Marriott International, Inc. (NASDAQ:MAR) Q3 2019 Earnings Conference Call Transcript

Nov 05, 2019 • 11:00 am ET

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Marriott International, Inc. (NASDAQ:MAR) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by and welcome to Marriott International's Third Quarter 2019 Earnings Conference Call. [Operator Instructions] Thank you. I will now turn the call over to Arne Sorenson, President and Chief Executive Officer. Please go ahead, sir.

Executive
Arne M. Sorenson

Good morning, everyone. Welcome to our Third Quarter 2019 Earnings Conference Call. Joining me today are Leeny Oberg, Executive Vice President and Chief Financial Officer; Laura Paugh, Senior Vice President, Investor Relations; and Betsy Dahm, Senior Director, Investor Relations.

I should note that many of our comments today are not historical facts and are considered forward-looking statements under Federal Securities laws. These statements are subject to numerous risks and uncertainties as described in our SEC filings, which could cause future results to differ materially from those expressed in or implied by our comments. Forward-looking statements in the press release that we issued last night, along with our comments today, are effective only today November 5, 2019, and will not be updated as actual events unfold. You can find our earnings release and reconciliations of all non-GAAP financial measures referred to in our remarks at www.marriott.com/investor.

So let's get started. We were pleased with our results in the third quarter. Our global system-wide RevPAR rose 1.5%, consistent with our guidance. Our global RevPAR index increased 210 basis points in the quarter with strength in the US, Asia Pacific and the Caribbean and Latin America. In the US alone, RevPAR index increased nearly 200 basis points in the quarter with US transient index up 250 basis points.

Marriott Bonvoy is on a roll. Global room revenue for Marriott Bonvoy members is up 12% year to-date. Over the last nine months, members contributed 50% of system-wide room nights, a 320 basis point increase year-over-year. In the US alone, members represented 58% of booked room nights in the nine months. Year-to-date, loyalty point redemptions are up over 20%, driving better results at resorts and leisure destinations around the world. Social media feedback about the program has become decidedly favorable. In a recent survey of Bonvoy members by an eight-to-one margin, respondents said they prefer the new Marriott Bonvoy loyalty program over either Marriott Rewards or SPG. Over the last nine months, Marriott Bonvoy membership increased by 12 million members to reach 137 million members, with nearly 40% of that increase coming from China, including the meaningful contribution from our Alibaba joint venture.

Earlier this year we launched homes and villages by Marriott International, our home rental business, with a growing number of premium homes and villas. Today, we offer 5,000 homes in 190 markets across the US, Europe and the Caribbean and Latin America. In the third quarter, over 95% of our home rentals were booked by Marriott Bonvoy members and nearly a 30% of the home rentals were paid for with point redemptions.

In another move popular with Bonvoy members, we recently announced our entry into the all-inclusive hotel business after signing new management agreements for five new-build all-inclusive resorts located in