Marriott International (NASDAQ:MAR) shares are trading lower today.
The company reported second-quarter adjusted earnings per share of $2.50, beating the street view of $2.47.
Quarterly sales of $6.439 billion missed the analyst consensus of $6.483 billion.
Anthony Capuano, President and Chief Executive Officer, said, "Marriott reported strong second quarter results, with net rooms up 6 percent year over year and worldwide RevPAR growth of nearly 5 percent, as consumers continued to prioritize travel".
International RevPAR rose over 7%, driven by a notable 13% increase in Asia Pacific (excluding China) compared to the previous year.
Adjusted EBITDA for the quarter was $1.324 billion, up from $1.219 billion in the year-ago period.
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Base management and franchise fees totaled $1.148 billion in the quarter, up 9%. Incentive management fees totaled $195 million in the 2024 second quarter, compared to $193 million a year ago.
At the end of the quarter, Marriott's global development pipeline included around 3,500 properties and over 559,000 rooms.
This total comprises approximately 33,000 rooms approved but not yet under signed contracts, with more than 209,000 rooms currently under construction.
At the end of the quarter, Marriott's total debt was $13.1 billion and cash and equivalents totaled $0.3 billion.
Outlook: Marriott expects third quarter 2024 gross fee revenues to range between $1.275 billion and $1.29 billion, with adjusted EPS projected to be $2.27 to $2.33, falling short of the $2.38 estimate.
Marriott projects full-year 2024 adjusted EPS between $9.23 and $9.40, significantly below the $9.50 estimate (prior view: $9.31 to $9.65), with gross fee revenues of $5.13 billion to $5.18 billion (prior view
$5.18 billion to $5.28 billion).
Price Action: MAR shares are trading lower by 4.51% to $228.00 at last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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