Marriott International, Inc. (MAR) Bundle
A Brief History of H3
As of 2024, H3 has shown significant growth and resilience in the competitive landscape. The company's financial performance reflects a robust operational strategy and expansion efforts across various markets.
Financial Performance Overview
In the third quarter of 2024, H3 reported a net income of $584 million, a decrease compared to $752 million in the same quarter of 2023. For the first nine months of 2024, net income totaled $1.92 billion, down from $2.24 billion in the prior year.
| Period | Net Income ($ millions) | Earnings Per Share (EPS) |
|---|---|---|
| Q3 2024 | 584 | $2.07 |
| Q3 2023 | 752 | $2.51 |
| 9M 2024 | 1,920 | $6.69 |
| 9M 2023 | 2,235 | $7.32 |
Revenue Growth and Segments
H3's total revenue for the first three quarters of 2024 reached $3.76 billion, an increase of 7% compared to $3.51 billion in the same period of 2023. The growth was driven by increases in both base management and franchise fees.
| Revenue Source | Q3 2024 ($ millions) | Q3 2023 ($ millions) | Change (%) |
|---|---|---|---|
| Base Management Fees | 312 | 306 | 2 |
| Franchise Fees | 812 | 748 | 9 |
| Incentive Management Fees | 159 | 143 | 11 |
Operational Highlights
As of September 30, 2024, H3 operated approximately 9,068 properties, with a total of 1,674,600 rooms globally. This marks an increase from 8,675 properties and 1,581,002 rooms in the previous year, reflecting a growth rate of 5% in total properties and 6% in total rooms.
| Region | Properties (2024) | Properties (2023) | Change (%) |
|---|---|---|---|
| U.S. & Canada | 6,090 | 5,927 | 3 |
| EMEA | 1,198 | 1,105 | 8 |
| Greater China | 572 | 516 | 11 |
| APEC | 606 | 550 | 10 |
Debt and Capital Structure
As of September 30, 2024, H3's total long-term debt stood at $12.67 billion, an increase from $11.32 billion at the end of 2023. The weighted average interest rate on long-term debt was 4.5% with a maturity of approximately 5.4 years. The cash and cash equivalents totaled $394 million at the end of the third quarter.
| Debt Type | Amount ($ millions) | Interest Rate (%) | Maturity Year |
|---|---|---|---|
| Senior Notes | 11,762 | Varies | Varies |
| Commercial Paper | 769 | N/A | N/A |
| Long-term Debt Total | 12,671 | 4.5 | 2029-2035 |
Shareholder Returns
H3 has been active in returning capital to shareholders. In the third quarter of 2024, the company repurchased 4.5 million shares for $1.0 billion, bringing the year-to-date total to 14.2 million shares repurchased for $3.4 billion.
| Action | Shares (millions) | Amount ($ billions) |
|---|---|---|
| Q3 2024 Repurchases | 4.5 | 1.0 |
| Year-to-Date Repurchases | 14.2 | 3.4 |
H3 declared quarterly dividends of $0.52 per share in February 2024, $0.63 per share in May 2024, and $0.63 per share in August 2024, continuing its trend of returning cash to shareholders.
A Who Owns Marriott International, Inc. (MAR)
Ownership Structure
As of 2024, Marriott International, Inc. (MAR) has a diverse ownership structure that includes institutional investors, individual shareholders, and company insiders.
Major Shareholders
The following table summarizes the major shareholders of Marriott International as of the latest filings:
| Shareholder Type | Number of Shares (millions) | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 164.5 | 57.2% |
| Individuals (including insiders) | 66.3 | 23.2% |
| Mutual Funds | 39.2 | 13.8% |
| Other Investors | 12.6 | 4.4% |
Institutional Ownership
Marriott's institutional ownership comprises significant financial entities that manage substantial assets. The largest institutional shareholders include:
| Institution | Shares Owned (millions) | Ownership Percentage |
|---|---|---|
| The Vanguard Group, Inc. | 23.1 | 8.1% |
| BlackRock, Inc. | 22.4 | 7.9% |
| State Street Corporation | 18.5 | 6.5% |
| Fidelity Investments | 14.2 | 5.0% |
Insider Ownership
Insider ownership plays a crucial role in the governance of Marriott. The following table details the ownership of top executives and directors:
| Name | Position | Shares Owned (millions) |
|---|---|---|
| Anthony Capuano | CEO | 1.2 |
| Leeny Oberg | CFO | 0.8 |
| David Marriott | Vice Chairman | 1.0 |
| Board of Directors Average | — | 0.5 |
Stock Performance and Dividends
Marriott's stock performance has been noteworthy in recent years. As of September 30, 2024, the stock price was approximately $145.78, with the following key metrics:
| Metric | Value |
|---|---|
| Market Capitalization (in billions) | $45.2 |
| 52-week High | $160.39 |
| 52-week Low | $130.15 |
| Annual Dividend | $2.52 |
Recent Developments
As of 2024, Marriott announced an increase in its share repurchase program, with 14.2 million shares repurchased for approximately $3.4 billion year-to-date. The company continues to focus on returning value to shareholders through dividends and stock repurchases.
Marriott International, Inc. (MAR) Mission Statement
Overview of the Mission Statement
The mission statement of Marriott International emphasizes its commitment to providing exceptional hospitality and experiences for guests, associates, and owners. The company aims to enhance the lives of its guests by creating a sense of belonging and fostering an environment of inclusivity and community.
Key Components of the Mission Statement
- Focus on guest satisfaction and exceptional service.
- Commitment to diversity and inclusion within the workplace.
- Investment in sustainable practices and community engagement.
- Enhancing the lives of associates through career development and opportunities.
Financial Performance Indicators
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Income ($ millions) | 584 | 752 | (22.3) |
| Earnings Per Share (EPS) | $2.07 | $2.51 | (17.5) |
| Revenue ($ millions) | 1,283 | 1,197 | 7.2 |
| Operating Income ($ millions) | 81 | 70 | 15.7 |
Market Position and Development
As of September 30, 2024, Marriott International had approximately 9,068 properties, representing a 5% increase from the previous year. The company also reported 1,674,600 rooms, a growth of 6% year-over-year. The development pipeline includes about 585,000 rooms, with 220,000 of those rooms under construction.
Guest Loyalty Program
The liability for the guest loyalty program stood at $7,371 million at the end of Q3 2024, reflecting an increase of $365 million from December 31, 2023. This growth indicates a robust engagement with the loyalty program, contributing positively to customer retention and satisfaction.
Shareholder Returns
| Quarter | Dividend Declared ($ per share) | Shares Repurchased (millions) | Total Repurchase Amount ($ millions) |
|---|---|---|---|
| Q1 2024 | $0.52 | 4.5 | 1,000 |
| Q2 2024 | $0.63 | 5.0 | 1,200 |
| Q3 2024 | $0.63 | 4.2 | 900 |
Sustainability Efforts
Marriott International is dedicated to sustainability through various initiatives aimed at reducing its environmental footprint. The company has committed to reducing carbon emissions by 50% by 2025 and aims to achieve net-zero emissions by 2050.
Conclusion of Mission Statement Analysis
The mission statement of Marriott International reflects its core values of hospitality, diversity, sustainability, and community engagement, which are supported by strong financial performance and a commitment to shareholder value.
How Marriott International, Inc. (MAR) Works
Company Overview
Marriott International, Inc. operates as a leading global lodging company, with a diverse portfolio of hotels and related lodging facilities. As of September 30, 2024, Marriott had approximately 9,068 properties and 1,674,600 rooms globally, reflecting a 5% increase in properties and a 6% increase in rooms compared to the previous year.
| Ownership Type | Properties (2024) | Properties (2023) | Rooms (2024) | Rooms (2023) |
|---|---|---|---|---|
| Managed | 1,999 | 2,039 | 572,731 | 573,991 |
| Franchised/Licensed/Other | 6,888 | 6,466 | 1,074,361 | 980,969 |
| Owned/Leased | 50 | 51 | 13,108 | 13,432 |
| Residential | 131 | 119 | 14,400 | 12,610 |
Financial Performance
For the nine months ended September 30, 2024, Marriott reported a net income of $1.92 billion, down from $2.24 billion in the prior year. The decrease in net income was attributed to various factors, including increased operating expenses and a higher effective tax rate.
Marriott's total revenues for the same period were $18.67 billion, representing a year-over-year increase. This growth was driven primarily by higher gross fee revenues and owned, leased, and other revenues.
| Financial Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Income | $584 million | $752 million | -22.3% |
| Total Revenue | $5.93 billion | $5.73 billion | +4.2% |
| Earnings per Share (Diluted) | $2.07 | $2.51 | -17.5% |
Revenue Breakdown
Marriott's revenue is generated from various segments, including base management fees, franchise fees, and owned, leased, and other revenues. For the nine months ended September 30, 2024, the breakdown of revenue was as follows:
| Revenue Source | Amount (in millions) | Year-over-Year Change |
|---|---|---|
| Base Management Fees | $955 | +4% |
| Franchise Fees | $2,318 | +9% |
| Incentive Management Fees | $563 | +5% |
| Owned, Leased, and Other Revenue | $874 | +2% |
Operational Statistics
Marriott measures its operational performance through key metrics such as Revenue Per Available Room (RevPAR), occupancy rates, and Average Daily Rate (ADR). As of September 30, 2024, the worldwide RevPAR was $145.78, reflecting a 4.8% increase compared to the prior year.
| Region | RevPAR (2024) | Occupancy Rate (2024) | ADR (2024) |
|---|---|---|---|
| U.S. & Canada | $178.12 | 70.2% | $253.56 |
| Europe | $218.79 | 71.9% | $304.26 |
| Middle East & Africa | $121.86 | 66.7% | $182.63 |
| Greater China | $84.08 | 68.5% | $122.81 |
| Asia Pacific excluding China | $117.01 | 71.9% | $162.81 |
Debt and Liquidity
As of September 30, 2024, Marriott had total long-term debt of $12.67 billion, with a weighted average interest rate of 4.5%. The company maintains a $4.5 billion revolving credit facility, which is set to expire on December 14, 2027.
Marriott's liquidity position is supported by cash and cash equivalents of $394 million and accounts receivable totaling $2.92 billion.
| Debt Metrics | Amount (in millions) |
|---|---|
| Total Long-Term Debt | $12,671 |
| Cash and Cash Equivalents | $394 |
| Accounts Receivable | $2,920 |
Shareholder Returns
Marriott returned cash to shareholders through dividends and share repurchases. In 2024, the company declared dividends of $0.52 per share and $0.63 per share in subsequent quarters. Year-to-date, Marriott repurchased 14.2 million shares for approximately $3.4 billion.
How Marriott International, Inc. (MAR) Makes Money
Revenue Streams
Marriott International generates revenue through multiple streams, primarily through fees from hotel management and franchising, as well as revenue from owned and leased properties.
| Revenue Stream | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Base Management Fees | $312 | $306 | 2% |
| Franchise Fees | $812 | $748 | 9% |
| Incentive Management Fees | $159 | $143 | 11% |
| Owned, Leased, and Other Revenue | $381 | $363 | 5% |
| Cost Reimbursement Revenue | $4,617 | $4,391 | 5% |
| Total Revenue | $6,255 | $5,928 | 5% |
Management and Franchise Fees
The majority of Marriott's revenue comes from management and franchise fees. In Q3 2024, gross fee revenues reached $1.283 billion, up from $1.197 billion in Q3 2023, reflecting a 7% increase. This growth is attributed to higher revenue per available room (RevPAR) and unit growth.
Owned, Leased, and Other Properties
Owned and leased properties generated $381 million in revenue in Q3 2024, compared to $363 million in Q3 2023, marking a 5% increase. Direct expenses from these properties were $300 million, up from $293 million, leading to net income of $81 million.
Cost Reimbursements
Cost reimbursement revenue totaled $4.617 billion in Q3 2024, an increase of 5% from $4.391 billion in Q3 2023. This revenue is primarily related to costs incurred for centralized programs and services, which are reimbursed by property owners and franchisees.
Segment Performance
Marriott's business segments include U.S. & Canada, EMEA (Europe, Middle East, and Africa), Greater China, and Asia Pacific excluding China (APEC). The following table summarizes segment performance for Q3 2024:
| Segment | Gross Fee Revenues (in millions) | Net Fee Revenues (in millions) | Total Revenue (in millions) |
|---|---|---|---|
| U.S. & Canada | $747 | $728 | $4,596 |
| EMEA | $153 | $150 | $635 |
| Greater China | $62 | $62 | $142 |
| APEC | $82 | $80 | $230 |
| Total | $1,044 | $1,020 | $5,603 |
Financial Performance
For the nine months ended September 30, 2024, Marriott reported net income of $1.920 billion, down from $2.235 billion in the same period of 2023. Earnings per share were $6.71 for the first three quarters of 2024, compared to $7.36 in 2023.
Debt and Liquidity
As of September 30, 2024, Marriott's total long-term debt stood at $12.671 billion, with a weighted average interest rate of 4.5%. The company maintains a $4.5 billion revolving credit facility to support its liquidity needs, which expires on December 14, 2027.
Loyalty Program
Marriott's loyalty program remains a significant asset, with a liability of $7.371 billion recorded as of September 30, 2024, reflecting an increase in points earned by members. This program drives repeat business and enhances customer retention.
Recent Capital Activities
In August 2024, Marriott issued $500 million of 4.800% Series PP Notes due March 15, 2030, and $1.0 billion of 5.350% Series QQ Notes due March 15, 2035. The net proceeds from these issuances were approximately $1.480 billion, aimed at general corporate purposes.
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Resources:
- Marriott International, Inc. (MAR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Marriott International, Inc. (MAR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Marriott International, Inc. (MAR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.