MARRIOTT INTERNATIONAL INC /MD/ MAR

Worldwide RevPAR increased 5% in Q4, driven by a 3% rise in ADR and a 1 percentage point gain in occupancy. The U.S. and Canada saw its best quarterly RevPAR growth for the year, up over 4%, primarily from ADR. International RevPAR rose over 7%, with APAC up 12.5% and EMEA up 8%. Greater China RevPAR declined 2%, which was better than prior expectations.

Leisure RevPAR was the fastest-growing segment in Q4, up 6% globally and 4% in the U.S. and Canada, driven by gains in both room nights and ADR. Business transient^📎 RevPAR rose 3% globally and 4% in the U.S. and Canada, primarily driven by ADR. Group RevPAR increased 3%, its lowest growth quarter of the year, due to fewer events around the U.S. election and a decline in Greater China.

Marriott achieved 6.8% net rooms growth in 2024, helped by the addition of approximately 38,000 rooms from MGM and 9,000 rooms from Sonder. Conversions were a significant driver, contributing about one-third of signings and over half of openings. The company ended the year with over 577,000 rooms in its pipeline, following a record of over 1,200 deals signed.

The mid-scale tier, including Four Points Flex, StudioRes, and City Express by Marriott, now boasts over 300 open and pipeline properties, just 1.5 years after its entry. Marriott also expanded its luxury portfolio with notable openings such as the St. Regis on the Bund in Shanghai and Ws in Prague and Sao Paulo, alongside plans for an outdoor-focused collection.

The Marriott Bonvoy loyalty program added over 31 million new members in 2024, reaching nearly 228 million members by year-end. Member penetration achieved historic highs in Q4, at 73% in the U.S. and 66% globally. Co-brand credit card fees rose nearly 10% in 2024 due to a strong increase in global card spend, and Marriott Bonvoy app downloads increased nearly 30% year-over-year.

Marriott is undertaking a multi-year digital transformation of its property management, reservations, and loyalty systems, with elements expected to begin rolling out later in 2025. This investment aims to streamline decision-making, enhance associate efficiency, improve guest experience, and create revenue upside for owners by facilitating broader travel planning and cross-category shopping.

In 2024, Marriott returned over $4.4 billion to shareholders through a combination of dividends and buybacks. The company expects to return approximately $4 billion in 2025, maintaining its commitment to an investment-grade rating and investing in growth that is accretive to shareholder value.

Investment spending in 2025 includes above-historical levels for owned and leased properties, with about half driven by the completion of renovations on the elegant portfolio in Barbados. Marriott expects to sell the elegant portfolio after renovations are complete, subject to long-term contracts to remain in its system.