Shares of Marriott International Inc. MAR surged 2.3% in premarket trading Tuesday after the hotel operator reported first-quarter results that rose well above expectations and raised its full-year outlook, amid “meaningful gains” in both occupancy and average daily rates. Net income doubled to $757 million, or $2.43 a share, from $377 million, or $1.14 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.09 beat the FactSet consensus of $1.85. Revenue grew 33.7% to $5.62 billion, above the FactSet consensus of $5.45 billion. Revenue per available room (RevPAR) increased 25.6% to $119.74 to beat expectations of $117.0, as occupancy rose 8.2 percentage points to 65.9% and the average daily rate increased 10.1% to $181.61. “While the global economic picture is uncertain, demand remains strong, and we are not seeing signs of a slowdown,” said Chief Executive Officer Anthony Capuano. For 2023, the company raised its guidance ranges for adjusted EPS to $7.97 to $8.42 from $7.23 to $7.91 and for RevPAR growth to 10% to 13% from 6% to 11%. The stock has climbed 14.3% year to date through Monday while the S&P 500 SPX has gained 8.6%.
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