Marriott International delivered strong financial performance globally in 2023. Key highlights include a 15% increase in global revenue per available room (RevPAR) for the full year, net room growth of 4.7% and record cash levels driven by the company’s fee-focused, asset-light business model. In the fourth quarter, global RevPAR grew 7%, with international markets such as Asia Pacific and Europe showing robust growth.
In the U.S. and Canada, RevPAR grew more than 3% in the fourth quarter, with solid growth in group and leisure revenues reflecting the continued recovery from the pandemic. Marriott’s development team achieved significant milestones, signing a record 164,000 organic rooms worldwide, contributing to a year-end development pipeline of approximately 573,000 rooms.
The Marriott Bonvoy loyalty programme continued to expand, reaching 196 million members by the end of 2023. The company also expanded its co-branded credit card offering, with 31 cards in 11 countries, resulting in an 11% year-over-year increase in global card spend.
Looking ahead to 2024, Marriott expects steady growth, with full-year global RevPAR growth of 3% to 5% and net room growth of 5.5% to 6%. The company expects Adjusted EBITDA of approximately $4.9 billion to $5.0 billion for the year, and is targeting $4.1 billion to $4.3 billion in returns to shareholders, after taking into account expenses related to the purchase of the Sheraton Grand Chicago.
In the fourth quarter of 2023, base management and franchise fees increased 9%, while incentive management fees increased 17%, primarily driven by RevPAR growth and international market performance. Ownership, rental and other income increased significantly, partly due to a termination fee related to a development project. However, general, administrative and other expenses also increased due to litigation provisions and higher operating costs.
Despite higher interest expense, Marriott reported a 26% year-on-year increase in net income in the fourth quarter, with adjusted diluted earnings per share rising to $3.57 from $1.96 in the year-ago quarter. Adjusted EBITDA increased 10% to USD 1,197 million compared to the fourth quarter of 2002. Adjusted results exclude certain charges and expenses as detailed in the press release.
