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Marriott International has resumed cash dividends as its worldwide RevPAR increased year-on-year by 96.5% in the first quarter of FY22 (Q1), including 99.1% growth in the US and Canada, and 88.5% in international markets.
The board of directors declared a $0.30 (£0.24) per share dividend payable on 30 June 2022, to shareholders of record as of 16 May 2022. Marriott expects to resume share repurchases in 2022, assuming the demand environment continues to improve and that the company is within its target leverage ratio range.
Internationally, RevPAR grew in every region except for Greater China due to travel restrictions resulting from the country’s zero-Covid policy.
Overall, Marriott’s net income totalled $377m (£300.5m), compared to a reported net loss of $11m (£8.76m) in Q1 FY21, and reported operating income increased year-on-year from $84m (£66.95m) to $558m (£444.8m).
Adjusted EBITDA also increased year-on-year from $296m (£235.95m) to $759m (£605m) in Q1 FY22.
Meanwhile, cost reimbursement revenue, reimbursed expenses and restructuring, merger-related charges, and other expenses totaled a $31m (£24.71m) after-tax loss in Q1 FY22, and an after-tax loss of $42m (£33.47m) Q1 FY21.
Marriott also said internationally it added 11,800 rooms globally in Q1 FY22, including approximately 5,300 rooms in international markets and a total of more than 2,500 conversion rooms. The company also added 75 properties to its worldwide lodging portfolio in the quarter.
However, 16 properties (3,494 rooms) exited the system and Marriott said it suffered impairments of investments in management and franchise contracts in Russia and Belarus.
At the quarter end, Marriott’s global lodging system totaled more than 8,000 properties, with nearly 1,488,000 rooms.
Anthony Capuano, chief executive officer, said: “During the first quarter, we saw the largest surge in global demand since the pandemic began in 2020.
“While there is currently more volatility in our international regions, assuming no major change in the global economic environment or the behaviour of the virus, we are increasingly optimistic that the global RevPAR gap compared to pre-pandemic levels will continue to narrow meaningfully in 2022.”
