Marriott Q4 Earnings & Revenues Beat Estimates, RevPAR Rise Y/Y

Marriott International, Inc. MAR reported fourth-quarter 2024 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top line increased year over year, while the bottom line declined from the prior-year quarter.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Marriott posted strong results in 2024, driven by steady global travel demand and strategic portfolio expansion. Full-year global RevPAR rose 4.3%, supported by record gross room additions of more than 123,000 and a 6.8% increase in net rooms.The company’s development momentum remained strong, with the company signing a record number of new deals and its development pipeline reaching 577,000 rooms. Conversions accounted for more than one-third of signings and over half of room additions.Marriott strengthened its midscale segment with the launch of 28 Four Points Flex hotels in EMEA and APEC and introduced City Express by Marriott in the U.S. & Canada. It expanded into outdoor lodging through partnerships with Postcard Cabins and Trailborn. Given a vast global footprint, a loyalty program comprising nearly 228 million Marriott Bonvoy members, and an asset-light model, the company remains well-positioned to capitalize on travel demand and drive growth in the upcoming periods.MAR’s Q4 Earnings & Revenue DiscussionMarriott International, Inc. Price, Consensus and EPS Surprise Marriott International, Inc. price-consensus-eps-surprise-chart | Marriott International, Inc. QuoteMarriott’s adjusted earnings per share (EPS) of $2.45 beat the Zacks Consensus Estimate of $2.38. It reported adjusted earnings of $3.57 per share in the prior-year quarter. Quarterly revenues of $6.42 billion beat the consensus mark of $6.39 billion. The top line moved up 5% on a year-over-year basis.Revenues from Base management and Franchise fees were $333 million and $795 million, up 4% and 13% year over year, respectively. Increased RevPAR, residential and co-branded credit card fees and unit growth backed this uptick. We estimated the metrics to be $334.8 million and $779.1 million, respectively.Incentive management fees were $206 million, reflecting a fall of 6% from $218 million reported in the prior-year quarter. We projected the metric to be $195.5 million.RevPAR & MarginsRevPAR for worldwide comparable system-wide properties rose 5% (in constant dollars) year over year. The upside was backed by a 3.2% increase in average daily rate (“ADR”) and a 1.2% increase in occupancy, year over year.Comparable system-wide RevPAR in the Asia Pacific (excluding China) increased 12.5% (in constant dollars) year over year. Occupancy moved up 2.3% year over year, while ADR rose 9.1% from the 2023 level. Comparable system-wide RevPAR in Greater China declined 1.7% year over year.On a constant-dollar basis, international comparable system-wide RevPAR increased 7.2% year over year. Occupancy and ADR gained 2% and 4.2% year over year, respectively. Comparable system-wide RevPAR in Europe gained 7.2% year over year. RevPAR in the Caribbean & Latin America and Middle East & Africa rose 7.3% and 9.7%, respectively, from 2023 levels.Total expenses increased 5.6% year over year to $5.68 billion, owing to a rise in reimbursed expenses. Our estimate was pegged at $5.4 billion.Adjusted EBITDA amounted to $1.29 billion, compared with $1.2 billion reported in the prior-year quarter. We predicted the metric to be $1.25 billion.Balance SheetAt the fourth-quarter end, Marriott's total debt totaled $14.4 billion, compared with $13.6 reported in the prior quarter. Cash and cash equivalents, as of Dec. 31, 2024, were $0.4 billion compared with $0.3 billion as of 2023-end.Year to date (through Feb. 7, 2025), the company repurchased 1.2 million shares worth $350 million.Unit DevelopmentsAt the end of the fourth quarter, Marriott's worldwide development pipeline totaled 3,766 hotels. As of the quarter's end, about 1,381 properties with more than 229,000 rooms were under construction.MAR’s 2024 HighlightsTotal revenues in 2024 came in at $25.1 billion compared with $23.7 billion in 2023.Adjusted EBITDA in 2024 came in at $4.98 billion compared with $4.7 billion in 2023.In 2024, adjusted diluted EPS came in at $9.33 compared with $9.99 reported in the previous year.Marriott’s Q1 & 2025 OutlookFor the first quarter, management anticipates gross fee revenues in the range of $1.24-$1.26 billion. Adjusted EBITDA is expected to be between $1.17 billion and $1.2 billion. MAR estimates first-quarter EPS to be between $2.2 and $2.26.The company projects worldwide system-wide RevPAR to increase 2-4% year over year in 2025.For 2025, Marriott reduced its gross fee revenue expectations to $5.37-$5.48 billion. General and administrative expenses are now projected in the range of $965-$985 million.Adjusted EBITDA is expected to be between $5.3 billion and $5.43 billion. The company now envisions 2025 EPS in the band of $9.82-$10.19.MAR’s Zacks RankMarriott currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.Recent Consumer Discretionary ReleasesRoyal Caribbean Cruises Ltd. RCL posted mixed fourth-quarter 2024 results, with adjusted earnings beating the Zacks Consensus Estimate while revenues missed the same. Notably, the top and bottom lines increased on a year-over-year basis.The company’s performance during the quarter was driven by stronger pricing on close-in demand and continued strength in onboard revenues. Its diversified fleet offerings, accompanied by its commercial and vacation experiences, are witnessing robust demand trends amid an improving global market backdrop. Thanks to these tailwinds, RCL could achieve its Trifecta goals before the schedule, pointing out the benefits it is realizing from the current improving scenario.Adtalem Global Education Inc. ATGE posted better-than-expected results in second-quarter fiscal 2025. Earnings and revenues surpassed the respective Zacks Consensus Estimate and increased year over year, driven by strong enrollment growth and strategic initiatives.Adtalem's operational excellence strategy, Growth with Purpose, has driven six consecutive quarters of enrollment growth while supporting its mission to develop skilled healthcare professionals. Furthermore, strong demand at Chamberlain University and Walden University drove results. ATGE now expects fiscal 2025 adjusted earnings to be in the band of $6.10-$6.30 per share compared with the earlier prediction of $5.75-$5.95.Las Vegas Sands Corp. LVS reported fourth-quarter 2024 results, with earnings missing the Zacks Consensus Estimate and net revenues beating the same. The metrics declined on a year-over-year basis.The company reported solid financial and operational performance at Marina Bay Sands, Singapore and continued recovery in the Macao market. LVS continues to execute its strategic objectives and remains optimistic about achieving industry-leading growth in both Macao and Singapore through its ongoing capital investment initiatives. It is optimistic about the introduction of new suite offerings, enhanced service levels and increased tourism spending in Asia.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marriott International, Inc. (MAR): Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report Las Vegas Sands Corp. 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