by Lacey Pfalz
Last updated: 10:10 AM ET, Tue February 13, 2024
Marriott shared its 2024 predictions for the first quarter and the full year on February 13 during an earnings review conference call, noting its strong trend in development growth should continue through 2024 and expecting to return $4.1 to $4.3 billion to shareholders this year.?
Marriott added 558 properties, totalling over 81,000 new rooms, to its portfolio in 2023. At the end of the year, its global portfolio totaled nearly 8,800 hotels and resorts, with over 1.59 million rooms.?
The development trend that grew rapidly during 2023 among the largest hotel companies continues into 2024. Marriott reported a total number of 3,379 properties in development. Over one thousand are currently under construction, representing 41 percent of its development pipeline.?
RevPAR, or revenue per available room, which is a key metric in the hospitality industry, is expected to grow 4-5 percent in the first quarter of 2024 compared to the same period in 2023. Its also expected to grow 3-5 percent throughout the full year.?
Marriotts net rooms growth is anticipated to grow 5.5 to 6 percent throughout the year due to its large development pipeline.?
Growth in both metrics should prompt the hotel giant to earn an adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $4.9 to $5 billion for the year.?
"In 2024, we expect another year of solid growth and significant shareholder returns, said Anthony Capuano, President and CEO of Marriott International. With normalizing RevPAR growth around the world, we anticipate a worldwide full year RevPAR increase of 3 to 5 percent and net rooms growth of 5.5 to 6 percent."
"We expect this should yield adjusted EBITDA of approximately $4.9 billion to $5.0 billion for the year and enable us to return $4.1 billion to $4.3 billion to shareholders after factoring in $500 million to purchase the Sheraton Grand Chicago," Capuano continued.
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