Marriott International (NASDAQ:MAR) stock gained in premarket trading on Tuesday after the company reported record Q4 results.
The Maryland-based hotel operator reported $1.96 in adjusted earnings per share on $5.92B in revenue for the fourth quarter. Analysts had anticipated $1.82 and $5.38B, respectively. RevPAR grew 5% as compared to pre-pandemic levels as all regions aside from China “fully recovered” and occupancy grew sharply, according to CEO Anthony Capuano.
“Just two years after experiencing the sharpest downturn in our company’s history, we reported record financial results,” he said. “Leisure demand remained robust and group demand more than fully recovered, leading to fourth quarter group revenues 10% above pre-pandemic levels. Business transient demand was at nearly 90% recovery in the quarter, while ADR was 3% above 2019.”
He added that “high single-digit special corporate rate increases” for the year ahead “bodes well for continued price strength.” The company closed 2022 with 177M Bonvoy members. The chain owned over 8,300 properties at the close of the year, accounting for over 1.5M rooms.
Moving forward, the company expects to “benefit significantly from the easier comparison” to the Omicron-impacted first quarter of 2022. In January, management noted that worldwide RevPAR was up 51.6% year over year. Management expects RevPAR growth in the range of 30% to 32% for Q1 and up 6% to 11% for the full-year.
An EPS forecast of between $1.82 and $1.88 for the first quarter exceeds the $1.66 consensus. Full-year guidance reflected a wide range as management highlighted a lack of visibility into the second half of 2023. The company expects between $7.23 and $7.91 in earnings per share as compared to a $7.47 consensus expectation.
“As we look ahead, while concerns about the macroeconomic environment persist around the world, booking trends to date remain robust and we have significant momentum in our business,” Capuano concluded. “With our industry-leading brand portfolio, powerful loyalty program, the largest global rooms distribution, and our incredibly dedicated associates, Marriott is well-positioned for strong growth over the coming years as people around the world further embrace their love for travel.”
Shares of Marriott International (MAR) rose 1.46% shortly after the results were announced.
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