Marriott International (MAR) 31 Jul 242024 Q2 Earnings call transcript

Good day, everyone, and welcome to today's Marriott International Q2 2024 Earnings. [Operator Instructions] Please note, this call is being recorded. [Operator Instructions] It is now my pleasure to turn the conference over to Senior Vice President, Investor Relations, Jackie McConagha.

Thank you. Good morning, and welcome to Marriott's Second Quarter 2024 Earnings Call.

and me Officer; Tony Financial Leeny Executive President, with and our Officer call Vice Vice Executive our Chief Oberg, Development; the today Investor Capuano, are President and President On of Dahm, Relations. Betsy our Chief

and I under begin, RevPAR only remind to as our These to reflect press results to are federal comments year-over-year securities all comments. Unless our occupancy, like effective otherwise of period. and comments daily are numerous changes for level everyone system-wide historical the subject uncertainties rate stated, today in in will actual are the be results laws. or SEC not events from would could and facts and many as and today implied risks comparable considered our our currency cause comments we differ earlier Before to are revenues our hotels changes that property today constant those which updated forward-looking described and Statements release in statements not expressed refer filings, by average statements comparable unfold. future issued we materially for

our in Relations non-GAAP of and release measures referred our financial to You reconciliations website. find our can on earnings today remarks all Investor

And now to over I will turn Tony. the call

most year-over-year. Thanks, in X% the around markets net everyone. travel delivered We grew good and by demand Jackie, world morning, and remained another strong robust rooms as our quarter

basis occupancy second compared nearly year's rose XX%, to RevPAR global daily XXX increased X% quarter Average points quarter. reached Second rate around up about X%. and last

Asia scales select to increased second robust Japan, was year-over-year the shift increased Canada, Growth and rose and China, trends luxury posted where but benefiting in particularly internationally, Canada Easter RevPAR XX%. from from the excluding by the service rose RevPAR in U.S. nearly APAC. RevPAR. travel from X% benefited macro holiday. in cross-border broad-based, gain China. in Pacific, chain All the or X% APAC and strong led APAC of positive XX% especially RevPAR over quarter in a remarkable U.S. Mainland from RevPAR

market RevPAR EMEA portfolio regional and RevPAR the Express date, CALA the in Mexican roughly XXXX, expectation. penetration in meaningfully City the the quarter X Kong, to than about grew domestic Taiwan in of The was travelers. bottom outperformed high-end softer as Positive region. in to outbound the an well China internal own led nearly demand. overall growth with cities, region cross-border quarter. all XX% second a has Tier and increase by X% To declines other with continued Greater improve was pressures the And in impacted declined Hong X% Despite offset conditions, more also across RevPAR meaningful hotels by as demand and RevPAR our the outperformed the in the region, as our in point index RevPAR steadily. macroeconomic strong region adverse markets in peers [indiscernible] and seeing Macau continues market RevPAR gained in decline. we

at Our premium, in a quarter. again index, rose global substantial the RevPAR is also which

largely we customer the both XX% business the segments, the comprised which the X% all more in and will With transient. daily quarter increases XX% rate. across of anticipated segment nights rose year, to quarter, RevPAR On globally. our worldwide room Compared customer and strongest our full saw are to look X room range in each year RevPAR average group, remained experiencing nights leisure ago segment. transient global of in detail. the we As narrowing Group, group basis, a to Leeny growth quarter, discuss due in to weakness X% growth, as China ahead in RevPAR we global Greater continued to second

in which the in revenues XX% worldwide Full of in second nights in nights room global a the the in a RevPAR. X% of year-over-year transient, Leisure and RevPAR. XX% which increase X% Business in transient, X% posted room X% of saw for end the worldwide pacing rise increase ADR. up quarter group at rise X% a still accounted quarter, a contributed were XXXX room quarter year nights with

Within small- medium-sized few for of transient over business account has transient nearly which corporates the now segment, XX% the from last demand business significantly nights room years. to grown

experience by we new we a travel launched month, that Marriott to this the Earlier management announced ease for program expand these process online customers. business booking booking Bonvoy, and comprehensive travel and access

While both users new already and the offering have is with we're initial the great pleased it is account this which days, platform, of still of extremely sign-ups early seeing interest, expectations. and outpaced

powerful our had at Bonvoy program, June. the enhance end XXX to continue members of loyalty over which We Marriott million

second see U.S. and in globally. to in in to quarter real Alibaba engagement nights of in Canada internationally our in in with driving Rappi highs the continue global enrollments partnerships the Bonvoy and XX% reaching new due and part Cali. record again penetration room and at success Rakuten Japan, We XX% Member rose China

Our that love. and latest truly new people, how is we're passions they members places our example with collaboration with of Starbucks the connecting

experiences remain are to with and rise. also have intent providing pleased our on our We our laser-focused steadily to which recommend continued in guests with excellent scores, hotels

rooms than net Our rooms. approximately nearly with added grow and end industry leading XX,XXX quarter continues supply, overall global faster portfolio to to million the X.XX meaningfully we

has different In XX year signings rooms XX% our openings including XXX,XXX Conversions, This the remained remain conversion growth. represented to for of XX% with signings. powerful and brand convergence the XX and around as our APAC our of last of driver owners strong. broad-based activity a the has been hotels to in grow Marriott China converting activity the helped into and Global over depth of revenue engines. multi-unit opportunities Greater of and over world. the breadth quarter, signing second brands continue portfolio months. half pipeline significant first Record value the

While starts. still below with in levels, the pleased XXXX we're trend monthly also upward construction continued

conversion the U.S. Midtown our the resort Canada have Turtle Ritz-Carlton today. already California Beach, The collection luxury U.S. Newport brand is and Resort X we in The rose starts deals XX% marquee in June, construction renowned Hill In the in quarter, in joined of hotel Bay joining second Manhattan iconic the the in Hawaii year-over-year. In luxury system. and Pellicon signed

thrilled global extend the to leading position incredible welcome are further We we luxury our in as these segment. high-value properties

brand and engaged momentum and sign Our In developers res in discussions in significant in interest in the the CALA, latest mid-scale space by tier, brands Express across Sheraton, we transient numerous expressed are new continue by X our are deals Express City region. U.S. City points showing studio the the for conversion-friendly to in our Marriott,

in and deal dozen a our from expected system Turkey over APAC to are year. Four our recent conversion hotels this multiunit first opened later Our Express in Points join

we markets, XXX numerous We're also for Studio in and pursue hotels projects. continue development in on execute of to one-off res talks to opportunities from types over and deals large

turn over the results, want financial discuss to to our you the I world every and call advance hard do connect associates to thank each work help business Leeny our Before to travel. Leeny? our to power the all of through of they for day the I say around people and

Tony. you, Thank

and year billion, higher we as in branding our fees. X% benefit Second RevPAR, quarter revenues growth routes XX% in residential significantly non-RevPAR-related rose continue the globally. Co-branded from branded stronger fees to fees reflects franchise rose global gross year-over-year top entire the residences to were quarter $X.XX increase last position than card and credit fee same

IMF impacted fees China. million second decline in by million softness management percentage was Incentive and partially and in Growth were $X increases Hawaii. flat quarter. continued totaled these in by an IMF in or led part Greater in APAC U.S. Canada $XXX the by EMEA mid-teens year-over-year, fees in in offset the

Second X% to $X.XX. quarter adjusted billion grew increased and to adjusted EBITDA XX% $X.XX EPS

to primary than in full to in of in year. for of is expectation the growth XXXX. U.S. the our vast Greater third Now remain quarter the for is change year. higher Global is growth The X% in majority expected the let's outlook RevPAR markets rest our talk X% of the grow updated our about and outlook China's full for to negative year RevPAR RevPAR expected the Canada. and international

as demand pricing in quarter to weak holidays. and the region with current summer decline of trends the travel during continuation see a RevPAR outbound the expect anticipated meaningful most We third accelerates

Greater our around X% system, XX% RevPAR-related RevPAR it up typically fees accounts given although average that Note makes overall of for rest it lower of the compared to of rooms. China's open

in November, While RevPAR we year we Canada marginally Canada anticipated RevPAR in in the months remain the trends lower the the intense and X group U.S. U.S. previously the and year. the of election. the expected weeks also to to due business, focus the year less back U.S. of first full X given are the with had than relatively expect half part first in steady Overall on of presidential

in revenue, revenues. the but to anticipated still to growth is worldwide and another transient the business segment, of slower is revenue range. in group be In quarter, driven customer X% RevPAR growth improvement strong leisure growing in X% year Our fee expected growth to be gross by continued third still

$XX Our owned, anticipated net of roughly and million. leased expenses be other to are revenues

revenue, IMF, and could and of openings. strong to non-RevPAR-related Canada, quarter's impact well There's $X.X hotel largely as million. timing $XXX of China of to expenses, full from net D.C. expected other like $XXX as Greater select X% billion fees last [indiscernible] previously negative currency the the slightly billion. Washington, gross and additional from and from dollar is could million still For $X.X than year, to U.S. in a X% total fees now rise Compared and also the markets lower franchise the to reduction expectations, to X/X Hawaii roughly

to billion expect X% to to now now roughly X% year X% We $X billion. to X% rise adjusted year rise Full full is $X.XX could just and year-over-year. expense G&A EBITDA between expected

adjusted be is tax between expected $X.XX just XXXX XX%. now Our XXXX expected and is $X.XX. effective rate above be to to EPS

on investment Full owners continued in with strong and mentioned, year still and full the total expected signings we're We're franchisees expect net spending Tony across very As portfolio, is billion. of brand's performance. demonstrating to X%. openings growth and our pleased our robust $X.X to $X rooms X.X% growth driving year still focused global to activity billion confidence

major higher As you'll our tech recall, with look to management, transformation The than loyalty X technology of in which property multiyear reimbursed elevating benefits investment systems. associated accrue forward platforms. and historical time. the vast over this to be of spending many We our to reservations expected is the from includes expected majority

investment renovation elegant Manhattan Our million the incorporates also including portfolio $XXX Square Union roughly spending for owned lease in W our for Barbados. outlook the spending and in portfolio,

to When renovations look ultimately these for these properties. complete, are long-term assets all and sign we'll recycle contracts management

committed Our repurchase over a and capital our modest excess remains rating, accretive the in growth capital meaningfully risen then same. to through which and that dividend, shareholder investment-grade allocation share is returning to value We're shareholders philosophy investing to time. has

expect loyalty our and ratio remains of from We continue range of of target for our our Chicago. in approximately factors for This We EBITDAR. including program, $X.X $XXX year. cash generate the levels X to Sheraton low strong to end in to of cash, shareholders of currently the the at billion required returns the in leverage capital debt the X.Xx purchase fourth full million quarter Grand to the

In our terrific team. business a XX strong closing, prospects have over momentum lot world, brands in around our and our to of across the we growth thanks

optimistic As look incredibly we're are Operator? and your about Marriott's I we take to future. now Tony questions. happy ahead,

We Stanley. Grambling question from Morgan Instructions] take [Operator will with first our Stephen

to related. forward? that realize if deteriorate on like the basis appropriate see I it of do in the reduction RevPAR And the a action. points. management like looks The you backdrop to further lot lowered second kind half, overall what additional about have XX operating by guess fee EBITDA about going were leverage consider of take in it's X%. incentive is pull levers I the looks of you guidance try to kind to and But that you

Thanks, Stephen.

typically of doesn't couple assuming equally impact. point being world all One have $XX is one million $XX events we reality FX and to a the in that million things in of markets So any it RevPAR across question. about when that's that fees, the talk around

different outlook the of between think today owner's seeing is clearly with When than you priority in about talked I the our it base drop so quite China's disproportionate for I that a we impact. the you fees Greater in an And return. have the is IMF, U.S. has China and change Greater impact are where think that obviously mix

IMF of Greater point in billion be than more would dramatically which is China, is towards to heavily in have something a $X smaller like one would more from be fees, where impact. going U.S. the in typically weighted it that So it RevPAR

it it Canada. thinking and than just overwhelmingly lower So truly is we expectation really overall China I the with the a to in just can at be being about point U.S. [indiscernible] think and geography slight because have half Greater related look rather necessarily to

takes of per That's how overall unrelated, X helpful. kind just in There's net be process the as at plus thought related being of quarter, your about changed always in we to related Maybe follow-up unit it. there's room that and translates anything growth we puts fees questions look the but or to Got and has fees a NUG RevPAR? lot could RevPAR think longer-term around plus fees. these is as the algorithm

Yes. up think over the No, right. believe you're algorithm absolutely holds we time. We absolutely

described, impact unevenly. changing of the You elements do have, certain as you

per having in key what in also rest for rising as one expected we've change rapidly RevPAR is the expectation non-RevPAR before potentially actually think our particular especially this large we So growing market our talked about it over situation, time, is But a year. about fees having the of of fees.

pleased and that fundamental do any trends different. the believe very not algorithm we're continuing those is with So

And Bank next Kelley America. we will question from take of Shaun our with

Just guidance. the wanted with to start RevPAR

we I pieces in if kind of point given on So believe remarks, think know us I kind said QX. where prepared half pieces, weakest be and the But the we in, of you implied in we the is guidance QX, first year, QX would color the take the when you've here, of obviously, do came below QX. we China. for the the

pretty but that So it think said some shift also group stable. QX? sort you the timing? mentioned U.S. what's you is weaker election, driving other Is it Is of I

the if the check anything what's be there anybody the rate, concerned or in QX? that aware needs driving driving, right, QX is math. Is what's So But run of? math about weaker to

an is of have in that going on we seeing point distinction right, Yes. described What's and a described, QX the of the the which versus Thank look on that With between expect being we in for the being though XX% roughly the impact the we around of group election, only are on much as in lowest to an entire is and specifically half we rooms, of year, expectations QX QX as Canada QX, at when U.S. do back year you're the having the as kind we year. interesting the international a impact our QX sort the RevPAR you, back of other of And you've in normalize. bookings, continuing half an top got you doesn't of quarter QX half first QX. can that, of similar China on number out markets just your really see see Shaun. to in that of impact growth QX. And then lower bit we there

a I first CALA, APAC lower. half I back when the look little bit would of EMEA that expect So at and half is and their

get where in bit additional a as and regard, and that those RevPAR QX still QX that QX. move to normalization, continue in markets. so for RevPAR you together than you quite that's in strong all outlook put And you towards see you And although lower

the add cycles, context little election we election, softness. that, sort baked to year election was the as the obviously, there when more as we're of bleed cycle, the to into over of little seeing prior you historical and -- we see this Shaun. week to bit back roof week just an a election The a unique this look But knew tended after election of we've what that of maybe And attributes softness well. given seen

from the impact about of is on perspective, the group side. November So a it's -- half feeling group the

developer for the The conversations to into specifically. softening to just quarter. last is and a what signing hit up just conversations get think you China? impact and the gave that The starting highlight some question there? is Obviously, all the signings are development the side is, we'll of bleeding development But seeing think bit all you quarter side, I softness expect this or us heads -- that as the right? on this China I at that was in of real broadly. a my kind little Greater Great ground follow-up And on it

riddle. it's sort question a of an and It's great interesting

As you half the prepared heard signings had in China. the we in record of year in remarks, my first

China. really it's the about in think I long-term prospects

there Our travel continue to both to and certainly, continue dynamics in start and SOEs the of community, the believe owner construct long-term sign them.

have So all slowdown seen front. on at we no that really

In open months. fact, within service half XX it's interesting. select We the to of half signed in are expected deals the first year in those Almost of XX China.

ask deals we the going same pace is to look construction the and we at we signing materialize paper? question we as is So are of are really stacking as you, Or encouraging. that pace, the openings are

thing that continued index our see with strength China, Greater in think only or X over the softening months demand the so. I you is And in as I'll past add RevPAR especially

owner seen brands. have range across increased that and really strong we for of the We brands being appetite with have the full

from So including for really kind frankly we're brands sometimes times China, see service way weaker the the the strong powerful. limited in luxury, demonstrating really all segment through brands, really pleased conversions that up in think the I prove that . the can to demand it's most the the of

question our Citi. comes with Smedes from next Rose And

more What's in Maui with leisure what's sort I group meetings? just Or that sort and are you little was ask of across driving you in weakness wanted all of I seeing going And a I wondering, is it mean mentioned some isolated it sort kind you more. bit Hawaii. on in -- is region? of there? or is relative Or to been weakness it maybe regions? of incentive

yes, the Smedes. Maui recovery. think definitely is think Yes. Yes, sure, I I slowest And seeing still

been dollar travelers. very [indiscernible] the popular a place very that always reality has strong You Japanese been still is the for have and

ago, other Japanese But coming weeks travelers parts there's of Hawaii, still, a dollar. we senior island and along strong a overall, team not impact Lahaina been in the the that the feeling Hawaii. of of in seen couple than were And the slower has with is the having the of while tragedy overall, is Tony particular, clearly and obviously, really the fabulous well. in huge the But we back still still state. had a impact But so it progress, in clearly, level Hawaii is on recovery island. we've And with there

in were North then that I ask Okay. mentioned IMF And wanted you, just to flat America. you fees

remind us in I just your paying think. you percentage currently IMF? America Can is what North system of

Sure. Absolutely.

the of a ago in second we year the are second XX%. just hotels percentage China, as in went quarter it's point, interestingly, the same in U.S. and to in So a reference the quarter, incentive in XX% from China, XX% the paying fees Greater as

So that incentive structure you Overall, last went XX% year. large Marriott, to really of agreements. year see fees management XX% the the this from contracts delta we quarter managed the paying for given we're second in

in U.S., that steady that geographically see fairly it's strong. more you weren't quite So limited can the to pockets as certain and .

comes And with Joe our next question JPMorgan. from Greff

year million can you $XX impact May. million versus from I Your gross lowered about and gave that hoping you by full in what break U.S. was in fee net election China, impact to FX? for the is guidance between the the $XXX the out

Yes.

if that. IMF a you're definitely So half And China. not let's X/X would is do at Greater this. looking from are if more, solid that bit of a say, I

you've from ago. both fees also which, in you're how overall, also looking expected is got IMFs. some not it, is there both. bit affecting how as well in roughly FX and some got as is the call FX, is much Then IMF markets that speaking, XX performing we versus RevPAR Then much to a let's and a and get quarter base into Now broadly various U.S., the you've of

non-RevPAR are out, the describing. you've kind impact $XX bit and element slightly RevPAR say lower overall separate But is fees. it change to in related U.S. Obviously, reduction. of so and you to truly get IMFs, bit impact a of X/X million So into little of a into from. in bit I is the ever on bit then would biggest a then from the is the China which globally And that you a which has ever got so the

Great.

in that outside I your others up starts we're construction you as hearing Tony, starts that talk XX% remarks, think, And talked has prepared the U.S., about from about year-over-year. construction and you been the Canada, how well. in Can trending? U.S.

of Yes, course.

in projects well comment U.S., are might the about I So really Again, the I come construction. as oftentimes China, up that us Greater In China, to encouraging. refer which I said, you XX%, as is here under in made to earlier. know,

So are tell more We've of In start rooms straight improvement And excluding APAC, of those half open just more got construction. to there rate little in some percentage of tend easing but basis bit on number to or might of environment. projects in up getting in continuing is a see and quarters activity China conversion challenges now you about between XX described under for some really the regions would look about early starts XXX,XXX are signing XX I Pacific, and deals same the talked And within the at the despite the strong about, circumstance. with we thing really is continued And had is combination global months Asia continued side. announced. still construction China, encouraging. of be an that performance that what a there's to interest all other weight I EMEA, similar a a XX%. impediment we the in a on construction Financing everything Greater you've

even pipeline. to starts So fuel under-construction openings, see really with continue the strong those

Katz And our David Jefferies. next question with comes from

deals on, focused wanted say, kind than you we at to in in and do different updated the a if insight thinking speaking, which time have. And fee to is of where response clear get to is dug be more MGM that which going my pipeline further let's of question in how no a there kinds of same. through enough? that looking over structure we are about makeup on deal, that a model broadly guidance where I And NUG that was the there should What lug is the be the just little just more fees lens what those we're of

is, And opportunity the our about to Yes, I structures. extraordinarily it think was fee exciting value materially differently think of about answer to NUG, don't I cause short an MGM should brands sets that of and caused the and powerhouse managed to X deal bring approach creative franchise almost together us be our the majority, pipeline structure. in the the it of unique the deals. fits is. our you entirety But on and traditional think to vast squarely

I we The they're franchise is sign number add would a. [Audio a rather pleased that Gap] just represent with properties up Marriott deals only with But thing than signing. David, multiunit are number but that of or are that owner the an multiunit wanting deals really to of we're typical, overwhelmingly, they managed

great the our fundamental continuation we're that of regard, don't the it's So nature change and agreement. pleased but with of they for those growth, in relationships, the really in represent a

talk how the while subject, just my That's follow-up, or going, on really, the about that deal could we and Ken, touch on like anything would points we're it's as helpful? be MDM helpful. really data any

volume MGM and are Marriott their unique to coming are portfolio. now are answer going number are through to both of are elated ago, accounts, our group both great. talked MGM companies' short linking the not I Yes. really of number that of that systems. leads at that and available considering groups think, rewards I perspectives, it's Bonvoy we The groups long transient the folks from is Bill The the that

we all are think I thrilled. fronts, on So

our question next from with And comes Montour Barclays. Brandt

about have talk the from large consistent? to group and 'XX. to relation election any want that around Has seen for election? you booking softened groups and Have pace you seen in hesitation I group uncertainty the for 'XX or remain it the pace quarter-over-quarter So strengthened and guys

Yes.

questions. good So

prepared is of As quarter consistent change are is is pacing quarter. last of XXXX most room look about mentioned But my the X% for 'XX nights. a the ahead. from bookings pace in XXXX, due with I remarks, improvement we to forward now, Right X%, last the as erosion which little in in at with balance

now, Some folks of -- the standout. or that to of is but length booking continues that time around a be group are

owned That's in owned just your nicely which year, the -- the then of came region a second XQ shifting second great, out It with and like half of outlook Tony. highlight question plan and you just full how broader raised And stood for looks on that that then thoughts for in maybe and sort leased. portfolio? there the squares and ahead

Sure.

our business portfolio you a and can and around Obviously, on certain lease been own its know, bit As is so disparate Europe the markets. good. depend has world, it in

those very results reality think ago. category. that was is also the But a in as a termination contains it fees are the higher so I than you And strong. the noted, quarter And it for modest guidance. is change bit outlook It's termination fees in a overall

on. view But a fees. So that renovation impact bit little a of goes results really . consistent we're of otherwise, segment more pleased with got little how with overall, We've well the hotels are that portfolio. doing termination in in bit the that

Fargo. take will we with Politzer Dan our And question next Wells from

you've both the as unit growth, of terms in terms color of as ex-China. lot and In given well, certainly of China well pacing a

kind X.X% about year, your year this think pace confidence in of Day and the year? setup what we to Analyst out do exit CAGR last for that at next achieving have for laid you As that the X% degree you to

specifics Whether we've 'XX believe got a all, that a about of appropriate. September not. -- ready it we So won't for but to the continue number higher specific you. or not talk certainly next that gave that surprise We're to to year, first looks is guidance at X.X% budget in X% it is of we that

through adaptive and Tony conversion also talked I'd The point China. thing the move we about the to is Greater as process. like there relative numbers get will We out that to reuse

talked roughly Given we've that and then from are adaptive our numbers room coming of conversions openings looking we the about. that XX% at reuse a

year great think opened to of we conversions for conversions world. X the this in I months those rise the the in year see do the that U.S., near-term next were the a XX year openings and luxury the company. over out continue for pointed the around Tony

So this those and this signed were deals . opened year. year

about continue for from perspective, you then demand we and rooms growth. to little a continued bodes we good So about well brands I that together do for construction the the starts, feel really uptick think put company's in and net the and that bit the talked that

a it. any you I customer the or there, mentioned albeit little bit think, that about booking you growing, scale window that changes talk just, leisure Can base? slowly. and maybe or then Got either you've a is by Lenny, And that underlying still unpack in trends chain seen bit

sure. Yes,

leisure while We right. came out is given still it that's like RevPAR. and that in fire rapid they clearly X% huge with was encouraging of increases COVID saw nothing growth XX%, You're and at group

were X%, very segments, So up even up ADR were pleased. when up X%. was you up of up RevPAR sorts the leisure the almost global U.S. X.X% in various Global at RevPAR terms look nights And and and were leisure U.S. and lung was X%. Canada luxury X%. resorts

continues U.S. do very I from strong at there see . leisure demand We while So be the I think hear there front. that more to caution the the margin is on customer.

seeing lower the compared are is we well. chain chain upper that performance throughout as seeing scales scale. than other you're The that to the thing I'd clearly And industry a in the point out stronger

luxury, and the at So when stronger is than is than that premium look at you overall [indiscernible]. it lower

was strength to of to the remind Leeny XX% is and leisure, quarter-over-quarter leisure just is referenced and RevPAR the the last X RevPAR to [ a continue recovery that us segment improvement more provide shoulders customer quite the sort ] encouraging. leisure leisure of up to on Dan, context. yourself, for in in the fastest see seen years, over so I recover. little we've And I And mean segment

And as not be thing the the year, the up say while full is . expect expect it BT. it I'll in to still will segment full be slower the well. we relatively it for growing year to last do We that will group be do for compared

Raymond Crow And question our comes James. next Bill from with

higher that you into could last just with levels the the end at low point? I Are creeping on sluggishness start If question. a income at this follow-up seeing

not really. No,

the And and [indiscernible]. But can Canada about And and does in a more they're that's really fancy trade is U.S. ancillary point regions. extra hair of is around dinner down when being think bit in to. or consumer that frankly, that we with the I sturdy. interesting the that I a thing softer is not the world a we thing. any pointed all think perhaps anticipated. item only judicious meaningful than spend way. the show trip only on going really It's RevPAR And on other just as one that was the resort Ancillary out, I that's it general spend that the

Yes.

quarter improvement points Bill, think, had empirical supports the occupancy when you Leeny's best the X.X occupancy improvement that Luxury at the quality looked the in at actually almost tier that observation, the I year-over-year. was tier, data by of

for continues resilience again, show consumer so real and that high-end travel. to real And appetite

I think the spend. out, one is pointed thing we're what watching Leeny that's ancillary and the

Yes.

the just supposed playing equaled summer was and happening. with out, about not Okay. you quick recovery of to see between that's you into just that the especially thoughts us out it United follow where how your inbound be the This of a could outbound If international. on one Can update and I up kind States? balance inbound travel

Yes.

Mexico and But markets outsized also like presence cross-border from Miami travel. cities X% U.S. COVID, get are is as X% New cross-border. same to the So as inbound the to they continue in the from usual. from And your it's to same was it York nights about We're of coming to to like Canada be continue the prior interestingly, the big and U.S. the

As than we of business that higher we've around markets, almost are look We're seeing in XX% this we at the world, 'XX our hair cross-border. going to gone levels. other

we've in traveling rooms had to we XXXX. going dollar, more U.S. countries. see, Now to Middle travel Eastern you is strong many travelers, other Europe, international But the with going you from got part than to continue example, to U.S. reality see Japan, that, the for to of continue travelers great

nature So is I fabulous. perspective, think global is travel from the our of increasing, . only which,

from with question BMO Markets. next will we Aryeh take Capital our Klein And

on Going think changing? China, largely the been demand has And something case? sizable is back you based that to outsource to globally. be Why appears that commentary, of holding. do that historically, And that a region travel anticipate you

it? it, on question? up mind the repeating Could you you some Do please? broke repeat You

be globally. in to based just that's you Yes, that. so And commentary the Why travel expect weakness you outsourcer the given about of to do that is case? has on think been a Sorry holding. demand China that sizable broader appears still And the something he change China?

So I'll just give you and Chinese you a a facts also were country. see travelers leaving to of couple reminder a ago, that starting the year

out the was, particularly XX% the in airlift they're other countries still meaningfully was and Asia to countries were QX airlift And world. in back to to they of parts to not other of better big airlift of while to overall, that back U.S. of where it about is where China Pacific. other is differences terms the X in So

our doubt, Pacific opportunity travelers Greater the benefited Asia China of from to hotels go COVID. outside China from so to higher it the income do no a now the on that, wanting frankly, recovery fairer of China was of outside heels So of in

of So from Greater not is we travel macroeconomic and to overall back expect from might we is, picture definitely really outbound perhaps that China, again see to And are to strong expected. the continue was. in meant seeing the levels recovered frankly, point have demand I that. U.S. I spend not you overall will Greater to which to travel do say that the the that China, as as there have levels but fast will it

we're across is in results with high government particularly that the end, deals layer friction and are especially aggressive add Chinese of our destinations, striking seen in we've Visa travelers, more one would more seeing APAC. catalysts I at other preferred thing the been only the outbound for has Chinese The removing

difference any And in on construction hotels? then increase hotels the just notable on is select U.S. between RevPAR, versus service starts the there full-service XX%

service pipeline, are doing might No. in deals is limited Overwhelmingly, you imagine, we're our conversion. overwhelmingly most as any the full-service of And that event.

this new to where they're select overwhelmingly is XXXX, builds. service quite similar So .

with question Farley next from comes our And UBS. Robin

topic Just growth. going back unit to of the

at But about starts. construction XX% still a under of want if construction you that sort pipeline, the talked still it's to say it's historic. look lower overall I quite You bit increased than as of is a percent

It's coming just that like gotten a there. in. projects Or financing? it really lot the actually sitting you I'm China, is falling are issue of wondering not not projects the haven't churn So and out, projects that new mentioned

up? necessarily any So isn't that? that of percent under color Just picking construction around

I the It's dropout mean Yes. not continue definitely we to churn. low from levels pipeline. see kind of of historic

in while encouraged I think we're by here pickup of that the U.S., XX%.

talk and commercial are of their the often in -- portfolios direction, we of But to relatively back in lenders, we're a the not group. back still when constricted where estate best it's Trends component the portfolio. you availability we is the terms of debt real in the a way subset ironic You that shovels because hospitality construction were to bit a right to the we're all pre-pandemic And going just not of were result, where pre-pandemic yet. as the situation. but still are

as to units will Okay. contributor unit of think and follow-up, are specifically, than implies greater And I accelerate, guided haven't next net a of kind guidance I that a that you a you as think, looking conversions And already at your just historic. had I of growth for of sort conversions kind XXXX, know X-year but that XXXX. year. new percent

percent -- refresh already acceleration it's expecting that because what sort not at in XX% drive total there's looking I'm as this you that's overall, maybe conversions dynamics of acceleration absolute incremental the can But you're higher you're units percent of percent. not XXXX. a maybe will just acceleration of historic remembering at Just expectation, us of total that of the well? Help if in about us unit that sort your And right. as growth for think

Yes.

guidance and quite volume encouraging for a momentum of and our strength both . see we to to But like It signings continue the feels as ground the in and our conversions again, in conversion at stake earlier, is out see is of percent franchise accelerating Leeny the engines owner put So way 'XX. pointed XX-plus community we're to not ready the openings. really on towards it's gravitating revenue specific

And comes Scholes our Securities. Truist from with question next Patrick

far booking you like the say first in here? bookings you how My as even your versus more to typical question, visibility the would as window would what China granular, looks China as opposed U.S., for describe over

Yes.

is good, So the pretty booking but short I historically now. is right think our window visibility

of short-term days And world to making is those year. so the the to end to Right see us seeing X are closer what kind rest we very for challenging booking very, of it versus you beyond XX look much window this now, X that's around of days. the

for if here. give money wondering spending happen? different topic development us I'm on then to your an trends a update recent you And key Okay. could make

a trend a bit It's course. analyze Of we quite that ourselves.

And 'XX. couple only a statistics. so you We're I'm going to of give through halfway

XXXX. that than that in XXXX year. in going was key money in actually we of lower I'm in And compare XX% is year XXXX. interesting deals XXXX percentage deals offered to key the XXXX in than lower So had key money amount to full money saw of It's saw a almost what XXXX full the what we required bit similarly,

sure, fee leveraging upside apply continue consider supplied, deals sure the is which there's is statistics. that more same the and competitive, encouraging of more below and be strategic To significant to to becoming always Now surface have lens couple we be and the are when company's a balance of other we environment those trends that's the in sheet. we've

but the now been And money in need capital number lower the two, know bulk statistic, of would we in the quality back tools to XXXX, and or tier and the I upper are key precise seeing money the the framework. you upscale have in key other opportunity think deployed don't selectively deploy or I luxury, the

take Bellisario will Baird. final our we question from And Michael with

specific the Or Is segment? is the lower lower follow-up a Is to ancillary transient? are outlook? you leisure being just just within also spend. And question, the card spending? then that on spend non-RevPAR first comment ancillary that group Just driven by softer that fee seeing

No. Yes.

questions. the the I lower say across board. good So would is spend ancillary

to just little the We're being everywhere a little And fees typical has ancillary But only that's entirely a come obviously, bit credit up the use to It earned bit terms through the moderated as very a in is as only of function is The what's buy credit are things. but because spend to and cards. are in in U.S. to spend going looking card overall, credit non-RevPAR small up go So then these really cards amount. to pleased the in our of And nicely and overall, cardholders portfolio. XXXX. people credit will group. that on, seeing the But very a again, seeing a a card residential at their still obviously, because as at little card we're hotels. those in bit revenues non-RevPAR little the a cardholder very, a reminder, our credit adding both well where, with spend, new of bit, timeshare XX% go average card But still bit. average line are your a RevPAR on moderate because fees credit going ancillary And we spend spend up we're are again, the spend related very leisure nicely. spend point,

follow-up chain one just Understood. it. Got your then And lower-end scales. on just

focused and deals? a then development you deals? do And with the for switch of noted multiunit where are studio ground, lot shovels you asset and discussions on You've you single signings, when but res, still to say, then at the in are

Yes.

and spoke So before, under deals as discussion some the pleased world. the large with closed had really around are number we of that we about cases, conversion multiunit we've

that developers. in space, more hotels with under specifically seeing And put we in And the discussion shovels in having then over of great. and talked ground. actually multiunit about the the is are we've So mid-scale the them

Operator?

you. Thank

for used questions. now closing will over have allotted turn We time I Tony the up call to remarks. our for

next look you again hope as Hope the and to I the you summer. forward enjoy Thanks. Marriott. . in interest Well, you're we'll on Great. balance to speaking the road, always, out of quarter. your for thank you

International XXXX today's This earnings. you your Marriott for does QX participation. conclude Thank

disconnect may time. You any at