Marriott International Inc (NASDAQ:MAR) stock fell 0.090% (As on May 3, 11:49:38 AM UTC-4, Source: Google Finance) after the company reported better-than-expected Q1 results and raised FY23 outlook with meaningful gains in both occupancy and average daily rate. First quarter worldwide RevPAR grew 34 percent year over year, with meaningful gains in both occupancy and average daily rate. International markets were particularly robust, with RevPAR growth of 63 percent. The lifting of travel restrictions throughout Asia Pacific, particularly in Greater China, significantly boosted first quarter demand in the region. In the U.S. & Canada, the company saw solid demand across the leisure and group segments in the quarter, while business transient demand continued to improve. ADR in the region rose 10 percent year over year, aided by higher special corporate negotiated rates and 15 percent growth in group ADR.

MAR in the first quarter of FY 21 has reported the adjusted earnings per share of $2.09, beating the analysts’ estimates for the adjusted earnings per share of $1.84. The company had reported 34 percent rise in the adjusted revenue to $5.62 billion in the first quarter of FY 21, missing the analysts’ estimates for revenue of $5.41 billion. Adjusted operating income in the 2023 first quarter totaled $941 million, compared to 2022 first quarter adjusted operating income of $605 million. First quarter 2023 adjusted net income totaled $648 million, compared to 2022 first quarter adjusted net income of $413 million.

Moreover, Base management and franchise fees totaled $932 million in the 2023 first quarter, a 31 percent increase compared to base management and franchise fees of $713 million in the year-ago quarter. The increase is primarily attributable to RevPAR increases and unit growth. Other non-RevPAR related franchise fees in the 2023 first quarter totaled $197 million, a 16 percent increase compared to $170 million in the year-ago quarter, largely driven by higher co-branded credit card and residential branding fees. Incentive management fees totaled $201 million in the 2023 first quarter, a 97 percent increase compared to $102 million in the 2022 first quarter. Managed hotels in international markets contributed 57 percent of the fees earned in the quarter. Owned, leased, and other revenue, net of direct expenses, totaled $75 million in the 2023 first quarter, compared to $65 million in the year-ago quarter. The year-over-year change largely reflects improved performance at owned and leased hotels, partially offset by the $33 million of government subsidies received in the year ago quarter.

Marriott raised FY23 Adjusted EPS guidance from $7.23-$7.91 to $7.97-$8.42 versus the consensus of $7.74. It now expects FY23 gross fee revenues of $4.6 billion – $4.75 billion.