Hotel giant Marriott International ($MAR) filed its first-quarter 2023 earnings report this week, which allows us to address two of our favorite issues on this blog in one post: the recovery of pandemic-sensitive industries, and non-GAAP disclosures. Let’s take a look at what Marriott had to say!
First let’s review the traditional GAAP stuff. Marriott’s Q1 report is quite rosy: revenues up 33.7 percent from the year-earlier period to $5.61 billion, operating income up 70.4 percent to $904 million, and net income essentially doubling to $757 million. See Figure 1, below; it looks nice and healthy.
The devil, however, is in the details — and the details tend to be non-GAAP. So we also looked at Marriott’s earnings release, which included adjusted revenue, operating income, and net income. Using our “Show Tag History” feature that we’ve mentioned previously, we downloaded the history for those three non-GAAP measures for the last 12 quarters. See Figure 2, below.
You can see the long, slowly accelerating slog for Marriott since the depths of the pandemic in early 2022. As to what those specific adjustments are, you can always investigate that via our Footnotes Query tool. In the earnings release you’ll always find a reconciliation from the adjusted, non-GAAP metric back to its closest comparable GAAP metric.
But wait, there’s more!
Since we’re talking about the hotel sector, another critical disclosure is “RevPAR.” That’s revenue per available room (even if the room is unoccupied), and it’s calculated by total room revenue into total rooms available.
Marriott also discloses RevPAR, occupancy rate, and average daily rate for each of its many hotel brands. See Figure 3, below.
Again, using our Show Tag History feature, we could download RevPAR for each hotel brand. We did that for the Ritz-Carlton, going all the way back to the start of 2019. See Figure 4, below.
As you can see, RevPAR is now $336, above pre-pandemic levels. RevPAR in Q2-2020, by the way, was only $30.81 — which sounds like someone just taking a drink from the mini-bar without even renting a room at all.
Anyway, all this information (and much more) is buried in the earnings reports. All you need to know is how to find it, compare it to others, and drop it into a chart. Marriott’s report hit our database at 12:40 p.m. on Tuesday, and our marketing team had all these charts done within 20 minutes. Imagine what an actual financial analyst is able to do!