Marriott Worldwide, Inc. as we speak reported fourth quarter and full 12 months 2022 outcomes.
Anthony Capuano, Chief Government Officer, stated, “Our efficiency in 2022 was terrific. Simply two years after experiencing the sharpest downturn in our firm’s historical past, we reported document monetary outcomes. Our fee-driven, asset-light enterprise mannequin generated important money throughout the 12 months, permitting us to each put money into the expansion of our enterprise and return $2.9 billion to shareholders.
“For the fourth quarter, worldwide RevPAR1 grew 5 % in comparison with 2019, pushed by a 13 % improve in ADR. Excluding Better China, RevPAR in all areas greater than totally recovered and continued to indicate significant advances in occupancy and ADR. Our worldwide enterprise posted RevPAR 3 % above 2019 ranges within the fourth quarter.
“In our largest area, the U.S. & Canada, RevPAR elevated 5 % over the 2019 quarter, pushed by additional enchancment in occupancy and an 11 % improve in ADR. Leisure demand remained strong and group demand greater than totally recovered, resulting in fourth quarter group revenues 10 % above pre-pandemic ranges. Enterprise transient demand was at practically 90 % restoration within the quarter, whereas ADR was 3 % above 2019. Our profitable negotiation of excessive single-digit particular company price will increase for 2023 bodes nicely for continued value power.
“House owners and franchisees proceed to indicate a robust choice for our manufacturers. Our improvement crew had a wonderful 12 months, signing practically 108,000 rooms globally. We have been happy to see practically 40 % of these rooms in excessive worth luxurious and premium manufacturers. With practically 50 % of rooms signed throughout the 12 months in worldwide markets, we stay up for additional increasing our distribution and including extra choices for our over 177 million Marriott Bonvoy members.
“As we glance forward, whereas issues concerning the macroeconomic surroundings persist around the globe, reserving developments up to now stay strong and we’ve got important momentum in our enterprise. With our industry-leading model portfolio, highly effective loyalty program, the most important world rooms distribution, and our extremely devoted associates, Marriott is well-positioned for robust development over the approaching years as folks around the globe additional embrace their love for journey.”
Fourth Quarter 2022 Outcomes
Marriott’s reported working earnings totaled $996 million within the 2022 fourth quarter, in comparison with 2021 fourth quarter reported working earnings of $635 million. Reported web earnings totaled $673 million within the 2022 fourth quarter, in comparison with 2021 fourth quarter reported web earnings of $468 million. Reported diluted earnings per share (EPS) totaled $2.12 within the quarter, in comparison with reported diluted EPS of $1.42 within the year-ago quarter.
Adjusted working earnings within the 2022 fourth quarter totaled $926 million, in comparison with 2021 fourth quarter adjusted working earnings of $578 million. Fourth quarter 2022 adjusted web earnings totaled $622 million, in comparison with 2021 fourth quarter adjusted web earnings of $430 million. Adjusted diluted EPS within the 2022 fourth quarter totaled $1.96, in comparison with adjusted diluted EPS of $1.30 within the year-ago quarter.
Adjusted outcomes excluded price reimbursement income, reimbursed bills and restructuring, merger-related fees, and different bills. See pages A-3 and A-12 for the calculation of adjusted outcomes and the way by which the adjusted measures are decided on this press launch.
Base administration and franchise charges totaled $945 million within the 2022 fourth quarter, in comparison with base administration and franchise charges of $737 million within the year-ago quarter. The year-over-year improve in these charges is primarily attributable to RevPAR will increase as a result of continued restoration in lodging demand, in addition to unit development, partially offset by $16 million of unfavorable international change. Different non-RevPAR associated franchise charges within the 2022 fourth quarter totaled $215 million, in comparison with $186 million within the year-ago quarter, largely pushed by increased bank card branding charges.
Incentive administration charges totaled $186 million within the 2022 fourth quarter, in comparison with $94 million within the 2021 fourth quarter. Charges within the quarter surpassed 2019 ranges, with 60 % earned in Worldwide markets.
Owned, leased, and different income, web of direct bills, totaled $101 million within the 2022 fourth quarter, in comparison with $33 million within the year-ago quarter. The year-over-year improve in income web of bills largely displays the continued restoration in lodging demand and $21 million of upper termination charges.
Normal, administrative, and different bills for the 2022 fourth quarter totaled $236 million, in comparison with $213 million within the year-ago quarter. The year-over-year change included an $18 million favorable litigation settlement within the 2021 fourth quarter.
Curiosity expense, web, totaled $107 million within the 2022 fourth quarter in comparison with $91 million within the year-ago quarter. The rise was largely because of increased curiosity expense related to increased debt balances.
Adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) totaled $1,090 million within the 2022 fourth quarter, in comparison with fourth quarter 2021 adjusted EBITDA of $741 million. See web page A-12 for the adjusted EBITDA calculation.
Chosen Efficiency Data
The corporate added 145 properties (22,589 rooms) to its worldwide lodging portfolio throughout the 2022 fourth quarter, together with practically 6,900 rooms transformed from competitor manufacturers and roughly 16,700 rooms in worldwide markets. Eighteen properties (4,484 rooms) exited the system throughout the quarter. On the finish of the 12 months, Marriott’s world lodging system totaled practically 8,300 properties, with over 1,525,000 rooms.
On the finish of the 12 months, the corporate’s worldwide improvement pipeline totaled 3,028 properties with greater than 496,000 rooms, together with 1,009 properties with roughly 199,000 rooms beneath development, or 40 % of the pipeline, and 133 properties with roughly 22,300 rooms accepted for improvement, however not but topic to signed contracts.
Within the 2022 fourth quarter, worldwide RevPAR elevated 28.8 % (a 25.6 % improve utilizing precise {dollars}) in comparison with the 2021 fourth quarter. RevPAR within the U.S. & Canada elevated 23.6 % (a 23.3 % improve utilizing precise {dollars}), and RevPAR in worldwide markets elevated 45.1 % (a 32.2 % improve utilizing precise {dollars}).
