Marriott International reports strong second quarter 2024 results

Marriott International has announced strong results for the second quarter of 2024, highlighting the company's robust performance in the hospitality sector. A key indicator of this success is the 4.9 per cent increase in worldwide comparable system-wide constant dollar Revenue Per Available Room (RevPAR). 

The company reported a diluted Earnings per Share (EPS) of $2.69 for the quarter, a notable increase from $2.38 observed in the same period last year. This growth in earnings reflects Marriott's ability to drive revenue and manage costs effectively, positioning the company well for continued success.

Additionally, net income for the second quarter rose to $772 million, compared to $726 million in Q2 2023. This increase signifies the year-over-year growth of the company. The sustained profitability indicates strong consumer demand and effective operational management.

Marriott's Adjusted EBITDA also reflected a positive trend, reaching $1,324 million, up from $1,219 million the previous year. This growth in earnings before interest, taxes, depreciation, and amortisation underscores the company's operational efficiency and ability to generate substantial cash flow.

During the quarter, Marriott added approximately 15,500 net rooms, and its worldwide development pipeline now includes about 3,500 properties and over 559,000 rooms. The company demonstrated its commitment to returning value to shareholders by repurchasing 1 million shares for $1 billion in Q2 2024, totalling $2.8 billion returned to shareholders year-to-date.

CEO Anthony Capuano stated, “Marriott reported strong second-quarter results, with net rooms up 6 per cent year over year and worldwide RevPAR growth of nearly 5 per cent, as consumers continued to prioritise travel.” He further emphasised on the success of the Marriott Bonvoy loyalty programme, noting, “With a membership base of over 210 million members and growing, Marriott Bonvoy is a key competitive advantage.”

Looking ahead, Marriott expects to return approximately $4.3 billion to shareholders in 2024 through dividends and share repurchases. However, the company has narrowed its outlook for RevPAR growth due to a weaker operating environment in Greater China and slightly softer expectations in the US and Canada.