Record for new deals highlights Marriott earnings

BETHESDA, Maryland – Marriott International has reported fourth quarter and full year 2024 results highlighted by 4Q24 worldwide RevPAR growth of 5%, driven by gains in both ADR and occupancy. International RevPAR increased by more than 7%, with APEC and EMEA benefiting from strong leisure demand. RevPAR in the U.S. and Canada rose more than 4%, the region’s highest RevPAR increase of the year, with all customer segments growing versus the prior-year quarter and lesser-than-expected negative impact from the U.S. presidential election.

Full year global RevPAR rose 4.3% and record gross room additions were more than 123,000. Net rooms grew 6.8% to more than 1.7 million rooms (9,300 properties) worldwide. The company added roughly 109,000 net rooms globally during 2024, including more than 45,000 net rooms in international markets.

At the end of the year, the company’s worldwide development pipeline totaled 3,766 properties with over 577,000 rooms, including 175 properties with roughly 29,000 rooms approved for development, but not yet subject to signed contracts. The year-end pipeline included 1,381 properties with over 229,000 rooms under construction, including hotels that are in the process of converting to our system. Fifty-five percent of rooms in the year-end pipeline are in international markets.

For 2025, Marriott projects worldwide RevPAR growth of 2% to 4% and net rooms growth of 4% to 5%. The company expects full-year 2025 adjusted EBITDA between $5.295-$5.435 billion and adjusted EPS of $9.82-$10.19.

“2024 was a terrific year for our development team. The company signed a record number of new deals, and our industry-leading development pipeline reached over 577,000 rooms (nearly 3,800 properties) at the end of the year. For the full year, conversions represented more than one-third of our room signings and over half of our room additions,” said Marriott President and CEO Anthony Capuano.

“We advanced our presence in the midscale segment with the opening of 28 Four Points Flex hotels across EMEA and APEC and the debut of the City Express by Marriott brand in the U.S. and Canada,” Capuano continued. “We also strengthened our non-traditional offerings with founding deals in the outdoor lodging segment with key players Postcard Cabins and Trailborn.

4Q24 results

Marriott reported earnings for fourth quarter that decreased from last year but beat the Street estimates.

Base management and franchise fees totaled $1.128 billion in the 4Q24, a 10% increase year-over-year. The increase is primarily attributable to RevPAR increases and unit growth, as well as higher residential and co-branded credit card fees.

Incentive management fees totaled $206 million in 4Q24, compared to $218 million in the 4Q23, with growth in APEC offset by declines in U.S., Canada and Greater China.

Owned, leased, and other revenue, net of direct expenses, totaled $100 million in 4Q24, compared to $151 million a year ago. The decrease was primarily driven by a $63 million termination fee related to a development project in the year-ago quarter.

Marriott’s reported operating income totaled $752 million in 4Q24, versus $718 million a year ago. Reported net income totaled $455 million in the 4Q24, compared to $848 million a year ago. Reported diluted earnings per share (EPS) totaled $1.63 in the quarter, compared to reported diluted EPS of $2.87 in the year-ago quarter.

Adjusted operating income in the 2024 fourth quarter totaled $1.072 billion, compared to $992 million a year ago. Fourth quarter 2024 adjusted net income totaled $686 million, compared to $1.055 billion a year ago. Adjusted diluted EPS in the 2024 fourth quarter totaled $2.45, compared to $3.57 in the year-ago quarter.

Adjusted results excluded cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges and gain on asset dispositions.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $1.286 billion in the 2024 fourth quarter, a 7% increase year-over-year.

Full-year results

Full year 2024 reported diluted EPS totaled $8.33, compared to $10.18 in 2023. Full year 2024 adjusted diluted EPS totaled $9.33, compared to $9.99 in 2023. Reported and adjusted results in 2024 included a $19 million ($14 million after-tax and $0.05 per share) guarantee reserve for a U.S. hotel, which was negotiated in connection with the Starwood acquisition. Reported and adjusted results in 2023 included a $63 million ($47 million after‐tax and $0.15 per share) termination fee related to a development project, $228 million ($0.75 per share) of tax benefits from international intellectual property transactions and a $223 million ($0.73 per share) favorable impact from the release of a tax valuation allowance.

At year-end 2024, Marriott’s total debt was $14.4 billion, and cash and equivalents totaled $0.4 billion, compared to $11.9 billion in debt and $0.3 billion of cash and equivalents at year-end 2023.

The company repurchased 2.0 million shares of common stock in the 2024 fourth quarter for $0.5 billion. For full year 2024, Marriott repurchased 15.4 million shares for $3.7 billion. Year to date through February 7, the company has repurchased 1.2 million shares for $350 million.