Marriott International Inc (NASDAQ:MAR) stock rose 0.41% (As on May 2, 11:21:18 AM UTC-4, Source: Google Finance) after the company raised its forecast for annual adjusted profit, banking on international travel demand to offset normalising domestic travel in the U.S. International travel demand is expected to remain strong this year as global air connectivity increases and travelers flock to Asian and Middle Eastern destinations. The company saw its revenue per available room (RevPAR) increase 4.2% year-over-year during the first quarter, driven largely by growth in international markets. The hotel chain saw its RevPAR grow 1.5% in the United States and Canada and 11.1% in international markets. Within the international markets, growth in the Asia-Pacific region, excluding China, was especially strong, with a RevPAR gains of nearly 17%. The company attributed the gains in Asia-Pacific to strong macroeconomic trends, sustained growth in both leisure and business travel, and increasing cross-border travel, especially from mainland China after that country’s travel restrictions were relaxed.
Moreover, Base management and franchise fees totaled $1,001 million in the 2024 first quarter, a 7 percent increase compared to base management and franchise fees of $932 million in the year-ago quarter. The increase is primarily attributable to RevPAR increases and unit growth. Incentive management fees totaled $209 million in the 2024 first quarter, a 4 percent increase compared to $201 million in the 2023 first quarter. Managed hotels in international markets contributed nearly two-thirds of the incentive fees earned in the quarter.
MAR in the first quarter of FY 24 has reported the adjusted earnings per share of $2.13, missing the analysts’ estimates for the adjusted earnings per share of $2.17, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 6 percent to $5.98 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $5.97 billion. First quarter 2024 adjusted net income totaled $620 million, compared to 2023 first quarter adjusted net income of $648 million. At the end of the quarter, Marriott’s total debt was $12.7 billion and cash and equivalents totaled $0.4 billion, compared to $11.9 billion in debt and $0.3 billion of cash and equivalents at year-end 2023.
Looking ahead, Marriott said it expects year-over-year worldwide RevPAR growth of 4% to 5% in the second quarter and 3% to 5% for full year 2024. For the current quarter ending in June, Marriott expects its per-share earnings to range from $2.43 to $2.48.
The company expects full-year earnings in the range of $9.31 to $9.65 per share.