Marriott International, Inc. (MAR) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

May 2, 2023 8:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks：

Operator

Good day, everyone, and welcome to today's First Quarter 2023 Earnings Call. [Operator Instructions] Please note, this call may be recorded.

It is now my pleasure to turn the program over to Senior Vice President of Investor Relations, Jackie Burka.

Jackie Burka

Thank you. Good morning, and welcome to Marriott's first quarter 2023 earnings call. On the call with me today are Tony Capuano, our President and Chief Executive Officer; Leeny Oberg, our Chief Financial Officer and Executive Vice President, Development; and Betsy Dahm, our Vice President of Investor Relations.

I will remind everyone that many of our comments today are not historical facts and are considered forward-looking statements under federal securities laws. These statements are subject to numerous risks and uncertainties as described in our SEC filings, which could cause future results to differ materially from those expressed in or implied by our comments. Please also note that unless otherwise stated, our RevPAR occupancy and average daily rate comments reflect system-wide constant currency results for comparable hotels.

Statements in our comments in the press release we issued earlier today are effective only today and will not be updated as actual events unfold. You can find our earnings release and reconciliations of all non-GAAP financial measures referred to in our remarks today on our Investor Relations website.

And now I will turn the call over to Tony.

Tony Capuano

Thank you, Jackie, and thank you all for joining us this morning.

We announced excellent first quarter results, reflecting continued momentum in our business around the world. While the timing of demand recovery has varied across regions, depending on COVID policies, it is clear that post-pandemic people have a deep appreciation for travel. As the largest global lodging company, with properties in 138 countries and territories, a diverse portfolio of amazing brands and our award-winning Marriott Bonvoy loyalty program, we are proud to connect people through the power of travel.

First quarter global RevPAR rose 34% versus 2022, driven by significant recovery in Asia Pacific and strong growth across the rest of our regions. Worldwide occupancy reached 65%, up 11 percentage points higher than the year ago quarter. Global ADR grew 11%, demonstrating our continued focus on driving rate.

While macroeconomic uncertainty persists, it has not weighed on travel demand to date. In fact, demand continued to rise across all customer segments in the quarter. Forward bookings are solid. Though our transient booking window is still short term at around three weeks, so trends could change relatively quickly.