about Now let's more talk XXXX.

slower, albeit full to airlift. other as continues demand normalized assumes COVID with year also some around Asia in both to well economy. growth expected from It as reflects outlook as see in lodging Our higher recovery have world international regions additional growing global it a benefit the regions Pacific steady,

be special is leisure rate in and strong the a X% RevPAR revenue, start will to world, slower another January around international expected We're with particularly which demand revenues. RevPAR in growing meaningful still by but In XXXX, improvement continued driven up corporate transient growth demand, off strong increases be mid-single-digit to by markets. in business globally, group continued increase helped reflecting

this International year, the rose and global and X% XX%, RevPAR March for month, X% from in to easiest in the RevPAR U.S. increased comparisons RevPAR and could with to X%. April Easter increase quarter first shifting Canada January year-over-year

full particular and we rise to For X% in markets strength global than remain in higher international U.S. in X% Growth expected with to Canada, RevPAR. Asia year, in a Pacific. the the is anticipate

XXXX versus RevPAR XXXX year fees. $XX million full in change be X% a of of million $XX sensitivity RevPAR-related The around could to

could non-RevPAR-related fees For X% the [ strong gross $X.X with billion X% credit fee XX%, driven fees rise rising by growth. raising to branding to to to residential card full and ] X% $X.X year, billion,

'XX, $XXX hotels. from Owned, given total several XX% and leased we at owned property lower the large of termination to are XX% last in lower a net the to renovations meaningfully sold other and million, to expenses, in million XXXX revenues, termination flipping expected $XXX to quarter of than owned to fourth CALA due managed, summer fee fees

wage from There are are increases. benefit and XXXX flat X% onetime We could offset year-over-year. XXXX expense discrete G&A be expect to to up items few that expected a

year release. Note in X% rate the are our full rate X% first to XX%, press adjusted we to and increase tax and quarter for that be Guidance to core low percent year between underlying our range. XXXX XXs billion. around Full the in roughly to billion EBITDA the expected expect could details remain cash effective $X $X.X tax is while

are by expected first be note few impacted Please items. results that quarter to a

these branding timing being up the in but to of residential quarter, in for result full fees meaningfully nicely the first year. fees non-RevPAR-related expected is lower First, the

manage. will year's in owned Second, properties revenue, this quarter the integration includes year net renovations from property owned other and several that lower leased of the items, MGM's as while ago to due expenses, as And slipped be G&A first quarter onetime finally, several CALA costs. the to from well of benefited owned,

Our cash again pleased share to combination XXXX in to and philosophy investment-grade and we shareholder shareholders capital rating, through strong capital XXXX. modest with then our excess a allocation returns We're growth in accretive value committed significant to repurchases. expect same. returning shareholders returned value, to a We're the remains and dividend capital the of in that is investing

in The the billion billion. of factoring This XXXX, the $XXX Sheraton time. $XXX Grand year which shareholders of for be capital $XXX in Grand is in another and of than to For $X.X investment a CapEx the cash reimbursed million higher $X.X Sheraton to investment includes million could purchase could total fourth of consists of $X.X liability. historical $X of returns reported majority in million required the vast and billion. for expected previously Full year quarter million over spending Chicago the $XXX the elimination be to guarantee Chicago, of billion between technology,

also renovation sign long-term in Investment and of to for Union contracts management expected our after to renovations owned/leased the is W the are Barbados elegant roughly includes the We'll spending complete. recycle the and these $XXX completion portfolio, for look Square in incorporate and spending renovations. million portfolios assets

As about outside we're growth and the prospects both also mentioned, Tony inside development our thrilled U.S.

to continue of at construction and rooms globally market of XX% X% open under gain year. last rooms with of We end the share

Tony I questions. your take Operator? to are happy and now

Operator

take will We our Joe Instructions] with JPMorgan. question [Operator from Greff first

Joseph Greff

and can what's contribution that related maybe you then hoping the in you costs could your the to the if deal? review license was to you in clarify this transaction And for integration MGM prepared I included comments MGM year. what Leeny, fee referred

Kathleen Oberg

sure. Yes,

just just but that be we all it the transition talked hotel we as QX of license we it's number over a on But over Marriott year. of fee that really done QX. would comparison percentage not reflection ramp -- you we've be is I fits model business expect systems, year-over-year before, to Joe, QX, the that to the in expect amount a all up those modest in franchise on of that hotels coming When and the will particular year. agreement the a give There's a that in So worth related as about think into it's as a about to our of revenues G&A. that now, contribution, the in noting fee result that to will they

Joseph Greff

$XXX of $XXX of billion terms out and clarity Chicago Great. us more the CapEx And out year, gave aspirational investment big a know this million guess, satisfy that? is in and million And $X I cash getting how chunk bit for I then the this and the a detail you of at guarantee. not then the is million that. I all sort there's that of to, spoken some door? Is little spend much know Can $XXX Sheraton of you provide point? the on

Kathleen Oberg

a what That in no. No, QX $XXX help door, question, you is good expect million we would Yes. cash and the to It's understand to clarification occur XXXX. Joe. clarify, But out the save that $XXX a of relates capital to we're million underlying purchase we to considering the wanted of land the really million, on Sheraton Chicago. Grand to investment, the $XXX

transaction. And so the that while we years on the balance established that overall ago, CapEx, liability part of the frankly, is rest a in had as sheet, reflects

is there. So available it does in obviously impact for year, the but our cash

billion to billion, you think capital when really about modest. number expenditures $X And in the quite $X.X it's that of unidentified

Operator

Shaun from of Kelley Bank question a take from America. We'll

Shaun Kelley

could just Tony, hope interest with obviously, on construction maybe a probably if Tony, Leeny, of the for cooperated current just sort cost development start rates environment. just global and little kind the same the what thing of wondering of developers, of -- landscape. the you your bit have state

construction? I only organic for but went ALIS of should Day, months update some of us it's from could you X just at the and, know or ] side So your conversations move give probably and more those sit here Analyst we sense people starting how the big signings what as importantly, so latest to land expect on the [ at into today,

Anthony Capuano

Of course.

world record on signings continued And really well through So for year, the volume both as of month terms we're momentum the more encouraging. it's the the a as conversion on of new the momentum encouraging deal really it's the strong seeing side. in prepared than But projects remarks, as in on year, anecdotal submissions build around we heels else. anything of mentioned first

negatives the I'm from In coming heard and ramble positives out expectations franchisee both XXXX. to owner the their environment little a going that ALIS, are bit, some the I terms and there of because of here think about community we for

the side back the you the get continued half side particularly there positive a be interest that point of sense relief as the ledger, of there we on On as in is out will rate XXXX.

the while historically in gap gap sellers maybe ask active will is to and expectation admittedly, and to us buyers, market as year active in has half transaction environment, is likely the well. news that on still, narrow, for it start There hotel like we is continuing to an parallel in front. more lead, which that between a feels be And good expect, transaction bit the will the always there the bid more back some a of been little the which conversion

about But the franchise we're it's commitments feel a size going success talk They entry financing faucet their that they lenders for that new more to procuring compliance challenging the enthusiastic the that do side something of again, one debt open mid-scale partners ledger, decent about of regulatory in when terms proposed debt. with in of into available of so -- our the thinking When of the the to have our perhaps still on measure to environment, they're will impact you is debt there you front. we that mid-scale, they construction. those amount to reasons pivot the really have of ability like make

Western growth ups we pace Canada would trajectory, attribute. downs and stay And and East, is the the impacted Pacific, the on availability then we're across is U.S., of of that the availability very debt and growth that be of you last the our its you largely seem debt. that of obvious, remind thing I on the look a impact particularly does not while Asia Europe by to the Middle growth When across at seeing focused

think about had a question also I you construction costs.

on. ago. we're expand lower rising year with I'll we they're you When and ago. as the nearly of my I is potential so ago, which to have are we saw that down X the a little most little at maybe as bit year year-over-year a impediments we come talking think growth, about saw think one focused a a bit. issues, we And Construction availability several were answer or severe chain than not debt rates costs quarters Supply about

source new I really pretty most So and we're for front, But on construction that is think the it's area encouraged. are debt that Leeny ability team to the on. focused the

Operator

will Smedes take from with Citi. We our next question Rose

Bennett Rose

I provide those, at that at forecast, metrics are in a or guys of line or might there just return, sort it's like was the when that of expectation to difference EPS wondering, you sound up? your all consensus. maybe for tax look wondering bit you look terms maybe rate lower X versus consensus forecast. think Because any X EBITDA there's of than But something for you else you our a outlook like in a and least better was unit to And would core issue, quite we it and the -- I growth expect relative doesn't operating put there's point year, things to similar capital just of is if sort there? was what in

Kathleen Oberg

appreciate is Smedes, No, Yes. Yes, tax about very it. rate probably the item thanks, when I No, think you much. biggest that.

all, this that is 'XX just extra termination in there the remember of fee. First reality

growth, year-over-year So when you then at look you 'XX. 'XX impacts that look at how over

consideration and termination if the point balls book tax it's rate, rate cash. emphasize we've you you into tax a the that X than about the fee, out and probably book higher and adjust both litigation do so got odd for rather I reserve the of And take performance, a

staying it X about a the global our book tax team essentially that done planning. in thanks the same, you look perspective, it's overall. But great is point has work from higher through when rate at cash Our the working tax to

And you and to those EPS looks you your do you that where on there, close put digits. looks that an from that then is get math double can adjusted together looks something to that and 'XX

Bennett Rose

Okay. the is remarks for large corporate to wondering, just groups. opening That's helpful. your group heard smaller continued just was mentioned we've And while Tony, relative a of to you of in then that kind something some which bookings I lag,

kind the So over about improve more you could think maybe bit a of something could maybe there. expecting maybe is wondering, little you as it impaired you forward? just that's for time? more I and Just go Do just we Or what hearing just you're talk that was foreseeable color future? think some

Anthony Capuano

Yes, of course.

-- And my really, that into medium-sized corporates to we break talked coming a sort I down about incremental But corporates, the the said, robust. out small- in comment of environment. was growth with see large So that coming really of continues large buckets. to let quarter-over-quarter. the is lagging my demand X pre-pandemic comment me corporates continue those about groups of reference to and quite it be business When transient, even out

Kathleen Oberg

to transient be that clear, Just was side. the on

in look before of the is at year XX% a already on XX%. on that is way the ago, we're on interesting the strong that group to On the expecting we're if -- that me, the looked think about side, a is which of group really it's talked very now 'XX, pace, you things books, actually, one where only was And I of -- number. to getting back we still that group some it that as we're is the

for still we're So with group at that 'XX and for the the well 'XX really is XX% the corporate other looking quite this U.S., as as points pace that strong. in it still XX% of actually types out group that,

Operator

our from with Richard next Clarke take question Bernstein. We'll

Richard Clarke

cost. on one SG&A just Maybe the

IP suddenly color it that some Was across And QX? Is bad you at a there? XXX You on the well? just bit But the was why restructuring? just read bridge the What happen gave wondering guidance that little as it whether some do gave can debt. QX. anything did in anticipated higher. you to this maybe color wasn't from on And there from why

Kathleen Oberg

Right.

to litigation and And probably then from fully remember, is reserve. So reflect QX the getting fluctuations XXXX, to you this taken of as back ramps in We've still quarter-to-quarter to, usual process there's deals year. the travel back we largely through everything really were expense we obviously when go closing the the about then timing. which up of that you staffed, being during

compensation just this health together were analysis do the and consideration targets. -- you they then of X%, see you know, put of then reflects next and positions those performance performance-related you reflects really that when timing And at its items really a looking [ your as about up doing And of constant into about company you receivables from compensation fell QX year, QX. the And flat around we're your takes all of all that the think talking versus when ] is of in world number hotels there, again, some there to which year. against

Richard Clarke

That sense. can if just I a Maybe Okay. ask follow-up. makes

XXXX guidance both X-year to midpoint. Just net that that to going of you're of Obviously, of the stack anticipating, and get to to into X. get in drivers at RevPAR unit growth guidance CMD, they're accelerate X, the what the RevPAR Is you to acceleration gave kind for a XXXX? of X those X to to have are

Anthony Capuano

Yes.

I'll maybe Richard, NOV ] question [ take So first. the

as early at MGM is the bit is and we that, into at into you [indiscernible] into consider to the more together ], some it withstanding sliding As a single were multiyear of look coming [ of the that, little a growth best In 'XX continue rooms instructive back a period. we from 'XX to less slipping ways, illustration over MGM think in 'XX. talked system to much Miami, not look NOV we the when year constructive

unit As growth. little anticipated 'XX at ended you know, net a we higher than in up X.X%

be be deliver the we mid-single-digit year ability X-year we we about to that of at to analyst to the of that to the our MGM this X% the when conference, And higher CAGR We at impact at because openings. X.X%. meaningfully of security continue range number confident expect a very discussed look in

basis, of macro clarity in a not any and outlook. little have obviously more more changes visibility on longer-term major We just into we've year. our terms a this think I Then made

beyond [ world RevPAR really and all through perspective. their Now not what revisited the on numbers, the ] anything talked about 'XX be to in have gone quite confident a news from continue but we've we

Kathleen Oberg

a security is we do at process, help to the meeting understand just the it's what range and when reminder through analyst from through budgeting a done a that perspective, to the lot trying And you we go of a before go process. we're modeling

actually, ended year with as right and seeing we So where expected you And growth both a about really have we a strong XXXX. from into we're as to rate very we when up we're occ in in know, we revenue look 'XX. and look the at on system, overall that it hotel be the would our side demand pleased

Operator

We'll Stephen Morgan take with next Stanley. Grambling our question from

Stephen Grambling

bridge touched versus mean, introductory know see the to management continue on franchise you more essentially, room the beyond the to MGM I but and ramp? should due could growth? how may about in with help what the gap mismatch fee that that a is growth you us the pipeline? remarks, I thinking you XXXX do this is RevPAR growth and gross Or it contribution

Kathleen Oberg

Yes, an perspective. from definitely not MGM

the model broadly, think had We a model fine. works work fees from actually still really as anomalies talked going you scenario, very But RevPAR continues getting in as across as growth. on IMF from board RevPAR you're about got benefit XXXX. you we continued that, strong IMF. fundamental the And in of together well it we're you plus the We've fundamental putting growth the to saw, the when reality talking I about rooms when think about the the well. about, of think couple as

in expected fees grow course, to non-RevPAR the that our to of XX% then, And reflection are X% XXXX.

expect growth and we've of about algorithm than talked fundamental to fee I So kind different the be don't before.

Stephen Grambling

from Great. which September. we changed And very, in last follow-up around about the big other Day question, guess I Investor then to maybe very was algorithm? think as quick picture, multiyear just now that one the to what's

Kathleen Oberg

equation. higher 'XX And ended think up guidance high than of I ended $X basic in you in we very I gave, frankly, Security being gave by what would of say strong. the Meeting, the that million. little, the very mean, we about Analyst we end terms up if the

starting lot were that are at And a we're growth and you a X-year continues you plus XXXX. net leverage, numbers more we some fundamental Security the the about talked growth, about RevPAR base. able over But give So to to work. time about of a now specificity then off looking, the Analyst rooms we're higher again, being with frame, Meeting operating

best given One is we interesting, as I when fees, do fluctuations percentage thing which I sell number think, the that does I business, fees the G&A back at down look fee-driven is, under and is, owned/leased we of a having out that gross to which, think around a G&A in you XX%. that are close we've think leverage at we're the of you of show being you the hotels, relationship the in [indiscernible]. look as a XX%, as to percentage show that And continued numbers getting that given operating dropped today you XXXX,

Anthony Capuano

by never that final. efficiency. with while team, a that long success a being very a almost continued that us And focus an everything That we phrase time, on there's that you know is guides ratio, phrase of improve to those area rest that G&A build little we just leadership are a for been as as might the improvement you I you senior for can bit. towards eye have covering do. the for encouraged And the continuing And principal assured in

Operator

Beynon question Macquarie. next with from take our We'll Chad

Chad Beynon

question I ask to kind a of chain I RevPAR to wanted guess, the guidance, related looking scales. at the

guess, that's the seeing of the kind the strongest fourth us be would I consider which and on we're premium, in you some of continues how what year-to-date. upper quarter So to based report, and upscale, third quarter,

you guess, view you're upper with and As segments, versus what pacing? will kind upscale And a the a in XXXX? do lead seeing some what have of room of increases upscale about, luxury for there is you in think of given group terms ADR upper of I still other lot

Kathleen Oberg

Sure.

me comment So things. on let a of couple

think grow that the is to in not in at about special us at continued talk rate it's faster. rate corporate 'XX, in And little XXXX segment we that growth 'XX. And high when bit First that single-digit of kind levels, in margin, you've demand. it strong growth building to, while we of about segment a of had mid-single-digit back we're and all, heard looking rates, continuing

that, and is that group of when the I absolutely ADR, -- you XX%, plus ADR. I that rooms is say, between as about group look think rooms that probably at which would So and strength, X/X pace X/X, the

very still seeing growth there. So some nice you're

think, So segment beneficiary demand. to is, in that increase I clearly, going the biggest the premium of be

segment service that On I you've one of you that but of the of We would has COVID of towards just that out really select some fastest benefit and moderated, be that as Steady the not the get expect really this the to come the mentioned. end Eddy, side, year. saw seen things

then expect we well. see continue And to really continue luxury to do to

is tiers. mentioned the you there the think probably there, rate ones both highlight and X as are I to think opportunity areas so about And I the side. the on occ before But

Anthony Capuano

Leeny. I last build luxury that on might And comment from

luxury fourth And our a about in fourth basis, and lead in my up global heard 'XX quarter from luxury versus we quarter saw footprint on remarks XX%. extending the 'XX a we opening have perspective. momentum You RevPAR

compelling and are And seeing terms pretty our in so excited of economics segment industry-leading growth we're luxury the about we the continue see footprint. to in

Chad Beynon

at IMF end the year, during peak? versus then American of percentage the the were properties, a payers And housekeeping. year maybe it. North just what Appreciate

Kathleen Oberg

Which like do gets full it. that work little a year? quarter This -- you year sure. is but And for in Yes, 'XX, let's would do prefer? the you complicated, or

Chad Beynon

exit the massively different. unless year, is Yes, rate

Kathleen Oberg

Yes.

U.S. versus XX%. in So year the Canada for full and XX%

there's HPT hotels a service However, in there you the as portfolio as the a was change result our really, big remember, of limited leaving system.

So hotels our full XX% in of change limited hotels But XX% 'XX. in services, in service full-service longer are earning in 'XX 'XX, of system. our those XX% managed U.S., at peak, the hotels really versus the big XX% were in many IMFs of no

it Then in when XXXX. it's overwhelmingly quite as was when really international, to you look at similar

service limited XX%. at adjust So XX% discussed, entire you that earning for And are it portfolio I if versus the was XX% XXXX. company, that in 'XX, for IMFs,

really quite And So as is levels. said, same was it to as we're really the 'XX. international I in overwhelmingly getting similar

Operator

our Barclays. Montour with question take next We'll from Brandt

Brandt Montour

Tony. for Maybe

China on that Just baked you the ago? curious guidance in ground what's it momentum terms China of of momentum X the or changed versus in months of in or terms openings answer the X going into now could qualitatively? in opening Has maybe sort development today, market

Anthony Capuano

Yes.

of continue to I we're of the quarter we ago, that X construction. signing, volume compelling we China under the we're projects volume MOUs deals a or pause would terms intake, that So in paused call we're improving. side that talked as new the both pipeline in those we about what momentum back projects the of of the volume, development seeing in opening. see terms towards meaning just a construction the across saw And variety moving of vast But driving of opening during on pandemic, majority the

trends encouraging categories. construction I So in we think early deals, X approved all deals and signed under those pipeline, and see on will, of you if

Brandt Montour

That's Go Okay. encouraging. ahead.

Kathleen Oberg

thing at rooms in growth both Asia think Asia add overall China. 'XX, including single is look we're our and that looking Pacific and China frame that high 'XX that kind helps just at, of and in Pacific, of in outside we're your I'd when the in one question, we I digits,

Just across for really strong scales. brands various demand the our

Brandt Montour

on sort when not terms think new think back U.S. because of Or sort think debt of do pocket looking harder that where be air do thinking sort a to Okay. development, new And 'XX question, and on reflecting then hotel a of you follow-up also of do things openings 'XX? to back this when planning? an just about formation offset? starts. Is in capital 'XX we'll was longer-term you something of that weighed and that of we on you come year or on do it's your you be a just will longer-term as and 'XX about there's talking 'XX financing is hotel as How and get -- by about meaningful other

Kathleen Oberg

No, good Yes. a you I think point. make

environment, get bank uncertainty Tony for around build financing doubt of And talked strong the regulations, of that question is about limited. et in the you've but about financing the got it, availability brands cetera. to there's capital his most As response some the new hotels no construction

of of in So was the pace it is down kind meaningfully new from clearly that build XXXX.

our a the I in good I of we room continuing. look think as an is kind yes, is and of U.S. a to have side up But has on conversions that the percentage of bit the what air we're that meaningfully, signings seen gone that pocket seeing you that forward hope and case that

as as new same which of construction dependent. about, side. a has the the on U.S., As will out we lot outside I U.S. the Europe, build not also call characteristics talked the

we But we're ability those what really start shovels seeing with on and side are ground. demand in StudioRes the the to getting pleased

are that construction we up start the the as strong, continues pick ability side costs, well as And to that very as to so be financing there, see demand you'll pace hopeful improves.

Anthony Capuano

from mid-scale. on there's -- to enthusiasm each a It's climb a think And from and our is community. There that might comment help a talk tend financing just about what over a demand with think will I navigate the market developing We franchise build challenging Leeny cost partners We other perspective. still about appetite mid-scale. mid-scale environment. our is I to tremendous opportunity of deep

XX talked towards to first about partners expectation there the trying in a months. an last quarters, Fort months it number thing other a for you'll construction an opening in shovel recall is of we the most of broadly, and in XX Myers us, select trying hotel were cycle, with the putting I lengthening exciting And service And in to down eye at about in that our Leeny talked the the both that of StudioRes. get open ground

and than the ground into financed, more midscale. tiers lot open for deals is seen so ability quickly to enthusiasm in our shovels in portfolio, And our get of the in signed, with we've what entry our mid-scale shovels other a factor -- another

Operator

question Kopelman with take next Cowen. We'll from TD Kevin our

Kevin Kopelman

off, large talks, the the to outlook well partnerships the about other think starting deal what's your how akin MGM deal as MGM pipeline Given you for is going forward?

Anthony Capuano

Yes.

at Las heard is league anxious So event like past weekend around that what left the one, accommodate for that, Bowl, of likely was the city our make Leeny and Commissioner couple at get when the to I about were look the market enthusiastic able the both members. the in I'll look how offer Super and talking an a Vegas, our you Las you comments. vibrancy guests this this so Bonvoy effectively world you I Number of how really market, to NFL to of us Vegas and back partnership think about both to is going

as terms think activity a we announced us is the for In question, we specific in multiunit lots about your us. in for continue talked when of transaction, is of but conversions, the category creative traditional you I will opportunity it Where to of conversions. see

terrific quarter our Vin a the in a You partner with heard conversions. teams about ], on [ multiunit world talk us a called of a Vietnam actively ago conversion around working number are multiunit and Pearl

those themselves, MGM MGM to sleeves extent, the We're a roll of Bonvoy. itself we we'll sorts opportunities it. And sense does make about To opportunity for if we certainly presents what if and open unique really can pursuing. I think like up our see excited are present of

Operator

next from with our take Baird. We'll Michael question Bellisario

Michael Bellisario

allocation a sale, reports more pencil trading the interesting brands front, a any handful tuck-in particularly smaller any M&A capital Are stock the does just on there's is few today? to especially of been worse, domestically. or your math relative better seeing for opportunities? you And Just where

Kathleen Oberg

been the willing said questions. our for a as very great that And to consistent message some entertain about being we grow. have way really time, Well, we in long always we've

way grown world. in growing terms the successfully, brand organic new tuck-in well around that growing brands, We very both acquisitions of have as as and

that. will We to do continue

price paying for We terms well existing as the distribution the are in stay both as the there going looking be opportunities. price that for to also growth in at disciplined of you would

price. aware something add mid-scale way could really us our City of was enter is in looking where the like at at really attractive to Mexico, an the deal, tremendous it a we certain space a Express unique a world, portfolio, really of in reasonable to are as market part something whether with We for the absolutely did that

that, hope very at that at say know, that time, elements. we So in in the depends I sellers' you got all regard, remain see opportunities as as we're to looking you look there over those and disciplined would we And think I all before what's have what there, going expectations that for. much out looking to to continue them. as they're of be to the

Anthony Capuano

Leeny's I'll just build on comment.

pace where platforms, at an we continue adding or in strategy fill in our I will a think growth they with not is of a but brand this accelerate historical our organic growth, the and us we're where think acquisitions about has blend new our also a our opportunity that architecture thinking geography served guide happy of organic of launch that strategy looking platforms. well to considering

of acquisition, has we which the AC numbers XXX I And Marriott, between It's and open platform in pipeline Autograph, we last pipeline, the that XXX and interesting, platform was nearly at space hotels. scratch, a hotels. or some hotels, that time Spain, I was that looking more was think, at today acquired by had have XX in XX we than between a which launched open from night. soft brand

look And to add platforms and continue to we'll so there the to are a at compelling variety portfolio, both. of strategies

Michael Bellisario

versus just And quick similar thinking look the That's you new there it. the one expect What's owner be then owners? helpful. on profile the of midscale. to Got And brand? about existing new would for that mix franchisees follow-up like, Marriott mix

Kathleen Oberg

twosies working welcoming great the think of what terms of the A stable similar. I new seeing of what I where call very Yes, mix. franchisees. and onesies some say, of owners in StudioRes, our when about owners blend we're But the into would been Always and to of the long I part ours partners expectations in of would with a of a say very for in been I kind the market, StudioRes reflect wants successful them of build particular on is we've the multi-unit a time. there, hotel and somebody who space many

Operator

David our with Katz question from next take Jefferies. We'll

David Katz

I I drill may. I bit wanted to into just conversion a discussion, the Okay. apologize. deeper little if

Just looking at of percentage the pipeline seen what elsewhere. your we've versus

new what's If pricing, such talk for change it. whether yourselves. there's whether about coming among with or It's any from, are geographies, where an including you important in a are, change those the past could in more discussion so landscape the what there's the been year everyone, strategies

Anthony Capuano

Sure.

conversions constricted, somewhat in construction importance markets growth have is our part the story, where of the conversions debt an climate So of been important are always for new a elevated.

As in and our the signings conversion XXXX XX% category. with numbers the of we in compelling our talked about in XX% openings of really opening,

in of soft of mixture coming of of are well. conversions conversions number last from Tribute. as terms They the A a over coming project, type what Autograph stack from brands other seen Lots world of Collection, with the of independents compelling brands and years. pretty good typical such of and we've Luxury of with

Pacific in been for perspective, necessarily shift but geographical in, some instance, seeing a uptick From new we strategy, of markets, activity. we conversion disproportionately Asia are a which the in seeing some are build, not historically had

Our pursuit the deals is opportunities mentioned of in like resulting and conversion in earlier one it's deliberate, Vietnam. quite I

Operator

our We take will Scholes Truist Securities. question next from Patrick with

Charles Scholes

bit XX%. the of But Day from of if step are expecting up, in, card step-up sign-ups It think it than drill looks little up like lower I X% Investor XX%, a that specifically the to understand actually, primarily I spend? said from expecting correct, or credit you XXXX, I'm rate growth so correctly, you same down for little is that more you're new fees. with which, user I a to card a a on want step which bit big sort in if

Kathleen Oberg

Sure.

to in So growth The is grew to the first different would 'XX difference fairly increase overwhelmingly of cardholders. to them They function 'XX, 'XX. of be all, and in between across and I of rates That very XX% similarly expect in clear. to a credit 'XX expect between kind the not I want of do number the cards. X% would we be

number really point as a really we've an I'll we've us As Bonvoy that of in credit of you've the cards been credit And talk markets, example, in out the We program Japan acceptance in just successful quite heard expanded countries. of bit. about, wonderful really a adding seen some card.

typical small So say from overwhelmingly would cardholder in having additional really those in then respect, growth -- the And spend. we a overall, to comes a very fees expect that additional amount related I'd cardholders. that

you dealing things Now open when when occupancy. for residential I a I gets because those fees, units fees bit little it where think look you that's were see to at residential like with overall tied non-RevPAR where branding interesting,

they're lumpy. quite So

to to 'XX, in 'XX So branding we the than actually as that we QX I full in we very see them the meaningfully 'XX. lower in while overall over seeing explained in year expect do in growth year-over-year QX be fantastic expect are business QX, for And year, well. fees for

non-RevPAR the So when grow to sorts overall another fees, of at numbers double-digit for roughly we're year. you look about these excited see continue to at them

Operator

And will Farley with we UBS. our take next question from Robin

Robin Farley

I growth, Circling around know to you've color and unit given a of the back Great. great lot it.

And of X% CAGR in of that the up, looking 'XX X-year and MGM, it's think 'XX excluding quite the known, that Just ex in kind when of kind excluding up you've guide range. X% at of to wasn't so kind range. the is the X%, X% of given at kind Investor today, implying timing the Day, MGM, be the I 'XX would MGM

year. growth X% So maybe X% expecting an acceleration to next to

know about higher be And just wondering, conversions I you will that. the likelihood that a percent of talked

that be agreement, that the China some basis over in the agreement how put franchising timing points year? X kind of could franchise you entirely I wasn't a don't around be acceleration year. help that adding, if be us to next color the I It expect tell was would of guess potentially could I acceleration. a you it the like wonder driving announced Just of if XX whether recently much clear. also kind next You it know years

Kathleen Oberg

Sure.

of and to hospitality and to -- hotels. feel me Tony, opportunity really we we're we're about let the they're at didn't large But excited some a time terrific actually there, our a Delonex let's first more talk do to China, relationship the which And where I'm jump give to frame. a about convert company to color. free number in having [ add forward looking ], point, last So first, then, question going in

we as China normal at So would our as in look rooms of and it be growth just part growth. our overall

points associated a Tributes. hotels with those kind of number of a basis particular conversion of into of XX, XX specific not sort XX, XX, there's So the

again, part We but about opportunity, of our it's excited rooms just really them on growth. are, with the overall working

As the as and in in the is which, That's brands. said, high great deal for Delonex that about seeing ] the 'XX the again, China of Delonex very -- desire I talking where 'XX. you're just in encouraging addition talked move [ the a in reflection And Asia are growth both really into our what signings single I to [ is that we're we to rooms in deal. Greater about digits, ]

about go comment, you Analyst we that lumpy, the basic to rooms to do. can it's deal it's said kind Meeting whether is to back that whether deals have conversion Express, be for think When earlier September, that you growth whether ask of City the MGM, made Security really relative these it's a in his in we Tony what I large

that excited to And and about. be so you X.X% really need X-year to think about to continue the confident that numbers we which CAGR, we for gave X% were really the

the on up X.X ended 'XX strong a net really demand And to reflection we steady brands. X.X bit a the that's little range We that than higher for our our gave. growth of in rooms

And see the were and SAM. the of as MGM be then openings, we we essentially again, of we that the turning at solely actually from kind where to it then at context as pipeline the the same when have not at look it continuation these being X of So our within back rooms year. looking you into

Anthony Capuano

conversion were being Robin, expected of And some signings you And conversions. when conversions. the openings in embedded And XX% openings about you logical. that open year XX% MGM, about at other our in mentioned Even openings about conversion being if expect volume. only we last think category, in we think about 'XX the our of those the question to XX% ex was that's I 'XX acceleration look

Operator

turn over have closing allotted to I back for additional the would now questions. call any or our time Tony reached And we like to remarks. for

Anthony Capuano

interest always, you again as Well, Marriott. thank in for your

we XXXX. of all forward look on 'XX Tremendously And what road. 'XX or coming We the off seeing you about holds. are Safe terrific to travels. in a enthusiastic year

Operator

your today's conclude participation. does for Thank conference. you This

any at time. You may disconnect

Marriott International (MAR) 13 Feb 242023 Q4 Earnings call transcript