Marriott International will present its three-year financial model through 2025 at its meeting with institutional investors and security analysts in Miami, Florida.

The leading hospitality company is expected to reiterate the 2023 outlook it provided in August and introduce two-year compounded annual growth rates (CAGRs) from 2023 to 2025 for certain key performance metrics.

It will announce plans to add 230,000 to 270,000 net rooms over three years, which would represent a three-year CAGR for net rooms of 5.0-5.5%.

Based on the assumptions of the three-year model, Marriott could see its adjusted EBITDA increase by 18-21% year-over-year in 2023 and at a 7-10% two-year CAGR to reach $5.2 to $5.7 billion in 2025. Additionally, gross fee revenues could grow 16-18% year-over-year in 2023 and at a 6.5-9.5% two-year CAGR to reach $5.4 to $5.8 billion in 2025.

During the meeting, the company will discuss its plans for growing the distribution of its 30 brands. One key area for growth is the affordable midscale segment. Within the last year, it has grown its portfolio in this market with City Express for the Caribbean and Latin America region, StudioRes in the US and Canada, and most recently, Four Points Express by Sheraton in EMEA.

As regards the luxury and leisure segments, Marriott has 225 luxury properties in its pipeline, of which many are multi-unit conversions. Furthermore, The Ritz-Carlton Yacht Collection and other adjacencies are also expected to enhance the company’s fee growth.

With global travel poised for continued robust growth, our strategy is to deliver the best brands and experiences for consumers, to attract and retain the most loyal guests and to be in more places around the world. These are our three paths to win. As consumers continue to prioritise travel and experiences, we are focussed on transforming our technology platform while leveraging our powerful revenue engines and our leading Marriott Bonvoy loyalty programme to connect people through the power of travel. With our extraordinary associates around the world, I am incredibly optimistic about Marriott’s future.

Anthony Capuano, President & CEO of Marriott International

Our asset-light and resilient business model drives powerful results. We expect to produce significant free cash flow and earnings growth over the next few years and create meaningful value for our shareholders.

Leeny Oberg, Chief Financial Officer and Executive Vice-President, Development at Marriott International