Marriott Reports Q2 Growth, Lowers Full-Year Forecast

Marriott International, Inc. reported solid second-quarter growth across most regions, except China, but has revised its yearly revenue forecast downward due to weaker performance in China and the U.S.

Global RevPAR (Revenue per Available Room) increased 4.9% year-over-year, with international markets seeing the highest growth at 7.4%. In the U.S. and Canada, RevPAR grew by 3.9%.

The company reported earnings per share (EPS) of $2.69, up from $2.38 the previous year. Marriott also repurchased 4.1 million shares for $1 billion this quarter, with $2.8 billion returned to shareholders year-to-date. The company expects to return $4.3 billion by year-end.

Net income for the quarter was $772 million, an increase from $726 million last year. Despite this, Marriott has lowered its full-year RevPAR growth range due to a challenging operating environment in China and a decline in leisure travel in the U.S. and Canada.

On a positive note, Marriott added 15,500 net rooms in Q2 and has 3,500 properties in development, with 57% of the development pipeline in international markets. The company signed nearly 31,000 rooms this quarter, 75% of which were in international markets.

Marriott’s President and CEO, Anthony Capuano, emphasized strong owner preference and continued global expansion, with an expected net rooms growth of 5.5% to 6% for 2024.