Marriott International 10-K Report Highlights RevPAR Growth, Shares Fall

By Tamara Parker • Tuesday, February 11 15:21 • Permanent Link

Marriott International, Inc. has recently released its 10-K report, providing a comprehensive overview of its financial performance and operations for the fiscal year ended December 31, 2023. The company, headquartered in Bethesda, Maryland, operates, franchises, and licenses hotel, residential, timeshare, and other lodging properties under more than 30 brand names globally.

In the 10-K report, the company discusses its operations in various reportable business segments including the U.S. & Canada, Europe, Middle East & Africa, Greater China, and Asia Pacific excluding China. Marriott International follows an asset-light business model, primarily managing or franchising hotels and lodging properties, and earns revenue through management fees, franchise fees, and other licensing agreements.

The report highlights the company's performance measures, including Revenue per Available Room (RevPAR), which increased by 4.3% in 2024 compared to 2023, driven by strong demand growth across various regions. Notably, the U.S. & Canada saw a 3.0% increase in RevPAR, while EMEA, APEC, and CALA reported significant growth in RevPAR at 9.1%, 12.9%, and 8.8% respectively. However, Greater China experienced a decline of 2.3% in RevPAR due to macro-economic conditions and outbound travel.

Marriott International also emphasized its system growth and pipeline, revealing that the system grew from 8,785 properties (1,597,380 rooms) at year-end 2023 to 9,361 properties (1,706,331 rooms) at year-end 2024. The company signed over 1,200 development deals in 2024 for nearly 162,000 rooms globally, with 34% of rooms signed resulting from conversion opportunities.

The 10-K report also delves into the company's consolidated results, highlighting that fee revenues increased by 7% in 2024 compared to 2023, driven by higher RevPAR and unit growth. Additionally, the report provides a detailed analysis of the operating results of its reportable business segments, showcasing the net fee revenues and segment profits for each segment.

Furthermore, the report touches upon the impact of the Starwood Data Security Incident, where unauthorized access to the Starwood reservations database resulted in a data security incident. The company stated that it is currently unable to reasonably estimate the total possible financial impact from the incident.

Following these announcements, the company's shares moved -4.6%, and are now trading at a price of $290.46. Check out the company's full 10-K submission here.

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