Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| So we continue to see the momentum on the development side in China that we talked about a quarter or two ago, both in terms of what I would call intake, meaning the volume of MOUs that we're signing, the volume of new deals that we're improving |
| Full year of global RevPAR rose nearly 15% and net rooms grew 4.7% leading to excellent earnings and cash flow growth |
| Our team produced fantastic results in 2023 |
| We continued to experience strong momentum in our business around the world thanks to solid demand for travel and our diverse portfolio of 30 plus leading brands |
| So I think on early pipeline, if you will, approved and signed deals and under construction deals, we see encouraging trends in all three of those categories |
| In the fourth quarter global RevPAR increased over 7% year-over-year driven by roughly equal gains in the ADR and occupancy |
| We're off to a strong start with January RevPAR up 7% globally, reflecting continued strong demand around the world, potentially in international markets |
| And Group is shaping up to have another solid year in 2024 |
| And that's really a reflection of the steady strong demand for our brands |
| and Canada on a year-over-year basis, driven by robust increases in both room nights and ADR |
| And so you really need to think about the numbers that we gave that were 5% to 5.5% for the three-year CAGR, which we continue to be really confident and excited about |
| As I said, the signings that we're seeing in Greater China are very encouraging both in 2023 and as we move into 2024 |
| So when you look overall at the non-RevPAR fees, we're excited about to see them continue to grow at these roughly double-digit sorts of numbers for another year |
| And we expect year-over-year to see fantastic growth in branding fees overall for the year in 2024 over 2023 |
| We really expanded that program quite a bit and in some of the markets, I'll point out Japan as an example, we've just seen really wonderful acceptance of the Bonvoy credit card |
| Demand from small and medium-sized corporates remained robust, and while large corporates are still lagging, they continue to post volume increases |
| Solid gains in ADR drove business transient revenues of 7% globally and 3% in the U.S |
| Our powerful Marriott Bonvoy loyalty program grew to over 196 million members at the end of the year |
| As you've heard us talk about, we've been really successful in adding credit cards in a number of countries |
| We have grown very successfully, both in terms of tuck-in brand acquisitions as well as growing organic new brands, and growing that way around the world |
| In 2024, RevPAR growth is expected to be driven by another meaningful increase in group revenue, continued improvement in business transient demand, which will be helped by mid-single-digit special corporate rate increases, and slower but still growing leisure revenues |
| We think there's a tremendous market opportunity from a demand perspective |
| Just really strong demand for our brands across the various scales |
| We expect another year of strong global signings in 2024 and are already off to an incredible start |
| We also saw a meaningful acceleration in net rooms growth last year to 4.7%, the highest growth since 2019 |
| And so there, we are hopeful that you'll start to see that pace pick up as the construction costs, the demand side continues to be very strong, as well as financing ability improves |
| While it is very early days, we are incredibly pleased with the initial booking pace |
| But we are really pleased with what we're seeing on the StudioRes demand side and ability to start getting those shovels in the ground |
| For the full year, gross fees could rise 6% to 8% to 5.1 billion to 5.2 billion with non-RevPAR related fees rising 9% to 10% driven by strong credit card and residential branding fee growth |
| We're pleased with the significant value we return to shareholders in 2023 and expect strong capital returns again in 2024 [ph] |
| Statement |
|---|
| But your operating EPS outlook is quite a bit lower than consensus |
| Owned, leased, and other revenues net of expenses are expected to total 320 million to 330 million, 17% to 20% lower than 2023 due to meaningfully lower termination fees given the large termination fee in the fourth quarter of 2023, a property we sold last summer, and CALA flipping from owned to managed, and renovations at several owned hotels |
| Supply chain issues, which we were talking with you about a year ago, are not nearly as severe as we saw several quarters ago |
| And then I was just wondering, Tony, you just mentioned in your opening remarks that some of the large corporate group bookings continued to lag, which is something we've kind of heard for a while relative to smaller groups |
| And the strong brands get the most of it, but you've got some uncertainty around bank capital regulations, etcetera |
| So it is clearly down meaningfully from the kind of pace of new build that was in 2019 |
| And the numbers that we've given you today show that number having dropped down to under 20%, which I think does show you the continued operating leverage that we're getting out of -- |
| On the development front, despite a challenging financing environment in the U.S |
| It looks like you're expecting a big step-up in, if I understand it correctly, a step up in growth rate for 2024 which actually, I think you said 9% to 10%, which if I'm correct, is a little bit lower than the Investor Day of 12% |
| Construction costs have come down a little bit and they're rising year-over-year at lower rates than we saw a year or two ago |
| Please note that first quarter results are expected to be impacted by a few items |
| Second, owned lease and other revenue net of expenses will be lower due to the renovations on several owned properties, as well as the CALA property that flipped from owned to managed |
| As Tony talked about in his response to the question about the financing environment, there's no doubt that financing availability for new build construction of hotels is limited |
| That phrase being success is never final |
Please consider a small donation if you think this website provides you with relevant information