Marriott International reveals strong Q1 results with full year outlook
The first quarter 2023 results were revealed by Marriott International on Tuesday
Anthony Capuano, President and Chief Executive Officer, commented: “We are off to a great start in 2023. First quarter worldwide RevPAR grew 34% year over year, with meaningful gains in both occupancy and average daily rate. International markets were particularly robust, with RevPAR growth of 63%. The lifting of travel restrictions throughout Asia Pacific, particularly in Greater China, significantly boosted first quarter demand in the region.”
In the US and Canada, Marriott International saw solid demand across the leisure and group segments in the quarter, while business transient demand continued to improve. ADR in the region rose 10% year over year, aided by higher special corporate negotiated rates and 15% growth in group ADR.
“Our industry-leading pipeline grew to approximately 502,000 rooms, up 2.6% from the year-ago quarter end,” Capuano continued. “Conversion activity remained healthy, accounting for 29% of rooms signed and 25% of rooms opened in the quarter. We still expect net rooms growth of 4 to 4.5% for full year 2023.”
Marriott International is also welcoming City Express as the 31st brand in its lineup, further broadening its portfolio into the midscale space. With roughly 17,000 rooms joining its system, the hotel company are now the largest in the Caribbean and Latin America region. “Demand for the mid-scale segment is growing rapidly, and we see meaningful opportunity to both expand the brand further in CALA and introduce it in other regions,” Capuano said. “While the global economic picture is uncertain, demand remains strong, and we are not seeing signs of a slowdown.”
Q1 2023 Results
Marriott’s reported operating income totalled $951 million in the 2023 first quarter, compared to the 2022 first quarter reported operating income of $558 million. Reported net income totalled $757 million in the 2023 first quarter, compared to the 2022 first quarter’s reported net income of $377 million. Reported diluted earnings per share (EPS) totalled $2.43 in the quarter, compared to reported diluted EPS of $1.14 in the previous year’s quarter.
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