Marriott International

Stand by, we're about to begin. Good day, everyone, and welcome to today's Marriott International first quarter 2025 earnings call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. You may register to ask a question at any time by pressing the star and one on your telephone keypad. You may withdraw yourself from the queue by pressing star and two. Please note this call may be recorded, and I will be standing by if you need any assistance. It is now my pleasure to turn the conference over to Jackie McConaghy, Senior Vice President of Investor Relations. Please go ahead, ma'am.

Thank you. Good morning, everyone, and welcome to Myriad's first quarter 2025 earnings call. On the call with me today is Tony Capuano, the President and Chief Executive Officer, Lainey Oberg, our Chief Financial Officer and Executive Vice President, Developments, and Pilar Fernandez, Senior Director of Investor Relations. Before we begin, I would like to remind everyone 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 FTC filings, which could cause future results to differ materially from those expressed in or implied by your comments. Unless otherwise stated, our rev par occupancy, average daily rate, and property level revenues comments reflect system-wide constant currency results for comparable hotels, and all changes refer to year-over-year changes for the comparable period. Statements in our comments and the press release we issued earlier today are effective only today and will not be updated if actual events unfold. you can find our earnings release and reconciliations of all non-GAAP financial vendors referred to in our remarks today on our Investor Relations website. And now I will turn the call over to Tony.

Thanks, Jackie, and good morning, everyone. We reported strong first quarter results this morning, despite an uncertain macroeconomic environment, and each of our regions outperformed our expectations. Development activity remained robust, with record first quarter global signings, and we grew net rooms 4.6% over the trailing 12 months through March. First quarter global RIPPAR rose 4.1%, just above the top end of our 3% to 4% guidance range, with ADR increasing 3% and occupancy rising 1%. RIPPAR in the U.S. and Canada region rose over 3%, with our luxury full-service hotels meaningfully outperforming select service properties, thanks to solid demand across both group and transient guests. International REVPAR was up nearly 6%, led by growth in APEC. APEC's first quarter REVPAR rose 11%, driven by strong ADR growth and higher demand from international guests. Growth was broad-based across the region, with REDPAR increases of 16% and 17% respectively in its two largest markets, India and Japan. REDPAR in Cali rose 7%, led by strong luxury and resort results. In India, REDPAR rose 6% on solid increases in ADR as well as occupancy, with strong transient demand from both in-country and cross-border guests. First quarter red part in greater China declined 2% due to the weaker macro environment and tough year-over-year comparisons, though it did come in ahead of our prior expectation, primarily as a result of strong domestic demand. This quarter, group was again a standout customer segment. Group red part rose 8%, both globally and in the U.S. First quarter business transient and leisure transient each grew 2% globally and 1% in the U.S., with growth driven by ADR increases. While REVPAR trends internationally were strong throughout the quarter, our U.S. and Canada regions saw softer growth in March, particularly in the select service segment. We operate a cyclical business, and there is no doubt that today we are in a period of heightened macroeconomic uncertainty. especially here in the U.S., with many concerned about slowing economic activity and lower consumer confidence. Throughout our long history, we've shown our agility and resilience, while also continuing to deliver solid system growth throughout economic cycles. As Lene will discuss in greater detail, against this macro backdrop, we are lowering our guidance for full-year reservoir growth by 50 basis points, due to a more cautious outlook in our U.S. and Canada region. In whatever environment we find ourselves, we remain focused on driving returns in our hotels and executing our proven long-term growth strategy. You can see in our first quarter G&A results the positive benefits from the work we did last year to enhance our efficiency and productivity across the company. While we are marginally lowering our 2025 REVPAR guidance range, we still expect strong Nehru's growth for the year and the future. Owners continue to show preference for our brands. Our global signings have been excellent so far this year, despite uncertainty around construction costs and the challenging financing environment in the U.S. and Europe. Our first quarter signings were up 35% year over year. Our pipeline totaled a record of over 587,000 rooms at the end of the quarter, with 42% of pipeline rooms under construction. Conversions, including multi-unit opportunities, remain a significant driver of growth, representing about one-third of both signings and openings in the quarter. I'm also very excited about our recent CitizenM announcement and the expected addition of this unique lifestyle portfolio to our system later this year. This transaction builds on our commitment to expand our industry-leading global portfolio to provide even more exciting and innovative options for guests and hotel owners. Comprised of over 8,500 open rooms and 600 pipeline rooms, CitizenM is a differentiated brand with unique characteristics that we believe will be a great complement to our existing lifestyle's select brands, AC, Moxie, and Aloha. CitizenM is known for its tech-savvy in-hotel experience, highly efficient use of space, and focus on art and design, and we see a large runway of growth for the brand in markets around the world. Our powerful industry-leading Marriott Bonvoy loyalty program had nearly 237 million members at the end of March. Marriott Bonvoy member penetration rose again, reaching a record of 68% of room nights global. Honoring our members' appetites for experiences, we recently launched our newest global ad campaign titled, You Are the Greatest Souvenir, which showcases our wide range of offerings and celebrates travel's power in creating lasting memories. We're also continuing to make great progress on the multi-year digital and technology transformation of our reservations, property management, and loyalty system. We expect this new technology platform to further strengthen our efficient operating model, enhance Marriott Bonvoy, and elevate both the associate and customer digital experience. It is also expected to unlock new revenue opportunities through enhanced functionality and options such as booking-specific room types and amenities in advance and seamless shopping across lodging, F&B, spa, and other non-lodging programs. As always, I've spent much of my time so far this year traveling around the world. I have visited properties and spent time with associates in every one of our regions, and I've seen firsthand their ability to adapt to changes in their markets and their dedication to delivering outstanding experiences to our guests. I want to express my gratitude to all of our global associates for their hard work and dedication. And now I'll turn the call over to Lene for more details on our results. Lene?