- Marriott’s global RevPAR increased by 34.3% to $116.45 in the first quarter of 2023 compared to the same period in 2022. RevPAR was up 25.6% in the U.S. and Canada year over year and up 63.1% in international markets, according to the company’s first-quarter earnings report.
- Also in the first quarter, Marriott added approximately 11,000 rooms globally, including roughly 5,800 rooms in international markets and more than 2,700 conversion rooms.
- The hotel company will further grow its portfolio this year by expanding into the midscale segment, a market it has not previously competed in but is experiencing “rapidly growing” demand, Marriott President and CEO Anthony Capuano said in an earnings call with analysts.
Marriott attributed strong first-quarter results to heightened traveler demand across all segments, including the midscale market.
“Our first-quarter results reflected robust demand growth around the world with all regions and all hotel tiers posting solid performance,” Leeny Oberg, chief financial officer and executive vice president of development at Marriott International, said in the company’s first-quarter earnings call.
Marriott's reported operating income totaled $951 million in the first quarter of 2023, compared to last year’s first quarter operating income of $558 million. Adjusted EBITDA totaled $1.1 million in the first quarter, compared to last year’s $759 million. U.S. and Canada occupancy reached 66%, up eight percentage points, while ADR rose 10% versus the same time last year.
Marriott also announced its entry into the midscale segment with the acquisition of the City Express brand portfolio from Hoteles City Express. The portfolio comprises approximately 17,000 rooms across 150 urban, suburban and extended stay properties in Mexico, Costa Rica, Colombia and Chile.
“The City Express brand acquisition is an important first step as we enter this attractive segment, allowing us to provide a wider range of choices to our guests, as well as more growth opportunities for our owners and franchisees,” Oberg said in Marriott’s announcement of the deal, which makes City Express Marriott’s 31st brand.
Marriott is “exploring the applicability of the City Express platform and its growth potential in other markets around the world,” Capuano said in the earnings call.
He also teased a midscale product coming to the U.S.
“In the U.S., we're just a few weeks away from announcing a simple, modern, streamlined, new-build, extended stay product that has very basic services and amenities for those looking for longer stays at our midscale price point.”