Marriott International is a global leader in the hospitality industry, known for its vast portfolio of hotels and revenue growth.
In this article, we’ll explore Marriott International net worth and deep dive into the key financial drivers like management fees and room expansion.
As part of Ando Money, I provide a thorough analysis of the company’s financial situation to help you stay informed.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Marriott International, Inc. |
| Full Name | Marriott International, Inc. |
| Website | www.marriott.com |
| Industry | Hospitality |
| Traded as | NASDAQ: MAR |
| ISIN | US5719032022 |
| Founded | 1927 |
| Founders | J. Willard Marriott, Alice Marriott |
| Country/Territory | United States |
| Headquarters | Bethesda, Maryland, USA |
| Chief Executive Officer | Anthony Capuano |
| Number of Employees | Over 377,000 |
| Market Cap | $73.72 billion |
| Total Assets | N/A |
| Total Equity | N/A |
| Revenue | $6.439 billion (Q2 2024) |
| Net Income | $772 million (Q2 2024) |
What is the Net Worth/Market Cap Of Marriott International in 2024?
As of October 2024, Marriott International’s market cap stands at $73.72 billion. This solidifies its position among the world’s leading companies.
While Marriott operates in a highly competitive sector, its consistent performance ensures a competitive edge against others in the hospitality industry.
Comparing Marriott’s net worth to other giants highlights its financial stature. Below are some brands closely related to Marriott:
- Hilton Worldwide
- Hyatt Hotels
- Wyndham Hotels
- AccorHotels
- InterContinental Hotels Group (IHG)
- Choice Hotels
- Radisson Hotel Group
- Four Seasons Hotels
- Starwood Hotels
- Ritz-Carlton
To learn more about some of the wealthiest companies, you can explore this list of top companies for a broader view.
Marriott International Financial Performance Overview
Key Financial Drivers of Revenue Growth in 2024
Marriott’s revenue drivers in 2024 are heavily influenced by global expansion and a growing base of loyalty members.
With 15,500 new rooms added in the second quarter alone, the company saw a significant increase in its global footprint.
Additionally, the rise of the Marriott Bonvoy loyalty program, which now boasts over 210 million members, played a crucial role in driving both room occupancy and customer retention.
Hotel Management and Franchise Fees Impact on Earnings
Marriott’s revenue streams are not solely dependent on room rates but are also driven by management and franchise fees.
In Q2 2024, Marriott recorded $1.148 billion from base and franchise fees, which is a 9% increase compared to the same period in 2023.
The brand’s non-RevPAR fees, including credit card partnerships, contributed significantly to this growth, reflecting the diversified nature of its revenue.
Room Supply Growth and Development Pipeline
With a well-established presence in the U.S. and Canada, Marriott’s international expansion has been a major focus.
The company’s worldwide development pipeline consists of over 559,000 rooms across 3,500 properties.
This aggressive expansion strategy, particularly in Asia Pacific and Europe, underlines Marriott’s commitment to solidifying its global presence and driving sustained revenue growth.
Owned, Leased, and Other Revenue Segments
Aside from franchised hotels, Marriott also benefits from direct ownership and leasing of properties.
In Q2 2024, Marriott reported $99 million in revenue from owned and leased properties, a slight decrease from 2023.
Nonetheless, this segment continues to contribute to overall earnings.
Termination fees and other revenue sources further supplement Marriott’s financial strength, showcasing the brand’s ability to manage diverse revenue channels.
Cost Management and Operating Margins
Marriott’s ability to control costs has been a key factor in maintaining solid profit margins.
In 2024, cost reimbursement and reimbursed expenses accounted for $4.645 billion, which offsets a significant portion of operational expenses.
However, merger-related charges and an increase in debt-servicing costs have had a noticeable impact on the company’s net operating income.
Debt and Interest Expenses
As of Q2 2024, Marriott’s total debt stands at $13.1 billion, which is an increase from the previous year.
Interest expenses have also risen, totaling $164 million for the quarter. This rise is attributed to Marriott’s expansion efforts and an increase in global interest rates.
Future projections suggest that while debt levels may remain high, strong revenue growth will continue to support Marriott’s financial health.
Shareholder Returns and Stock Buybacks
Marriott has consistently prioritized shareholder returns, repurchasing 10.4 million shares for $2.5 billion year-to-date by July 2024.
Additionally, dividend payments have played a crucial role in driving shareholder value.
By the end of the year, Marriott expects to return $4.3 billion to shareholders through dividends and stock repurchases, demonstrating its robust cash flow and financial discipline.
FAQs about Marriott International
How has Marriott grown its global presence in 2024?
Marriott continues to grow globally with over 559,000 rooms in the development pipeline. Its expansion is particularly strong in Asia Pacific and Europe, where the company focuses on both new builds and conversions.
How does Marriott’s loyalty program contribute to its financial performance?
The Marriott Bonvoy program has over 210 million members as of 2024. This growing membership base drives repeat business and strengthens brand loyalty, contributing to higher occupancy rates and increased revenue.
What are the key sources of Marriott’s revenue apart from room rates?
In addition to room rates, Marriott generates significant revenue through management and franchise fees, loyalty program fees, and non-hotel-related activities like credit card partnerships.
How much revenue did Marriott generate in Q2 2024?
Marriott generated $6.439 billion in total revenue during Q2 2024, reflecting its strong performance across various revenue streams, including room bookings, franchise fees, and loyalty programs.
What are Marriott’s future growth expectations?
Marriott expects net room growth of 5.5-6% by the end of 2024, with strong development in international markets and a solid pipeline of properties under construction.
Conclusion
Understanding Marriott International’s financial performance helps us appreciate the company’s solid standing in the hospitality industry.
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