Marriott International Reports Strong Revenue Growth in Q3 2023
Segments of revenue
In the third quarter of 2023, Marriott International reported total segment revenues of $5.46 billion, representing a 36% increase compared to the same period last year. The U.S. & Canada segment generated $4.33 billion in revenue, a 9% increase, while the International segment recorded $1.13 billion in revenue, a significant 24% growth.
Marriott International's strong revenue growth in the third quarter can be attributed to several factors. Firstly, the company experienced higher gross fee revenues, driven by increased profits at certain managed hotels and improved comparable systemwide Revenue Per Available Room (RevPAR) in almost all regions. This increase in RevPAR was a result of higher Average Daily Rate (ADR) and occupancy rates. Additionally, Marriott International benefited from higher gains and other income, primarily due to a gain on the sale of a hotel property in the Caribbean & Latin America region.
Despite the overall positive performance, Marriott International faced some challenges in the third quarter. The company reported net unfavorable foreign exchange rates, which partially offset the growth in gross fee revenues. Additionally, the U.S. & Canada segment experienced lower cost reimbursement revenue, resulting in a decrease of $26 million.
It is worth noting that Marriott International's segment profit in the third quarter of 2023 increased by 40% in the International segment and 8% in the U.S. & Canada segment compared to the same period last year. This growth can be attributed to the continued recovery in lodging demand from the impacts of COVID-19.
Marriott International delivered a strong performance in the third quarter of 2023, with significant revenue growth in both the U.S. & Canada and International segments. The company's success can be attributed to higher gross fee revenues, driven by increased profits at managed hotels and improved RevPAR. However, challenges such as net unfavorable foreign exchange rates and lower cost reimbursement revenue were observed. Overall, Marriott International's financial performance reflects the ongoing recovery in the lodging industry and highlights the company's ability to adapt to changing market conditions.