MAR - Earnings call transcript Q1 2024 | Marriott International, Inc.

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Operator

Good day, everyone, and welcome to today's Marriott International First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note today's call will be recorded, and I'll be standing by if you should need any assistance.

It is now my pleasure to turn the conference over to Jackie McConagha, Senior Vice President, Investor Relations. Please go ahead.

Jackie McConagha

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

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

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

comments all we reflect events hotels, today in constant for only our comparable refer period. the the results actual changes press system-wide otherwise release issued updated be rate average Unless stated, revenues RevPAR currency and year-over-year occupancy, comments as and unfold. Statements comparable today not earlier level changes to our and for will effective daily and are property

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

Tony. I the turn now, over call And to will

Anthony Capuano

a Thanks, around great everyone. is Jackie, solid to world. XXXX and continues start, experiences off good Marriott the to as travelers morning, deliver to

up global First XX%, points X.X% XXX nearly X% almost with RevPAR reaching basis rose and quarter ADR increasing occupancy around year-over-year.

our to leisure we growth transit. our While RevPAR Once RevPAR overall X we market hotels. industry Group, global transient continue across all gain of again, our across segments, business RevPAR post-COVID, normalizing and of share is index and portfolio increase growth customer saw

XXXX the strongest Compared transient room rate. accounted global X% quarter worldwide the have ADR at Group first RevPAR room which worldwide growth pacing for in X% year Globally, of were X% Group X% year-over-year nights was in remained first the average to again nights quarter, quarter. XX% XX% in customer and up Leisure leisure a room the resilient, the Group, rise quarter, ago demand Full with and the rose end of RevPAR in year-over-year. remarkably revenues globally. increase a comprised daily leisure both nights X% segment. year up driving of

contributed Business global quarter, in had the which the remaining transient, nights RevPAR. in of X% room XX% a first increase

We are of systems, multiyear transformation reservations, and our management loyalty. making progress great and on the X major technology property digital

this year. how rolling to systems new we're shop experience. properties transformation, out the Bonvoy the further Through enhance begin to expect efficient expect our through Marriott cloud-based strengthen elevate we to operating channels. experiences We next opportunities, and they still revenue both our customers, digital customer most and matter primarily enhancing In unlock model, digital and the that meantime, to new our associate

globally. nearly celebrated U.S. of nights XXX recently at the around We the quarter in first of added also XX% room which record the Marriott global the XX% million X-year million members members Bonvoy, at Canada quarter X March. during the penetration anniversary and in of had and Member highs reached end and

in concert Marriott to Marriott and Swift encompassing offerings travel collaborations through experiences its also and has as performances. of unique, Bonvoy brands a of and platform, a XX & a Eras such Since member become introduction, Homes co-brand Marriott properties other nearly across Ritz-Carlton Marriott travel to range markets and Villas evolved benefits, X,XXX modes, portfolio Collection. and including broad numerous than XX more by the Yacht including access and additional Tour spans cards select Bonvoy loyalty counting Bonvoy credit Taylor curated Bonvoy

net development very platform new across on a added daily on busy our Marriott their U.S. the traffic of We a other launched Collection continue lives has ways first growing last quarter on available we with XX,XXX and by now X.X% the year. cities to with the churns. with our now system. MGM and ahead, end Las rooms, and Bonvoy their had key record We enhance Vegas connect members front. our the to XX first compared Looking focus distribution quarter to properties in in

While been early contribution, booking outpaced we've Marriott have days, both pace which Bonvoy the with extremely it's and still pleased expectations. initial room

optimism and signings challenging, environment still momentum after financing deal global Europe a the notable have While full in record Both in APAC and had Greater year. production have the China first the tremendous strong quarter. is for we the XXXX and U.S. in

Express the in X.X%, the addition open excluding City and including driver of meaningful first rooms of our growth, multiunit to be XX% signings XX,XXX of Conversions, quarter. a our pipeline rooms. global Year-over-year, grew representing Continue opportunities.

brands, Our are new by Marriott, StudioRes Express Points Four Express City developer significant interest. mid-scale seeing and

CALA Earlier region. we brand the we deal acquiring this City deal the first Express the across and discussions year, properties in signed in since region for other our are multiple

Turkey also first have other in in Points Four have and pipeline. our now opened Express We the properties

also are be hotels a this to We a year. added signed mid-scale deal that expected more dozen our our in to recently APAC, than of the first later portfolio system

& have commitments for on Canada, we around working actively U.S. XXX for XXX deals and over are the more. StudioRes In properties

next look a we region. the details Additionally launch, mid-scale in unveiling about in brand to conversion-friendly our a exciting forward brand month, on

year express amazing my As all to their always, want associates of pleasure to and my It's traveling for much to work speak time our associates. I this and a incredible I've hotels our world. the hard with been of around continued of gratitude many visit spent our dedication.

our resilient international the her are our the capital further discuss of strength Leeny? and global portfolio, As XXXX the returns full on and earnings we continued diverse back Leeny review, rooms guidance continued financial for our demand will of of performance our travel, raising and growth. year now steady part as strong

Kathleen Oberg

Thank Tony. you,

by Canada Group RevPAR global in demand U.S. X accounts X.X%. led in flat RevPAR was improvement & XXX strong weather. the most top Leisure Canada, warmer quarters. X.X%. quarter our abroad large to U.S. the U.S. the Canada, going more with customers business was where corporate rose has seeing first with RevPAR in in & Our rose normalized, and Growth & sequential the find

Our the in by given negative the that Easter, was region business before The basis of growth on to the XXX Group due we quarterly less timing booked impact the impacted RevPAR points. roughly holiday. travel March, RevPAR and negative in was month's results

Of course, April's impact a favorable in we expect similar RevPAR.

RevPAR remarkable international China airlift macro and First cross-border by Growth sustained strong an quarter international improved. XX.X% led by growth increased in in helped was APAC, RevPAR and as from XX%. leisure business trends, Mainland uptick a especially demand gain

January quarter, coming with demand China grew most RevPAR CALA XX% the largest from outbound high-income X% RevPAR Greater February, rising increase months. weakened leisure markets. travel and EMEA with in in in those a strong from rose was nearly growth U.S. macroeconomic Demand while growth XX% after especially the bit a and growth the slower X across with and for strong travelers. Year excellent our in more Chinese RevPAR experienced New XX% of

gross growth [ spend grew above First higher billion. rose RevPAR, our rising to by XX%, revenues fees. quarter significant higher card expectations, XX% and credit ] $X.XX year-over-year X% The card rooms were and acquisitions the XX% fees co-brand reaching our Global were card $XXX & total fee growth driven in the increase Mali. card X%, lower offset fees, a in Canada, in to international in increases IMF, Incentive U.S. programs. in each quarter. by rose Significant first due international part million management of decline or in regions our reflects

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

Now let's talk about full our year. the for outlook

X% RevPAR a is Global of revenues expected revenue, improvement is and XXXX outlook X% demand current X% to year. By segment, strong leisure grow full macroeconomic slower be travel business trends. transient anticipated in quarter and the customer another Our still of and driven but still continuation sturdy revenues. to RevPAR still to for X% assumes year in in growth second growth Group continued to the continued growing by

in growth markets than expected international RevPAR Canada. & to higher U.S. in the remain is our

While Canada growth guidance year and and expect expectations, to year-over-year now our RevPAR RevPAR global growth and China. prior full we not lower APAC, in is changing the in Greater CALA higher EMEA U.S. & compared RevPAR our

of result, to timing. RevPAR grow we to be growth in Fee expected and range. Easter the are second EPS In raising a due primarily regions. year our X% from international adjusted to X% the benefits from is EBITDA quarter, [indiscernible] As adjusted higher full expectations, our

owned, the prior Our than a few other year leased largely ago year, lower and revenues, expenses, are a net be to anticipated quarter. as of in items result the of favorable

RevPAR of with to X% to X% fees. residential be non-RevPAR-related in fees sensitivity growth. card $XX For branding versus X% the full X% $XX by strong to fees XXXX around XX%, full could RevPAR billion $X.X could credit now change million year, of a year rising $X.X gross to rise million to The and XXXX driven fee billion related

X% items X% total billion. and $XXX $X year Owned, expect G&A are and that onetime wage to X% that to could million. are roughly now between We of a leased increases. could there net to expenses, revenues, now X% rise EBITDA expected year-over-year. XXXX discrete Full few million and to now Recall adjusted offset other XXXX benefit to to $XXX expected from rise billion $X.X is expense

is rate expected above just be effective XXXX Our XX%. to tax

XXXX full is of still growth We to year. $X.XX. the to adjusted net $X.XX X% and EPS anticipate expected for now rooms between X.X% be

'XX growth rate meeting last X-year to of compound at confident Additionally, from annual year-end the X% investor to year-end XXXX. remain we X.X% in net rooms we year's discussed

more year For details second and full release. metrics, please press our quarter on see

investment-grade allocation of philosophy a returning accretive a share to rising growth committed through same. that and dividend repurchases. remains shareholder modest our We're rating, but value the to to then is Our cash combination and excess shareholders capital in capital investing

given cash Sheraton EBITDA $X.X quarter $XXX shareholders our adjusted billion. in factoring returns of between XXXX, the Grand billion Chicago, and fourth to For capital could required $X.X for now the the be purchase in higher expectation, of the million

vast over total is to expected to includes spending Full investment higher historical majority still expected of than $X.X in investment another the reimbursed This which is year billion. to year billion time. technology, be of $X

million million Sheraton CapEx guarantee spending is million $XXX liability. expected $XXX million our incorporate consists for recorded the of Investment elimination a of to owned roughly $XXX Grand the lease Chicago for also previously of $XXX reminder, a portfolio. As and

It contracts includes the sign these fabulous elegant Union long-term W for as the after complete. renovations ultimately recycle Manhattan. Barbados management spending We'll and as in in assets the renovations are for look to well Square portfolio

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

Operator

first comes Our Instructions] Bank of from question with Shaun America. Kelley [Operator

Shaun Kelley

in comment about to Tony, the seeing or Leeny there incremental. actually the slowdown love little you're was bit. I a remarks on dig thought in prepared of Leeny's China I'd some

are you Tony, And feel. in just I'm at all If a So questions over two-fold. One, could of you've a that sure that into April? kind give been real-time of us little region. my seeing continue bit probably

is the by, into broadly cities? down So maybe you're help it any of if across in of importantly, Macau? some could you Hong probably this sort as development what Kong, secondarily, seeing translating is on then this more this of front? break us Or is the And

Kathleen Oberg

So answer Matter front. Greater for China as has of because as in latter let a me first on the of in matter. had impact we to that's well very point development easy out, tremendous the absolutely quarter signings actually that no pointed as and that APAC the fact, Tony out, part quarter first

So brands continued owners for demand really excellent there. from and our

for QX fact increase of that that Greater in domestic of QX, February strong with you've in all of seeing January and standpoint, a Chinese the and each coming domestic year from And really last From Year, they out a the were reflecting coming demand, Hainan, as stunning interesting in tail little New COVID. a China, also a little in was had demand Shaun, example, month. but we're bit

actually almost in Hong increase more very the Hainan it quarter, we about year-over-year, RevPAR QX. And had So restrictions, RevPAR Kong although think and Macau when demand. relaxed with decline in for in had then you in full a strong much XX%

macroeconomic The strong they where new super we think have is the as strong. strong. I overall impact where very Tier in Shanghai, really well. we the cities the seeing cities as It's Tier So did wasn't quite interestingly were of you Classic it in China X picture where March, expected. Beijing, really X were Shenzhen, saw, might

quarter we But the view RevPAR China. that strong situation again, bit strong than for we year, RevPAR bit for X%. a that expect mean Greater And RevPAR of still full overall, little yes, nice still a China lower Greater But at macroeconomic there a again, really a may is the expected for ago.

Anthony Capuano

feel not felt we And Kong, statistic. in I world, does I was And it with Shaun, to it qualitative Hong and better there try balanced to underpin ago. observation visitors it while was I you, accustomed only when maybe was I I'll a I with than in Macau. in maybe year international the Shenzhen, as share as and would recently. certainly was was there populated pre-pandemic one with were I

And first the in of XXXX. same Greater represented fact, quarter, XX% in That if China. you our look room XX% about nights guest quarter about at compares in back international in the to

it is visitors as that steadily But represents So for is seats China. more the of and to return over availability steadily. more upside I time, think us improving and airline international some additional improving

Operator

Our next question with Grambling will from Morgan Stephen come Stanley.

Stephen Grambling

Would love the on clarify things a just to couple of guidance.

owned of and guidance. And the non-RevPAR-related is too. then parts would On I to moving as there increase hear Is side, to any that the change contributions? the about Or fee the IMS? we lease all for just the love some increase on think

Kathleen Oberg

Yes, sure. Absolutely.

of one this an ones as of this does in not X% our non-RevPAR-related international the increase in prior -- really in we increase essentially last to not the talked would do increase about Stephen, guidance. year-over-year growth So expect about still really I from from the XX% that again, is it's the say, do not those IMF markets. those does and going fees. We reflect XX% from is strong increase an entirely our in first, fees overwhelmingly to I'm but fees,

managed year an paid XX% you the it XX%. just and give was and XX% sense. a IMF was quarter, almost our hotels APAC, ago tallow, of the A And international first it in this year the first first to quarter, in of Just XX%. IMFs quarter as our again, example, in in was in

increases. saw So nice really they some both

So the non we The clearly of outperformed remainder growth space. RevPAR-related fees. particularly in the reflection IMF of really is growth a

as For have Asia we're in of in cetera, beverage you fees example, but new the When from QX. obviously, fee ramp-up in growth you et there our well segments also think the outperformance strong really hotels, Pacific. getting sales, as and about and where when well. international a fast-growing getting [ nice very and waking ] IMF as the that's hotel up, we're is XX% including food

Operator

Our next Joe Greff comes JPMorgan. from with question

Joseph Greff

outlook seeing customer through remarks, growth. your year still Leeny, went in X the your 'XX and going full positive leisure prepared but talked segments through you slow RevPAR you main about

I the growth on worldwide think for U.S. basis, baked leisure RevPAR global that the balance what of was a in year? for

Kathleen Oberg

would full the home the see generally growth, hitter. at we being positive. leisure for end. continuing the it speaking, towards to well we being speaking, up is so Well, put do to relatively progress. but and run still lower end lower I do see the going But BT year, of as Group the be Again,

of obviously, know, the weaker Joe, March. you As QX, BT of was because month in

a on X overwhelmingly from can, ground. our year, we to question hotel in But there continue the leased for when owned, portfolio. is stronger Shaun's I BT which back owned lease, look we do it guidance gain to at expect increase performance to And if international I'm overall going the and for answer in go second

your going make question to asked answer before. was hijack there I what to Joe, sure I Sorry, I'm

Anthony Capuano

further leisure And are & the the question, I of broadly we're demand think, answer Joe, to to differences global in in patterns the leisure U.S. seeing we're Canada segments. across relative your seeing reflective

giving, shifting you look guidance RevPAR bit. guidance, we're we're little If the it's our a not but at changing

continued but in applies increases the that international on more your little & And to the I markets. think leisure. normalization in a in U.S. Canada seeing question the We're strength specifically

Joseph Greff

Tony, deal. your comments about in MGM talking Great. I And then, prepared the think licensing

it's extremely measures throw maybe means? don't occupancy? used bit details the of Any kind talk words, little would helpful. share and be -- of And you Can kind I pleased adoption you expectations." know, or of that what We're think outpacing I if specifically a "

Anthony Capuano

mean Yes. Not yet, them I it's Joe. just We on I brought the think so early. platform.

deals some these from safe booking else. it's both So about it's sorts perspective days. years, have to think the penetration. our Bonvoy start over we done expectations and those My And those in have more MGM And say friends having anything traction I of than will been to about and from talk early how we'll is, as do get the expectations deals. guess on assumptions we But Bill, exceeded quickly at perspective, volumes Marriott's well. it as anecdotal make parties their

Operator

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

Charles Scholes

you good years future us I year, this some bit group ADR. a segment? harder do that if could pace can XXXX get you break about by color little give seeing that wonder I'm talk comps XXXX but how curious if revenue out group very looking. both on Maybe a and the with Certainly forward. And and going business is occupancy

Anthony Capuano

Yes.

Patrick, about gains some and to up pace rooms I'll we're give X% So in X% it's both Group into ADR. it driven try up about but up in and is tracking XX%, ADR. you by now, We're a start in demand visibility Right in talking to and early XXXX, about XXXX. about definite

Operator

next Our come Barclays. Montour with from will question Brandt

Brandt Montour

I construction wanted little activity. a bit about to talk

It pipeline up. Your like quarter-over-quarter. went nicely looks

MGM out pipeline. of out back construction the You

a that in sort And longer? so is for U.S. And could on with notion that hold the I starts? the guess, sense latest been any mood through the lens Fed Tony, maybe of there could talk change developer of there's you be

Anthony Capuano

Sure.

some your maybe starts. I the a talk insights then both reverse little order. about So sentiment going on Leeny's I'll pipeline of go developer bit agree let follow and trend in observation. and Leeny I'll with provide construction

some And pipeline. in I her that because X% neither the on think have remarks. the compare MGM, because on thing to that's that if decent the had would are really I 'XX, those of really prepared look 'XX think the me, you comparison QX described the trends of to And a pipeline just at QX the broad it's pipeline was trends reflective apples-to-apples of year-over-year encouraging up Leeny encouraging. were and

Kathleen Oberg

you the when the couple think environment, about I you've think kind going a things got on. And overall of of

U.S. still a lending constrained You've got Europe. certainly in the environment, and

the construction at I increase same an example, a if seen you U.S. is about will, year time so we've we that in in more there though, to confidence for think ago. compared the at in are, picture, starts economic XX% steadier a

nice people with not look really pickup start to as at more forward So volatility. quite positive move seeing environment a as and much perhaps

a recognize quick cycles Tony especially product. hotel a to where the is business again, good a it used to a demand if And that is there's strong long-term it's remind always and to weathering new place everyone, folks fundamentals, are put get as with to this beautiful with economic great going,

So from added that had rooms pipeline the our in perspective, strong momentum and world quarter we brands. good. developer interest XX,XXX We around feel in terms of really all really across the to first

Brandt Montour

Well, that's RevPAR guys you're segments so taking index. a you you follow-up, Tony, mentioned would And any that most as where Is share? quick just then there or helpful. the quick. super regions gained brands maybe or highlight you not

Anthony Capuano

Yes.

certainly, pleased So is premium across and we our RevPAR lengthen that really portfolio. where Index our with the that I substantial the luxury We're an we think of strength footprint lead to [ enjoy the ]. area continue

caveat or I as I RPI give maybe informative decade know is scale have that think would X don't grow, ago. been the a as continues it one you might I to is that our as

now world. post-Starwood We've asset bulk many Particularly competitive the in ] is our where own [ a distribution. got of sets

it's the with a progress we don't and certainly make. And certainly but so that we're track, relevant, as we continued know metric pleased it's I that

Kathleen Oberg

continent as indices is time, seen generally to -- add the it The time. over strongest also at the some RevPAR we see levels within only we these globally look to and very that in thing of pleased the over really are we've that I'll

consistently our it's great brands a numbers the it's of of strongest think see time. that of over sign the I of some and kind power seen to we've that So Bonvoy

Anthony Capuano

you as APAC look world at the outperforming, an regions when of example. that And are the I'll use

you really of in footprint across is a mean leading the Japan, index best-performing to is South us RevPAR the drive the look the powerful our of markets I strong in helping One that performance. largest of some India, drivers footprint. industry's strength there, markets having like when our like market Korea

Operator

with next Bernstein. Our from question Clarke comes Richard

Richard Clarke

if that? to they back stay just How domestic Marriott of a comments well yourself U.S. in those when of does consumers again? travel see up start other become couple Do made hotels if about you tailwind a out off travel in cities? normalizes, Maybe you outbound travel to for with, and that pick China. that the you, hedged begins for Or strong do to

Anthony Capuano

it's Yes, a question. great

I to I of described way penetration, outset footprint for our think us. not we combined to think strength it the answer about a the in I Bonvoy set is platform, backdrop Bonvoy And is comments for a the that records I the with made our to loyalty destinations the environment coincidence and both of all-time breadth of the would travel, the point the the globally. at against It the you penetration. tailwind where U.S. international the does guests create me, in to want

Kathleen Oberg

it And we're the only there, got really add here fact of is while penetration. terms in vary in to penetration And still bit we've we may thing some a back China. essentially were bit And got, clearly areas, the higher. and of kind interesting a cross-border lower that where other I'll cross-border in we

variations is just that as in basically distribution don't And only they from the it's global was find goes, In the customers got overall, tremendously U.S., the our I a of where a within our drive broadly she that in to want really outside helpful the high think big the in we've QX. lot places X% of CALA as that are very coming RevPAR. particularly the of go speaking, change But folks steady U.S. U.S. system.

Richard Clarke

Maybe Great. just as Okay. comment follow-up the on there. loyalty a

customers out the of you? noise terms you think that Is your to tech looking will you're of of bit guess, number has fact is making a relevant in metric And been loyalty any total doing they overall? I engage a a to members. that of One overtake peers they higher of investment that

Anthony Capuano

perspective, drive facet think members. from those we program are that important, engagement platform. our goes enthusiasm our industry's that are breadth about is the Size largest that much with long question, look we a the without of at, have I to it credit portfolio much having than we Well, offer my of that. Engagement of is But card list powerful the drivers me course. loyalty through large, deeper to the a metrics we experiences engagement our important more of doing and and growing work of the the powerful through members, on

Kathleen Oberg

the value sure penetration important your you you XXX that obviously, talked think of are they countries the making program things customers or and about. I is, critically Tony about going that Ritz-Carlton the have, understand Bonvoy as to at whether helping look that Yacht of actually be all things thinking the like options moments like it the and

number think power but So a can not actually program. a guide number of be the a for is it a it's true -- I

Operator

question Rhodes Smedes next from Citi. Our comes with

Bennett Rose

component, bit, that's because seeing there that is led outlook U.S. your a just of all the ask I lower leisure hasn't and nationwide seeing sounds what about you Or you're a changed. bit just a the it little But people the to is hotel due expectations for your seeing I year? your side? more going It to get down like revised trends wanted with you're little the staying U.S. And you U.S. primarily leisure more expect can there. on like maybe little in the the coming maybe you else abroad sounds share to that it out here worldwide RevPAR anything that you're bit in

Kathleen Oberg

picture And of leisure group that we're we the is roughly to absolutely will seeing fine. a we kind when we as a side. and on to look the little but absolutely quarter on it it's leisure a ago, But kind I in roughly point year, again, that what view you U.S. And gets still speaking, still because of do the bit us internationally strong lower place for from leisure up same than would more expected. see globally. say point be as expected do are one and than No, maybe higher the change, maybe BT the little we which solely RevPAR But Yes. a at broadly the expect of a side.

is [ again, in the of for lower. other was The a way was the It the that RevPAR will they out up the select your expect across U.S., through we luxury. do terms expect point, segments we point that up all the in leisure from I'll our it But thing ] year segment. to bit as yes, tiers service be all do

Bennett Rose

wanted kind ask I Okay. U.S. you a And you I about Could little your just then what targeting to that, mentioned for And primarily, you that a there? just is you, talk more conversion-friendly are in opening of remarks brand. bit the or? guess,

Anthony Capuano

armed find Sure. think it's X markets. across No, we We platforms. in this terrific transactors portfolio, some global. an And where conversions have the like are soft are debt I brands feel like like ourselves doing well brands conversions track of the very a the record our when the with in particularly important given while environment we of of many the in challenges brand

owner but Luxury is and level flexibility, So where particularly franchisee of the on a quality, they a cross-section have appealing to examples Autograph, Collection, Tribute. Great not community. of aesthetic on broad that

Operator

Thank you.

comes next Fargo. with Dan Wells question Politzer from Our

Daniel Politzer

that you group, Leeny, which remind the growth with the quarter-over-quarter seen in you customers? Fortune within strongest that maybe cycle? and the other maybe And I some you've leads business the how maybe mentioned little think typically time. medium-sized the quite color XXX, bit give in within additional small Can compares a us,

Kathleen Oberg

is One pinpoint to couple probably the the actually that segment on that businesses, small the a hardest things. of travel. all specifics So and medium-sized reminder

did end. I across portfolio, business and see lower medium-sized see did in think small- the showing BT of you up relatively you QX, in speaking, slightly percentage lower the

side, company on to saw, up of recovery as you larger The segment we finance the relative is that corporate see special continue example, business, the now X% On absolutely finance. for XXXX. to

in continued manufacturing momentum communications. saw and really You strong a

real still And trends actually, meaningfully and the momentum think I in cycle, while to some in had quarter down calendar you We Christmas not a issues. terms technology are. March accounting, a to typical when think of tends determine know compared of you January also does the able online to they of that of month a also the being are that continue trend know to one Year's little trends about New meaningful XXXX, When consulting because make. and QX. timing be see into And

think time. take little So it will I a

a We aren't expecting difference. big

being medium, that pre-COVID You And would see kind classic growth with out we of the to of grew. did the COVID. versus things between and XX-XX the flipped used that more of a of still perspective, rate end negotiated small it the a the and may really But we that say coming XX-XX we're corporate have remember it relative special now, from medium split small towards I kind was XX%. yes, but

Daniel Politzer

Got maybe for fees, up in non-RevPAR my just were it. And the quarter. I X% think they follow-up,

I were had and talking you in being think I also fees about you said card there, think up. credit down them been

So around maybe within of? something that a there was shift Or residence to and is aware terms the XQ? in be timeshare should and from XQ of fees bucket, there other that we there else

Kathleen Oberg

Yes.

we be you're sales, residential next They fees residential fees. tend one quarter to are onetime to Literally quite as quarter down can go on fees fees. because the probably branding units think are I from lumpy. that those sold, million, burn branding as our $XX million familiar $X

if get So at out, we once. sells them all unit a

timing. purely is that So

For the anticipate what full year thought perspective, we anything don't from we different before.

Operator

you. Thank

Crow Our next Bill with Raymond from question James. comes

William Crow

I'm U.S. surprise we've seem a so year, the the curious point about much been But spending written as from Tony, over does consumer down in to I what upside. just and follow maybe as normalization which flat to And the up the worry a start same and wanted question normalization change we certainly, past especially about on a given talked you has which at industry-wide earlier. demand to do to Smedes' doesn't economic slowdown, is demand in really growth, it patterns. the thing.

Anthony Capuano

Yes. XXXX. in That's of that comfort. to I to if a were we in X.X% The through relative flat impact holiday some & a that Leeny U.S. timing concern fair you even deeper have we meaningfully still described with gives RevPAR. the quarter, but of question. segments, year's tick if were me we was last ahead the the And might first up back Canada, quarter, were negative fact where leisure kind reporting

for selling what of one and project continued really out I are were are strength that's of volumes We is park. they yesterday statistics encouraging the side. I I the response and Pacific on the we're construction, advanced to seeing it doing mean talking questions, the -- the Group on under extraordinary that hitting group. in demand think to Gaylord are earlier they In selling shared the seeing team

growth in our U.S. transient, X the normalized & when Canada saw of I business And even top corporate that think the about most business into and sequential quarters. more in a then settling last improvement we've really XXX does to mean it large seen Leeny's like the feel all the X I on I in in with the a we cliff. comments, falling fact of me, blender accounts pattern the a little that versus throw off the a more systemic

Kathleen Oberg

full of relative half like half and for is of little rest bit at the bit And and the seems going rate I throw OCC gains full I in glass glass are If the look I'm year, we both think of both when looking in empty we to that U.S. like year. question. what a a a little international, can, a to

We quarter, with that that the you and saw also a rate that overall OCC.. OCC select, gains saw exception in luxury, and through had you in the generally decline saw in first premium you slight select, saw the you

growth. we But that expecting see full we the to for year, are continue will

we like benefit than speaking, a think couple travel more a types There's demand quiets appreciate from ago. it. normalization we leisure when overall broadly of there when good we years that really down when travel strengthens, doubt demand. about of of feel types about different But really little we overall and bit, route So feel no we levels, is still these the

William Crow

helpful. really follow-up a could follow-up do a That's just quick -- I If here.

that been the on more would a States Any favor international would the not thoughts there helping there's the just RevPAR shift growth the you normalize margin, whether strong from be and And demand. you of been all lot United since I think travel that domestic. I'm helpful. optimism in inbound-outbound we'd things. especially have dollar curious see thinking in that moved at of your propel is there's a kind a relationship summer, of in Maybe

Kathleen Oberg

the hear quite couldn't question. honestly I

Anthony Capuano

Yes.

I think U.S. the question just is international. around really travel versus

he I the consider. about collaboration well, the asked is drive innocently talked and not of at pretty And and response know, dollar U.S. the Japanese with relevant States visitation visitors the the to this I of can maybe point on strength year we week, -- of XXXX And the strong yen. a Japanese between or Japan Monday of was, United may continued your big about to data against how I him, the U.S.-Japan the met think, flow Bill, strong may dollar Ambassador the weaken you and There's U.S. comment was as his is extraordinarily a Japan. I to the tourism. you can

think reason. modified, well is So overall it's reflected think distribution. -- for meaningfully our for I you're a more guidance seeing I And point. do in international the relevant that exactly while our that in It hasn't international bodes data strength markets RevPAR

Kathleen Oberg

So I'll interesting the that is only is the of that Pacific's parts U.S. is thing benefits whole RevPAR, of opening you is when while for traveler, about lot that at the Asia comment Tony's other reality now one of some up from China that look cross-border. more a add that

the years, for preferences, has outside now. you from where the many are our and that that is So case time, domestic was, business consistent U.S. -- just the remarkably not proportion been travelers U.S. global it still X% U.S. travelers. was traveler, overwhelmingly are travel Interestingly, is of XX% only domestic and U.S. roughly seeing it over

that aren't suffering is U.S. we seeing everybody really business from U.S. leaving the So the

travel in think growth more reality global I general. is it the of

Operator

come Jefferies. Katz Our from next question will with David

David Katz

one about be of and bringing last not thought sort of in of the that we a brand great. why of talk about processes that forthcoming you just Tony, the why, conversion dropped if sort of your any And lightning. about couple of What was notes but philosophical thunder, sort now? cracks could borrow steal would to to market

Anthony Capuano

Of course.

make think, and to to really the to travel our about offers portfolio guests overarching is strategy the chance product by desire every in right strategy, want growth past everywhere trip sure you purpose. our talk for I that this and our guided I had David, have the

having excuse me, and that platforms of purposes, learn with we members the trip and Bonvoy certain in more reality prospective And proposition tier. seek given of The the members for fluence increasingly is, more the increasingly mid-scale -- frequency, price point value the and can the Leeny, both that conversion seems to in new platform ideal between climate the construction build to U.S. something space. debt don't opportunities, you and easily want for launch timing know add. in I new pivot a that if

Kathleen Oberg

would this that And of only market with is the lot owners is research add our and and conversations a I both thing franchisees.

choices also there, et about spectrum. the for need over there demand we more great franchisee changed, may is time members, that markets have and product think conversions when across it and you is that's cetera. believe for add And not, opportunity supply So for and in then them that where frankly, is owner Marriott Bonvoy out growing us moved the supply allows some to new for where that definitely

tremendous opportunity. we So it's think a

stay. great demand as that us from is just you also build, it's overwhelmingly for be well. us new this extended our is think which a As for and conversations StudioRes, we brand space new there'll And know, in mid-scale

Operator

will UBS. Farley question come Robin next Our with from

Robin Farley

getting the When that other And think kind top X growth your X% of plus rooms sort of -- up growth. about I range. think to unit of have to XX%, the plus say know is sort it's there more [ this should that top your think investors line line that quarter, types about growth, unit the X growth. forward? you And different for unit, been would of algorithm is of when top there's Great. -- line ] anything X% sort we I to investors RevPAR but getting think growth would how usually the in about going

unit not way to that sort So the is of line? top think growth RevPAR plus about

Kathleen Oberg

of a So couple things.

all, think, works absolutely of I time. the over first algorithm

trend looking over well. out that at to we got versus You've kind of quarter-to-quarter is time or then number believe time, proves the over are in really a happening because printed be what absolutely, specifics it about careful looking

X% about pretty rooms think you our guidance, close to a midpoint X%. RevPAR, the even of at year, roughly gross on year, and this about revenues mean having within And to I X.X% are that if these fee X.X% talked a high it -- we've of algorithm.

in works not at that and believe just the isolation. to do algorithm have really we look year So one it just

Robin Farley

don't broke question you know conversion just if I know follow-up out of I on the percent deal. the then conversions. MGM outside a -- And Okay. don't what

traditional of growth. the at a unit as looking of sort Just percent conversions total

wondering as conversions that the you if to for this that. talked something. maybe your would main that that But next an other is haven't are In should you mentioned there of unit conversions other one upcoming the that haven't in launch this friendly. be guidance your -- the Or you're things driver yet investors or versus Is that, of assumes driver acceleration think that and in just is conversion segment, growth. And for percent -- 'XX? for acceleration? come think 'XX to I about you that that year in in the brand brands what if a -- mind, going mid-scale as

Kathleen Oberg

the strong of roughly in conversions very as this XX% quarter, a of just through first a conversions stream reminder, our the So we've year moving and got were signings pipeline.

conversions. last XX% the not of tremendous kind opportunity over really no, that, a believe about that the quarters. ex-MGM So expectations, talked include, about not last couple would brand roughly be from would of we've September numbers conversions, while there, that's to and this we new be see the for do change us we We on did assumed room talked said of adds and continue from but

Operator

will Macquarie. question next come from Chad Beynon Our with

Chad Beynon

is meaningless? from you're meaningful? then the that And that, that candidates? at in on what that election looking the -- that or the out of D.C. elsewhere. was softness in as kind domestic on of Does election. me hustling a is little the -- for on of kind bit there travel should that on Two-parter I XQ, just Or factor presidential were recall secondly, there of the ahead last could based change people into outlook anything election, you're hinge seeing be

Anthony Capuano

answer take second in the travel call part relative a Well, of way the basis, I of to we question, Maybe another the question, stability. tourism hour add better your Yes. second the -- the thrives I to think. and would global your part on

election hope results. all then and post marks. through the We think little settle a around I into We'll bit stability. uncertainty creates we'll the of more sorts election question get

some end still of terms In up sense my of broadly, issues Congress. will more the Marriott with travel a division that bit we impact likely directly is in of and policy

direction moves on the impact was in strong So election other. I your sorry, or one of itself the think. not you see question may D.C., And I'm first

Kathleen Oberg

obviously, elections. there speaking, a generally say group be before that travel and and experiences see business Labor Day we've in in the do is traveling And is government forecast presidential we transient, I after that our that going incorporates Right. not election dip would during week. seen But to

Operator

you. Thank

Our comes with next Bellisario question Baird. Michael from

Michael Bellisario

Chicago? maybe suggest about on at especially might an owned When international? Question of hotels is Or CapEx big expect or get expand better Sheraton should assets. And plans next come a CapEx? backdrop secondarily, step sold, on least the that? the ] we for year-over-year think year in market owned could your transaction we improved there. And see then some [ any they outlook those you down I if would not, the in

Kathleen Oberg

Right.

the that to is Sheraton actually Chicago past had which over So I'm do the first, has rooms a X the redo going second one it Grand years.

to move exception the need as beyond of, hotel. the big you XXXX you would expect I see to not that normally do, what of spend course, into on with so And CapEx norm

the comprehensive space, We for cetera. on for et that F&B, hotel of will be working view or a public rooms,

and that hotel that you wouldn't working Marriott's like sheet, would partner. that And so hotel the we essence, work towards it should a really can be the but on do it the sell ideally, look balance what partner together be then with we'd so in with

often one still leased other as the with a case that the ones the is owned balance each story. assets, you talk of As sheet, about a has on our are bit

is a program. portfolio, forward so coming that how we example, comprehensive hotels. we done think of product out the which capital about those recycling to very Latin of when all-inclusive through for are that Caribbean America, view a the in with for midway what look improvement capital ones the And elegant We're AI, for thrilled are with and it's the that

march So continue along. to

the that encourage sure, thrilled and spectacular The about W Square, we're has being living the we're excited with to bar. the The you you with make for brand Again, absolutely I room, W all Union how represents to by stop a renovation. and that which product. very very finished of in sure are go close by rooms North incredible, America.

to the yes, process that determining of sale for beginning is too right of so on And be when long, from standpoint, time the work asset. we'll price and the before at that what

the a there as to up are help are in interest rates free do view about Clearly rest expect bit more of think same appears the will that, All stable I where bit. going, that to a of market that ballpark. transaction -- starts appear a we be

those the very to there's years to it, are outlook asset as always of you're view to are, markets see start sales perspective, as of a around are what I And stay of clarity higher of likely course, the that is that little the we exactly hopeful looking bit year, couple and are too interest the timing as clearly, back like -- a hopeful next we think that half when at assets see stability but soon get into you the from bit more predict longer. it's of in. a rates a bit well a that looking

Operator

ISI. last will with Duane come Evercore Pfennigwerth question Our from

Duane Pfennigwerth

Saving best it. last. I for like the

on to follow to to drivers we less think of But much trends industry SMB lower-end I call trends. the analyze at up goods Maybe many stick your cases, markets? percentage any smaller the it, had in transportation, book know drive relief you it's the out scales. or maybe about industries commentary it's if we lower-end But SMB wanted a to can want I the because business some chain in direct. any commentary they know if may that Just on disaster harder these travel? wonder less maybe mix.

Anthony Capuano

Yes.

eye Probably business, industries. that is little it's to at a which the individual we're government-related is think quite source a close keeping I relevant. hard maybe demand look on tier, in one

Operator

now concludes That question-and-answer I session. Tony our Capuano remarks. will turn call closing the for you. Thank back to

Anthony Capuano

thank travels. you the see interest. for all and participation soon. Safe on Well, you road again your Great. to hope We

Operator

This XXXX does Conference QX Marriott conclude the Earnings Call. International

may wonderful disconnect your You day. a now line, and have

Marriott International (MAR) 1 May 242024 Q1 Earnings call transcript