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BETHESDA, Md., Nov. 3, 2021 /PRNewswire/ --
Marriott International, Inc. (NASDAQ: MAR) today reported third quarter 2021 results.
Anthony Capuano, Chief Executive Officer, said, "We were pleased to see continued meaningful improvement in global trends in the third quarter, despite the impact of the Delta variant during the second half of the quarter. For the quarter, worldwide RevPAR1 was down 26 percent compared to the 2019 third quarter, a significant improvement from the second quarter RevPAR decline of 44 percent compared to the same quarter in 2019. Third quarter occupancy topped 58 percent, driven largely by continued strength in leisure demand. Average daily rate, which was only 4 percent below 2019 levels for the quarter, has been recovering much more quickly than in the past two downturns.
"Most of our regions saw considerable improvement in RevPAR in the third quarter compared to the second quarter. In our largest region, the U.S. & Canada, third quarter RevPAR came in 20 percent below the same quarter in 2019, compared to down 40 percent in the second quarter versus the same quarter in 2019. Europe saw a dramatic rise in demand in the quarter, as many key international borders opened, with 2021 RevPAR compared to 2019 improving to down 44 percent from down 77 percent in the second quarter. ADR for the region trailed third quarter 2019 levels by just 5 percent.
"Globally, leisure travel generally remained very strong throughout the quarter, while the Delta variant had the most impact on business transient demand. With the worst of the Delta variant wave now hopefully behind us, business transient demand picked up again in October, a trend we expect to continue.
"Throughout the pandemic, we have worked closely with our owners and franchisees to drive revenue and lower costs. And we're seeing the benefits of this work in our development activity. Third quarter year-to-date room signings, nearly one-third of which were conversions, increased nearly 30 percent year-over-year, and our pipeline remains the largest in the industry. With more than 40 percent of our pipeline rooms in the luxury and upper upscale tiers, we believe we also have the most valuable pipeline in the industry. Finally on the development front, with more clarity around our estimated full year deletions, we now expect 2021 net rooms growth will be approximately 3.5 percent.
"We're proud of the dedication and perseverance our associates have demonstrated over the past year and a half, as they navigated the most challenging environment we have ever faced. With global trends improving, we believe we are well-positioned for growth as the global recovery continues. We are very optimistic about our future."
Third Quarter 2021 ResultsMarriott's reported operating income totaled $545 million in the 2021 third quarter, compared to 2020 third quarter reported operating income of $252 million. Reported net income totaled $220 million in the 2021 third quarter, compared to 2020 third quarter reported net income of $100 million. Reported diluted earnings per share (EPS) totaled $0.67 in the quarter, compared to reported diluted EPS of $0.31 in the year-ago quarter.
Adjusted operating income in the 2021 third quarter totaled $527 million, compared to 2020 third quarter adjusted operating income of $179 million. Adjusted operating income in the 2021 third quarter and the 2020 third quarter excluded impairment charges of $11 million and $32 million, respectively.
Third quarter 2021 adjusted net income totaled $327 million, compared to 2020 third quarter adjusted net income of $44 million. Adjusted diluted EPS in the 2021 third quarter totaled $0.99, compared to adjusted diluted EPS of $0.13 in the year-ago quarter. The 2021 third quarter adjusted results excluded a $122 million after-tax ($0.37 per share) loss on the extinguishment of debt and $8 million after-tax ($0.02 per share) of impairment charges. The 2020 third quarter adjusted results excluded $24 million after-tax ($0.07 per share) of impairment charges.
Adjusted results also excluded restructuring and merger-related charges, cost reimbursement revenue, and reimbursed expenses. These items totaled $23 million of after-tax profits ($0.07 per share) in the 2021 third quarter and $80 million of after-tax profits ($0.25 per share) in the 2020 third quarter. See pages A-3 and A-12 for the calculation of adjusted results and the manner in which the adjusted measures are determined in this press release.
Base management and franchise fees totaled $723 million in the 2021 third quarter, compared to base management and franchise fees of $366 million in the year-ago quarter. The year-over-year increase in these fees is primarily attributable to RevPAR increases due to the ongoing recovery in lodging demand. Other non-RevPAR related franchise fees in the 2021 third quarter totaled $173 million, compared to $119 million in the year-ago quarter, aided by higher credit card and residential branding fees.
Incentive management fees totaled $53 million in the 2021 third quarter, compared to $31 million in the 2020 third quarter. Hotels in international markets earned $36 million of the fees in the quarter.
Contract investment amortization for the 2021 third quarter totaled $21 million, compared to $48 million in the year-ago quarter. The year-over-year change largely reflects impairments of investments in management and franchise contracts related to COVID-19 recorded in the 2020 third quarter.
Owned, leased, and other revenue, net of direct expenses, totaled a profit of $37 million in the 2021 third quarter, compared to an $18 million loss in the year-ago quarter, and reflected the ongoing recovery in lodging demand.
Depreciation, amortization, and other expenses for the 2021 third quarter totaled $64 million, compared to $53 million in the year-ago quarter. Expenses in the 2021 third quarter included an $11 million impairment charge.
General, administrative, and other expenses for the 2021 third quarter totaled $212 million, compared to $131 million in the year-ago quarter. The year-over-year increase primarily reflects higher compensation costs compared to 2020 cost reduction measures, which included reducing executive compensation, implementing reduced work weeks for many of our corporate associates, and furloughing a substantial number of associates.
Interest expense, net, totaled $99 million in the third quarter compared to $107 million in the year-ago quarter. The year-over-year decrease is largely due to lower debt balances.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $683 million in the 2021 third quarter, compared to third quarter 2020 adjusted EBITDA of $327 million. See page A-12 for the adjusted EBITDA calculation.
Selected Performance InformationThe company added 114 properties (17,456 rooms) to its worldwide lodging portfolio during the 2021 third quarter, including more than 2,200 conversion rooms and approximately 8,500 rooms in international markets. Twenty properties (5,414 rooms) exited the system during the quarter. At quarter end, Marriott's global lodging system totaled 7,892 properties, with nearly 1,464,000 rooms.
At quarter end, the company's worldwide development pipeline totaled 2,769 properties with nearly 477,000 rooms, including 1,028 properties with more than 206,000 rooms under construction and 155 properties with roughly 25,000 rooms approved for development, but not yet subject to signed contracts.
In the 2021 third quarter, worldwide RevPAR increased 118.4 percent (a 120.7 percent increase using actual dollars) compared to the 2020 third quarter. RevPAR in the U.S. & Canada increased 134.7 percent (a 135.4 percent increase using actual dollars), and RevPAR in international markets increased 76.3 percent (an 81.8 percent increase using actual dollars).
Balance Sheet and LiquidityAt quarter end, Marriott's net debt was $9.0 billion, representing total debt of $9.8 billion less cash and equivalents of $0.8 billion. At year-end 2020, the company's net debt was $9.5 billion, representing total debt of $10.4 billion less cash and equivalents of $0.9 billion.
In the third quarter, the company issued $700 million of Series II Senior Notes due in 2033 with a 2.75 percent interest rate coupon.
In September 2021, Marriott completed a cash tender offer and retired $1.0 billion aggregate principal amount of Series EE Senior Notes maturing in 2025 with a 5.75 percent interest rate coupon. The company used proceeds from the Series II Senior Notes offering and cash on hand to complete the repurchase of such notes, including the payment of accrued interest and other costs incurred.
Investment SpendingMarriott now anticipates that full year 2021 investment spending will total $525 million to $550 million. Total investment spending includes capital and technology expenditures, loan advances, contract acquisition costs, and other investing activities.
COVID-19Due to the numerous uncertainties associated with COVID-19, Marriott cannot presently estimate the impact of this unprecedented situation on its future results, which is highly dependent on the severity and duration of the pandemic and its impacts, but expects that COVID-19 will continue to be material to the company's results.
Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings review for the investment community and news media on Wednesday, November 3, 2021 at 8:30 a.m. Eastern Time (ET). The conference call will be webcast simultaneously via Marriott's investor relations website at http://www.marriott.com/investor, click on "Events & Presentations" and click on the quarterly conference call link. A replay will be available at that same website until November 2, 2022.
The telephone dial-in number for the conference call is 1-203-518-9704 and the conference ID is MAR3Q21. A telephone replay of the conference call will be available from 1:00 p.m. ET, Wednesday, November 3, 2021 until 8:00 p.m. ET, Wednesday, November 10, 2021. To access the replay, call 1-402-220-2693. The conference ID for the recording is MAR3Q21.
Note on forward-looking statements: All statements in this press release and the accompanying schedules are made as of November 3, 2021. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. This press release and the accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including statements related to the possible effects on our business of the COVID-19 pandemic and efforts to contain it (COVID-19); recovery in lodging demand; travel and lodging demand and trends; our growth prospects and expectations; future performance of the company's hotels; our development pipeline, signings, rooms growth and conversions; our investment spending expectations; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including those we identify below and other risk factors that we identify in our Securities and Exchange Commission filings, including our most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K. Risks that could affect forward-looking statements in this press release include the duration and scope of COVID-19, including the availability and distribution of effective vaccines or treatments; the pandemic's short and longer-term impact on the demand for travel, transient and group business, and levels of consumer confidence; actions governments, businesses and individuals have taken or may take in response to the pandemic, including limiting, banning, or cautioning against travel and/or in-person gatherings or imposing occupancy or other restrictions on lodging or other facilities; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies, travel, and economic activity, including the duration and magnitude of the pandemic's impact on unemployment rates and consumer discretionary spending; the ability of our owners and franchisees to successfully navigate the impacts of COVID-19; the pace of recovery when the pandemic subsides and any dislocations in recovery as a result of resurgences of the pandemic; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the effects of steps we and our property owners and franchisees have taken and may continue to take to reduce operating costs and/or enhance certain health and cleanliness protocols at our hotels; the impacts of our employee furloughs and reduced work week schedules, our voluntary transition program and our other restructuring activities; competitive conditions in the lodging industry and in the labor market; relationships with customers and property owners; the availability of capital to finance hotel growth and refurbishment; the extent to which we experience adverse effects from data security incidents; and changes in tax laws in countries in which we earn significant income. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release.
Marriott International, Inc. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of roughly 7,900 properties under 30 leading brands spanning 138 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company offers Marriott Bonvoy®, its highly-awarded travel program. For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com. In addition, connect with us on Facebook and @MarriottIntl on Twitter and Instagram.
Marriott may post updates about COVID-19 and other matters on its investor relations website at www.marriott.com/investor or Marriott's news center website at www.marriottnewscenter.com. Marriott encourages investors, the media, and others interested in the company to review and subscribe to the information Marriott posts on these websites, which may be material. The contents of these websites are not incorporated by reference into this press release or any report or document Marriott files with the SEC, and any references to the websites are intended to be inactive textual references only.
______________________________
1 All occupancy, ADR and RevPAR statistics are systemwide constant dollar and include hotels that have been temporarily closed due to COVID-19. Unless otherwise stated, all changes refer to year-over-year changes for the comparable period. RevPAR comparisons between 2021 and 2020 reflect properties that are comparable in both years. ADR and RevPAR comparisons between 2021 and 2019 reflect properties that are defined as comparable as of September 30, 2021, even if they were not open and operating for the full year 2019 or they did not meet all the other criteria for comparable in 2019.
IRPR#1
Tables follow
MARRIOTT INTERNATIONAL, INC. | |||||||||||||||
PRESS RELEASE SCHEDULES | |||||||||||||||
TABLE OF CONTENTS | |||||||||||||||
QUARTER 3, 2021 | |||||||||||||||
Consolidated Statements of Income - As Reported | A-1 | ||||||||||||||
Non-GAAP Financial Measures | A-3 | ||||||||||||||
Total Lodging Products | A-4 | ||||||||||||||
Key Lodging Statistics | A-7 | ||||||||||||||
Adjusted EBITDA | A-12 | ||||||||||||||
Explanation of Non-GAAP Financial and Performance Measures | A-13 | ||||||||||||||
MARRIOTT INTERNATIONAL, INC. | |||||||
CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED | |||||||
THIRD QUARTER 2021 AND 2020 | |||||||
(in millions except per share amounts, unaudited) | |||||||
As Reported | As Reported | Percent | |||||
Three Months Ended | Three Months Ended | Better/(Worse) | |||||
September 30, 2021 | September 30, 2020 | Reported 2021 vs. 2020 | |||||
REVENUES | |||||||
Base management fees | $ 190 | $ 87 | 118 | ||||
Franchise fees 1 | 533 | 279 | 91 | ||||
Incentive management fees | 53 | 31 | 71 | ||||
Gross Fee Revenues | 776 | 397 | 95 | ||||
Contract investment amortization 2 | (21) | (48) | 56 | ||||
Net Fee Revenues | 755 | 349 | 116 | ||||
Owned, leased, and other revenue 3 | 241 | 116 | 108 | ||||
Cost reimbursement revenue 4 | 2,950 | 1,789 | 65 | ||||
Total Revenues | 3,946 | 2,254 | 75 | ||||
OPERATING COSTS AND EXPENSES | |||||||
Owned, leased, and other - direct 5 | 204 | 134 | (52) | ||||
Depreciation, amortization, and other 6 | 64 | 53 | (21) | ||||
General, administrative, and other 7 | 212 | 131 | (62) | ||||
Restructuring and merger-related charges | 4 | 1 | (300) | ||||
Reimbursed expenses 4 | 2,917 | 1,683 | (73) | ||||
Total Expenses | 3,401 | 2,002 | (70) | ||||
OPERATING INCOME | 545 | 252 | 116 | ||||
Gains and other income, net 8 | - | 2 | (100) | ||||
Loss on extinguishment of debt | (164) | - | * | ||||
Interest expense | (107) | (113) | 5 | ||||
Interest income | 8 | 6 | 33 | ||||
Equity in losses 9 | (4) | (20) | 80 | ||||
INCOME BEFORE INCOME TAXES | 278 | 127 | 119 | ||||
Provision for income taxes | (58) | (27) | (115) | ||||
NET INCOME | $ 220 | $ 100 | 120 | ||||
EARNINGS PER SHARE | |||||||
Earnings per share - basic | $ 0.67 | $ 0.31 | 116 | ||||
Earnings per share - diluted | $ 0.67 | $ 0.31 | 116 | ||||
Basic Shares | 327.3 | 325.9 | |||||
Diluted Shares | 329.3 | 326.8 | |||||
* | Calculated percentage is not meaningful. | ||||||
1 | Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, and | ||||||
residential branding fees. | |||||||
2 | Contract investment amortization includes amortization of capitalized costs to obtain contracts with our owner and franchisee customers, and any related | ||||||
impairments, accelerations, or write-offs. | |||||||
3 | Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue. | ||||||
4 | Cost reimbursement revenue includes reimbursements from properties for property-level and centralized programs and services that we operate for the benefit of | ||||||
our hotel owners. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services. | |||||||
5 | Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses. | ||||||
6 | Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of capitalized costs incurred to acquire management, franchise, | ||||||
and license agreements, and any related impairments, accelerations, or write-offs. | |||||||
7 | General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses. | ||||||
8 | Gains and other income, net includes gains and losses on the sale of real estate, the sale of joint venture interests and other investments, and adjustments from | ||||||
other equity investments. | |||||||
9 | Equity in losses include our equity in losses of unconsolidated equity method investments. | ||||||
MARRIOTT INTERNATIONAL, INC. | |||||||
CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED | |||||||
THIRD QUARTER YEAR-TO-DATE 2021 AND 2020 | |||||||
(in millions except per share amounts, unaudited) | |||||||
As Reported | As Reported | Percent | |||||
Nine Months Ended | Nine Months Ended | Better/(Worse) | |||||
September 30, 2021 | September 30, 2020 | Reported 2021 vs. 2020 | |||||
REVENUES | |||||||
Base management fees | $ 452 | $ 341 | 33 | ||||
Franchise fees 1 | 1,270 | 876 | 45 | ||||
Incentive management fees | 141 | 43 | 228 | ||||
Gross Fee Revenues | 1,863 | 1,260 | 48 | ||||
Contract investment amortization 2 | (56) | (94) | 40 | ||||
Net Fee Revenues | 1,807 | 1,166 | 55 | ||||
Owned, leased, and other revenue 3 | 536 | 445 | 20 | ||||
Cost reimbursement revenue 4 | 7,068 | 6,788 | 4 | ||||
Total Revenues | 9,411 | 8,399 | 12 | ||||
OPERATING COSTS AND EXPENSES | |||||||
Owned, leased, and other - direct 5 | 507 | 527 | 4 | ||||
Depreciation, amortization, and other 6 | 166 | 275 | 40 | ||||
General, administrative, and other 7 | 610 | 579 | (5) | ||||
Restructuring and merger-related charges | 8 | 5 | (60) | ||||
Reimbursed expenses 4 | 7,005 | 6,801 | (3) | ||||
Total Expenses | 8,296 | 8,187 | (1) | ||||
OPERATING INCOME | 1,115 | 212 | 426 | ||||
Gains and other income, net 8 | 6 | 3 | 100 | ||||
Loss on extinguishment of debt | (164) | - | * | ||||
Interest expense | (323) | (333) | 3 | ||||
Interest income | 22 | 20 | 10 | ||||
Equity in losses 9 | (24) | (54) | 56 | ||||
INCOME (LOSS) BEFORE INCOME TAXES | 632 | (152) | 516 | ||||
(Provision) benefit for income taxes | (1) | 49 | (102) | ||||
NET INCOME (LOSS) | $ 631 | $ (103) | 713 | ||||
EARNINGS (LOSS) PER SHARE | |||||||
Earnings (Loss) per share - basic | $ 1.93 | $ (0.32) | 703 | ||||
Earnings (Loss) per share - diluted | $ 1.92 | $ (0.32) | 700 | ||||
Basic Shares | 327.0 | 325.7 | |||||
Diluted Shares 10 | 329.1 | 325.7 | |||||
* | Calculated percentage is not meaningful. | ||||||
1 | Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, and | ||||||
residential branding fees. | |||||||
2 | Contract investment amortization includes amortization of capitalized costs to obtain contracts with our owner and franchisee customers, and any related | ||||||
impairments, accelerations, or write-offs. | |||||||
3 | Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue. | ||||||
4 | Cost reimbursement revenue includes reimbursements from properties for property-level and centralized programs and services that we operate for the benefit of | ||||||
our hotel owners. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services. | |||||||
5 | Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses. | ||||||
6 | Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of capitalized costs incurred to acquire management, franchise, | ||||||
and license agreements, and any related impairments, accelerations, or write-offs. | |||||||
7 | General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses. | ||||||
8 | Gains and other income, net includes gains and losses on the sale of real estate, the sale of joint venture interests and other investments, and adjustments from | ||||||
other equity investments. | |||||||
9 | Equity in losses include our equity in losses of unconsolidated equity method investments. | ||||||
10 | Basic and fully diluted weighted average shares outstanding used to calculate (loss) earnings per share for the period in which we had a loss are the same because | ||||||
inclusion of additional equivalents would be anti-dilutive. | |||||||
MARRIOTT INTERNATIONAL, INC. | ||||||||||||
NON-GAAP FINANCIAL MEASURES | ||||||||||||
($ in millions except per share amounts) | ||||||||||||
The following table presents our reconciliations of Adjusted operating income, Adjusted operating income margin, Adjusted net income, and Adjusted diluted earnings per share, | ||||||||||||
to the most directly comparable GAAP measure. Adjusted total revenues is used in the determination of Adjusted operating income margin. | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
Percent | Percent | |||||||||||
September 30, | September 30, | Better/ | September 30, | September 30, | Better/ | |||||||
2021 | 2020 | (Worse) | 2021 | 2020 | (Worse) | |||||||
Total revenues, as reported | $ 3,946 | $ 2,254 | $ 9,411 | $ 8,399 | ||||||||
Less: Cost reimbursement revenue | (2,950) | (1,789) | (7,068) | (6,788) | ||||||||
Add: Impairments 1 | - | 30 | - | 40 | ||||||||
Adjusted total revenues ** | 996 | 495 | 2,343 | 1,651 | ||||||||
Operating income, as reported | 545 | 252 | 1,115 | 212 | ||||||||
Less: Cost reimbursement revenue | (2,950) | (1,789) | (7,068) | (6,788) | ||||||||
Add: Reimbursed expenses | 2,917 | 1,683 | 7,005 | 6,801 | ||||||||
Add: Restructuring and merger-related charges | 4 | 1 | 8 | 5 | ||||||||
Add: Impairments2 | 11 | 32 | 11 | 157 | ||||||||
Adjusted operating income ** | 527 | 179 | 194% | 1,071 | 387 | 177% | ||||||
Operating income margin | 14% | 11% | 12% | 3% | ||||||||
Adjusted operating income margin ** | 53% | 36% | 46% | 23% | ||||||||
Net income (loss), as reported | 220 | 100 | 631 | (103) | ||||||||
Less: Cost reimbursement revenue | (2,950) | (1,789) | (7,068) | (6,788) | ||||||||
Add: Reimbursed expenses | 2,917 | 1,683 | 7,005 | 6,801 | ||||||||
Add: Restructuring and merger-related charges | 4 | 1 | 8 | 5 | ||||||||
Add: Impairments3 | 11 | 32 | 15 | 165 | ||||||||
Add: Loss on extinguishment of debt | 164 | - | 164 | - | ||||||||
Income tax effect of above adjustments | (39) | 17 | (36) | (60) | ||||||||
Less: Income tax special items | - | - | (98) | - | ||||||||
Adjusted net income ** | $ 327 | $ 44 | 643% | $ 621 | $ 20 | 3005% | ||||||
Diluted earnings (loss) per share, as reported | $ 0.67 | $ 0.31 | $ 1.92 | $ (0.32) | ||||||||
Adjusted diluted earnings per share** | $ 0.99 | $ 0.13 | 662% | $ 1.89 | $ 0.06 | 3050% | ||||||
** | Denotes non-GAAP financial measures. Please see pages A-13 and A-14 for information about our reasons for providing these alternative financial measures and the | |||||||||||
limitations on their use. | ||||||||||||
1 | Includes impairment charges reported in Contract investment amortization of $30 million and $40 million in the 2020 third quarter and 2020 third quarter year-to-date, respectively. | |||||||||||
2 | Includes impairment charges reported in Depreciation, amortization, and other of $11 million in both the 2021 third quarter and 2021 third quarter year-to-date. Includes | |||||||||||
impairment charges reported in Contract investment amortization of $30 million and $40 million; and Depreciation, amortization, and other of $2 million and $117 million | ||||||||||||
in the 2020 third quarter and 2020 third quarter year-to-date, respectively. | ||||||||||||
3 | Includes impairment charges reported in Depreciation, amortization, and other of $11 million and $11 million; and Equity in earnings (losses) of $0 million and $4 million in the | |||||||||||
2021 third quarter and 2021 third quarter year-to-date, respectively. Includes impairment charges reported in Contract investment amortization of $30 million and $40 million; | ||||||||||||
Depreciation, amortization, and other of $2 million and $117 million; Equity in earnings (losses) of $0 million and $8 million in the 2020 third quarter and 2020 third quarter | ||||||||||||
year-to-date, respectively. | ||||||||||||
MARRIOTT INTERNATIONAL, INC. | ||||||||
TOTAL LODGING PRODUCTS | ||||||||
As of September 30, 2021 | ||||||||
US & Canada | Total International | Total Worldwide | ||||||
Units | Rooms | Units | Rooms | Units | Rooms | |||
Managed | 639 | 220,257 | 1,291 | 331,304 | 1,930 | 551,561 | ||
Marriott Hotels | 113 | 61,300 | 186 | 54,563 | 299 | 115,863 | ||
Marriott Hotels Serviced Apartments | - | - | 1 | 154 | 1 | 154 | ||
Sheraton | 27 | 23,108 | 189 | 63,804 | 216 | 86,912 | ||
Courtyard | 169 | 27,265 | 104 | 22,626 | 273 | 49,891 | ||
Westin | 40 | 21,850 | 73 | 22,225 | 113 | 44,075 | ||
JW Marriott | 21 | 12,712 | 62 | 23,099 | 83 | 35,811 | ||
Renaissance | 24 | 10,607 | 57 | 17,735 | 81 | 28,342 | ||
The Ritz-Carlton | 38 | 11,406 | 65 | 16,410 | 103 | 27,816 | ||
The Ritz-Carlton Serviced Apartments | - | - | 5 | 715 | 5 | 715 | ||
Four Points | 1 | 134 | 78 | 21,466 | 79 | 21,600 | ||
Le Méridien | 1 | 100 | 70 | 19,869 | 71 | 19,969 | ||
W Hotels | 21 | 5,916 | 34 | 9,329 | 55 | 15,245 | ||
W Hotels Serviced Apartments | - | - | 1 | 160 | 1 | 160 | ||
Residence Inn | 76 | 12,199 | 8 | 982 | 84 | 13,181 | ||
The Luxury Collection | 6 | 2,296 | 48 | 8,740 | 54 | 11,036 | ||
St. Regis | 10 | 1,968 | 37 | 8,722 | 47 | 10,690 | ||
St. Regis Serviced Apartments | - | - | 1 | 70 | 1 | 70 | ||
Gaylord Hotels | 6 | 10,220 | - | - | 6 | 10,220 | ||
AC Hotels by Marriott | 7 | 1,165 | 69 | 8,339 | 76 | 9,504 | ||
Aloft | 1 | 330 | 40 | 8,956 | 41 | 9,286 | ||
Fairfield by Marriott | 7 | 1,539 | 50 | 6,856 | 57 | 8,395 | ||
Delta Hotels | 25 | 6,770 | 2 | 477 | 27 | 7,247 | ||
Autograph Collection | 8 | 2,340 | 16 | 2,441 | 24 | 4,781 | ||
Marriott Executive Apartments | - | - | 34 | 4,646 | 34 | 4,646 | ||
SpringHill Suites | 26 | 4,360 | - | - | 26 | 4,360 | ||
Protea Hotels | - | - | 28 | 3,466 | 28 | 3,466 | ||
Element | 2 | 640 | 11 | 2,184 | 13 | 2,824 | ||
EDITION | 4 | 1,207 | 7 | 1,488 | 11 | 2,695 | ||
Moxy | - | - | 5 | 887 | 5 | 887 | ||
TownePlace Suites | 6 | 825 | - | - | 6 | 825 | ||
Tribute Portfolio | - | - | 5 | 453 | 5 | 453 | ||
Bulgari | - | - | 5 | 442 | 5 | 442 | ||
Franchised | 4,926 | 704,438 | 777 | 159,283 | 5,703 | 863,721 | ||
Courtyard | 844 | 112,424 | 103 | 19,166 | 947 | 131,590 | ||
Fairfield by Marriott | 1,096 | 102,571 | 36 | 6,132 | 1,132 | 108,703 | ||
Residence Inn | 761 | 90,566 | 19 | 2,544 | 780 | 93,110 | ||
Marriott Hotels | 226 | 71,450 | 61 | 18,073 | 287 | 89,523 | ||
Sheraton | 152 | 46,001 | 67 | 18,722 | 219 | 64,723 | ||
SpringHill Suites | 484 | 55,847 | - | - | 484 | 55,847 | ||
TownePlace Suites | 465 | 47,206 | - | - | 465 | 47,206 | ||
Autograph Collection | 122 | 24,331 | 93 | 20,175 | 215 | 44,506 | ||
Westin | 90 | 30,484 | 24 | 7,353 | 114 | 37,837 | ||
Four Points | 162 | 24,336 | 61 | 10,239 | 223 | 34,575 | ||
Renaissance | 61 | 17,514 | 29 | 7,781 | 90 | 25,295 | ||
Aloft | 142 | 20,501 | 22 | 3,561 | 164 | 24,062 | ||
AC Hotels by Marriott | 84 | 13,867 | 38 | 6,968 | 122 | 20,835 | ||
Moxy | 26 | 4,913 | 69 | 13,187 | 95 | 18,100 | ||
Delta Hotels | 56 | 12,298 | 10 | 2,415 | 66 | 14,713 | ||
The Luxury Collection | 10 | 2,644 | 51 | 9,459 | 61 | 12,103 | ||
Le Méridien | 22 | 5,096 | 17 | 4,468 | 39 | 9,564 | ||
Element | 67 | 8,898 | 1 | 160 | 68 | 9,058 | ||
Tribute Portfolio | 35 | 5,869 | 21 | 2,613 | 56 | 8,482 | ||
JW Marriott | 14 | 6,328 | 9 | 2,305 | 23 | 8,633 | ||
Protea Hotels | - | - | 36 | 2,949 | 36 | 2,949 | ||
Design Hotels | 6 | 865 | 8 | 862 | 14 | 1,727 | ||
The Ritz-Carlton | 1 | 429 | - | - | 1 | 429 | ||
Bulgari | - | - | 1 | 85 | 1 | 85 | ||
Marriott Executive Apartments | - | - | 1 | 66 | 1 | 66 | ||
MARRIOTT INTERNATIONAL, INC. | ||||||||
TOTAL LODGING PRODUCTS | ||||||||
As of September 30, 2021 | ||||||||
US & Canada | Total International | Total Worldwide | ||||||
Units | Rooms | Units | Rooms | Units | Rooms | |||
Owned/Leased | 26 | 6,483 | 39 | 9,288 | 65 | 15,771 | ||
Courtyard | 19 | 2,814 | 4 | 894 | 23 | 3,708 | ||
Marriott Hotels | 2 | 1,308 | 6 | 2,064 | 8 | 3,372 | ||
Sheraton | - | - | 4 | 1,830 | 4 | 1,830 | ||
W Hotels | 2 | 779 | 2 | 665 | 4 | 1,444 | ||
Westin | 1 | 1,073 | - | - | 1 | 1,073 | ||
Protea Hotels | - | - | 6 | 991 | 6 | 991 | ||
Renaissance | 1 | 317 | 2 | 505 | 3 | 822 | ||
Autograph Collection1 | - | - | 6 | 576 | 6 | 576 | ||
The Ritz-Carlton | - | - | 2 | 550 | 2 | 550 | ||
JW Marriott | - | - | 1 | 496 | 1 | 496 | ||
The Luxury Collection2 | - | - | 4 | 417 | 4 | 417 | ||
Residence Inn | 1 | 192 | 1 | 140 | 2 | 332 | ||
St. Regis | - | - | 1 | 160 | 1 | 160 | ||
Residences | 65 | 6,925 | 37 | 3,013 | 102 | 9,938 | ||
The Ritz-Carlton Residences | 38 | 4,234 | 14 | 1,116 | 52 | 5,350 | ||
St. Regis Residences | 11 | 1,200 | 7 | 598 | 18 | 1,798 | ||
W Residences | 10 | 1,089 | 4 | 359 | 14 | 1,448 | ||
Bulgari Residences | - | - | 5 | 514 | 5 | 514 | ||
Westin Residences | 3 | 266 | - | - | 3 | 266 | ||
Marriott Hotels Residences | - | - | 2 | 246 | 2 | 246 | ||
The Luxury Collection Residences | 1 | 91 | 3 | 115 | 4 | 206 | ||
Sheraton Residences | - | - | 1 | 50 | 1 | 50 | ||
EDITION Residences | 2 | 45 | - | - | 2 | 45 | ||
Le Méridien Residences | - | - | 1 | 15 | 1 | 15 | ||
Timeshare* | 72 | 18,839 | 20 | 3,862 | 92 | 22,701 | ||
Grand Total | 5,728 | 956,942 | 2,164 | 506,750 | 7,892 | 1,463,692 | ||
*Timeshare property and room counts are included on this table in their geographical locations. For external reporting purposes, these counts are captured in the Corporate segment. | ||||||||
1Includes five properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-brand under the Autograph Collection brand following the completion of planned renovations. | ||||||||
2 Includes two properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-brand under The Luxury Collection brand following the completion of planned renovations. | ||||||||
MARRIOTT INTERNATIONAL, INC. | ||||||||
TOTAL LODGING PRODUCTS | ||||||||
As of September 30, 2021 | ||||||||
US & Canada | Total International | Total Worldwide | ||||||
Total Systemwide | Units | Rooms | Units | Rooms | Units | Rooms | ||
Luxury | 189 | 52,344 | 369 | 86,014 | 558 | 138,358 | ||
JW Marriott | 35 | 19,040 | 72 | 25,900 | 107 | 44,940 | ||
The Ritz-Carlton | 39 | 11,835 | 67 | 16,960 | 106 | 28,795 | ||
The Ritz-Carlton Residences | 38 | 4,234 | 14 | 1,116 | 52 | 5,350 | ||
The Ritz-Carlton Serviced Apartments | - | - | 5 | 715 | 5 | 715 | ||
The Luxury Collection1 | 16 | 4,940 | 103 | 18,616 | 119 | 23,556 | ||
The Luxury Collection Residences | 1 | 91 | 3 | 115 | 4 | 206 | ||
W Hotels | 23 | 6,695 | 36 | 9,994 | 59 | 16,689 | ||
W Residences | 10 | 1,089 | 4 | 359 | 14 | 1,448 | ||
W Hotels Serviced Apartments | - | - | 1 | 160 | 1 | 160 | ||
St. Regis | 10 | 1,968 | 38 | 8,882 | 48 | 10,850 | ||
St. Regis Residences | 11 | 1,200 | 7 | 598 | 18 | 1,798 | ||
St. Regis Serviced Apartments | - | - | 1 | 70 | 1 | 70 | ||
EDITION | 4 | 1,207 | 7 | 1,488 | 11 | 2,695 | ||
EDITION Residences | 2 | 45 | - | - | 2 | 45 | ||
Bulgari | - | - | 6 | 527 | 6 | 527 | ||
Bulgari Residences | - | - | 5 | 514 | 5 | 514 | ||
Full-Service | 1,021 | 353,167 | 986 | 274,181 | 2,007 | 627,348 | ||
Marriott Hotels | 341 | 134,058 | 253 | 74,700 | 594 | 208,758 | ||
Marriott Hotels Residences | - | - | 2 | 246 | 2 | 246 | ||
Marriott Hotels Serviced Apartments | - | - | 1 | 154 | 1 | 154 | ||
Sheraton | 179 | 69,109 | 260 | 84,356 | 439 | 153,465 | ||
Sheraton Residences | - | - | 1 | 50 | 1 | 50 | ||
Westin | 131 | 53,407 | 97 | 29,578 | 228 | 82,985 | ||
Westin Residences | 3 | 266 | - | - | 3 | 266 | ||
Renaissance | 86 | 28,438 | 88 | 26,021 | 174 | 54,459 | ||
Autograph Collection2 | 130 | 26,671 | 115 | 23,192 | 245 | 49,863 | ||
Le Méridien | 23 | 5,196 | 87 | 24,337 | 110 | 29,533 | ||
Le Méridien Residences | - | - | 1 | 15 | 1 | 15 | ||
Delta Hotels | 81 | 19,068 | 12 | 2,892 | 93 | 21,960 | ||
Gaylord Hotels | 6 | 10,220 | - | - | 6 | 10,220 | ||
Tribute Portfolio | 35 | 5,869 | 26 | 3,066 | 61 | 8,935 | ||
Marriott Executive Apartments | - | - | 35 | 4,712 | 35 | 4,712 | ||
Design Hotels | 6 | 865 | 8 | 862 | 14 | 1,727 | ||
Limited-Service | 4,446 | 532,592 | 789 | 142,693 | 5,235 | 675,285 | ||
Courtyard | 1,032 | 142,503 | 211 | 42,686 | 1,243 | 185,189 | ||
Fairfield by Marriott | 1,103 | 104,110 | 86 | 12,988 | 1,189 | 117,098 | ||
Residence Inn | 838 | 102,957 | 28 | 3,666 | 866 | 106,623 | ||
SpringHill Suites | 510 | 60,207 | - | - | 510 | 60,207 | ||
Four Points | 163 | 24,470 | 139 | 31,705 | 302 | 56,175 | ||
TownePlace Suites | 471 | 48,031 | - | - | 471 | 48,031 | ||
Aloft | 143 | 20,831 | 62 | 12,517 | 205 | 33,348 | ||
AC Hotels by Marriott | 91 | 15,032 | 107 | 15,307 | 198 | 30,339 | ||
Moxy | 26 | 4,913 | 74 | 14,074 | 100 | 18,987 | ||
Element | 69 | 9,538 | 12 | 2,344 | 81 | 11,882 | ||
Protea Hotels | - | - | 70 | 7,406 | 70 | 7,406 | ||
Timeshare* | 72 | 18,839 | 20 | 3,862 | 92 | 22,701 | ||
Grand Total | 5,728 | 956,942 | 2,164 | 506,750 | 7,892 | 1,463,692 | ||
*Timeshare property and room counts are included on this table in their geographical locations. For external reporting purposes, these counts are captured in the Corporate segment. | ||||||||
1 Includes two properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-brand under The Luxury Collection brand following the completion of planned renovations. | ||||||||
2Includes five properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-brand under the Autograph Collection brand following the completion of planned renovations. | ||||||||
MARRIOTT INTERNATIONAL, INC. | ||||||||||
KEY LODGING STATISTICS | ||||||||||
In Constant $ | ||||||||||
Comparable Company-Operated US & Canada Properties | ||||||||||
Three Months Ended September 30, 2021 and September 30, 2020 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Brand | 2021 | vs. 2020 | 2021 | vs. 2020 | 2021 | vs. 2020 | ||||
JW Marriott | $133.20 | 203.7% | 53.4% | 32.7% | pts. | $249.67 | 17.5% | |||
The Ritz-Carlton | $254.66 | 144.3% | 55.7% | 28.2% | pts. | $457.14 | 20.7% | |||
W Hotels | $152.07 | 297.4% | 53.0% | 35.0% | pts. | $286.81 | 34.7% | |||
Composite US & Canada Luxury1 | $195.98 | 204.4% | 55.0% | 33.6% | pts. | $356.59 | 18.3% | |||
Marriott Hotels | $100.16 | 345.2% | 54.3% | 38.1% | pts. | $184.57 | 32.3% | |||
Sheraton | $100.83 | 617.5% | 53.0% | 41.8% | pts. | $190.21 | 51.3% | |||
Westin | $119.69 | 336.8% | 55.5% | 37.1% | pts. | $215.57 | 44.6% | |||
Composite US & Canada Premium2 | $103.64 | 357.2% | 53.8% | 38.1% | pts. | $192.52 | 33.9% | |||
US & Canada Full-Service3 | $122.18 | 293.5% | 54.1% | 37.2% | pts. | $226.01 | 23.0% | |||
Courtyard | $83.23 | 205.2% | 63.5% | 35.8% | pts. | $131.16 | 32.9% | |||
Residence Inn | $120.56 | 89.4% | 73.8% | 25.6% | pts. | $163.28 | 23.8% | |||
Composite US & Canada Limited-Service4 | $93.06 | 156.0% | 66.1% | 33.5% | pts. | $140.71 | 26.5% | |||
US & Canada - All5 | $115.57 | 258.3% | 56.8% | 36.3% | pts. | $203.46 | 29.1% | |||
Comparable Systemwide US & Canada Properties | ||||||||||
Three Months Ended September 30, 2021 and September 30, 2020 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Brand | 2021 | vs. 2020 | 2021 | vs. 2020 | 2021 | vs. 2020 | ||||
JW Marriott | $140.74 | 209.3% | 56.6% | 34.7% | pts. | $248.47 | 19.8% | |||
The Ritz-Carlton | $253.78 | 149.0% | 56.1% | 29.0% | pts. | $452.14 | 20.4% | |||
W Hotels | $152.07 | 297.4% | 53.0% | 35.0% | pts. | $286.81 | 34.7% | |||
Composite US & Canada Luxury1 | $188.74 | 206.6% | 56.2% | 34.1% | pts. | $335.54 | 20.6% | |||
Marriott Hotels | $93.79 | 222.7% | 54.6% | 32.6% | pts. | $171.74 | 30.3% | |||
Sheraton | $82.99 | 241.3% | 52.7% | 30.6% | pts. | $157.53 | 43.1% | |||
Westin | $110.44 | 248.2% | 56.4% | 33.9% | pts. | $195.85 | 38.9% | |||
Composite US & Canada Premium2 | $99.00 | 220.6% | 55.1% | 32.3% | pts. | $179.55 | 32.8% | |||
US & Canada Full-Service3 | $109.37 | 217.7% | 55.3% | 32.5% | pts. | $197.90 | 30.8% | |||
Courtyard | $90.46 | 127.7% | 65.8% | 27.6% | pts. | $137.50 | 32.3% | |||
Residence Inn | $111.49 | 58.6% | 76.5% | 17.1% | pts. | $145.74 | 23.1% | |||
Fairfield by Marriott | $84.81 | 93.0% | 69.8% | 22.9% | pts. | $121.51 | 29.8% | |||
Composite US & Canada Limited-Service4 | $93.28 | 90.7% | 69.7% | 22.9% | pts. | $133.81 | 27.9% | |||
US & Canada - All5 | $100.19 | 134.7% | 63.5% | 27.1% | pts. | $157.78 | 34.7% | |||
1 Includes JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, and EDITION. | ||||||||||
2 Includes Marriott Hotels, Sheraton, Westin, Renaissance, Autograph Collection, Delta Hotels, and Gaylord Hotels. | ||||||||||
Systemwide also includes Le Méridien and Tribute Portfolio. | ||||||||||
3 Includes Composite US & Canada Luxury and Composite US & Canada Premium. | ||||||||||
4 Includes Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four Points, Aloft, Element, | ||||||||||
and AC Hotels by Marriott. Systemwide also includes Moxy. | ||||||||||
5 Includes US & Canada Full-Service and Composite US & Canada Limited-Service. | ||||||||||
MARRIOTT INTERNATIONAL, INC. | ||||||||||
KEY LODGING STATISTICS | ||||||||||
In Constant $ | ||||||||||
Comparable Company-Operated International Properties | ||||||||||
Three Months Ended September 30, 2021 and September 30, 2020 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2021 | vs. 2020 | 2021 | vs. 2020 | 2021 | vs. 2020 | ||||
Greater China | $67.15 | -1.8% | 54.6% | -6.8% | pts. | $122.94 | 10.5% | |||
Asia Pacific excluding China | $34.57 | 37.1% | 33.2% | 9.1% | pts. | $104.22 | -0.6% | |||
Caribbean & Latin America | $81.73 | 257.1% | 46.4% | 28.2% | pts. | $175.95 | 40.6% | |||
Europe | $104.65 | 215.8% | 47.1% | 28.8% | pts. | $222.03 | 22.5% | |||
Middle East & Africa | $72.42 | 90.7% | 50.8% | 24.2% | pts. | $142.46 | -0.1% | |||
International - All1 | $68.32 | 64.2% | 46.3% | 12.3% | pts. | $147.63 | 20.5% | |||
Worldwide2 | $89.88 | 140.8% | 51.1% | 23.3% | pts. | $175.96 | 31.0% | |||
Comparable Systemwide International Properties | ||||||||||
Three Months Ended September 30, 2021 and September 30, 2020 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2021 | vs. 2020 | 2021 | vs. 2020 | 2021 | vs. 2020 | ||||
Greater China | $63.41 | -4.0% | 52.7% | -7.8% | pts. | $120.28 | 10.3% | |||
Asia Pacific excluding China | $40.46 | 37.6% | 36.1% | 10.9% | pts. | $112.14 | -4.1% | |||
Caribbean & Latin America | $70.07 | 317.5% | 45.7% | 29.8% | pts. | $153.41 | 45.2% | |||
Europe | $92.75 | 177.7% | 46.7% | 26.3% | pts. | $198.64 | 21.0% | |||
Middle East & Africa | $68.19 | 93.3% | 50.3% | 23.8% | pts. | $135.45 | 2.1% | |||
International - All1 | $67.53 | 76.3% | 45.9% | 14.9% | pts. | $147.04 | 19.2% | |||
Worldwide2 | $90.32 | 118.4% | 58.2% | 23.4% | pts. | $155.21 | 30.6% | |||
1 Includes Greater China, Asia Pacific excluding China, Caribbean & Latin America, Europe, and Middle East & Africa. | ||||||||||
2 Includes US & Canada - All and International - All. | ||||||||||
MARRIOTT INTERNATIONAL, INC. | ||||||||||
KEY LODGING STATISTICS | ||||||||||
In Constant $ | ||||||||||
Comparable Company-Operated US & Canada Properties | ||||||||||
Nine Months Ended September 30, 2021 and September 30, 2020 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Brand | 2021 | vs. 2020 | 2021 | vs. 2020 | 2021 | vs. 2020 | ||||
JW Marriott | $117.36 | 60.1% | 44.8% | 16.5% | pts. | $261.98 | 1.1% | |||
The Ritz-Carlton | $225.07 | 73.8% | 47.0% | 15.8% | pts. | $479.30 | 15.2% | |||
W Hotels | $126.08 | 59.9% | 41.4% | 14.3% | pts. | $304.60 | 4.7% | |||
Composite US & Canada Luxury1 | $168.79 | 67.7% | 44.7% | 16.1% | pts. | $377.22 | 7.5% | |||
Marriott Hotels | $67.80 | 35.2% | 40.0% | 13.4% | pts. | $169.48 | -10.1% | |||
Sheraton | $61.72 | 40.7% | 34.6% | 10.6% | pts. | $178.51 | -2.4% | |||
Westin | $80.07 | 53.2% | 40.1% | 13.4% | pts. | $199.52 | 2.0% | |||
Composite US & Canada Premium2 | $68.27 | 40.3% | 38.3% | 12.4% | pts. | $178.10 | -4.9% | |||
US & Canada Full-Service3 | $88.47 | 49.7% | 39.6% | 13.1% | pts. | $223.29 | 0.2% | |||
Courtyard | $62.11 | 62.3% | 54.1% | 23.2% | pts. | $114.79 | -7.4% | |||
Residence Inn | $99.92 | 39.6% | 68.8% | 20.8% | pts. | $145.31 | -2.5% | |||
Composite US & Canada Limited-Service4 | $71.84 | 52.1% | 57.6% | 22.1% | pts. | $124.74 | -6.3% | |||
US & Canada - All5 | $84.70 | 50.1% | 43.7% | 15.2% | pts. | $193.80 | -1.9% | |||
Comparable Systemwide US & Canada Properties | ||||||||||
Nine Months Ended September 30, 2021 and September 30, 2020 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Brand | 2021 | vs. 2020 | 2021 | vs. 2020 | 2021 | vs. 2020 | ||||
JW Marriott | $118.41 | 61.6% | 47.0% | 18.7% | pts. | $251.90 | -2.7% | |||
The Ritz-Carlton | $220.77 | 74.8% | 46.5% | 15.9% | pts. | $474.36 | 15.1% | |||
W Hotels | $126.08 | 59.9% | 41.4% | 14.3% | pts. | $304.60 | 4.7% | |||
Composite US & Canada Luxury1 | $158.60 | 67.2% | 45.6% | 16.8% | pts. | $348.17 | 5.6% | |||
Marriott Hotels | $66.49 | 40.2% | 42.2% | 13.4% | pts. | $157.50 | -4.3% | |||
Sheraton | $56.44 | 38.1% | 39.9% | 10.7% | pts. | $141.38 | 1.1% | |||
Westin | $76.15 | 44.4% | 42.3% | 12.8% | pts. | $180.20 | 0.8% | |||
Composite US & Canada Premium2 | $69.43 | 43.5% | 42.1% | 12.8% | pts. | $165.03 | -0.2% | |||
US & Canada Full-Service3 | $79.74 | 48.3% | 42.5% | 13.3% | pts. | $187.74 | 2.0% | |||
Courtyard | $69.06 | 56.8% | 56.7% | 19.5% | pts. | $121.87 | 2.9% | |||
Residence Inn | $92.69 | 33.6% | 70.9% | 16.1% | pts. | $130.80 | 3.2% | |||
Fairfield by Marriott | $65.50 | 57.7% | 60.8% | 18.9% | pts. | $107.77 | 8.7% | |||
Composite US & Canada Limited-Service4 | $73.54 | 47.5% | 61.7% | 18.2% | pts. | $119.19 | 4.1% | |||
US & Canada - All5 | $76.20 | 47.9% | 53.4% | 16.1% | pts. | $142.59 | 3.4% | |||
1 Includes JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, and EDITION. | ||||||||||
2 Includes Marriott Hotels, Sheraton, Westin, Renaissance, Autograph Collection, Delta Hotels, and Gaylord Hotels. | ||||||||||
Systemwide also includes Le Méridien and Tribute Portfolio. | ||||||||||
3 Includes Composite US & Canada Luxury and Composite US & Canada Premium. | ||||||||||
4 Includes Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four Points, Aloft, Element, | ||||||||||
and AC Hotels by Marriott. Systemwide also includes Moxy. | ||||||||||
5 Includes US & Canada Full-Service and Composite US & Canada Limited-Service. | ||||||||||
MARRIOTT INTERNATIONAL, INC. | ||||||||||
KEY LODGING STATISTICS | ||||||||||
In Constant $ | ||||||||||
Comparable Company-Operated International Properties | ||||||||||
Nine Months Ended September 30, 2021 and September 30, 2020 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2021 | vs. 2020 | 2021 | vs. 2020 | 2021 | vs. 2020 | ||||
Greater China | $67.33 | 49.8% | 55.8% | 15.4% | pts. | $120.73 | 8.4% | |||
Asia Pacific excluding China | $34.38 | -14.6% | 32.3% | 2.3% | pts. | $106.51 | -20.8% | |||
Caribbean & Latin America | $68.54 | 39.9% | 40.0% | 13.0% | pts. | $171.46 | -5.5% | |||
Europe | $54.26 | 32.4% | 28.2% | 5.6% | pts. | $192.41 | 6.1% | |||
Middle East & Africa | $68.11 | 35.0% | 46.3% | 12.0% | pts. | $147.14 | -0.1% | |||
International - All1 | $56.24 | 27.5% | 41.3% | 9.2% | pts. | $136.23 | -1.1% | |||
Worldwide2 | $69.24 | 39.2% | 42.4% | 11.9% | pts. | $163.35 | 0.0% | |||
Comparable Systemwide International Properties | ||||||||||
Nine Months Ended September 30, 2021 and September 30, 2020 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2021 | vs. 2020 | 2021 | vs. 2020 | 2021 | vs. 2020 | ||||
Greater China | $64.10 | 46.8% | 54.3% | 14.4% | pts. | $118.03 | 7.9% | |||
Asia Pacific excluding China | $37.29 | -10.9% | 33.7% | 3.3% | pts. | $110.55 | -19.6% | |||
Caribbean & Latin America | $56.61 | 45.2% | 38.4% | 13.5% | pts. | $147.39 | -5.7% | |||
Europe | $47.88 | 26.3% | 27.8% | 4.5% | pts. | $172.23 | 5.6% | |||
Middle East & Africa | $62.93 | 36.0% | 45.3% | 11.7% | pts. | $139.07 | 1.0% | |||
International - All1 | $52.14 | 25.7% | 38.9% | 8.5% | pts. | $133.90 | -1.7% | |||
Worldwide2 | $68.94 | 42.2% | 49.1% | 13.8% | pts. | $140.51 | 2.2% | |||
1 Includes Greater China, Asia Pacific excluding China, Caribbean & Latin America, Europe, and Middle East & Africa. | ||||||||||
2 Includes US & Canada - All and International - All. | ||||||||||
MARRIOTT INTERNATIONAL, INC. | ||||||||||
KEY LODGING STATISTICS - 2021 vs 2019 | ||||||||||
In Constant $ | ||||||||||
Comparable Systemwide Properties1 | ||||||||||
Three Months Ended September 30, 2021 and September 30, 2019 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2021 | vs. 2019 | 2021 | vs. 2019 | 2021 | vs. 2019 | ||||
Greater China | $63.41 | -27.4% | 52.7% | -16.9% | pts. | $120.28 | -4.1% | |||
Asia Pacific excluding China | $40.46 | -63.9% | 36.1% | -37.9% | pts. | $112.14 | -26.0% | |||
Caribbean & Latin America | $70.07 | -17.8% | 45.7% | -14.1% | pts. | $153.41 | 7.5% | |||
Europe | $92.75 | -43.5% | 46.7% | -31.5% | pts. | $198.64 | -5.4% | |||
Middle East & Africa | $68.19 | -19.2% | 50.3% | -15.3% | pts. | $135.45 | 5.3% | |||
International - All2 | $67.53 | -40.7% | 45.9% | -25.4% | pts. | $147.04 | -7.9% | |||
US & Canada - All | $100.19 | -19.9% | 63.5% | -13.1% | pts. | $157.78 | -3.4% | |||
Worldwide3 | $90.32 | -25.8% | 58.2% | -16.8% | pts. | $155.21 | -4.4% | |||
Comparable Systemwide Properties1 | ||||||||||
Nine Months Ended September 30, 2021 and September 30, 2019 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2021 | vs. 2019 | 2021 | vs. 2019 | 2021 | vs. 2019 | ||||
Greater China | $64.10 | -25.8% | 54.3% | -12.2% | pts. | $118.03 | -9.1% | |||
Asia Pacific excluding China | $37.29 | -67.0% | 33.7% | -38.0% | pts. | $110.55 | -29.9% | |||
Caribbean & Latin America | $56.61 | -44.3% | 38.4% | -23.9% | pts. | $147.39 | -9.7% | |||
Europe | $47.88 | -66.1% | 27.8% | -44.5% | pts. | $172.23 | -11.9% | |||
Middle East & Africa | $62.93 | -32.0% | 45.3% | -20.6% | pts. | $139.07 | -1.1% | |||
International - All2 | $52.14 | -52.9% | 38.9% | -29.9% | pts. | $133.90 | -16.8% | |||
US & Canada - All | $76.20 | -38.1% | 53.4% | -20.9% | pts. | $142.59 | -13.9% | |||
Worldwide3 | $68.94 | -42.3% | 49.1% | -23.7% | pts. | $140.51 | -14.5% | |||
1 The comparisons between 2021 and 2019 reflect properties that are defined as comparable as of September 30, 2021, even if in 2019 they were not open and operating for the full year or did not meet all the criteria for comparable in 2019. | ||||||||||
2 Includes Greater China, Asia Pacific excluding China, Caribbean & Latin America, Europe, and Middle East & Africa. | ||||||||||
3 Includes US & Canada - All and International - All. | ||||||||||
MARRIOTT INTERNATIONAL, INC. | |||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||
ADJUSTED EBITDA | |||||||||
($ in millions) | |||||||||
Fiscal Year 2021 | |||||||||
First Quarter | Second Quarter | ThirdQuarter | Total | ||||||
Net (loss) income, as reported | $ (11) | $ 422 | $ 220 | $ 631 | |||||
Cost reimbursement revenue | (1,780) | (2,338) | (2,950) | (7,068) | |||||
Reimbursed expenses | 1,833 | 2,255 | 2,917 | 7,005 | |||||
Loss on extinguishment of debt | - | - | 164 | 164 | |||||
Interest expense | 107 | 109 | 107 | 323 | |||||
Interest expense from unconsolidated joint ventures | 2 | 1 | 2 | 5 | |||||
(Benefit) provision for income taxes | (16) | (41) | 58 | 1 | |||||
Depreciation and amortization | 52 | 50 | 64 | 166 | |||||
Contract investment amortization | 17 | 18 | 21 | 56 | |||||
Depreciation and amortization classified in reimbursed expenses | 28 | 27 | 28 | 83 | |||||
Depreciation, amortization and impairments from unconsolidated joint ventures | 10 | 9 | 5 | 24 | |||||
Stock-based compensation | 53 | 43 | 43 | 139 | |||||
Restructuring and merger-related charges | 1 | 3 | 4 | 8 | |||||
Adjusted EBITDA ** | $ 296 | $ 558 | $ 683 | $ 1,537 | |||||
Change from 2020 Adjusted EBITDA ** | -33% | 815% | 109% | 85% | |||||
Fiscal Year 2020 | |||||||||
First Quarter | Second Quarter | ThirdQuarter | Fourth Quarter | Total | |||||
Net income (loss), as reported | $ 31 | $ (234) | $ 100 | $ (164) | $ (267) | ||||
Cost reimbursement revenue | (3,797) | (1,202) | (1,789) | (1,664) | (8,452) | ||||
Reimbursed expenses | 3,877 | 1,241 | 1,683 | 1,634 | 8,435 | ||||
Interest expense | 93 | 127 | 113 | 112 | 445 | ||||
Interest expense from unconsolidated joint ventures | 3 | 1 | 12 | 8 | 24 | ||||
(Benefit) provision for income taxes | (12) | (64) | 27 | (150) | (199) | ||||
Depreciation and amortization | 150 | 72 | 53 | 71 | 346 | ||||
Contract investment amortization | 25 | 21 | 48 | 38 | 132 | ||||
Depreciation classified in reimbursed expenses | 26 | 27 | 27 | 29 | 109 | ||||
Depreciation, amortization and impairments from unconsolidated joint ventures | 7 | 16 | 3 | 78 | 104 | ||||
Stock-based compensation | 41 | 50 | 49 | 57 | 197 | ||||
Restructuring and merger-related (recoveries) charges | (2) | 6 | 1 | 262 | 267 | ||||
Loss on asset dispositions | - | - | - | 6 | 6 | ||||
Adjusted EBITDA ** | $ 442 | $ 61 | $ 327 | $ 317 | $ 1,147 | ||||
** Denotes non-GAAP financial measures. Please see pages A-13 and A-14 for information about our reasons for providing these alternative financial measures and the | |||||||||
limitations on their use. | |||||||||
MARRIOTT INTERNATIONAL, INC. | |||||||||||
EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES | |||||||||||
In our press release and schedules, and on the related conference call, we report certain financial measures that are not required by, or presented in accordance with, United States generally accepted accounting principles ("GAAP"). We discuss the manner in which the non-GAAP measures reported in this press release and schedules are determined and management's reasons for reporting these non-GAAP measures below, and the press release schedules reconcile the most directly comparable GAAP measure to each non-GAAP measure that we refer to. Although management evaluates and presents these non-GAAP measures for the reasons described below, please be aware that these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for revenue, operating income/loss, net income/loss, earnings/loss per share or any other comparable operating measure prescribed by GAAP. In addition, we may calculate and/or present these non-GAAP financial measures differently than measures with the same or similar names that other companies report, and as a result, the non-GAAP measures we report may not be comparable to those reported by others.
Adjusted Operating Income and Adjusted Operating Income Margin. Adjusted operating income and Adjusted operating income margin exclude cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges, and non-cash impairment charges. Adjusted operating income margin reflects Adjusted operating income divided by Adjusted total revenues. We believe that these are meaningful metrics because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.
Adjusted Net Income and Adjusted Diluted Earnings Per Share. Adjusted net income and Adjusted diluted earnings per share reflect our net income/loss and diluted earnings/loss per share excluding the impact of cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges, non-cash impairment charges, losses and gains on asset dispositions (when applicable), loss on extinguishment of debt, income tax special items, and the income tax effect of these adjustments. The income tax special items primarily related to the income tax benefit arising from the favorable resolution of pre-acquisition Starwood tax audits in the 2021 second quarter. We calculate the income tax effect of the adjustments using an estimated tax rate applicable to each adjustment. We believe that these measures are meaningful indicators of our performance because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.
Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("Adjusted EBITDA"). Adjusted EBITDA reflects net income/loss excluding the impact of the following items: cost reimbursement revenue and reimbursed expenses, interest expense, depreciation and amortization (including depreciation and amortization classified in "Reimbursed expenses," as discussed below), loss on extinguishment of debt, non-cash impairment charges, benefit (provision) for income taxes, restructuring and merger-related charges (recoveries), and stock-based compensation expense for all periods presented. When applicable, Adjusted EBITDA also excludes gains and losses on asset dispositions made by us or by our joint venture investees.
In our presentations of Adjusted operating income and Adjusted operating income margin, Adjusted net income, Adjusted diluted earnings per share and Adjusted EBITDA, as applicable, we exclude charges incurred under our restructuring plans that we initiated beginning in the 2020 second quarter to achieve cost savings in response to the decline in lodging demand caused by COVID-19 and transition costs associated with the Starwood merger, which we record in the "Restructuring and merger-related charges" caption of our Condensed Consolidated Statements of Income (Loss) (our "Income Statements"), as well as the loss related to the debt extinguishment, as applicable, which we record in the "Loss on extinguishment of debt" caption of our Income Statements, to allow for period-over period comparisons of our ongoing operations before the impact of these items. We also exclude non-cash impairment charges related to our management and franchise contracts, leases, equity investments, and other capitalized assets, which we record in the "Contract investment amortization," "Depreciation, amortization, and other," and "Equity in losses" captions of our Income Statements to allow for period-over period comparisons of our ongoing operations before the impact of these items. We exclude cost reimbursement revenue and reimbursed expenses, which relate to property-level and centralized programs and services that we operate for the benefit of our hotel owners. We do not operate these programs and services to generate a profit over the long term, and accordingly, when we recover the costs that we incur for these programs and services from our hotel owners, we do not seek a mark-up. For property-level services, our owners typically reimburse us at the same time that we incur expenses. However, for centralized programs and services, our owners may reimburse us before or after we incur expenses, causing timing differences between the costs we incur and the related reimbursement from hotel owners in our operating and net income. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively. Because we do not retain any such profits or losses over time, we exclude the net impact when evaluating period-over-period changes in our operating results.
We believe that Adjusted EBITDA is a meaningful indicator of our operating performance because it permits period-over-period comparisons of our ongoing operations before these items and facilitates our comparison of results before these items with results from other lodging companies. We use Adjusted EBITDA to evaluate companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. Our Adjusted EBITDA also excludes depreciation and amortization expense, which we report under "Depreciation, amortization, and other" as well as depreciation and amortization classified in "Contract investment amortization," "Reimbursed expenses," and "Equity in losses" of our Income Statements, because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. Depreciation and amortization classified in "Reimbursed expenses" reflects depreciation and amortization of Marriott-owned assets and software, for which we receive cash from owners to reimburse the company for its investments made for the benefit of the system. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We exclude stock-based compensation expense in all periods presented to address the considerable variability among companies in recording compensation expense because companies use stock-based payment awards differently, both in the type and quantity of awards granted. |
MARRIOTT INTERNATIONAL, INC. |
EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES |
RevPAR. In addition to the foregoing non-GAAP financial measures, we present Revenue per Available Room ("RevPAR") as a performance measure. We believe RevPAR is a meaningful indicator of our performance because it measures the period-over-period change in room revenues for comparable properties. RevPAR relates to property level revenue and may not be comparable to similarly titled measures, such as revenues, and should not be viewed as necessarily correlating with our fee revenue. We calculate RevPAR by dividing room sales (recorded in local currency) for comparable properties by room nights available for the period. We do not consider interruptions related to COVID-19 when determining which properties to classify as comparable. The comparisons between 2021 and 2019 reflect properties that are defined as comparable as of September 30, 2021, even if in 2019 they were not open and operating for the full year or did not meet all the other criteria for comparable in 2019. We present growth in comparative RevPAR on a constant dollar basis, which we calculate by applying exchange rates for the current period to each period presented. We believe constant dollar analysis provides valuable information regarding our properties' performance as it removes currency fluctuations from the presentation of such results. |
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SOURCE Marriott International, Inc.
