Marriott: Strong 2023 With Record Luxury Hotels Deals
Marriott reported financial results on Tuesday that underscored how the hotel giant has continued to benefit from resilient travel demand despite economic uncertainty in many regions.
The hotel operator generated an effective 48% profit margin last year. It produced $3.08 billion in net income on $6.3 billion in revenue (after subtracting money Marriott collected and returned to hotel owners and managers).
In 2023, Marriott saw a few key industry figures rise, with performances that bested most of its peers.
Global revenue per available room rose 15%.
Net rooms under management rose 4.7% year-over-year — its highest level since 2019.
The company signed a record 164,000 rooms, and its development pipeline reached a new high of roughly 573,000 rooms at year-end.
Loyalty program membership ended the year at 196 million members, a 10% rise.
Global spending on its co-branded credit cards rose 11%.
Marriott’s Outlook
The hotel operator forecasted that the coming year would also show a strong performance.
“We expect another year of strong global [hotel development] signings in 2024,” said said Anthony Capuano, president and CEO. “We remain confident in the 3-year net rooms compound annual growth rate we discussed at our investor meeting in September of 5% to 5.5% from year-end 2022 to year-end 2025.”
The company said it had seen particular strength in luxury hotels. Its portfolio of luxury hotels is “50% larger” than its next closest competitor, it said. It had record luxury signings last year, with 58 new deals.
But it’s not just looking at luxury. The company is also planning a “U.S. transient midscale” brand, Capuano said, without elaborating.
Marriott’s Earnings Were Good but the Reactions Were Bad
Accommodations Sector Stock Index Performance Year-to-Date
What am I looking at? The performance of hotels and short-term rental sector stocks within the ST200. The index includes companies publicly traded across global markets, including international and regional hotel brands, hotel REITs, hotel management companies, alternative accommodations, and timeshares.
The Skift Travel 200 (ST200) combines the financial performance of nearly 200 travel companies worth more than a trillion dollars into a single number. See more hotels and short-term rental financial sector performance.
Read the full methodology behind the Skift Travel 200.
Get breaking travel news and exclusive hotel, airline, and tourism research and insights at Skift.com.
