Hotel giant Marriott International experienced a 26 per cent year-on-year increase in net profit in the fourth quarter of 2023, reaching $848 million. This growth was attributed to “particular strength” in Europe and improving demand from large corporates.
The company reported a 7 per cent year-on-year increase in worldwide revpar (revenue per available room) in the fourth quarter, including a 17 per cent rise for its international properties. Europe and Asia Pacific were highlighted for their strong performance. Anthony Capuano, Marriott’s president and CEO, stated that “Business transient revenue at our hotels grew 3 per cent from the year‐ago quarter, with demand from large corporate customers continuing to make gains.”
Marriott’s team was credited with delivering excellent results in 2023, with demand for their portfolio of properties and offerings around the world continuing to grow. The company’s net profit for the whole of 2023 increased by 31 per cent to $3.1 billion compared to the previous year.
Looking ahead to 2024, Capuano expressed the expectation of another year of solid growth and significant shareholder returns. Marriott anticipates a worldwide full-year revpar increase of 3 to 5 per cent and net rooms growth of 5.5 to 6 per cent.
In Europe, Marriott’s properties saw an average daily rate (ADR) of $195.71 during the fourth quarter of 2023, a 4.1 per cent rise from the previous year. Occupancy also improved by 3.3 percentage points year-on-year to reach 68.4 per cent. Figures for 2023 show that Marriott achieved an ADR of $207.86 in Europe, a rise of 7.2 per cent compared with 2022. Occupancy at European hotels also rose by 8.3 percentage points to 68.7 per cent in 2023.
Marriott added 558 hotels and 81,000 rooms to its worldwide portfolio in 2023, including 17,500 rooms from its City Express acquisition, and saw a total of 8,800 hotels and 1.6 million rooms in its system by the end of the year. In terms of development, Marriott has a pipeline of just under 3,400 new hotels which will add a total of 573,000 rooms.
