Some Marriott International Inc (NYSE:MAR) investors booked out to take some profits on Monday after the hotel giant reported third-quarter earnings that missed analyst estimates.
Having hit all-time highs above $266 last month, the group saw its shares drop 2.3% to $254.58 after annual profit guidance was trimmed due to weak domestic travel in China that overshadowed strong international demand.
For the whole of 2024, Marriott lowered its adjusted EPS outlook to a range of $9.19-$9.27, down from $9.36, and expects adjusted EBITDA between $4.93 billion and $4.96 billion.
For the quarter ending September 30, Marriott posted adjusted earnings per share of $2.26, below the $2.31 Wall Street expected.
Revenue rose 6% year-over-year to $6.25 billion but missed estimates of $6.27 billion. International revenue per available room (revPAR) rose 5.4%, driven by demand in Asia-Pacific and Europe, while US and Canada revPAR grew 2.1%. Fee revenues also grew, with franchise fees up 9% to $812 million and incentive management fees up 11% to $159 million.
Net income fell 22% to $584 million, while adjusted EBITDA increased to $1.23 billion from $1.14 billion a year earlier.
“Marriott had another solid quarter, with strong net rooms and fee growth, plus a 3% global RevPAR increase,” said CEO Anthony Capuano.
Marriott added around 16,000 net rooms in Q3, bringing its development pipeline to 585,000 rooms across 3,800 properties.