Marriott International, Inc. (MAR) is a global operator, franchisor, and licensor of hotel, residential, timeshare, and other lodging properties under more than 30 brand names across 139 countries and territories **[0001628280-24-004372_mar-20231231.htm:42]** **[0001628280-24-004372_mar-20231231.htm:4]** **[0001628280-24-019494_mar-20240331.htm:13]**. The company operates under an asset-light business model, primarily managing or franchising hotels rather than owning them, which allows it to focus on management, franchising, and licensing **[0001628280-24-004372_mar-20231231.htm:4]** **[0001628280-24-019494_mar-20240331.htm:13]**. Marriott's revenue streams include management fees, franchise fees, and cost reimbursement revenue, with a strong emphasis on expanding its brand presence and enhancing customer loyalty through its Marriott Bonvoy loyalty program **[0001628280-24-004372_mar-20231231.htm:42]** **[0001628280-24-019494_mar-20240331.htm:13]** **[0001140361-24-015465_ny20015439x1_def14a.htm:6]**.

1. **U.S. & Canada** - Manages and franchises hotels and lodging properties across the United States and Canada, contributing significantly to the company's revenue.
2. **International** - Operates and franchises properties in regions outside the U.S. and Canada, including Europe, Middle East & Africa (EMEA), Greater China, and Asia Pacific excluding China (APEC).
3. **Unallocated Corporate and Other** - Includes operations in the Caribbean & Latin America (CALA) and other corporate activities not allocated to specific segments.

11cd675f2d57e690ad37d4872aa652657fc03650129d5709d87213f57f1b4d10

Development Pipeline Rooms

Rooms Under Construction

117e5ebb07a670d7238e4e76b1e60d062434a49579d0046e7e329c7627af018d

| Geographical Segment | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|
| **U.S. & Canada** (Million USD) | **4,278**  **[0001628280-23-014793_mar-20230331.htm:12]**  | **4,502**  **[0001628280-23-026380_mar-20230630.htm:13]**  | **4,333**  **[0001628280-23-036256_mar-20230930.htm:14]**  | N/A | **4,490**  **[0001628280-24-019494_mar-20240331.htm:11]**  | **4,765**  **[0001628280-24-033679_mar-20240630.htm:13]**  | **4,596**  **[0001628280-24-044884_mar-20240930.htm:15]**  |
| **International** (Million USD) | **1,008**  **[0001628280-23-014793_mar-20230331.htm:12]**  | **1,124**  **[0001628280-23-026380_mar-20230630.htm:13]**  | **1,125**  **[0001628280-23-036256_mar-20230930.htm:14]**  | N/A | **893** (EMEA + Greater China + APEC)  **[0001628280-24-019494_mar-20240331.htm:11]** **[0001628280-24-019494_mar-20240331.htm:11]** **[0001628280-24-019494_mar-20240331.htm:11]**  | **1,001** (EMEA + Greater China + APEC)  **[0001628280-24-033679_mar-20240630.htm:13]** **[0001628280-24-033679_mar-20240630.htm:13]** **[0001628280-24-033679_mar-20240630.htm:13]**  | **1,007** (EMEA + Greater China + APEC)  **[0001628280-24-044884_mar-20240930.htm:15]** **[0001628280-24-044884_mar-20240930.htm:15]** **[0001628280-24-044884_mar-20240930.htm:15]**  |

1b4dbe97706e608ddb9204f567ca4fb161a14e4f3f7a1bf5ad92e2b827299cb5

Adjustments for Non-Cash Items (USD, Millions)

Stock-Based Compensation (USD, Millions)

Changes in Working Capital (USD, Millions)

Capital Expenditures (USD, Millions)

Proceeds from Debt (USD, Millions)

Repayments of Debt (USD, Millions)

Share Repurchases (USD, Millions)

Dividend Payments (USD, Millions)

Net Change in Cash (USD, Millions)

a0e4bc04e0f346cc710a0ad1c7213bcb1587673aca864888019c3e1308fb07da

| Metric (Units)                | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|-------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Development Pipeline Rooms    | **496,000** **[0001628280-23-003441_mar-2022q4earningsreleasee.htm:1]** **[0001628280-23-003441_mar-2022q4earningsreleasee.htm:4]** | **502,000** **[0001628280-23-014793_mar-20230331.htm:16]** **[0001628280-23-014748_mar-2023q1xearningsrelease.htm:1]** | **547,000** **[0001628280-23-026380_mar-20230630.htm:17]** **[0001628280-23-026343_mar-2023q2xearningsrelease.htm:1]** | **557,000** **[0001628280-23-036166_mar-2023q3xearningsrelease.htm:0]** **[0001628280-23-036166_mar-2023q3xearningsrelease.htm:2]** | **573,000** **[0001628280-24-004335_mar-2023q4xearningsrelease.htm:1]** **[0001628280-24-004335_mar-2023q4xearningsrelease.htm:4]** | **547,000** **[0001628280-24-019458_mar-2024q1xearningsrelease.htm:2]** | **559,000** **[0001628280-24-033622_mar-2024q2xearningsrelease.htm:0]** **[0001628280-24-033679_mar-20240630.htm:16]** | **585,000** **[0001628280-24-044831_mar-2024q3xearningsreleasea.htm:1]** **[0001628280-24-044884_mar-20240930.htm:19]** |
| Rooms Under Construction      | **199,000** **[0001628280-23-003441_mar-2022q4earningsreleasee.htm:1]** **[0001628280-23-003441_mar-2022q4earningsreleasee.htm:4]** **[0001628280-23-003485_mar-20221231.htm:42]** | **200,000** **[MAR_3248577_1]** **[0001628280-23-014748_mar-2023q1xearningsrelease.htm:1]** **[0001628280-23-014748_mar-2023q1xearningsrelease.htm:4]** | **240,000** **[0001628280-23-026380_mar-20230630.htm:17]** **[0001628280-23-026343_mar-2023q2xearningsrelease.htm:1]** **[0001628280-23-026343_mar-2023q2xearningsrelease.htm:4]** | **238,000** **[0001628280-23-036166_mar-2023q3xearningsrelease.htm:0]** **[0001628280-23-036166_mar-2023q3xearningsrelease.htm:2]** | **232,000** **[0001628280-24-004372_mar-20231231.htm:44]** **[0001628280-24-004335_mar-2023q4xearningsrelease.htm:4]** | **202,000** **[0001628280-24-019458_mar-2024q1xearningsrelease.htm:2]** | **209,000** **[0001628280-24-033622_mar-2024q2xearningsrelease.htm:0]** **[0001628280-24-033622_mar-2024q2xearningsrelease.htm:1]** **[0001628280-24-033679_mar-20240630.htm:16]** | **220,000** **[0001628280-24-044831_mar-2024q3xearningsreleasea.htm:1]** **[0001628280-24-044884_mar-20240930.htm:19]** |

8ecddcf5df3ff0ac18a7d2b7499ba199d39ca147cceddd110b273b16ab955a10

d5d97b1f13dc7fbcbce6ef311719b053df6269c5374c2a598f0ea87bab174c33

| Segment/Metric (USD Million) | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | Q4 2022 | Q3 2022 | Q2 2022 | Q1 2022 |
|------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| Base Management Fees         | **321**  **[0001628280-24-004335_mar-2023q4xearningsrelease.htm:9]**  | N/A     | N/A     | N/A     | **287**  **[0001628280-23-003441_mar-2022q4earningsreleasee.htm:8]**  | N/A     | N/A     | N/A     |
| Franchise Fees               | **1,705**  **[0001628280-24-004335_mar-2023q4xearningsrelease.htm:9]**  | N/A     | N/A     | N/A     | **1,658**  **[0001628280-23-003441_mar-2022q4earningsreleasee.htm:8]**  | N/A     | N/A     | N/A     |
| Incentive Management Fees    | **218**  **[0001628280-24-004335_mar-2023q4xearningsrelease.htm:9]**  | N/A     | N/A     | N/A     | **186**  **[0001628280-23-003441_mar-2022q4earningsreleasee.htm:8]**  | N/A     | N/A     | N/A     |
| Gross Fee Revenues           | **1,244**  **[0001628280-24-004335_mar-2023q4xearningsrelease.htm:9]**  | **690**  **[0001628280-23-036256_mar-20230930.htm:14]**  | **751**  **[0001628280-23-026380_mar-20230630.htm:13]**  | N/A     | **1,131**  **[0001628280-23-003441_mar-2022q4earningsreleasee.htm:8]**  | N/A     | N/A     | N/A     |
| Contract Investment Amortization | **(22)**  **[0001628280-24-004335_mar-2023q4xearningsrelease.htm:9]**  | **(16)**  **[0001628280-23-036256_mar-20230930.htm:14]**  | **(17)**  **[0001628280-23-026380_mar-20230630.htm:13]**  | N/A     | **(24)**  **[0001628280-23-003441_mar-2022q4earningsreleasee.htm:8]**  | N/A     | N/A     | N/A     |
| Net Fee Revenues             | **1,222**  **[0001628280-24-004335_mar-2023q4xearningsrelease.htm:9]**  | **674**  **[0001628280-23-036256_mar-20230930.htm:14]**  | **734**  **[0001628280-23-026380_mar-20230630.htm:13]**  | N/A     | **1,107**  **[0001628280-23-003441_mar-2022q4earningsreleasee.htm:8]**  | N/A     | N/A     | N/A     |
| Owned, Leased, and Other Revenue | **455**  **[0001628280-24-004335_mar-2023q4xearningsrelease.htm:9]**  | **94**  **[0001628280-23-036256_mar-20230930.htm:14]**  | **116**  **[0001628280-23-026380_mar-20230630.htm:13]**  | N/A     | **396**  **[0001628280-23-003441_mar-2022q4earningsreleasee.htm:8]**  | N/A     | N/A     | N/A     |
| Cost Reimbursement Revenue   | **4,418**  **[0001628280-24-004335_mar-2023q4xearningsrelease.htm:9]**  | **3,565**  **[0001628280-23-036256_mar-20230930.htm:14]**  | **3,652**  **[0001628280-23-026380_mar-20230630.htm:13]**  | N/A     | **4,420**  **[0001628280-23-003441_mar-2022q4earningsreleasee.htm:8]**  | N/A     | N/A     | N/A     |
| Total Revenues               | **6,095**  **[0001628280-24-004335_mar-2023q4xearningsrelease.htm:9]**  | **5,928**  **[0001628280-23-036256_mar-20230930.htm:14]**  | **6,075**  **[0001628280-23-026380_mar-20230630.htm:13]**  | **5,615**  **[0001628280-23-014793_mar-20230331.htm:12]**  | **5,923**  **[0001628280-23-003441_mar-2022q4earningsreleasee.htm:8]**  | N/A     | N/A     | N/A     |

7c358c88983741f0e8ab5f5066508cd6ef4dce11d08670e19fd51c8766549cd0

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | **November 9, 2023**  **[0001628280-24-044884_mar-20240930.htm:33]**  |
| End Date/Duration        | N/A             |
| Total additional amount  | **25 million shares**  **[0001628280-24-044884_mar-20240930.htm:33]**  |
| Remaining authorization amount | **15.7 million shares**  **[0001628280-24-044884_mar-20240930.htm:33]**  |
| Details                  | Part of capital allocation strategy to return excess capital to shareholders  **[MAR_3363591_3]** **[MAR_3329478_11]** **[MAR_3327795_12]**  |

b14700589c9d8b8233ba692217b811d47f119af69958135a509b7f7753ba29ce

1. Given the signs of slowing growth in ancillary spending at outlets and lounges outside of luxury hotels, how does management plan to address this pullback and drive ancillary revenue growth across the broader portfolio?  **[MAR_3405568_25]** 

2. With the $70 million operating profit guarantee from the Starwood acquisition now fully reserved, are there any other long-term guarantees or liabilities from past acquisitions that could impact future financials?  **[MAR_3405568_12]** 

3. Despite overall room night growth aligning with GDP growth, are there specific segments where demand has not met expectations this year, and how are you adjusting your strategy for those segments heading into 2025?  **[MAR_3405568_22]** 

4. As you expand the City Express brand into the competitive midscale market in North America, what challenges do you anticipate, and how will you differentiate your offering to attract both franchisees and guests?  **[MAR_3405568_28]** ,  **[MAR_3405568_2]** 

5. You mentioned undertaking an enterprise-wide process to enhance effectiveness and efficiency; can you provide specifics on the expected cost savings and how these changes might affect your operations and corporate structure?  **[MAR_3405568_2]** 

d0e2f893b0c1cffcec178d8173b8374657c3d91f5bb8db1e162573909aed9d0f

- Hilton
- IHG Hotels & Resorts
- Hyatt
- Wyndham Hotels & Resorts
- Accor
- Choice Hotels
- Best Western Hotels & Resorts
- Airbnb (online platform for short-term rentals)
- Vrbo (online platform for short-term rentals)
- Expedia.com (online travel services platform)
- Priceline.com (online travel services platform)
- Booking.com (online travel services platform)
- Travelocity.com (online travel services platform)
- Orbitz.com (online travel services platform)
- Ctrip.com (online travel services platform)
- Google (search engine competing for guests)
- Bing (search engine competing for guests)
- Yahoo (search engine competing for guests)
- Baidu (search engine competing for guests)  **[0001628280-24-004372_mar-20231231.htm:11]** 

8f96f8e8798faa462785bd277b9db1c83e631432037a590257de1629616f2e7d

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2024
- **Guidance**:
  1. **Shareholder Returns**: Approximately **$4.4 billion** for the full year.
  2. **Net Room Growth**: Around **6.5%** for 2024.
  3. **Cost Reductions**: Annual pretax general and administrative cost reductions of **$80 million to $90 million** beginning in 2025.
  4. **Gross Fee Revenues**: Fourth quarter growth of **4% to 5%**; full year growth of **6% to 7%** to between **$5.13 billion and $5.15 billion**.
  5. **RevPAR Growth**: Global RevPAR growth of **2% to 3%** in Q4; full-year growth of **3% to 4%**.
  6. **Adjusted EBITDA**: Full-year total between **$4.93 billion and $4.96 billion**.
  7. **Adjusted EPS**: Full-year between **$9.19 and $9.27**.
  8. **Investment Spending**: Full-year of **$1.1 billion to $1.2 billion**.
  9. **G&A Expense**: Full-year increase of **4% to 5%**.
  10. **Owned, Leased, and Other Revenue**: Q4 total of roughly **$95 million**; full year around **$346 million**  **[MAR_3405568_4]** **[MAR_3405568_3]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Net Rooms Growth**: **5.5% to 6%** for the full year.
  2. **Investment Spending**: **$1 billion to $1.2 billion** for the full year.
  3. **Global RevPAR Growth**: **3% to 4%** for Q3 and the full year.
  4. **Gross Fee Revenues**: **6% to 7%** increase, totaling **$5.1 billion to $5.2 billion**.
  5. **Owned, Leased, and Other Revenues Net of Expenses**: **$75 million** for Q3; **$345 million to $350 million** for the full year.
  6. **G&A Expense**: Increase of **1% to 2%** year-over-year.
  7. **Adjusted EBITDA**: Increase of **6% to 8%**, reaching **$4.95 billion to $5 billion**.
  8. **Adjusted EPS**: Between **$9.23 and $9.40**.
  9. **Effective Tax Rate**: Just above **25%**.
  10. **Capital Returns to Shareholders**: Approximately **$4.3 billion**  **[MAR_3395251_4]** **[MAR_3395251_3]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Owned, Leased, and Other Revenues**: **$335 million to $345 million**.
  2. **G&A Expense**: Increase of **1% to 3%** year-over-year.
  3. **Full Year Adjusted EBITDA**: Increase of **7% to 9%** to **$5 billion to $5.1 billion**.
  4. **Effective Tax Rate**: Just above **25%**.
  5. **Adjusted EPS**: Between **$9.31 and $9.65**.
  6. **Net Rooms Growth**: **5.5% to 6%**.
  7. **Capital Returns to Shareholders**: **$4.2 billion to $4.4 billion**.
  8. **Full Year Investment Spending**: **$1 billion to $1.2 billion**.
  9. **Global RevPAR Growth**: **4% to 5%** in Q2; **3% to 5%** for the full year.
  10. **Gross Fee Revenues**: Increase of **7% to 9%** to **$5.2 billion to $5.3 billion**.
  11. **Non-RevPAR-Related Fees**: Increase of **9% to 10%**.
  12. **Fee Growth**: **7% to 8%** for Q2  **[MAR_3381804_4]** **[MAR_3381804_3]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **RevPAR Growth**: Increase of **3% to 5%** for the full year.
  2. **Gross Fees**: Increase of **6% to 8%** to **$5.1 billion to $5.2 billion**.
  3. **Owned, Leased, and Other Revenues**: **$320 million to $330 million**.
  4. **G&A Expense**: Flat to up **2%** year-over-year.
  5. **Adjusted EBITDA**: Increase of **5% to 8%** to **$4.9 billion to $5 billion**.
  6. **Effective Tax Rate**: Around **25%**.
  7. **Capital Returns to Shareholders**: **$4.1 billion to $4.3 billion**.
  8. **Investment Spending**: **$1 billion to $1.2 billion**.
  9. **Net Rooms Growth**: **5.5% to 6%**.
  10. **Group Revenue**: Increase of nearly **13% globally** and **11% in the U.S. and Canada**  **[MAR_3373048_4]** **[MAR_3373048_1]** .

b2d453d8a62f092b95c85eae9b0b0d29e37aacac94a8d17d60a88f41abb8333f

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD, Per Share]

EPS - Diluted [USD, Per Share]

4f287f5eb5286d0f8bcfe33d8c9086a1af2bf136e1eb39b90fb4796c74149b2a

7d27f4558dd154c488dd9d8f40545bffee81f83f9c7c78742ec156acab936c4f

bd2495dc4e61507f223d28a7972eca9faf8054dbe1dbc9c459f6281e48e69064

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

| Name                     | Position                                              | Start Date       | Short Bio                                                                                                                                                                                                                                                                                                                                                     |
|--------------------------|-------------------------------------------------------|------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Anthony G. (Tony) Capuano| President and Chief Executive Officer                 | February 2023    | Anthony G. (Tony) Capuano has been serving as the President and Chief Executive Officer of Marriott International since February 2023. He was appointed as CEO in February 2021. Before becoming CEO, Capuano was the Group President of Global Development, Design, and Operations Services from 2020 to 2021. He began his career at Marriott in 1995  **[0001628280-24-004372_mar-20231231.htm:98]** **[0001140361-24-015465_ny20015439x1_def14a.htm:33]** . |
| Satyajit (Satya) Anand   | President, Europe, Middle East & Africa               | October 2020     | Satyajit (Satya) Anand was appointed as President, Europe, Middle East & Africa (EMEA) for Marriott International in October 2020. He is responsible for developing and managing Marriott's portfolio in the region. Mr. Anand began his career with Marriott International in 1988  **[0001628280-24-004372_mar-20231231.htm:98]** .                                                                       |
| Benjamin T. (Ty) Breland | Executive Vice President and Chief Human Resources Officer | October 2021     | Benjamin T. (Ty) Breland is the Executive Vice President and Chief Human Resources Officer at Marriott International. He was appointed to this role effective October 2021. Prior to this appointment, Mr. Breland served as the Global HR Officer for Talent Development & Organizational Capability starting in 2016  **[0001628280-24-004372_mar-20231231.htm:98]** **[0001628280-23-003485_mar-20221231.htm:99]** .                                      |
| Kathleen K. (Leeny) Oberg| Chief Financial Officer and Executive Vice President, Development | February 2023    | Kathleen K. (Leeny) Oberg was appointed as Executive Vice President and Chief Financial Officer of Marriott International, Inc. in January 2016. She began leading the company's Global Development organization and was appointed Chief Financial Officer and Executive Vice President, Development in February 2023  **[0001628280-24-004372_mar-20231231.htm:100]** **[0001628280-23-003485_mar-20221231.htm:101]** .                                      |
| Drew L. Pinto            | Executive Vice President and Chief Revenue & Technology Officer | February 2023    | Drew L. Pinto was appointed as Executive Vice President and Chief Revenue & Technology Officer in February 2023. He is responsible for leading global sales and support channels, revenue management, digital, and information technology strategy for the company. Since joining the company in 2004, Mr. Pinto has held various leadership roles  **[0001628280-24-004372_mar-20231231.htm:100]** .            |
| Rena Hozore Reiss        | Executive Vice President and General Counsel          | December 2017    | Rena Hozore Reiss was appointed as Executive Vice President and General Counsel of Marriott International, Inc. in December 2017. Before this role, she served as Executive Vice President, General Counsel, and Corporate Secretary at Hyatt Hotels. She was an attorney in Marriott's law department from 2000 to 2010  **[0001628280-24-004372_mar-20231231.htm:100]** **[0001628280-23-003485_mar-20221231.htm:102]** .                                   |
| Peggy F. Roe             | Executive Vice President and Chief Customer Officer   | February 2023    | Peggy F. Roe was appointed as Executive Vice President and Chief Customer Officer in February 2023. She is responsible for overseeing the development and execution of all aspects of Marriott's global consumer strategy. Since joining Marriott in 2003, Ms. Roe has held various leadership roles focused on growth and innovation  **[0001628280-24-004372_mar-20231231.htm:100]** .                          |
| William P. (Liam) Brown  | Group President, United States and Canada             | January 1, 2021  | William P. (Liam) Brown is the Group President, United States and Canada at Marriott International. He was appointed to this role effective January 1, 2021. Prior to this position, Mr. Brown served as the President and Managing Director of Europe from 2018 to 2019  **[0001628280-24-004372_mar-20231231.htm:99]** **[0001628280-23-003485_mar-20221231.htm:99]** .                                                                                   |
| Felitia O. Lee           | Controller and Chief Accounting Officer               | August 2020      | Felitia O. Lee was appointed as Marriott's Controller and Chief Accounting Officer and principal accounting officer effective August 2020. She is responsible for the global accounting operations of the company, including oversight of financial reporting and analysis, accounting policy, and general accounting  **[0001628280-24-004372_mar-20231231.htm:99]** **[0001628280-23-003485_mar-20221231.htm:101]** .                                      |
| Yibing Mao               | President, Greater China                               | February 2023    | Yibing Mao was appointed as President, Greater China in February 2023. She is responsible for developing and managing Marriott's portfolio in the region. Ms. Mao joined Marriott in 1996 and held the title of Senior Vice President & Chief Counsel, Asia Pacific from May 2016 until she stepped down in 2020  **[0001628280-24-004372_mar-20231231.htm:99]** .                                           |
| Rajeev (Raj) Menon       | President, Asia Pacific Excluding China               | October 2019     | Rajeev (Raj) Menon was appointed as President, Asia Pacific Excluding China (APEC) in October 2019. He is responsible for developing and managing Marriott's portfolio in the region. Mr. Menon joined Marriott International in April 2001 as the General Manager of Renaissance Mumbai Hotel and Convention Center  **[0001628280-24-004372_mar-20231231.htm:99]** .                                        |

b1b00ec66e72c09b31106b13af006a7c74a1feedfb8c60ed0156f812e491f282

9cd194d8a57d13bdeea3c50cf240801e80592b550f5543466dd0c8faac7a2182

**Quarterly guidance for Q4 2024:**
- **Gross Fee Revenues**: 4%–5%  **[MAR_3405568_4]** **[MAR_3405568_3]**  (no prior guidance)  
- **RevPAR Growth**: 2%–3%  **[MAR_3405568_4]** **[MAR_3405568_3]**  (no prior guidance)  
- **Owned, Leased, and Other Revenue**: $95M  **[MAR_3405568_4]** **[MAR_3405568_3]**  (no prior guidance)  

**Annual guidance for FY 2024:**
- **Net Room Growth**: 6.5%  **[MAR_3405568_4]** **[MAR_3405568_3]**  (raised from 5.5%–6.0%  **[MAR_3395251_4]** **[MAR_3395251_3]** )  
- **Gross Fee Revenues**: $5.13B–$5.15B  **[MAR_3405568_4]** **[MAR_3405568_3]**  (no change from $5.1B–$5.2B  **[MAR_3395251_4]** **[MAR_3395251_3]** )  
- **Global RevPAR Growth**: 3%–4%  **[MAR_3405568_4]** **[MAR_3405568_3]**  (no change from 3%–4%  **[MAR_3395251_4]** **[MAR_3395251_3]** )  
- **Adjusted EBITDA**: $4.93B–$4.96B  **[MAR_3405568_4]** **[MAR_3405568_3]**  (lowered from $4.95B–$5.00B  **[MAR_3395251_4]** **[MAR_3395251_3]** )  
- **Adjusted EPS**: $9.19–$9.27  **[MAR_3405568_4]** **[MAR_3405568_3]**  (lowered from $9.23–$9.40  **[MAR_3395251_4]** **[MAR_3395251_3]** )  
- **Investment Spending**: $1.1B–$1.2B  **[MAR_3405568_4]** **[MAR_3405568_3]**  (raised from $1.0B–$1.2B  **[MAR_3395251_4]** **[MAR_3395251_3]** )  
- **G&A Expense**: 4%–5%  **[MAR_3405568_4]** **[MAR_3405568_3]**  (raised from 1%–2%  **[MAR_3395251_4]** **[MAR_3395251_3]** )  
- **Owned, Leased, and Other Revenue**: $346M  **[MAR_3405568_4]** **[MAR_3405568_3]**  (no change from $345M–$350M  **[MAR_3395251_4]** **[MAR_3395251_3]** )  
- **Shareholder Returns**: $4.4B  **[MAR_3405568_4]** **[MAR_3405568_3]**  (raised from $4.3B  **[MAR_3395251_4]** **[MAR_3395251_3]** )  

**Annual guidance for 2025:**
- **Cost Reductions**: $80M–$90M  **[MAR_3405568_4]** **[MAR_3405568_3]**  (no prior guidance)  

68583b7b9e20e58accb7fbf1defa3e4b9f3a591c65f179336e420698a302074b

| Name               | Start Date | End Date | Reason for Change |
|--------------------|------------|----------|-------------------|
| Ernst & Young LLP  | 2002  **[0001628280-24-004372_mar-20231231.htm:60]**    | Present  | Current auditor   |
```

59a2c6c58ed1a750f0f1d7b02cbe0c81f6a89d777f278e696b6014ee212b3814

- Total Revenue: $6.255 billion (+6% YoY)  **[0001628280-24-044884_mar-20240930.htm:2]** **[0001628280-23-036256_mar-20230930.htm:2]**   
- U.S. & Canada: $4.596 billion (+6% YoY)  **[0001628280-24-044884_mar-20240930.htm:15]** **[0001628280-23-036256_mar-20230930.htm:14]**   
- Gross Fee Revenues: $1.283 billion (+7% YoY)  **[0001628280-24-044884_mar-20240930.htm:2]** **[0001628280-23-036256_mar-20230930.htm:2]**   
- Operating Income (EBIT): $944 million (-14% YoY)  **[0001628280-24-044884_mar-20240930.htm:2]** **[0001628280-23-036256_mar-20230930.htm:2]**   
- Net Income: $584 million (**-22% YoY**)  **[0001628280-24-044884_mar-20240930.htm:2]** **[0001628280-23-036256_mar-20230930.htm:2]**   
- Diluted EPS: $2.07 (-17% YoY)  **[0001628280-24-044884_mar-20240930.htm:4]** **[0001628280-23-036256_mar-20230930.htm:4]**   

9b609dad1264287a104d41dc06c7b79e415b76d89a702d7bfe46f57c0a2b97f2

| Year  | Amount Due (in millions) | Debt Type                          | Interest Rate (%) | % of Total Debt                                                                 |
|-------|---------------------------|------------------------------------|-------------------|---------------------------------------------------------------------------------|
| 2024  | 960 **[0001628280-24-044884_mar-20240930.htm:9]**              | Current Portion of Long-Term Debt | N/A               | 7.0% = (960 / 13,631) * 100 **[0001628280-24-044884_mar-20240930.htm:9]**                                            |
| 2025  | 1,267 **[0001628280-24-044884_mar-20240930.htm:9]**            | Series P, Series V, Series EE     | 3.8 - 5.8 **[0001628280-24-044884_mar-20240930.htm:9]** | 9.3% = (1,267 / 13,631) * 100 **[0001628280-24-044884_mar-20240930.htm:9]**                                         |
| 2026  | 1,196 **[0001628280-24-044884_mar-20240930.htm:9]**            | Series R, Series LL               | 3.1 - 5.5 **[0001628280-24-044884_mar-20240930.htm:9]** | 8.8% = (1,196 / 13,631) * 100 **[0001628280-24-044884_mar-20240930.htm:9]**                                         |
| 2027  | 989 **[0001628280-24-044884_mar-20240930.htm:9]**              | Series JJ                         | 5.0 **[0001628280-24-044884_mar-20240930.htm:9]**       | 7.3% = (989 / 13,631) * 100 **[0001628280-24-044884_mar-20240930.htm:9]**                                           |
| 2028  | 1,437 **[0001628280-24-044884_mar-20240930.htm:9]**            | Series X, Series AA, Series MM    | 4.0 - 5.6 **[0001628280-24-044884_mar-20240930.htm:9]** | 10.5% = (1,437 / 13,631) * 100 **[0001628280-24-044884_mar-20240930.htm:9]**                                        |
| 2029  | 1,278 **[0001628280-24-044884_mar-20240930.htm:9]**            | Series KK, Series NN              | 4.9 **[0001628280-24-044884_mar-20240930.htm:9]**       | 9.4% = (1,278 / 13,631) * 100 **[0001628280-24-044884_mar-20240930.htm:9]**                                         |
| 2030  | 1,486 **[0001628280-24-044884_mar-20240930.htm:9]**            | Series FF, Series PP              | 4.6 - 4.8 **[0001628280-24-044884_mar-20240930.htm:9]** | 10.9% = (1,486 / 13,631) * 100 **[0001628280-24-044884_mar-20240930.htm:9]**                                        |
| 2031  | 1,092 **[0001628280-24-044884_mar-20240930.htm:9]**            | Series HH                         | 2.9 **[0001628280-24-044884_mar-20240930.htm:9]**       | 8.0% = (1,092 / 13,631) * 100 **[0001628280-24-044884_mar-20240930.htm:9]**                                         |
| 2032  | 989 **[0001628280-24-044884_mar-20240930.htm:9]**              | Series GG                         | 3.5 **[0001628280-24-044884_mar-20240930.htm:9]**       | 7.3% = (989 / 13,631) * 100 **[0001628280-24-044884_mar-20240930.htm:9]**                                           |
| 2033  | 695 **[0001628280-24-044884_mar-20240930.htm:9]**              | Series II                         | 2.8 **[0001628280-24-044884_mar-20240930.htm:9]**       | 5.1% = (695 / 13,631) * 100 **[0001628280-24-044884_mar-20240930.htm:9]**                                           |
| 2034  | 1,257 **[0001628280-24-044884_mar-20240930.htm:9]**            | Series W, Series OO               | 4.5 - 5.3 **[0001628280-24-044884_mar-20240930.htm:9]** | 9.2% = (1,257 / 13,631) * 100 **[0001628280-24-044884_mar-20240930.htm:9]**                                         |
| 2035  | 986 **[0001628280-24-044884_mar-20240930.htm:9]**              | Series QQ                         | 5.4 **[0001628280-24-044884_mar-20240930.htm:9]**       | 7.2% = (986 / 13,631) * 100 **[0001628280-24-044884_mar-20240930.htm:9]**                                           |

8c5616c516f3445119a9d05c2685983888292ab1d9612a5c535ebddeed02447e

96cfb167500176879adaba8b94557052448d38427925abc7409e4b31691f13d9

- **Expected continued weakness in Greater China** is impacting Marriott's RevPAR growth, leading to an updated expectation of negative RevPAR growth for the rest of the year in that region due to **macroeconomic pressures and softer domestic demand**.  **[MAR_3395251_3]**
- There is a **slight erosion in group bookings for 2025**, with group pace now pacing at **9%**, which is **a little lower from last quarter**, potentially signaling reduced future revenue from this key segment.  **[MAR_3395251_15]**
- **Ancillary spend is softer than anticipated globally**, suggesting that consumers are becoming more cautious with discretionary spending, which could affect Marriott's overall profitability as **ancillary revenues are an important component**.  **[MAR_3395251_19]**

bb7d0fb3172400773d031a4474e3ef0f3c2851491a1d7ef2acd1510b9927253c

1. **Development Environment**  
   **Q:** What's the current state of the development environment and impact of interest rates and construction costs?  
   **A:** Deal volume is encouraging with strong momentum in submissions for new builds and conversions. Positives include expected interest rate relief and a more active hotel transaction market in the back half of 2024. Challenges include lender compliance with proposed regulations affecting debt availability for new construction, but entry into mid-scale helps as debt procurement is more manageable. Growth in Asia Pacific and Middle East remains robust and unaffected by debt fluctuations. Construction costs have eased slightly with lower year-over-year increases.  **[MAR_3373048_7]** 

2. **Operating EPS Outlook**  
   **Q:** Why is operating EPS outlook lower than consensus despite EBITDA, unit growth, and capital return being in line?  
   **A:** The lower EPS outlook is mainly due to a higher book tax rate, about **1-point** increase, and adjustments for anomalies like the extra termination fee in '23 and litigation reserve. Adjusting for these, the adjusted EPS growth in '24 looks close to double digits.  **[MAR_3373048_8]** 

3. **RevPAR Guidance by Segment**  
   **Q:** Do you expect luxury and upper upscale to lead RevPAR growth in 2024? Is there room for ADR increases in upper upscale?  
   **A:** Yes, the premium segment will benefit most from increased demand. Special corporate rates are growing, with high single-digit growth in '23 and expected strong mid-single-digit rate growth in '24. Group pace is strong at **11%**, contributing to growth in rooms and ADR. Luxury continues to perform well, with global luxury RevPAR up **10%** in Q4 '23 vs. Q4 '22, and there is opportunity for rate and occupancy improvements.  **[MAR_3373048_14]** 

4. **Conversions and Growth Strategy**  
   **Q:** How are conversions contributing to growth, and are there changes in strategy or geography?  
   **A:** Conversions are important for growth, especially with constrained debt markets for new construction. In 2023, **25%** of openings and **40%** of signings were conversions. These include both conversions from other brands and independents, leveraging soft brands like Luxury Collection, Autograph, and Tribute. There's increased conversion activity in markets like Asia Pacific, which historically were more new-build oriented.  **[MAR_3373048_21]** 

5. **MGM Transaction and Fee Contribution**  
   **Q:** Can you review the MGM transaction and its fee contribution for this year?  
   **A:** The MGM transaction involves a modest amount of G&A, with all hotels transitioning to Marriott systems in Q1. Fee contribution will start in Q1 and ramp up over the year, based on a percentage of hotel revenues fitting into the franchise fee model. No specific numbers are provided.  **[MAR_3373048_5]** 

6. **Capital Investment and Sheraton Chicago**  
   **Q:** Is the $500 million investment in Sheraton Chicago all cash out the door? How much of the $1 billion is unidentified capital expenditure?  
   **A:** Yes, the **$500 million** is cash out the door, expected in Q4 2024. Of that, **$200 million** relates to purchasing the underlying land (CapEx), and the rest reflects a liability established years ago. The unidentified capital expenditures within the **$1 billion to $1.2 billion** are quite modest.  **[MAR_3373048_6]** 

7. **Large Corporate Bookings**  
   **Q:** Do you expect large corporate group bookings to improve or remain impaired?  
   **A:** On the business transient side, large corporates are lagging compared to pre-pandemic levels but show incremental growth quarter-over-quarter. For group bookings, the pace is strong, with **75%** of expected group business for '24 already on the books (up from **65%** a year ago), and group pace is at **11%** for '24 and **12%** for '25 in the U.S., indicating strong corporate and other group demand.  **[MAR_3373048_9]** 

8. **SG&A Costs Increase**  
   **Q:** Why were SG&A costs higher than the Q3 guidance? Was it due to IP restructuring or bad debt?  
   **A:** The increase is largely due to timing, including the litigation reserve, fluctuations in closing deals, travel expenses, staffing ramp-up, and performance-related compensation. There was also timing in receivables analysis. For next year, SG&A is expected to be flat to up **2%**, reflecting these items.  **[MAR_3373048_10]** 

9. **Net Unit Growth Outlook**  
   **Q:** Are you expecting acceleration in RevPAR and net unit growth in 2025 to meet prior guidance?  
   **A:** Growth should be viewed over a multiyear period. The MGM rooms slipping into early '24 illustrate timing impacts. We ended '23 with **4.7%** net unit growth and expect a higher number this year due to MGM openings. Confident in delivering mid-single-digit CAGR of about **5% to 5.5%** over three years, as previously discussed. No major changes to long-term outlook; confident in RevPAR expectations.  **[MAR_3373048_11]** 

10. **Fundamental Growth Algorithm**  
    **Q:** Is the mismatch between room growth, RevPAR growth, and fee growth expected to continue beyond 2025?  
    **A:** No, the fundamental model of RevPAR plus fees continues to work well. Anomalies in 2023 affected comparisons, but overall growth in rooms and strong IMF growth contribute positively. Non-RevPAR fees are expected to grow **9–10%** in 2024. The growth and fee algorithm remains consistent.  **[MAR_3373048_12]** 

11. **Changes Since Investor Day**  
    **Q:** What's changed in the multiyear algorithm since the Investor Day in September?  
    **A:** Very little has changed; 2023 ended up very strong, exceeding guidance by **$6 million**, providing a higher base. The fundamental equation of RevPAR growth plus net rooms growth and operating leverage continues to work. G&A as a percentage of gross fees improved from around **25%** in 2019 to under **20%** now, showing continued operating leverage. Focus on improving efficiency remains.  **[MAR_3373048_13]** 

12. **IMF Payers Percentage**  
    **Q:** What percentage of North American properties were earning IMF in 2023 compared to peak levels?  
    **A:** In 2023, **31%** of U.S. and Canada properties were earning IMFs versus **56%** at peak. For managed full-service hotels, **40%** earned IMFs in '23 versus **45%** at peak. Limited service hotels had a significant drop due to hotels leaving the system. Internationally, **68%** of properties earned IMFs in '23, close to the **72%** in 2019, indicating a return to similar levels.  **[MAR_3373048_15]** 

13. **China Development Momentum**  
    **Q:** What's the outlook for development momentum in China? Has it changed recently?  
    **A:** Momentum in China remains strong with encouraging trends in deal approvals, signings, and under-construction projects. Paused projects during the pandemic have resumed construction. Growth in Greater China is expected to be high single digits, reflecting strong demand for brands.  **[MAR_3373048_16]** 

14. **Mid-scale Owner Profile**  
    **Q:** What's the owner profile for mid-scale brands? Are they existing or new owners?  
    **A:** The owner profile is similar to other segments, including both existing Marriott franchisees and new owners. There's a great mix, with enthusiasm from multi-unit owners and those new to the Marriott system.  **[MAR_3373048_20]** 

15. **Credit Card Fees Growth**  
    **Q:** What's driving the expected growth in credit card fees in 2024? Is it new sign-ups or increased spend?  
    **A:** Growth is primarily driven by an increase in the number of cardholders, with strong acceptance of the Bonvoy credit card in markets like Japan. The growth rate is expected to be similar to 2023 at **9–10%**. Existing cardholder spend contributes minimally to growth.  **[MAR_3373048_22]** 

16. **Potential Tuck-in Acquisitions**  
    **Q:** Are there interesting tuck-in M&A opportunities, and how does the math compare to stock trading levels?  
    **A:** The company remains open to acquisitions that add something unique to the portfolio or accelerate growth in certain regions but maintains price discipline. There's interest in both tuck-in acquisitions and organic growth, and Marriott will continue to evaluate opportunities that make strategic and financial sense.  **[MAR_3373048_19]** 

17. **Conversion Activity in China**  
    **Q:** How is the new franchising agreement in China expected to drive growth?  
    **A:** The agreement is expected to convert a number of hotels over time, contributing to overall growth in China, but no specific time frame or impact was provided. Signings in Greater China are encouraging, reflecting strong demand for brands.  **[MAR_3373048_23]** 

cbc08b0e5cf679779b916a754d2473d6a5a83375ca00cfa19ffdcbaca84560c9

- **Marriott expects strong development momentum in China and Asia Pacific, with high single-digit rooms growth in 2023 and 2024**, supported by encouraging trends in new deals and projects resuming construction.  **[MAR_3373048_16]**
- **Conversions are significantly boosting net rooms growth**, with **25% of 2023 openings being conversions** and an expected increase to **30% in 2024** (excluding MGM), particularly in regions like Asia Pacific where conversion activity is increasing.  **[MAR_3373048_23]** **[MAR_3373048_21]**
- **Non-RevPAR fees, including credit card fees and residential branding fees, are expected to grow at roughly double-digit rates in 2024**, driven by strong credit card member acquisitions and expansion into new markets, contributing to overall fee revenue growth.  **[MAR_3373048_22]**

6a65f4eebae73c8899f923f20c878a12db9e1574d7d340413e8dbd7a5807018f

- SG&A expenses **increased** due to a **$27 million litigation reserve**, timing of performance-related compensation, an **increase in bad debt expense**, and higher professional fees, impacting margins.  **[MAR_3373048_10]**
- The **2024 operating EPS outlook is lower than consensus** due to a higher book tax rate and absence of prior year's termination fee, which may affect adjusted EPS growth.  **[MAR_3373048_8]**
- **Large corporate transient demand continues to lag behind pre-pandemic levels**, raising concerns about the recovery of this segment.  **[MAR_3373048_9]**

aeea536a6996c97d579f06b1b1ce4ae629b863e187bbb06cce376e7a8f4145f3

1. **Guidance and Fee Increase**  
   **Q:** Is fee guidance increase driven by IMF or non-RevPAR contributions?  
   **A:** Approximately **75% of the fee guidance increase is from Incentive Management Fees (IMF)**, predominantly from international markets.  **[MAR_3381804_6]**  International IMF represented **64%** of IMFs in Q1, up from **58%** a year ago.  **[MAR_3381804_6]**  The remaining growth comes from non-RevPAR-related fees, such as strong food and beverage sales and expansion in fast-growing Asia Pacific segments.  **[MAR_3381804_6]** 

2. **China RevPAR and Development**  
   **Q:** Is the China slowdown continuing, and is it affecting development?  
   **A:** There is **no impact on the development front in China**; in fact, Marriott had a tremendous quarter of signings in Greater China.  **[MAR_3381804_5]**  Overall RevPAR in Greater China grew **6%**, with strong performance in Tier 1 cities like Shenzhen, Shanghai, and Beijing.  **[MAR_3381804_5]**  Some softness was observed in new Tier 1 cities in March due to macroeconomic factors.  **[MAR_3381804_5]** 

3. **U.S. Leisure RevPAR Outlook**  
   **Q:** What's expected for U.S. leisure RevPAR for the year?  
   **A:** Leisure RevPAR growth in the U.S. is expected to be **positive but at the lower end**, slightly below previous expectations.  **[MAR_3381804_7]**  The group segment is anticipated to be the "**home run hitter**" for the year, with business transient travel also gaining ground.  **[MAR_3381804_7]** 

4. **Construction Pipeline and Developer Sentiment**  
   **Q:** Has there been a change in developer mood affecting U.S. starts?  
   **A:** The construction pipeline is strong, with an increase of **9%** year-over-year when excluding MGM.  **[MAR_3381804_10]**  Despite constrained lending environments, there's increased confidence, evidenced by U.S. construction starts rising **25%** compared to a year ago.  **[MAR_3381804_10]**  Marriott added **31,000** rooms to its pipeline in Q1, showing robust global momentum.  **[MAR_3381804_10]** 

5. **2025 Group Revenue Pace**  
   **Q:** How is the 2025 group revenue pace looking?  
   **A:** For 2025, group pace is tracking up about **13%**, driven by gains in both demand and average daily rate (ADR).  **[MAR_3381804_9]**  Definite rooms are up **7%**, and ADR has increased by **5%**.  **[MAR_3381804_9]** 

6. **MGM Licensing Deal Performance**  
   **Q:** How is the MGM licensing deal performing?  
   **A:** Although it's early, the **MGM licensing deal is exceeding expectations** in terms of booking volumes and Bonvoy loyalty program penetration.  **[MAR_3381804_8]**  Both parties' initial expectations have been surpassed in the early stages.  **[MAR_3381804_8]** 

7. **RevPAR Index Share Gains**  
   **Q:** In which brands or regions are you taking the most share?  
   **A:** Marriott continues to **strengthen its lead in the luxury segment**, enjoying substantial RevPAR Index premiums across its portfolio.  **[MAR_3381804_11]**  Regions like Asia Pacific are outperforming, with the company's large footprint in markets such as India, Japan, and South Korea driving strong RevPAR performance.  **[MAR_3381804_11]** 

8. **Trends in U.S. Demand and Consumer Spending**  
   **Q:** Should we worry about consumer spending given flat industry demand?  
   **A:** Marriott remains confident, reporting U.S. RevPAR up **1.5%** in the quarter despite holiday impacts.  **[MAR_3381804_18]**  Leisure travel is flat versus last year but still significantly ahead of 2019 levels.  **[MAR_3381804_18]**  Group demand is strong, with extraordinary volumes, and large corporate business showed the most sequential improvement in the last **eight quarters**.  **[MAR_3381804_18]** 

9. **Upcoming Conversion-Friendly Brand**  
   **Q:** Can you tell us more about the conversion-friendly brand?  
   **A:** Marriott plans to launch a new **global mid-scale conversion-friendly brand** to meet guest demand for value options and provide owners with flexibility.  **[MAR_3381804_20]**  This is timely due to challenges in new construction financing, allowing pivoting between new builds and conversions.  **[MAR_3381804_20]** 

10. **Loyalty Membership Competition**  
    **Q:** Is a competitor overtaking you in loyalty members a concern?  
    **A:** While having the industry's largest loyalty platform is important, **member engagement is more critical than size**.  **[MAR_3381804_13]**  Marriott focuses on driving engagement through its credit card portfolio and a wide range of experiences offered to members.  **[MAR_3381804_13]** 

11. **Owned Asset Sales Outlook**  
    **Q:** When will owned hotels, especially international, be sold?  
    **A:** Asset sales will be considered when timing and pricing are right.  **[MAR_3381804_24]**  For properties like the W Union Square and the Caribbean Latin America portfolio, Marriott is completing renovations and capital programs before sale.  **[MAR_3381804_24]**  Stability in interest rates is expected to help free up the transaction market.  **[MAR_3381804_24]** 

12. **Non-RevPAR Fees Variance**  
    **Q:** What's causing the fluctuation in non-RevPAR fees?  
    **A:** The variance is due to the **lumpy nature of residential branding fees**, which can vary significantly quarter to quarter as units are sold.  **[MAR_3381804_17]**  These are one-time fees recognized upon the sale of residential units.  **[MAR_3381804_17]**  Expectations for the full year remain unchanged.  **[MAR_3381804_17]** 

13. **Election Impact on Travel**  
    **Q:** Will the upcoming election affect travel demand?  
    **A:** Historically, there's a **dip in government travel after Labor Day**, and both group and business transient travel decrease during election week.  **[MAR_3381804_23]**  Marriott's forecast accounts for typical patterns observed during past presidential elections.  **[MAR_3381804_23]** 

14. **SMB Trends in Lower-End Segments**  
    **Q:** Any industry trends in lower-end SMB travel?  
    **A:** It's challenging to pinpoint specific industries, but **government-related business** is a demand source being closely monitored in the lower-end segments.  **[MAR_3381804_25]** 

f9267830d11dac65bd72142c330337e27e9a6e889d474e4d762a3babf98f2559

- Marriott is experiencing **strong demand in the group travel segment**, with companies both renewing and adding new conventions, and **larger groups scheduling further ahead to secure dates and space**. This trend is expected to continue into **2025**, benefiting Marriott's **significant lead in the group hotel portfolio**.  **[MAR_3405568_27]**
- The expansion into the mid-scale segment with the **City Express** brand is showing **strong initial demand** in the U.S. and Canada, with **franchise applications already coming in**, **deals being approved**, and **openings expected in the next few months**. This enhances Marriott's growth prospects in a **high-growth market segment**.  **[MAR_3405568_28]**
- Marriott's **cost-saving initiatives** are anticipated to yield **$80 to $90 million** of annual **G&A cost reductions beginning in 2025**, which should enhance profitability. Additionally, the company is looking at **efficiencies and savings to benefit owners and franchisees**, potentially strengthening relationships and growth opportunities.  **[MAR_3405568_13]** **[MAR_3405568_11]**

10df044730675dd39b08544228e673d671424ddc81cba668f65a03ce0479f49f

1. **RevPAR Guidance Reduction**  
   **Q:** Why did you lower RevPAR guidance for the second half?  
   **A:** Marriott reduced its RevPAR guidance mainly due to a weaker outlook in **Greater China**, which has a **disproportionate impact** on fees, especially Incentive Management Fees (IMFs). Slightly lower expectations in the U.S. and Canada also contribute to the reduction.  **[MAR_3395251_5]** **[MAR_3395251_7]** **[MAR_3395251_11]** 

2. **China's Impact on Development**  
   **Q:** Is China's softness affecting development and signings?  
   **A:** Despite market softness, Marriott continues to see **record signings** in China with **no slowdown** in development. Owners believe in the long-term prospects and are actively signing deals, especially in select service hotels expected to open within **12 months**.  **[MAR_3395251_8]** 

3. **Fee Guidance Breakdown**  
   **Q:** Can you break down the lower fee guidance?  
   **A:** The gross fee guidance was lowered by about **$75 million**, with **two-thirds** of the reduction due to lower IMFs. Over **half** of the IMF decline is from Greater China, with additional impacts from the U.S. and foreign exchange effects.  **[MAR_3395251_11]** 

4. **Group Booking Pace for 2025**  
   **Q:** How is group booking pace for 2025?  
   **A:** Group bookings for 2025 are pacing at **9%**, showing slight erosion from last quarter but remaining strong. Some booking hesitation exists due to the election, but overall group demand continues to be solid.  **[MAR_3395251_15]** 

5. **Net Unit Growth Confidence**  
   **Q:** Are you confident in achieving 5%-5.5% net unit growth?  
   **A:** Marriott maintains confidence in the **5%-5.5%** net rooms growth guidance, driven by strong demand for conversions, adaptive reuse projects, and increased construction starts.  **[MAR_3395251_17]** 

6. **Global Construction Starts**  
   **Q:** How are construction starts outside the U.S.?  
   **A:** Global construction starts are up **40%**, mirroring the U.S. increase. Strong activity is seen in China, while regions like EMEA and APAC face financing challenges. Overall, global construction trends are encouraging.  **[MAR_3395251_12]** 

7. **High-End Consumer Demand**  
   **Q:** Is weakness at the lower end affecting higher-income customers?  
   **A:** Marriott is not seeing sluggishness from the lower end affecting higher-income customers. **Luxury occupancy** improved by almost **2.5 points** year-over-year, indicating resilience in high-end demand.  **[MAR_3395251_19]** 

8. **International Travel Balance**  
   **Q:** How is the balance of inbound and outbound international travel?  
   **A:** Inbound international travel to the U.S. remains at about **4%-5%** of nights, consistent with pre-COVID levels. Outbound U.S. travelers and global cross-border travel are increasing, benefitting from a **strong U.S. dollar**.  **[MAR_3395251_20]** 

9. **Ancillary Spend Softness**  
   **Q:** Are you seeing lower non-RevPAR fees due to ancillary spend?  
   **A:** There's modest softening in ancillary spend across leisure and group segments. While credit card fees are still expected to rise by **10%** in 2024, average cardholder spend has slightly moderated.  **[MAR_3395251_27]** 

10. **MGM Deal Performance**  
    **Q:** How is the MGM deal progressing?  
    **A:** The MGM deal is progressing well, with strong volumes of transient and group leads. Many customers are linking their MGM Rewards and Marriott Bonvoy accounts, and both companies are pleased with the early results.  **[MAR_3395251_14]** 

2ca7f014aa4ae81994ccee7f1c4b6569ef418228da44a4dde8f2c146c86e6c63

- **Marriott raised its full-year 2024 earnings and capital returns guidance**, expecting **adjusted EBITDA to rise 7% to 9% to roughly $5 billion to $5.1 billion**, and **capital returns to shareholders between $4.2 billion and $4.4 billion**, reflecting strong international performance and continued resilient travel demand.  **[MAR_3381804_4]**
- **Marriott's development pipeline remains robust**, with **commitments for around 140 StudioRes properties in the U.S. & Canada**, **active deals for over 100 more**, and plans to **unveil a new conversion-friendly mid-scale brand**, demonstrating significant growth opportunities and strong demand from owners and franchisees.  **[MAR_3381804_25]** **[MAR_3381804_20]**
- **Group booking pace for 2025 is up approximately 13%**, driven by a **7% increase in definite rooms** and a **5% rise in average daily rate**, indicating sustained strength in the group segment and positive outlook for future revenues.  **[MAR_3381804_9]**

fa95af6c3fdcfd9abfe0fd9abbc1930016dfeebe5846694d9d58632354eacb3d

- **Industry-wide demand has been flat to down over the past year**, with **Marriott's leisure segment showing flat RevPAR in the U.S. & Canada** for the first quarter compared to last year, indicating a potential **slowdown in consumer spending**.  **[MAR_3381804_18]**
- **Macroeconomic challenges in China** are impacting Marriott's expectations for RevPAR growth in **Greater China**, leading to a **downward revision of RevPAR estimates** for the region compared to expectations a quarter ago.  **[MAR_3381804_5]**
- The **upcoming U.S. presidential election** may lead to decreased government and business travel, especially in **Washington D.C.**, potentially negatively impacting Marriott's revenues in Q4.  **[MAR_3381804_23]**

726f45bf27fbde9e8347fb9d64b9ca680abb82ca9a29e2734737d2a4a96520ff

1. **G&A Cost Savings**  
   **Q:** What's the plan for G&A cost savings in 2025?  
   **A:** We plan to achieve annual G&A cost savings of **$80 to $90 million** beginning in 2025, based on this year's cost base. This will result in sustainable expense reductions.  **[MAR_3405568_12]** 

2. **China Performance**  
   **Q:** What's the outlook for China RevPAR growth?  
   **A:** Despite limited impact from recent economic stimulus, we see China's performance potentially being flat in 2025, absent significant new stimulus. However, we've observed slightly better-than-expected RevPAR in Greater China as we moved through Q3 and into October, with a marginal pickup in cross-border travel to Tier 1 cities.  **[MAR_3405568_9]** 

3. **Fee Growth and IMF**  
   **Q:** How are fee growth and incentive management fees trending?  
   **A:** Fee growth can be lumpy quarter-over-quarter due to factors like lower year-over-year incentive management fees in regions like Greater China and renovation impacts. However, we're pleased with strong room signings and conversions coming into the system, supporting future fee growth. In Q3, **22%** of our managed hotels in the U.S. and Canada paid an incentive fee, consistent with the prior quarter.  **[MAR_3405568_7]** ,  **[MAR_3405568_10]** 

4. **Net Unit Growth Outlook**  
   **Q:** What's the outlook for net unit growth?  
   **A:** We remain confident in our 3-year CAGR of **5% to 5.5%** net unit growth, supported by a strong pipeline and continued momentum in signings and conversions. Our new mid-scale offerings, like City Express, are generating strong franchise demand, which will contribute to future growth.  **[MAR_3405568_6]** ,  **[MAR_3405568_15]** ,  **[MAR_3405568_21]** 

5. **Corporate Negotiated Rates**  
   **Q:** What's expected for 2025 corporate negotiated rates?  
   **A:** Early discussions indicate we're targeting a **mid-single-digit increase** in corporate negotiated rates for 2025, and the teams feel positive about achieving this target.  **[MAR_3405568_14]** 

6. **Leisure Demand Trends**  
   **Q:** How is leisure demand expected to trend in 2025?  
   **A:** We expect 2025 to look similar to the back half of 2024, with leisure demand up slightly but not taking a big jump. The normalization of pent-up leisure travel is being offset by continued strength in business transient and group segments.  **[MAR_3405568_16]** ,  **[MAR_3405568_18]** 

7. **Group Business Strength**  
   **Q:** How is the group business pacing for 2025?  
   **A:** Group business for 2025 looks strong in terms of room nights and ADR. We're seeing both existing companies renewing and growth from industries that hadn't fully returned. Availability of dates and space is becoming a challenge, pushing larger groups to plan further ahead.  **[MAR_3405568_18]** ,  **[MAR_3405568_21]** 

8. **Capital Allocation and Asset Sales**  
   **Q:** What's the plan for capital returns and potential asset sales?  
   **A:** Our philosophy remains to invest in valuable growth while returning excess cash to shareholders. We expect to stay solidly in the investment-grade leverage range. We're always evaluating our owned assets for potential sales, especially as we near the end of renovations on properties like W Union Square and the Elegant portfolio in Barbados.  **[MAR_3405568_19]** ,  **[MAR_3405568_24]** 

9. **Key Money Trends**  
   **Q:** Any changes in key money usage for new deals?  
   **A:** Approximately **one-third** of our deals use key money, consistent with past trends. While key money is used across more tiers now, the amount per deal remains similar. We don't see meaningful increases in this element of our investment profile.  **[MAR_3405568_11]** 

10. **Developer Sentiment and Interest Rates**  
    **Q:** How are interest rates affecting developer plans?  
    **A:** Developers consider all variables impacting returns, including interest rates. While they watch Fed actions closely, availability of debt and high construction costs are bigger impediments to new construction starts than current interest rates.  **[MAR_3405568_14]** ,  **[MAR_3405568_16]** 

11. **Ancillary Spend Trends**  
    **Q:** How is consumer ancillary spend evolving?  
    **A:** Food and beverage revenue for meetings and events remains strong. While there's some pullback in outlets and lounges, growth continues—especially in luxury hotels, where we saw a **2% increase** in outlet and lounge revenue in Q3, excluding Greater China.  **[MAR_3405568_20]** 

12. **Corporate Travel Recovery**  
    **Q:** What's the status of corporate travel recovery?  
    **A:** Business transient RevPAR continues to grow quarter-over-quarter. Notably, large corporate travel is returning, complementing the recovery we've seen from small and medium-sized businesses.  **[MAR_3405568_22]** 

13. **Non-RevPAR Fees**  
    **Q:** What's the outlook for non-RevPAR fees growth?  
    **A:** We expect non-RevPAR fees to grow at the top end of single digits, around **9% to 10%** for the full year. In Q3, residential branding fees more than doubled to **$18 million** from **$7 million** a year ago.  **[MAR_3405568_16]** 

14. **Bonvoy Membership and Direct Bookings**  
    **Q:** How are Bonvoy membership and direct bookings trending?  
    **A:** Bonvoy membership has reached **219 million** members. Direct bookings remain steady in the low **70%** range, with OTA bookings stable at **12% to 13%**. We've seen slight growth in GDS bookings due to larger corporations returning to travel.  **[MAR_3405568_22]** 

15. **Impact of Renovations on Fees**  
    **Q:** How will renovations impact fees moving forward?  
    **A:** While renovations can temporarily affect fees, we don't expect them to impact things meaningfully as we move into 2025. We'll consider renovation effects in our budgeting process and fee guidance.  **[MAR_3405568_10]** ,  **[MAR_3405568_20]** 

6e9543e41f96fc2a9eb6dee1515339ece42fc7621dcfa1caa05badb6dc8e39de

- **Elevated construction costs and limited debt availability are impeding Marriott's construction start volumes**, hindering growth compared to pre-pandemic levels.  **[MAR_3405568_16]**
- **Marriott is increasingly using key money across more tiers**, potentially impacting investment returns, as key money is now being used in a broader section of quality tiers than in the past.  **[MAR_3405568_12]**
- **Marriott had to reserve \$70 million for an operating profit guarantee from the Starwood acquisition**, which reflects an unusual exposure and could impact financials.  **[MAR_3405568_18]**

e31ed7c4eba0fdc1c9ee820e630a2cd7b43c655441d3e2cc554e6452c07dbe76

- **Marriott expects to achieve 5% to 5.5% net rooms growth**, supported by strong conversions and adaptive reuse projects, with **30% of room openings coming from conversions**.  **[MAR_3395251_17]**
- **Resilient demand in the high-end luxury segment**, with luxury occupancy improving by nearly **2.5 percentage points** year-over-year, and **luxury resorts RevPAR up 4.1%**.  **[MAR_3395251_19]** **[MAR_3395251_18]**
- **The successful partnership with MGM is enhancing business** with increased transient and group leads and positive customer engagement.  **[MAR_3395251_14]**

5e937f8eb6aad0b735df3334cfd023c2a235154ba8ae16f777c36ef70b7e2e03

Marriott International Inc (MAR)

Financials