Marriott International Inc (NASDAQ:MAR) stock fell 0.30% (As on February 14, 11:39:40 AM UTC-4, Source: Google Finance) after the company posted mixed results for the fourth quarter of FY 23. Adjusted net income rose from $622 million in the fourth quarter of 2022 to $1,055 million in the current year’s quarter. Marriott’s adjusted EBITDA for the quarter grew to $1,197 million, up from $1,090 million a year ago. In the fourth quarter global RevPAR increased over 7% year-over-year driven by roughly equal gains in the ADR and occupancy. Group which comprised of 23% room nights was again the standout customer set. Demand from small and medium-sized corporates remained robust, and while large corporates are still lagging, they continue to post volume increases. Solid gains in ADR drove business transient revenues of 7% globally and 3% in the U.S. and Canada.

Marriott’s global room additions and development pipeline expansion were significant in 2023, with nearly 81,300 rooms added, including a substantial number from international markets and the City Express transaction. The company’s development pipeline reached a new high with nearly 3,400 properties and approximately 573,000 rooms. On the development front, despite a challenging financing environment in the U.S. and Europe, the company has signed a record 891 organic management, franchise, and license agreements in 2023, representing approximately 164,000 rooms.

MAR in the fourth quarter of FY 23 has reported the adjusted earnings per share of $3.57, beating the analysts’ estimates for the adjusted earnings per share of $2.12. The company had reported the adjusted revenue growth of 35.9 percent to $6.1 billion in the fourth quarter of FY 23, missing the analysts’ estimates for revenue of $6.2 billion.

For the upcoming year, Marriott provided guidance that fell below analyst expectations. The company forecasts first-quarter 2024 EPS to be between $2.12 and $2.19, which is below the consensus of $2.30. For the full year 2024, Marriott anticipates an EPS range of $9.18 to $9.52, again lower than the analyst consensus of $9.69.

Looking ahead, the company expects a worldwide full-year RevPAR increase of 3 to 5 percent and net room growth of 5.5 to 6 percent for 2024.

Marriott’s CEO expressed optimism for the year ahead, projecting adjusted EBITDA of approximately $4.9 billion to $5.0 billion and plans to return $4.1 billion to $4.3 billion to shareholders, including a $500 million purchase of the Sheraton Grand Chicago.