Marriott International rallies after posting strong sales globally and in U.S.
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Marriott International (NASDAQ:MAR) traded higher on Tuesday after topping Q1 earnings estimates and issuing strong guidance.
Comparable systemwide constant dollar RevPAR increased 34.3% globally off a 25.6% increase in the U.S. & Canada and 63.1% jump in international markets. The hotel operator noted that it saw solid demand across the leisure and group segments in the the U.S. and Canada during the quarter, while business transient demand continued to improve. ADR in the region rose 10%, aided by higher special corporate negotiated rates and 15 percent growth in group ADR.
Adjusted EBITDA totaled $1.098B in the quarter compared to $759M a year ago. Net income totaled $757M vs. $377M last year.
Marriott's (MAR) pipeline grew 2.6% year-over-year to approximately 502K rooms. Conversion activity remained healthy, accounting for 29% of rooms signed and 25% of rooms opened in the quarter. MAR still expects net rooms growth of 4.00% to 4.50% for the full year.
On the balance sheet, Marriott (MAR) ended the quarter with total debt of $10.7B and a cash position of $600M.
Looking ahead, Marriott sees full-year EPS of $7.97 to $8.42 vs. $7.72 consensus and adjusted EBITA of $4.36B to $4.54B vs. a prior range of 4.03B to $4.30B.
Shares of Marriott International (MAR) tracked 2.27% higher in premarket trading to $174.00.
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