Marriott (NASDAQ: MAR) recorded $1.30 EPS in the fourth quarter beating the $1.01 analyst estimate by 29 cents. The company reported a $4.45 billion fourth-quarter revenue, beating the $3.96 billion consensus estimate. Net income in the quarter came to around $468 million, compared to a $164 million net loss in the same quarter of the previous fiscal year.
Marriot tops Q4 consensus estimates
The company added over 85,000 rooms worldwide during 2021. This addition included more than 18,000 conversion rooms and roughly 42,000 rooms in the global market. Net rooms increased by 3.9% from the end of the 2020 fiscal year. The company’s global development pipeline came to approximately 485,000 rooms and a total of 2,831 properties.
Marriot’s Chief Executive Officer, Anthony Capuano, said:
We experienced significant progress in global RevPAR[1] recovery in 2021 despite the emergence of new variants and ongoing headwinds from the global pandemic. By the fourth quarter, global RevPAR was 19 percent below 2019 levels, a 40-percentage point improvement from the decline in the first quarter of the year.
The CEO continued on:
Each of our regions saw meaningful continued RevPAR recovery in the fourth quarter compared to the third quarter, with the exception of Greater China, where recovery stalled due to their zero COVID policy. In the U.S. & Canada, RevPAR declined 15 percent compared to fourth quarter 2019 levels versus a 20 percent decline in the third quarter compared to 2019.
Compared to the levels of 2019, the CEO said their international hotels recorded a 26% RevPAR reduction in Q4 2021, a 12% increase from the third quarter. While January’s global demand recovery was negatively affected by Omicron, especially for group travel and business transient, new bookings have returned to pre-Omicron levels.
Financial results
Marriot recorded a $635 million operating income in the fourth quarter in 2021. On the other hand, net income came to about $468 million in the same quarter. Diluted earnings per share in the fourth quarter came to $1.42. Adjusted operating income came to $578 million, which was way more than the $146 million it recorded in the same quarter of the previous fiscal year.
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