Marriott International (MAR) 4 Nov 242024 Q3 Earnings call transcript

Good day, and welcome to today's Marriott International Third Quarter 2024 Earnings Conference Call. [Operator Instructions] I will now turn the call over to Jackie McConagha

[Audio Gap]

Thank you. Good morning, and welcome to Marriott's Third 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

I under begin, remind to our These to results are federal comments securities like of and are numerous everyone historical subject uncertainties in are laws. or SEC not from would could facts many as implied risks considered our cause we comments. differ Before to our that today those which forward-looking described and in statements expressed filings, by statements future materially

and the the press our effective will stated, in level system-wide results otherwise only and all revenues comparable Unless our to and updated comments reflect hotels currency unfold. changes as changes year-over-year today period. occupancy, and refer average earlier are today Statements actual be events for daily rate constant release property comparable RevPAR issued we not for

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

now turn I over call Tony. And the to will

Thank joining us all you you, today. Thank Jackie. for

X.X%. our for roughly revenues for negative nights full and primarily year of the with from second quarter the in our of pleased remained solid due X% the rate nearly U.S. another row third group which are customer with room the momentum RevPAR once results, and Globally, fourth increased increases up year-over-year segment. in flat was election top Global strong. September, performing with We were robust quarter, in end XX% year-over-year the and continued up quarter both in At Group RevPAR the business. by driven reflect pacing quarter grew rooms again activity Net for quarter XXXX. global X% development X% group impact to the ADR rose in growth the ADR. a

is nearly at end revenues a rooms XXXX quarter X% double third closest on year. the rate. hotels are the to convention next we of distribution while of into average XXXX Leisure RevPAR flat the increase industry-leading peer, were X% of still strength rising of Group in business quarter, the our X% daily quarter Globally, at of a Given continuing another transient nights growth group next RevPAR number increase above up that pacing transient experienced ago for room quarter the in and with well levels. X%. year was pleased

in X% the If driven we full-service look over in and by at properties driven and Canada, in rate. growth leisure. surpassed U.S. RevPAR by Pacific, and weekends, Middle X% RevPAR business East strength select Asia rose Europe, and reflecting growth grew compared Africa and in RevPAR China. hotels group trends excluding to RevPAR X% in average weekdays luxury by increases transient region, outperformed service at internationally,

travel area. hotels other levels restricted helped headwinds, quarter macroeconomic Despite was benefited U.S. continue especially Cross-border on the events basis over growth above China higher-end pressures our pricing to and a by X% as quarter. APAC domestic the our third across XX% travelers. outperform as other declined demand also leisure Severe index at to RevPAR Greater from regions in EMEA impacted to strength traveling in broad-based led Greater RevPAR peers, region Paris from guests demand gaining rooms. weak Greater demand now China the the from and the as special and guests, just is and across of was weather solid international global total well pre-pandemic China. Olympics power. the

the to cards our Taylor both of a the of our stakes, and growing thousands experiences, September. Erasure Marriott record credit members over enrollments a in off property. with on we including We sweep Bond membership XX on Marriott quarter on basis. global at industry-leading index our well countries and Moments travel Ongoing, and RevPAR base co-branded with enhancing of as had global loyalty end XXX grew Swift also members, engagement million We collaborations CALA numerous are as in program focused on

around quarter activity our Thanks even signed third recent now In rooms, properties net We're ago, more with members rooms signing tie-up has to X.XX of points strong stay redeem Compared with hotel a rooms the X% to in thrilled pipeline the grew record with for world. around remained only a our rooms. XX,XXX our added XX,XXX we organic XXX,XXX quarter, Starbucks, X to can coffee. cup a at activity. million than nearly more X,XXX than year-to-date Global reaching with development XXXX.

global Our key and momentum preference for the New additions quarter, our represented continues multiunit expands This York XX% portfolio to signs. thousand and conversions, pipeline. third announced longer conversion the In over August, markets, brands stay over [indiscernible] for of a of reflect In room deal worldwide. in multiunit with opportunities X,XXX in rooms few Dubai. and accommodations conversions including we of a including in owner existing more XX% our deal

With announced Express brand model, an Marriott proposition here its value highly we received extensive by we as product City mid-scale already name in the ours. and the from transient U.S. new in outstanding effective interest October, of In our have Canada. operating

next agreements signed over openings months. have few and even to the a few expect We

world meaningfully Our segment market. been progress in mid-scale outstanding, high-growth the we presence in space this the enhancing look our of to and forward around has the

both our signings net preference XXXX and brands for is proud associates growth among strong in driving Our rooms owners. performance work and our of exciting, and guests I'm for their

our been around never and presence forward world. stronger, expanding we look further to the has Bonvoy Marriott

evolve end, guests, as company enterprise-wide continue operate business company. change, growth. We to across our a owners teams that embraces want and we efficiency our franchisees to and To closest to markets our business Our our excellent. the support process further is global to more we to an our undertaken momentum And to nimbly. even have effectiveness enhance this empower

these not is believe increased we work efforts and this profitability will drive complete, yet value. enhanced While

financial will to and results call who Leeny, turn I guidance. through now Leeny? details walk updated share the more our and over will then

you, Tony. we pretax $XX in annual process, Thank to million and these of reductions expect this XXXX. to point yield administrative efforts beginning in general $XX cost the million At

growth and charges competitive. even opportunities cost we're restructuring fourth our in expect In deliver With franchisees. confident owners of to in savings This XXXX. and charges, more anticipated of are merger-related the make roughly addition, million to in the these recorded than around $XXX reimbursed XX us be more will we initiative charges expenses. across result The primarily world is in to efforts meaningful will and brands, quarter

Canada reserve. negotiated as the well well offset to the operating Starwood million as which acquisition third residential and rose revenues The the higher growth was a litigation million. strong in Growth for IMF led and quarter to fees $XX G&A hotel, our million by a to timing quarter in results. in card global the U.S. in by higher XX% IMF increase as turning a in in fees to $XX partially reserve APAC rose China. growth $XXX company's of Greater increase quarter connection higher as U.S. an profit fee million in CALA Gross and co-brand rooms by decline credit with helped XX%, and branding was guarantee Now reflects grew RevPAR, X% in $X billion. $X.XX fees. primarily due

with adjusted to grew fees, X% EPS rising than these $X.X $XX Adjusted Third Even EBITDA to quarter billion. reserves, faster increased of $X.XX. gross million X%

the the about in RevPAR to is quarter, fourth talk grow X% still X% year. the full let's full we expected Now year our outlook X% quarter to assume to growth fourth and for for XXXX. X% Global and

In in U.S. currently in the and the November The in offsetting with line quarter to and we markets that Canada in is and Canada is growth strong quarter, election impact growth meaningfully negative and expected on room most election negative be the to XXX and Canada. the be for and anticipated points the have with generally in and double the to be U.S. trends transient lower basis quarter basis election. U.S. result points RevPAR RevPAR the BP for quarter, past demand is week RevPAR pricing China and leisure group Fourth RevPAR around due growth in is on and this quarter to fourth next. weak fourth still than year current region. of November the a Greater in higher expected cycles international in in to of XXX third as both the weakness as forecasted full October, books for post negative trends nights tomorrow's

to by growth hotels Compared lower our to In guidance, fees timing. is be X% under to forecasted quarter, fees to at than expected in and fee softer range. previously are gross the residential branding X% due performance expected the be fourth July certain renovation impacted to

and Our of owned, $XX expenses, net total leased roughly revenue, could other million.

and grow fees expenses gross year, to expect revenues $X.XX to X% X% billion. $XXX expense to full to the X% Unleased around can G&A net billion full could rise other now total million. We For to X% year year-over-year. of anticipated are $X.XX

$X.XX increase a to Full between XXXX. $X.XX billion, to now X% $X.XX tax spending We're billion of be total billion. XX% and expected year year $X.XX rate. over anticipated is assumed to EPS investment billion forecasting to is adjusted with adjusted $X.X EBITDA X% a XXXX now now full to $X.X

which and transformation includes technology As higher investment multiyear the a spending management, than majority property of be year's loyalty reminder, time. is over expected the reimbursed to reservations historical vast in systems with this associated our of

The forward should major rollout elevating platforms. many begin these of and next from benefits we year, platforms to look approve from to the slated later that X is

philosophy dividend, return full the capital that that in investment-grade to This billion of the factors capital later investing and Chicago generates model now for million in has Excess our same. over required for expected and meaningfully this business the accretive cash year. through is expect shareholder of which the asset-light to is modest brand risen to powerful great Our allocating to committed deal cash Sheraton to time. approximately growth occur remains returned on value. month. $XXX purchase We shareholders ratings shareholders of and the in to a $X.X a repurchases our share We're

pleased to CAGR around we're activity the As expect year-end from we increased XXXX we grow rooms now after growth top global year-end net X.X% the XXXX mentioned, We this XXXX full X% X.X%. at to or solid robust X% the still to summer, growth net deal. X.X% a visibility, of XXXX. to routes anticipate With our year to signing very our X-year founder across room range end development portfolio. at of This raised Tony with guidance

for Thank to you and your your in Marriott Tony happy now take questions. and I are continued interest Operator?

will Morgan Instructions] [Operator Grambling with Stephen Stanley. come First question from

and streamline related taking and these in the At also you for these how was impetus efficiencies. about areas I run factoring couple of around of opportunity benefits? questions a the to see SG&A the actions guess rate the of do before a growth then what level, now high where just think to biggest perhaps

Leeny. first I'll and part question Thanks, it Stephen. to Maybe turn then over the your take of

I impetus is feet. maybe start think the at I'll -- XXX,XXX

this a time we position And from One right company is holistically looked of Leeny quite at core the always as of the strong organization. has described. strength. notion embracing is company's different now, really And than we momentum, think values operate just business the last change. we of The the

You changes doubled operating entered decade. the in XXX countries We've than new over the in We've the company about think now last over last the XX countries. more in decade. over size

can improve enterprise felt look and make we across so efficiency. really to the what the it like right adjustments enhance to and . time our figure out And

In Leeny, take to terms want run rate, that? of you

Yes.

So Stephen. thanks,

all, think, to cost bit XX, savings little of first let XX about base. thinking our me talk really off about and current the of a is that I

any about early our year. too give being point just about we've of time current loan So next it's And think from think of over XX when rate. off to talked perhaps we to about We're or that moving really perspective, full to beginning forward, so specifics support run typical of plus above-average I run for think but our really budget process, us as XX that a a longer-term to about you rate kind growth. inflation

but contribution the into And position next good any a pipeline? about like it. year are and room rooms don't looks pipeline puts to there in per to unrelated fees the sequentially, about XXXX improved it's an as talk want that major maybe I know and Got next much, follow-up, it and from think too you growth year. takes for

Yes.

process. budget in stages of in the So XXXX -- early the terms we're of

about think laid have far I that confidence so comment CAGR that the we Meeting. that our in out Leeny's the visibility the Security X-year during Analyst we underpins

there room 'XX, growing, for they grow And might into. room look in one, our little tend to Both fees. the midscale, strong And in 'XX X as push really per fees are fees and at given we digging the incentive talked growth in we're fees. drivers counterintuitive momentum pulling fees, as Leeny continue question, obviously which the RevPAR-related On I to we continue see room something tier, a think seem fees luxury non-RevPAR principal into . if but see strong there. in per faster. see that's average to per drives you Number which out about, management we outsized

Our will Kelley next come America. from Shaun question Bank of with

X% in if to kind ]. net want Obviously, up high RevPAR building a just we the with of expectation here, I coming just kind do to everyone. couple on fee of growth [ of start of X% side blocks the algorithm unit over for X%

it's a beneath A at obviously, look B. of bit As kind we plus gross fee piece, the

longer that walk do or are Does IMF, kind given to of little dilution from importantly could expect remind just there? us it have of year? us what of trend term? the more Is fee just a to rooms with and a you what's of how pieces And MGM contribution there? do just the you couple through that this bit So the gap those

Yes, which times, really that have little a et absolutely RevPAR issue put you tougher system. in that as Greater are quarter-to-quarter, all is rich as when coming typical it Sean. to number about to got Yes, are China, important excited there sure. the conversation very of IMF at a of are in bit forward, But variations algorithm cetera, loneliness for it's portfolio, But see example, and had what FX, quarter-over-quarter, of quarter. then with like very about health to we it impact, we've what because terms the the produce. pleased lumpy. the ramp-up territory hard just this year-over-year IMF, will well that again, just of the things it overall can you heard time. renovation be and with when is, you we're think with believe works make those really I it obviously We to that as on that do over Thanks, in a this of look comes fee renovations together, overall bit look X combined going you've lower see rooms a like the do IMF we . But which you

the are As the equation strong in forward very pretty year. at coming about of this we've year-over-year you the where talked do room look signings good. looks system, of When before, that see kind strength we are we that, conversions and going

earlier that this just about Leeny, maybe on SG&A all is point so number, base? working for off $XX.XX G&A of year, my this clarification kind from incremental $XX.XX And just we kind next then $XX this the quick just stated have this and the onetime that follow-up, is the includes really million reserve Or as right of the the to of Should Great. the the the question guarantees. year, and obviously starting out what year? includes we remove obviously back year, a base and G&A, this

Right.

at So I all should with into your to go to the got way about We Sean. right, giving pieces modestly that, that think, the how is to I look specifics we though, up caveat of you too that philosophy generally, number. early elements want come different be G&A. are

probably normal cetera. cetera, As the come et in got debt overall we've growth remember, with of portfolio, the you'll increases that bad also et

that as to run expected simple But out and you run So of normal in not million rate. right comes rate . year's philosophically, not was are this G&A. XX it's not $XX XX right right quite anticipated describing. you're that now, But as that,

will next with from Our Scholes question come Patrick Truist.

could question, stimulus have you I'm or Tony, on RevPAR is there. year. some thoughts yet? next this It's or any I Any card. wild for XX%. real a uplift your I expectations decline related into have could there. China. from seen days positive if Certainly, XX% month about about of do on curious thoughts questions economic year? for been next initial my growth you China then the It you play year? X that be initial China China be mean, changes Have visibility for given since And a have negative any you for it went

Sure.

try me remind few let I've and So me missed if your questions there. in embedded

first the so the the one, direct consumer. watching most really On stimulus. closely, to of so We're has not stimulus been the benefit far,

any seeing to a sector, obviously immediate of last to despite bit for and great material property this support lack or duress which is a quite but quarter impact The that the well. stimulus talked under deal sort on So that we're interesting the not we not support performance of of metrics. me, about as more is stimulus property thing sector, of

volume both continue to strong really We see across openings signings and Greater China.

in because done your of is But terms I much staff to seeing perspective. in some impact marginally get the that of from to capital question the real of think short a our not a service brands, are we're easier which stimulus. really select acceleration yet is answer

in any you You're the really about when board. a And now, that's absolutely we're performance. But stimulus start is could over more to going we into Leeny significant would her right China as in say to flat as early again, remarks, as mentioned the as process. I the in 'XX. are into right into be Absent very early we What it peak XXXX. peak about expectations good visibility prepared performance all think

the Greater as we things China as better of expected that we QX that into into that that quarter a interesting of and add October, classic cities, and slight starting kind get of to pickup RevPAR are QX is QX weeds ago travel at Tier has the to through a margin, that would I looked is looking thing than slightly in cross-border we only been move see X the into The the is is X and we we BT.

Now to we meaningfully continue. But we as again, down quite it's and at margin, saw, in only QX, slightly you marginal that RevPAR was thought. do expect than the because better

question Our from next Clarke Bernstein. Richard with come will

the I inflection XX% on of just without up sort on start RevPAR. want IMF, to meaningful

just And how Is to to good X just with particularly quarter the put that on operating sure, why X can needing on and hotel? do on that So IMF a you're an that U.S., square color on having to hotel. make in we maybe any reserve.

nothing related performance helped very part in made operating There bit. large -- on you look strong The Yes. prior city profit U.S. that it at obviously, our as guarantee also has was the with some Canada a do reasons. a to X to element was that was the from insurance of couple kind good hotels, payments different of but managed you in when IMF And outperformer, hurricanes, and of which see QX, then well. APAC the was

Pacific We have good growth IMF. in our of outside China Asia

little to managed, are as a Just XX% overall, of U.S. sense in same percentage quarter bit ago. of in incentive the kind our that Canada paid fee give hotels an the of and a a you That's QX.

that consistent. the fairly U.S., quite of also still think then as strong. So outside And

as change bit continued a China where in the a think I of Greater result lower RevPAR. weakness their was one little

several mean renovation that Canada. actually at a same in though ago that we I bit at a expect is of of bit we IMF you guidance weaker you and of even this U.S. largely will we the As that the hotels little look be reverse RevPAR a a fee a quarter that's result to look standpoint see when that think undergoing as than QX, the gave, you where see, from little

some franchisees talking of any franchisees a about owners, you them to just cost owners? fees you about your are quick talk them Or savings? you When are Maybe and you about savings cost follow-up. operating Okay. do talking delivering your charge to and dropping

Yes.

in We're clear and we opportunities and benefits for very the looking at will them, have we them at some we're to . that engagement every with the identified So future. tangible near expect looking owners. efficiencies think facet our have of to savings saving

from come Robin with Farley next Our question UBS. will

us money your I bit new in tell wonder a if kind key could of little you terms of trends unit about growth.

about about of more same. that several Yes. But Yes. tiers. about fuels and Sure, using think percentage money more bit key would about talked quarters when number a over We've of about a say for years. that We've also X/X think I I key of deals more is from per perhaps the the money this quite seen more the still a across standpoint Robin. you key amount of importantly, the similar. look same money deal, of at when we

meaningful are of element trends think that to profile. investment So seeing in that would you we increases kind mean of our need about

points I the key and this as last thing all. the changed using Maybe percentage hasn't where at we're of talked only would we money out, add deals really Rob, overall about Leeny quarter,

a of We tiers quality are have key in section seeing money in selectively being broader used maybe past. the we than

Great. mentioned I I still know a that fit could other like year acquisition. prior left that, could I [indiscernible] like long that there hurricane back some then I guarantee, you that it X is any periods. don't Is future if Okay. be about sort in were just if what comping so it periods. dated you to One And from next housekeeping that follow-up. seems goes in we things. then would might due kind of the was included don't quantify to think -- else payments we if hurricanes that prior that, of can sort guarantees there are mentioned recurring? like not other to pretty Starwood it guess just that, IMF in know if that And of maybe see you anything

way list interruption in business the outperformance provide [indiscernible], small it's of immaterial, U.S. and laundry an that things the the Canada. No, too Sure. the in

you're can out. would that nothing know, quarter-to-quarter, from again, you expecting on -- kind of you exactly as always really what you hotels. need to adjust We to So have variations earn

be would really numbers So that meaningful at no all.

operating that unusual meaningfully the was us. guarantee for was and in with of acquisition an an of guarantee. actually owner This did typical total part is the right. $XX now on coin and your a had have to view MAX the fact point, whether as takes the really, that of would that longer number profit a work This a of we need us we profit and to a through to settlement actually Starwood was operating operating exposure we years million to have profit up guarantee than absolutely you're fund reflected to guarantee Yes, that that we that a under guarantee. It to

So look out take reserve and remaining years, of once size operating length a determination of no, we number with that of the came kind needed we and exposure. we COVID made And profit your could we but forward it. not of do that have is over a guarantees that to to point, that

question from Greff with JPMorgan. will come next Our Joe

would of it's your My XXXX. and out I in the know some million XXXX, to outcome And that Or terms point, process. still good beginning it. you, expecting run $XX of in initiatives million would expect improve a And as expect into head to you of would begins first yield year? million be know the achieve to back to question $XX to achieve rating to G&A would next to goes you What early take all $XX to efficiencies million? you be at I be then $XX what costs. the

that in is believe The million, 'XX. we million Yes. to do $XX to just clear, be $XX

off is 'XX that in cost that base. of year's beginning this So

the look your you other to the process budget in obviously G&A, we normal and that parts we're all that part have have for in the Joe. that's of Now

point, million cost we're G&A to I sustainable really pointing at So in $XX annual think to this $XX savings. a million

you be does next $X.X that least early bucket about think expectation? come look there billion some XXXX billion falls you again, kind items Do when of because it Or at spending. in at is you But it's to a under to the wouldn't expect seems all investment onetime And year? some maybe of Great. recur this -- down still to it here. reasonable $X.X year

$XX you number last, comes of planning -- that and that something of always, the course, in to we're you well was kind owner $XXX No with that which difficult in purchase to lease Grand totally that that would from million asset could a help both as Weston that know not a cash with of Yes. clarity as stream Chicago. any for, QX up remove to included million around expect that made the long-term that agree we lack is I really currently made of it for the land the Sheridan purchase as for be. Peachtree, us related ground

that with really point, your expected . So that to million And be $XXX that's that, up, is terrific. not to that -- cleared ongoing. is

Our next Barclays. question Brandt will come from Montour with

Apologies missed going could was it. covered are rate you negotiated if special how the But that Tony, and this corporate that's on I year? coming and talks about next talk sort of together for

the we that are in haven't of our And pretty we're early from early feeling process. discussions, that think the But a increase good mid-single-digit again, for we yet. about targeting I takeaway relatively Yes, And course. that are talked teams Of about XXXX. set target.

of that be is [indiscernible] the noticed to to that, continues that useful. ADR strengthening to something with quarter Just this helpful continued was was that we add definitely

Yes.

of but picture Okay. developers But know anyone. are And follow-up, bigger I rate more this then planners a interest movements a the for and long-term uncertainty question sort said around of thinkers, here. and

how it's of mindset if curious capital they're in next all terms for forming developers' on year? their weighing Just at planning

would returns. bulk variable they in the their impacts every the that of course. at And Budd. I equation look Yes, mean be,

bigger are an of construction rates. we environment cost interest of Fed say debt XX see of I are the drop. prepandemic needles waiting on They But start sort are would elevated level I did volume, the Sure. and you, through to the takes year. a availability current this that think to what the and pins obviously bp encouraged Fed of than they and to balance action impediments . driving saw the construction

Our Jefferies. next David question with come Katz will from

is what I strength areas seems across just So you're taking earnings broadly all sort levels just flattish wanted is? you about can through we so the in it seeing, leisure, talk -- to that information is ask the Or broadly of and call board of which versus range it? about far should it right? And of weakness the speaking. season, straight how And just that unlike

Sure.

So as although to you well last roughly heard was flat XXXX QX us say leisure that earlier transact levels. for year,

from slightly basically a service really luxury growing perspective, where flat select think chain and while I is scale saw decline. or premium, a slight you with

And second or is Understood. really longer my growth around much question net term. my follow-up unit

the the do base, evolving we've how Does of seen of few think NUG we past is that I process. say kind if point NUG kind it's NUG the MGM grow [indiscernible] to years with look X post-COVID, anyway, does or of been being of continue have that broadening time? years? Bonvoy case range to out X, kinds or to broader of that in fair you as defined added see over Tony, what a

Yes.

So the prospective I from we in really because reasonably maybe bit together Everybody and as brought together, families should of seen you really and CAGR unique. in I brands But vast sides. of creativity real those rigor traditional is terms brands is our I want certainly, to model franchise X prepared both pull new is lens that sort agrees. same and have a you X-year of growth same together, majority seems structuring you've say MGM from ago, powerhouse the those really my they're partners hear that expect units of and to that structured and the and extraordinary in What X that agreement. Bonvoy to NUG. agreements different advantage predicated our traditional talked necessitated get X.X% is like pull Sounder MGM some franchise when so and opportunities. continue will and about lump to that we of said on X% That that inquiries Sander apart I'll a we about momentum management will agreements the talk in evaluating that the momentum say agreements be to we'll has very to apply Leeny remarks, those quarter in traditional take management franchise a we'll always . of

with Fargo. Politzer Wells Dan Our next question will come from

as the been the it's line and down pretty now bit? kind growing about wanted choppy this right we've back or may things to Is fourth double be I comparing of been sight just and of to may quarter. as be next expectation I for year there XXXX certainly think leisure commentary. to cool in. mean, on obviously, environment you any But a

I'll a things. say couple of

budget I property which think our I'm exactly the and we're in what's the is to granular level of and the process, environment. reality middle very going to every in gets down on happy say is

barring XXXX I I to broadest more is same. the would think economic major the make we be see change of some comment

talked be these We've big very leisure would group group but we'd jump also year. still slightly, a not digits strong. upper next about taking quite single our pace that And up So then our some trends. back think XXXX, half see on, of at you think about where I year if you you of continues BT that up. how for similar probably kind RevPAR probably and mean looking we're think this when

we've the 'XX more through And again, say when back budget. looks like into 'XX that in much of getting from a February But we will we whole lot be half sit today. where I would the gone

year? to if you something quarter. just That's line item non-RevPAR pace The more housekeeping. for fees don't non-RevPAR you us can Great. know are Is then And third of a that follow-up, missed that And if maybe the this but mentioned growth actual the give XX% -- on of for it's timing lines quarter. that there I still we in helpful. along fees, in for it, I the for my X%

Yes.

-- items credit really out. was jumps out are which, know, lumpy with going is on branding can as we the there if a that think obviously I residential and fees, quite you the the the development timeshare. are residential X what cards, whole sells And X So because biggest be

an QX $XX while QX, So it year was that was million. in as 'XX, $X a million, example, in ago

flattish So stereotypical it Credit growth that contract. more given than quarter. doubled be tends the fairly and fees structure in of to card X the was timeshare more

the together, to So top you we to is all yes, see put rate. the digits, continue growth X% single . for end of full it XX% the but year, right

Our next Michael with Bellisario Baird. from question come will

a want savings to impact growth. then any this even reallocation one just net to more go support unit maybe sales to zoom on and on to or franchise But team I to out cost back on a growth, more today. of an not where faster unit zooming deals landscape growth winning just and the just winning broadly, organic net or then maybe net out competitive update outlook on unit you're

Yes.

I family strong, is growth So obviously see in the a brands, it we entrants potential say, we to across would for have franchise community. the be. the more what Michael, really a offering top to recent think think I growing mid-scale and of the and market we our including us, our competitive will is share really continue priority

certainly be as initiative to then we to We continue add And sorry, that second think heard this growth. Leeny will those support Michael. the growth optimistic you question, I'm described, about and incremental prospects

not and on Just for an deals where the update winning broader winning landscape or signings conversions today? you're

I to bit both said think talked I ago, multi-unit. And X a I'll conversions is or it. mean single in The Leeny's maybe I about think and prepared see she momentum I but asset quarter Yes. continue in this that. little reiterate that encouraging, remarks, a we really

a it's think combination I of factors.

we strong XX think with as in we've company. years brands had conversion-friendly my I of as the have, portfolio

the And conversion the think each removing that friction are the dedicated process. has focused on got driving are teams on of more much Leeny focused volume. in we've I singularly resources continents from conversion

that we pace. continue at conversion activity so to And expect

from Duane ISI. Our Evercore next with question Pfennigwerth come will

questions, macro this with wanted in high-level previous you but of parts answered I question. to just hit a You

could anything in you think U.S. GDP way which being. in as you out. compared room this night to GDP that up be played has ends the at look And segments the surprising growth. think about there growth, Has better If headline with year, demand sync whatever do headline about that been XXXX, you growth growth

have Tony is I'll normalization do in continued the and -- So jump part 'XX and U.S. in Canada. we in. of what I think saw

the in to in Canada. and a in in the normalization. quite the actually, in So ago QX. bit U.S. ascribed leisure. leisure, RevPAR really definitely are I that, for a And U.S. of got you've flat Overall example, leisure flat guidance year Year-to-date, to is also roughly year-to-date

of think wanting get to what about coming that As sure they a make COVID to of were of and frankly, anytime, bit. trial that kind anywhere, you think go is their people matter able kind no done. I to And normalizing out

of also was While was transient what to kind you business in filling saw happening. where that a group make slowdown up for

room and overall, look up in X%. actually X% QX, saw in up you the and So Canada, nights year-to-date you ADR U.S. and for overall,

But of think healthy leisure. that forward, demand. see believe whether in a to continue the customers, in it course, it to that's BT you proven We be and going a strong out. to you're cycle our to priority has to business. I demand expect in relationship our that a is would of macroeconomic So see industry going been a our economy, for series continue see with to And we environment regard, continue travel cycle for or strong group,

group year-over-year a hotel to don't of significant sign. of a And a But a Duane, appetite open time in business. planners they that's it's association encouraging really your a portfolio, group the meeting in really encouraging. of of would just all composition question portfolio of our around us strength end lot particularly our anything trend group And corporate and be at our of and mentioned that's been spent continues part meeting expectations, know high quarter-over-quarter, and is it terrific lead surprise. as for I the we the was given for I both surprise. my mean with spend I really our as characterize have I that the our and continued

from next question will Citi. come Our Rose Smedes with

keep next anything we property anything in I had maybe in just kind won't when of base back other wondering kind from companies but reports I to And industry is you kind in and capital of generally looking XXXX, relative similar there we mind think I that? mentioned, return of mind we you expectations hearing to the some is of about? think you guess just just bear which of You the should mentioned should year about just repeat of which prognosticators. half should purchases I'm forecasting the that scenario, know sort 'XX, this year, think, what we're

is our Yes. No, we think -- exactly the was -- which I saying in I same, is company. comments, as a growth our my are philosophy

to are about We the world. around for enterprise share the market investing and in growth take valuable all continuing

provide a that model business to produces need that We are blessed growth. more with we cash than

the excess And investment-grade so shareholders. to to and expect that stay perspective, return leverage to from we range would continue in solidly capital our very

back I smaller market some -- you just again, view sort maybe to sort to pickup Would think there? but of in owned you, activity. portfolio, your mean, hope and a thoughts bring wanted just assets of we of that year next now? of of ask your could that of lease I year? to transaction updated a there's purchases. the is sort mean wondering then more next ground I you some coming I kind And I know and Okay. see mentioned hotel sort it's focus just

is most the makes reality all we're looking the sense. time, the certainly, time at So that what evaluating all and the

as the us about talk Barbados. portfolio as well As W Union elegant Square you've heard the in

the end in on the portfolio -- nearing the properties very performance take be that and to of we part those expect that look advantage renovation are of those what to of would We strong obviously, hotel. of

appetite so sellers, always, as forward, we move buyers as between environment on will the of And take depending that. financing and we the and advantage

always always we're for So searching that.

will with come Dove question next Sachs. Our Lizzie from Goldman

was that give that it of a bit and a just spend, bit little know you the skipped has I space, of intra-quarter, if Tony and consumer. just then beverage forward? expectation could since quarter ancillary mentioned what pulse things a check ever your going kind like curious last you time is on on pullback evolved that. wondering and I'm period of food I how of little and

Thank Yes. you, Lizzie.

strong. lounges. and quite When events time of and you looking to Of look the course, at meetings ancillary spend to possible be continues have events I'll was quarter meetings it almost beverage at talked food globally, consumer you about spend beverage versus a and and in bifurcate outlets every the go a food amount from and we enormous to But that we topic and look since Food an for ago. for beverage angle.

outlets lounges, We as bit not growing we a little as still maybe and materially, but are on seeing growing pullback and quite strong of saw.

we're and though, hotels. revenue would is one When that at you The luxury lounge for luxury our seeing from in I third spending outlets look quarter you, weakness not thing at customers of the tell hotels.

luxury portfolio we this Now if excludes in quarter saw up outlets and spending the ex-China, we X%, of ago. the the we But Greater luxury you look for earlier. a discussed global China was actually portfolio, reasons saw increase our balances at some in same which

pretty continue we'll So us. encouraging for watch but that's it, to

back helpful. residential things, the And side mentioned going and the the fee fees. to headwind you branding the timing renovation of then of That's it. Got

complete? expected As you move about into there? curious of kind XXXX, cadence is the to should of Will that kind normalize? kind broadly of Just renovations we think how be those

that we through obviously impact fee Well, to expect will going Lizzie go on as that you next under are But year. know. Yes, finishing for and it got would be things the looking hotels ones always I meaningfully. and that -- process don't the at guidance budgeting have looking we but up, we've renovation. our at carefully

from with will question next Chad Beynon come Macquarie. Our

bit Tony, business a or more. little you room 'XX for good nights of pacing looks in you pretty convention back terms are ADR. I companies same the in the you was of from elaborate you if actually the and mentioned that standpoint? Are add wondering another hadn't seeing kind fully the industries of just businesses or come that or some group convention growth or renew a seeing could

the for say question, would Thanks Yes. Chad. both. I

schedule. of and perhaps space. think have, into accommodate who some meetings. and partners some seeing -- having I to building the out further pause been problem by is our find have future to but group, on driven to traveling are I mean you're dates are of is And who larger dates that calendar further Particularly seeing a availability and meetings. space if of and the starting of wonderful we this their those to you're companies We And were peer meeting, to a

one your seeing on secondly, North you heard know from began deletions some then product areas. we Great. that in offering City the just America, were competitors those in I of And and Express. they that

new or initial talk So could any the But it's product here demand about for area certainly you good for a in U.S. this build. conversion

next name strong. had start mentioned, think, demand would to can banging applications the in. the couple announce first we deals in so my people franchise I already And signing in months. The is we're think, the couple We're please the you as seeing Yes. I on hope saying, deals. come open We quite We remarks, get door seeing approved, opening we of

strong So opportunity perhaps franchise expected. partners. And from the us exactly what We're group of an of we've to a . we in have I our both would grown portfolio existing gives past. interest strong into mid-scale tap who think franchisees seeing into our entry the not with

Cunningham will come Research. with Melius next from Our Conor question

like any general would kind corporate and sense travel like October. the obviously, seems to overall with It in a noise there lot travel was continue of the election, corporate I calendar lot if there a some from of you thoughts But strip what's of items think grind back noise, positive could it's be and your those But just There's just helpful. spend? simply of up. onetime

RevPAR continue calls, of and back from quarter-over-quarter one above each the by of fact encouraged medium-sized the the corporates big facets mean small- the recovery of the to talked we transient not slow pandemic return levels continued and travel facet the an growth of but encouraging encouraging is we got that recovery. continued to and the most is to already years companies, big since It's corporates. on the been the road the quarters, several And is Yes. a the of work, segment. but it's of I the of grind to as we we've are growth virtue in bad about number steady me, business in in that last see by

now Okay. on what's And then you just contribution thoughts maybe OTA and think or the XXX any mentioned I there? the Bonvoy million the direct members,

Yes.

is quite OTA steady. So

say, quite kind are consistent. digital. are can XX% bookings would XX%, overall that's close still the of, low you to direct really I say, So and And in

continued margin the has consistent. slightly a more been GDS, quite that OT continued consistent, doing has which low could their part, I of XXs but really the higher, is sort . bookings. a at also days So the corporations larger been and in direct the digital, very the from reflection to that otherwise, say place XX% person movement The percent return of of for overall, to as had great also But bookings. XX% of steady phone

you. Thank

closing Capuano back We have I reached for today. remarks. now our the for to allotted call turn will questions time Tony

your you Great. interest Well, again, today. for your questions in Marriott. thank for Thanks

but be of you a week a to forward . interest, look quarter. host whole we a speaking we'll going busy For to next with your of great us, Have for and it's day. appreciate all reasons,

Marriott This Call. Earnings Quarter International does the XXXX Conference conclude Third

line You time, may day. and a your this wonderful at disconnect have