NASDAQ$MAR

Marriott International Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Marriott's performance significantly improved, driven by increased lodging demand and strategic cost management.

Marriott International reported a strong second quarter in 2021, with significant improvements in RevPAR, net income, and adjusted EBITDA compared to the previous year. The company benefited from the ongoing recovery in lodging demand and strategic initiatives to engage with loyal customers.

  • Worldwide RevPAR increased by 262.6% compared to Q2 2020.
  • Reported net income was $422 million, a significant turnaround from the $234 million net loss in Q2 2020.
  • Adjusted EBITDA reached $558 million, compared to $61 million in the previous year.
  • The company added nearly 25,000 rooms globally, including approximately 13,000 rooms in international markets.

Headline financials

Total Revenue

$3.15B

Previous: $1.46B+115.1%
EPS (adj)

$0.79

Previous: -$0.64+223.4%
Worldwide RevPAR Growth

262.6%

Previous: -84.4%+411.1%
Adjusted EBITDA

$558M

Previous: $61M+814.8%
Total Debt

$10.2B

Previous: $11.8B-13.6%
Cash and Equivalents

$700M

No prior period
Capital Expenditures

-$70M

Previous: -$79M+11.4%
Free Cash Flow

$352M

Previous: -$313M+212.5%
Net Income

$422M

Previous: -$234M+280.3%
Operating Income

$486M

Previous: -$154M+415.6%
Gross Profit

$3.15B

Previous: $1.46B+115.1%
Cash & Equivalents

$664M

Previous: $2.28B-70.9%
Total Assets

$24.5B

Previous: $25.7B-4.6%
Stock-Based Comp

$43M

Previous: $50M-14.0%

Revenue & EPS history

Marriott · Revenue · Quarterly

$3.15B

Q2 2021+115.1%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Marriott · $661M total across 3 segments · Q2 2021

  • Franchise and Base Management Fees
    $587M+164.4%
  • Incentive Management Fees
    $55M+358.3%
  • Owned, Leased, and Other Revenue, Net
    $19M+126.4%

Forward guidance

Marriott anticipates the upward trajectory of the global recovery will continue, with business transient and group demand expected to increase in the fall. They expect gross rooms growth will accelerate to approximately 6 percent, with net rooms growth now expected to be towards the top end of the 3 to 3.5 percent range.

Tailwinds

  • Continued recovery in global lodging demand.
  • Increase in business travel as workers return to offices.
  • Strong growth in rooms signings and openings.
  • Success of Marriott Bonvoy program with increasing membership.
  • Positive impact from co-brand credit card fees and partnerships.

Headwinds

  • Uncertainties associated with COVID-19, including the Delta variant.
  • Potential impact on travel demand due to government restrictions.
  • Economic uncertainty in key global markets.
  • Competitive conditions in the lodging industry.
  • Potential adverse effects from data security incidents.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+0.1%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+1.8%

Avg return

30 days after

52%

36 / 69 earnings

Positive

+17.2%

Q3 2020

Best reaction

-9.0%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%-1.8%+10.9%
Q4 2025+8.5%+6.8%-4.5%
Q3 2025+3.1%+10.3%+12.2%
Q2 2025+0.2%+0.3%+3.8%
Q1 2025+2.0%+4.3%+5.1%
Q4 2024-5.4%-6.9%-22.1%
Q3 2024-0.3%+7.8%+11.2%
Q2 2024-8.4%-11.5%-1.7%
Q1 2024-0.2%+0.3%-2.1%
Q4 2023-5.4%-2.9%-0.3%
Q3 2023+1.3%+3.0%+10.8%
Q2 2023+0.8%+0.6%+0.8%
Q1 2023+4.9%+3.8%+0.6%
Q4 2022+3.6%-1.1%-7.6%
Q3 2022-2.6%-1.6%+8.3%
Q2 2022-0.1%-1.6%-3.5%
Q1 2022+2.7%-5.3%+0.9%
Q4 2021+7.0%+2.1%-0.1%
Q3 2021+2.5%+5.2%-6.3%
Q2 2021-4.8%-2.3%-6.5%
Q1 2021-3.4%-2.3%-2.0%
Q4 2020+3.8%+13.9%+15.9%
Q3 2020+17.2%+15.3%+34.4%
Q2 2020+3.4%+2.4%+8.8%
Q1 2020-9.0%-8.5%+17.7%
Q4 2019-3.6%-0.9%-36.5%
Q3 2019+4.4%+4.0%+8.7%
Q2 2019-5.5%-2.6%-7.6%
Q1 2019-7.0%-2.7%-2.2%
Q4 2018-2.0%-1.3%-1.4%
Q3 2018-5.3%-3.2%-6.1%
Q2 2018-2.9%-6.3%-2.5%
Q1 2018+0.9%+2.3%+2.0%
Q4 2017+0.5%-1.5%+0.3%
Q3 2017-1.6%-1.5%+4.8%
Q2 2017-1.0%-5.4%-3.1%
Q1 2017+5.6%+5.6%+8.3%
Q4 2016+1.8%+1.7%+0.5%
Q3 2016+4.9%+5.4%+20.6%
Q2 2016-0.2%-0.7%+1.6%
Q1 2016+3.3%
Q4 2015-0.2%
Q3 2015-1.3%
Q2 2015-2.6%
Q1 2015-1.6%
Q4 2014+2.2%
Q3 2014+5.4%
Q2 2014-1.1%
Q1 2014+3.5%
Q4 2013+0.8%
Q3 2013+1.1%
Q2 2013+0.5%
Q1 2013-0.5%
Q4 2012-3.7%
Q3 2012+0.8%
Q2 2012-6.8%
Q1 2012-1.8%
Q4 2011+0.6%
Q3 2011+2.9%
Q2 2011-1.3%
Q1 2011-5.1%
Q4 2010-4.7%
Q3 2010+0.0%
Q2 2010-2.3%
Q4 2007+1.7%
Q1 2010+1.4%
Q3 2009+1.7%
Q2 2009+0.1%
Q4 2009+0.1%

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