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Marriott (MAR) Q2 Earnings & Revenues Top Estimates, Rise Y/Y
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Marriott International, Inc. (MAR - Free Report) reported solid second-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate as well as increasing on a year-over-year basis.
The company reported resurgence of lodging demand in Mainland China with leisure, business transient and group room bookings ahead of 2019 levels. Also, solid leisure demand was reported in the U.S. and Canada region. As more people are getting back to workplace, the company is optimistic regarding the upward trajectory of the global recovery.
Anthony Capuano, chief executive officer, Marriott, stated, "Our recovery to date has shown us that there is tremendous pent-up demand for the travel experiences we consistently provide. Timelines are hard to predict and will continue to vary by region, but I believe that we are on our way to a full global recovery."
Earnings & Revenues Discussion
Marriott International, Inc. Price, Consensus and EPS Surprise
In the quarter under review, Marriott’s adjusted earnings per share were 79 cents, which surpassed the Zacks Consensus Estimate of 42 cents. In the prior-year quarter, the company had reported adjusted loss of 57 cents per share.
Quarterly revenues of $3,149 million surpassed the consensus mark of $3,014 million. Moreover, the top line surged 115.1% on a year-over-year basis. During the quarter, revenues from Base management and Franchise fee came in at $156 million and $431 million compared with $40 million and $182 million reported in the prior-year quarter.
RevPAR & Margins
In the quarter under review, revenue per available room (RevPAR) for worldwide comparable system-wide properties fell 43.8% (in constant dollars) compared with 2019 levels. The decline was primarily driven by a fall in in occupancy and average daily rate (ADR). Notably, occupancy and ADR declined 24.1% and 17.2%, respectively, from 2019 levels. These metrics were impacted by the coronavirus pandemic.
Comparable system-wide RevPAR in Asia Pacific (excluding China) fell 69% (in constant dollars) from 2019 levels. Notably, occupancy and ADR had fallen 39.9% and 28.2%, respectively, from 2019 levels. Comparable system-wide RevPAR in Greater China fell 16.9% from 2019 levels.
On a constant-dollar basis, international comparable system-wide RevPAR fell 55.6% compared with 2019 levels. Notably, occupancy and ADR had fallen 30.8% and 20%, respectively, from 2019 levels. Moreover, comparable system-wide RevPAR in Europe as well as Caribbean & Latin America declined 77.4% and 38.7%, respectively, from 2019 levels.
Total expenses during the quarter increased 64.6% year over year to $2,663 million, primarily due to a rise in Reimbursed expenses.
During the second quarter, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to $558 million compared with $61 million in the prior-year quarter.
Balance sheet
At the end of the second quarter, Marriott's total debt amounted to $9.5 billion compared with $9.6 billion in the previous quarter. The company’s net liquidity at the end of quarter was nearly $4.7 billion.
Unit Developments
At the end of second-quarter 2021, Marriott's development pipeline totaled nearly 2,750 hotels, with approximately 478,000 rooms. Further, nearly 212,000 rooms were under construction.
During the quarter, the company added 149 new properties (24,909 rooms) to its worldwide lodging portfolio.
Image: Shutterstock
Marriott (MAR) Q2 Earnings & Revenues Top Estimates, Rise Y/Y
Marriott International, Inc. (MAR - Free Report) reported solid second-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate as well as increasing on a year-over-year basis.
The company reported resurgence of lodging demand in Mainland China with leisure, business transient and group room bookings ahead of 2019 levels. Also, solid leisure demand was reported in the U.S. and Canada region. As more people are getting back to workplace, the company is optimistic regarding the upward trajectory of the global recovery.
Anthony Capuano, chief executive officer, Marriott, stated, "Our recovery to date has shown us that there is tremendous pent-up demand for the travel experiences we consistently provide. Timelines are hard to predict and will continue to vary by region, but I believe that we are on our way to a full global recovery."
Earnings & Revenues Discussion
Marriott International, Inc. Price, Consensus and EPS Surprise
Marriott International, Inc. price-consensus-eps-surprise-chart | Marriott International, Inc. Quote
In the quarter under review, Marriott’s adjusted earnings per share were 79 cents, which surpassed the Zacks Consensus Estimate of 42 cents. In the prior-year quarter, the company had reported adjusted loss of 57 cents per share.
Quarterly revenues of $3,149 million surpassed the consensus mark of $3,014 million. Moreover, the top line surged 115.1% on a year-over-year basis. During the quarter, revenues from Base management and Franchise fee came in at $156 million and $431 million compared with $40 million and $182 million reported in the prior-year quarter.
RevPAR & Margins
In the quarter under review, revenue per available room (RevPAR) for worldwide comparable system-wide properties fell 43.8% (in constant dollars) compared with 2019 levels. The decline was primarily driven by a fall in in occupancy and average daily rate (ADR). Notably, occupancy and ADR declined 24.1% and 17.2%, respectively, from 2019 levels. These metrics were impacted by the coronavirus pandemic.
Comparable system-wide RevPAR in Asia Pacific (excluding China) fell 69% (in constant dollars) from 2019 levels. Notably, occupancy and ADR had fallen 39.9% and 28.2%, respectively, from 2019 levels. Comparable system-wide RevPAR in Greater China fell 16.9% from 2019 levels.
On a constant-dollar basis, international comparable system-wide RevPAR fell 55.6% compared with 2019 levels. Notably, occupancy and ADR had fallen 30.8% and 20%, respectively, from 2019 levels. Moreover, comparable system-wide RevPAR in Europe as well as Caribbean & Latin America declined 77.4% and 38.7%, respectively, from 2019 levels.
Total expenses during the quarter increased 64.6% year over year to $2,663 million, primarily due to a rise in Reimbursed expenses.
During the second quarter, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to $558 million compared with $61 million in the prior-year quarter.
Balance sheet
At the end of the second quarter, Marriott's total debt amounted to $9.5 billion compared with $9.6 billion in the previous quarter. The company’s net liquidity at the end of quarter was nearly $4.7 billion.
Unit Developments
At the end of second-quarter 2021, Marriott's development pipeline totaled nearly 2,750 hotels, with approximately 478,000 rooms. Further, nearly 212,000 rooms were under construction.
During the quarter, the company added 149 new properties (24,909 rooms) to its worldwide lodging portfolio.
Zacks Rank
Marriott — which shares space with Hilton Worldwide Holdings Inc. (HLT - Free Report) , Choice Hotels International (CHH - Free Report) and Hyatt Hotels Corporation (H - Free Report) in the Zacks Hotels and Motels industry — currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.