Important points
- Marriott International's fourth-quarter revenue fell short of expectations Tuesday as the post-pandemic travel boom subsided.
- Marriott's North American sales increased 3.3% in the fourth quarter, while international sales increased 17.4%.
- Marriott's outlook for the quarter and full year was lower than expected.
- As of midday Tuesday, Marriott stock was down about 6.3%.
Shares of Marriott International (MAR) fell on Tuesday after the major hotel chain missed revenue expectations and gave a weaker-than-expected outlook as U.S. travel demand slows after the pandemic.
The company reported fourth-quarter sales of $6.1 billion, up 2.9%, but below expectations. However, earnings per share (EPS) of $3.57 exceeded expectations.
Overall revenue per available room (RevPAR) increased by 7.2%. However, the increase in the US was only 3.3%, while the increase in international markets was 17.4%. The company said the group's revenue increased by 7% due to higher interest rates. Sales by leisure travelers he increased by 2%. Business traveler sales increased 3% from the previous quarter as demand from large corporate customers continued to increase.
The company expects EPS for the current quarter to be in the range of $2.12 to $2.19 and full-year EPS in the range of $9.18 to $9.52. Both forecasts were lower than analysts' expectations.
CEO Anthony Capuano said Marriott expects to return $4.1 billion to $4.3 billion to shareholders in 2024, given the $500 million it spent on purchasing the Sheraton Grand Chicago Hotel. He said he was doing so.
Marriott International's stock hit a record high last week and is up nearly 34% over the past year, including Tuesday's decline. As of 1:21 p.m. ET, the stock was trading at more than $233, down 6.3%.
