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Marriott’s Investor Day: 5 Prime Slides



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Skift Take

Marriott lately held a four-hour occasion for buyers that included 144 slides. Listed below are 5 of probably the most eye-catching ones.


Marriott final Wednesday gave a multi-hour, 144-slide presentation to funding analysts, offering insights into technique on the world’s largest hotelier. Executives outlined their monetary mannequin by way of 2025.

Listed below are some key takeaways.

  • Marriott plans so as to add about 230,000 to 270,000 web rooms over three years. This may symbolize a three-year compound common progress fee of 5% to five.5%.
  • Web room enlargement at that tempo would symbolize a post-pandemic return to the corporate’s decade-long common for web room enlargement.
  • The corporate additionally plans to spend as a lot as $870 million by way of 2025 to “assist room progress.” I interpret “assist rooms progress” to imply three issues: It might purchase extra small resort teams, resembling its latest acquisition of Metropolis Specific; ;ike its latest MGM deal, it might do extra co-marketing and licensing offers; and it might additionally create extra resort manufacturers and collections.
marriott investor day 2023 slide competitive perspective international hotel group brands system size and construction pipeline

2. Marriott intends to turn into extra international.

  • It has almost doubled its presence in worldwide markets since 2008.
  • Near 40% of its rooms right now are exterior the U.S. and Canada.
  • By 2025, the U.S. and Canada could symbolize solely a slim majority of the corporate’s complete charges by way of franchise and administration contracts worldwide.
chart marriott cagr for net rooms growth 2023 baser marriott investor day 2023

3. Non-room income is more and more vital.

  • The corporate forecasted common international progress in income per obtainable room at between 3% and 6% between now and 2025.
  • However Marriott desires to develop its income from non-room sources, resembling charges from its co-branded bank cards, timeshare royalty charges, and residential branding charges.
  • Immediately, almost 20% of Marriott’s complete charge income is derived from sources other than conventional room bookings.
  • A decade-and-a-half in the past, that share was solely 5%.
  • Already in 2022, it generated $547 million in bank card charges, and that quantity will solely develop.

4. Marriott sees luxurious as an essential a part of its portfolio.

  • It has 497 luxurious accommodations open right now.
  • It has 225 in its pipeline.
  • “We’re main in luxurious distribution globally with 17% of the market — almost one-and-a-half occasions the dimensions of the following largest competitor,” mentioned Tina Edmundson, president of luxurious.
  • It mentioned it had a 30% market share of open and under-construction rooms within the luxurious section within the U.S. and Canada.

5. The period of resort discounting could not return for fairly a while.

  • Marriott has loved robust pricing energy although occupancy ranges haven’t returned to pre-pandemic ranges worldwide on common.
  • In a single chart (proven beneath), Pinto highlighted how Marriott’s systemwide comparable common each day fee as of June 30, exceeded the comparable determine as of June 30, 2019.
  • “Normally, our philosophy is to keep away from chasing occupancy and to be keen to commerce some occupancy for common each day fee to drive general resort profitability,” mentioned Drew Pinto, govt vice chairman and chief income and know-how officer.
  • As a substitute of chopping room charges to woo clients, Marriott has been tending to drive short-term leisure demand by way of packages and promotions that includes advantages, resembling credit for on-property facilities, like meals and beverage or spa.
  • These campaigns produced $1.8 billion in income for its accommodations year-to-date by way of August.
marriot average daily rate growth in 2023 versus 2019

What do you suppose? Inform me. I’m at [email protected] and on LinkedIn.

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