Marriott International is forecasting continued growth of a key revenue figure this year, but expects the pace of growth to cool off as the travel recovery enters a new phase.
The Bethesda, Maryland, hotel operator reported a fourth-quarter profit of $848 million, or $2.87 a share, compared with $673 million, or $2.12 a share, in the same period last year.
Adjusted earnings were $3.57 a share. Analysts surveyed by FactSet expected $2.12 a share.
Revenue rose about 3% to $6.1 billion. Analysts expected $6.2 billion.
Global revenue per available room–a key industry figure used to gauge the health of a portfolio–rose 7.2% in the quarter, including 3.3% in the U.S. and Canada.
For 2024, Marriott is targeting adjusted earnings of $9.18 a share to $9.52 a share, below the $9.68 a share that analysts expected. The company expects RevPAR for the year to grow 3% to 5%, down from 15% growth in 2023.
Chief Executive Tony Capuano said demand for leisure travel in the U.S. and Canada continued to rise in the fourth quarter. Business-travel revenue rose 3% in the quarter while the return of big group events boosted group revenue by 7%.