Marriott’s Q3 Growth Sparks Efficiency Overhaul, Cuts Expected by 2025

Marriott International released its third-quarter 2024 results, showcasing a 3% rise in global revenue per available room (RevPAR) and ongoing expansion. International markets led with a 5.4% RevPAR increase, while the U.S. and Canada saw a modest 2.1% growth compared to Q3 2023.

Marriott reported $2.07 in diluted earnings per share (EPS) for the quarter, down from $2.51 in Q3 2023, but adjusted EPS climbed to $2.26. Adjusted net income was $638 million, up slightly from $634 million last year, with adjusted EBITDA reaching $1.23 billion, highlighting Marriott’s resilience.

The hospitality giant added around 16,000 rooms this quarter, bringing its development pipeline to 3,800 properties and 585,000 rooms. Of these, 34,000 rooms are approved, pending contract finalization, with over 220,000 rooms under construction.

Marriott repurchased 4.5 million shares, totaling $1 billion, and returned $3.9 billion to shareholders in 2024 through buybacks and dividends. CEO Anthony Capuano highlighted the company’s momentum, noting a new initiative aimed at achieving $80 to $90 million in annual cost savings by 2025, mainly through corporate-level job reductions.

An estimated $100 million in restructuring costs are expected in Q4 2024. “With over 30 brands globally, these efforts are set to make us even more competitive,” said CFO Kathleen Oberg.

Marriott’s strategic adjustments underscore its commitment to enhancing operational efficiency while capitalizing on growth across diverse markets.

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