On this page of StockholderLetter.com we present the latest annual shareholder letter from MARRIOTT INTERNATIONAL INC /MD/ — ticker symbol MAR. Reading current and past MAR letters to shareholders can bring important insights into the investment thesis.

 •  3/27/2024 Letter Continued (Full PDF)
 •  3/28/2023 MAR Stockholder Letter
 •  More "Hotels" Category Stockholder Letters
 •  MAR Benford's Law Stock Score = 64

MAR Shareholder/Stockholder Letter Transcript:

2023 ANNUAL REPORT


LETTER TO STOCKHOLDERS
Dear Stockholder,
Marriott International experienced a banner year of
growth in 2023, delivering more opportunities globally
for our key stakeholders, including associates, guests,
and owners and franchisees. The strong momentum in
our business highlighted the true power and resiliency
of travel. With nearly 8,800 properties across more
than 30 leading brands in 139 countries and territories
at year-end 2023, we are better positioned than ever to
meet customer needs across all stay purposes around
the world.
2023 Financial Highlights
We reported fantastic results in 2023 as demand for
travel and our industry-leading portfolio grew. Full year
global revenue per available room (RevPAR)1 rose nearly
15 percent and net rooms grew 4.7 percent, the company   s highest net rooms growth since 2019.
Demand for all types of travel remained strong, even as
Anthony Capuano
the rebound impact from the pandemic waned through-
President and Chief Executive Officer
out the year. Group demand was again strong, and full
year global group revenues rose 19 percent compared
to 2022. In the business transient segment, demand
from small- and medium-sized corporates remained
robust, and while large corporates were still lagging
pre-pandemic levels, they continued to post year-overyear volume increases. Solid gains in both average
daily rate (ADR) and room nights drove global business
transient revenues 18 percent higher compared to 2022.
1
Discussion of revenues across different customer segments refers to hotel-level revenues. All ADR, RevPAR and hotel revenue statistics are systemwide
constant dollar. Unless otherwise stated, all changes refer to year-over-year changes for the comparable period. ADR, RevPAR and hotel revenue comparisons
between 2023 and 2022 re   ect properties that are comparable in both years. Hotel revenue comparisons between 2023 and 2019 re   ect properties that are
de   ned as comparable as of December 31, 2023, even if they were not open and operating for the full year 2019 or they did not meet all the other criteria for
comparable in 2019.
i

Leisure transient, which grew the fastest coming out
We entered a new segment, affordable midscale, by
of the pandemic, with 2023 global revenues nearly 55
acquiring the City Express brand, which increased our
percent above 2019, still posted more than 10 percent
footprint in the company   s Caribbean & Latin America
year-over-year revenue growth.
region by approximately 45 percent. We also created
StudioRes, a midscale extended stay brand in the U.S.
For the full year 2023, gross fees rose 18 percent, with
& Canada region and announced the launch of Four
record incentive management fees that were about 20
Points Express by Sheraton, for our Europe, Middle East
percent higher than 2019. Adjusted EBITDA2 reached
& Africa region.
over $4.6 billion in 2023, up 21 percent over 2022.
Our luxury portfolio remains unmatched, with 623 propOur fee-driven, asset-light business model once again
erties at the end of 2023. New openings included the
generated signi   cant cash in 2023. Cash provided by
debut of W Budapest, the brand   s    rst hotel in Hungary,
operating activities reached $3.2 billion, up 34 percent
and Rissai Valley, a Ritz-Carlton Reserve, which marked
compared to 2022. We invested in the growth of our
our 500th hotel in Greater China. Last year, we signed a
business and returned over $4.5 billion to stockholders
record 58 luxury deals, resulting in a total of 245 hotels
in 2023 through a combination of cash dividends and
in our luxury pipeline at year-end.
share repurchases.
Conversions once again helped drive growth, accountDriving these strong results are our incredible asso-
ing for 25 percent of our organic room additions during
ciates, who remained laser focused on delivering
the year. In 2023, we signed a record 184 conversion
exceptional customer service and experiences across
properties, representing nearly 65,000 rooms globally.
the portfolio, including for our valued Marriott Bonvoy
That total included 37,000 rooms in Las Vegas and    ve
loyalty members. Customer satisfaction continued to
other U.S. cities from our strategic licensing agreement
rise, with our December 2023 Intent to Recommend
with MGM Resorts International and the creation of the
metric achieving its highest single month score in over
MGM Collection with Marriott Bonvoy.
   ve years.
Customer demand fueled the expansion of our branded
Year of Growth and Expansion
residences, which had 134 open locations and 115
Marriott had a record year of organic signings in 2023,
pipeline residential projects across 49 countries and
with an average of nearly 2.5 deals signed daily, bring-
territories and 16 brands at the end of 2023.
ing our global development pipeline up 15 percent
over 2022 to roughly 573,000 rooms at year-end. Our
Driving Engagement
overarching development strategy is to be in the right
Over the past    ve years, Marriott Bonvoy has grown
place with the right product at price points for every
from a loyalty program to also encompass a powerful
stay purpose. To help us achieve that goal, we intro-
portfolio of over 30 brands and travel offerings such as
duced several new brands and offerings in 2023.
The Ritz-Carlton Yacht Collection and Homes & Villas by
2
Please see page 73 for further information on the calculation of adjusted EBITDA, including a reconciliation of this adjusted    nancial measure to the corresponding
generally accepted accounting principles (GAAP) measure.
ii

Marriott Bonvoy. During the year, our Marriott Bonvoy
in Maui and earthquakes in T  rkiye and Syria. Following
loyalty program grew to over 196 million members.
are several highlights of the social impact and sustain-
Member penetration of global room nights reached new
ability progress we made in 2023:
highs in 2023 at 68 percent in the U.S. & Canada and 61
percent globally.
Nurture Our World: Together with UNICEF, we relaunched
and expanded our donation program,    Check Out for
We   ve also entered into exciting strategic partnerships
Children,    which invites guests to make a voluntary donation
to connect our members to once-in-a-lifetime experi-
during their stay to support children worldwide. The pro-
ences through Marriott Bonvoy Moments and expanded
gram is now live in over 500 properties across 40 countries
ways to earn and redeem points through everyday
and territories. In collaboration with The J. Willard and
activities like dining out or taking Uber. Our growing
Alice S. Marriott Foundation, we continued to provide
portfolio of 31 credit cards across 11 countries includes
relief to communities impacted by disaster around the
the    rst co-branded hotel credit card in India, which we
world     including for our associates, as well as students
introduced in 2023.
and teachers of Lahaina affected by the Maui    res. In
2023, we also reached the milestone of contributing over
During the year, our digital channels, and mobile in
12 million volunteer hours since 2016, as we continue to
particular, remained key drivers of growth. Our Marriott
work toward our goal of 15 million hours by 2025.
Bonvoy mobile app contributed 22 percent more room
nights in 2023 than in the prior year. We continue to be
Sustain Responsible Operations: Our sustainability
focused on improving the customer experience across
strategy and initiatives focus on a wide range of issues,
all our digital and other booking channels through the
including designing resource-efficient hotels, imple-
multi-year technology transformation we have underway
menting technologies to track and reduce energy and
to enhance our powerful revenue generation engines.
water consumption, as well as waste and food waste,
increasing the use of renewable energy, managing
Doing Good in the World
water-related risks, focusing on third-party sustainabil-
Inspired by Marriott   s core value to Serve Our World,
ity certi   cations at the hotel level, supporting innovative
our sustainability and social impact platform, Serve 360:
ecosystem restoration initiatives, focusing on respon-
Doing Good in Every Direction, guides our efforts to
sible and local sourcing, and driving climate action.
drive meaningful change in the community and for the
Additionally, we took the next steps in our climate
environment. Serve 360 has been delivering positive
action journey     in September 2023, we submitted
results through four priority areas: Nurture Our World,
our emissions reduction targets to the Science Based
Sustain Responsible Operations, Empower Through
Targets initiative and our long-term science-based tar-
Opportunity, and Welcome All and Advance Human
get to reach net-zero emissions by no later than 2050.
Rights. Last year was a time of great need brought on
by the tragedy of war, ongoing humanitarian challenges
Empower Through Opportunity: On World Refugee Day
and natural disasters, including the devastating wild   res
in 2023, Marriott pledged to hire over 1,500 refugees in
iii



 3/27/2024 Letter Continued (Full PDF)