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Marriott International has lowered its full-year room revenue guidance after reporting revenues of $6.44bn (£5.03bn) in the second quarter, which fell slightly short of previous guidance of $6.51bn (£5.09bn).
Nevertheless, group-wide RevPAR rose by 4.9% during Q2, with the US and Canada registering a rise of 3.9%, and other international markets a rise of 7.4% compared to the same period last year.
This comes as Q2 net income totalled $772m (£603m), compared with the reported total of $726m (£567m) in the prior year, as the group added approximately 15,500 net rooms to its portfolio during that time.
Adjusted net income also totaled $716m (£560m) compared with the same period last year when it hit $690m (£539m).
Meanwhile, adjusted EBITDA totaled $1.3bn (£1.02bn) in the second quarter, compared to second quarter 2023 adjusted EBITDA of $1.2bn (£0.94bn).
At the end of the quarter, Marriott’s worldwide development pipeline totaled approximately 3,500 properties and more than 559,000 rooms, including roughly 33,000 pipeline rooms approved, but not yet subject to signed contracts.
Over 209,000 rooms in the pipeline were under construction as of the end of the second quarter.
Anthony Capuano, president and CEO of Marriott, said: “Marriott reported strong second quarter results, with net rooms up 6% year-over-year and worldwide RevPAR growth of nearly 5%, as consumers continued to prioritise travel.
“Owner preference for our brands remains strong. We signed nearly 31,000 rooms in the quarter, 75% of which were in international markets. Our momentum around conversions continued, accounting for 37% of room additions in the quarter. We continue to expand our industry leading global portfolio, and our expectation for net room growth remains at 5.5 to 6% for full year 2024.”
He added: “With our solid financial results and strong cash generation, we have already returned $2.8bn to shareholders year-to-date through July 29. We expect to return approximately $4.3bn to our shareholders in 2024 through share repurchases and dividends.”
