Subscribe to Pro or Enterprise plans to unlock this feature.
Become a smarter investor today.
Become a smarter investor today.
This statistic highlights Marriott International’s Revenue by Segment, split across Cost reimbursement revenue, Base management fees, Franchise fees, Incentive management fees, and Owned, leased and other revenue, reported on a quarterly basis from 2016 onwards.
Marriott International’s total revenue increased from $2302 million in Q3 2020 to $3607 million in Q3 2021, which was a good increase of around 36.17% on a year-on-year basis. When compared on a quarterly basis, the revenue witnessed an increase from $3167 million in Q2 2021 to $3607 million in Q3 2021, making an increment of 13.9% from the previous quarter.
Marriott International’s total revenue can further bifurcated into different segments as follows:
|Segment||Q3 2020||Q2 2021||Q3 2021||Contribution in Q3 2021|
|Cost reimbursement revenue||$1,789||$2,338||$2,950||82%|
|Base management fees||$87||$156||$190||5%|
|Incentive management fees||$31||$55||$53.00||1%|
|Owned, leased, and other revenue||$116||$187||$241||6.68%|
(All figures in millions, except percentages)
Cost reimbursement revenue
The company is entitled to reimbursement for certain costs they incur on behalf of the managed, franchised, and licensed properties under their management and franchise agreements, with no additional mark-up. These expenses generally consist of payroll and related expenses at managed properties. They are entitled to payment in the period in which they incur the reimbursable costs, which are recorded in Income Statements under the caption “Cost reimbursement revenue.”
The Cost reimbursement revenue has increased significantly from $1789 million in Q3 2020 to $2950 million in Q3 2021, making an increment of 39.35% yearly. On a quarterly basis, the revenue witnessed a rise of 26.17%, as compared to $2338 million in Q2 2021. This segment contributed the highest revenue of around 81.7%, amounting to $2950 million in Q3 2021.
Base management fees
The company has performance duties to provide hotel management services to its managed hotels, as well as a license to intellectual property for the use of their brand names. They are normally entitled to base fees, which is a percentage of hotel revenues. They track basic management costs on a monthly basis as they become due during the course of the agreement.
The revenue from Base management fees has increased from $87 million in Q3 2020 to $190 million in Q3 2021, making an increment of 118.4% yearly. On a quarterly basis, the revenue increased by 21.8%, as compared to $156 million in Q2 2021. This segment contributes 5.26% to the total revenue in Q3 2021.
The company has a performance responsibility to provide franchisees and operators with a license to their intellectual property for the use of certain brand names in their franchised hotels. They are usually entitled to initial application costs and subsequent royalty payments as remuneration for such services. Initial application and relicensing costs are one-time payments made when a franchise application or renewal is submitted, and they are recognized on a straight-line basis over the length of the franchise agreement.
The revenue from Franchise fees increased from $279 million in Q3 2020 to $533 million in Q3 2021, making a rise of 91% yearly. On a quarterly basis, the revenue rose by 23.66%, as compared to $431 million in Q2 2021. The company earned its second-highest revenue from Franchise fees which accounted for 14.77% of the total revenue equal to $533 million.
Incentive management fees
Incentives fees are often based on a measure of hotel profitability, as compensation for their services. They recognize incentive management fees on a monthly basis over the length of the agreement based on the financial success of each property.
The revenue from Incentive management fees has increased from $31 million in Q3 2020 to $53 million in Q3 2021, making a rise of 70.9% yearly. On a quarterly the revenue witnessed a decline of 3.63%, as compared to $55 million. This segment contributes 1.46% to the total revenue in Q3 2021.
Owned, leased, and other revenue
The revenue from owned, leased, and other increased from $116 million in Q3 2020 to $241 million in Q3 2021, making a rise of 107.7% yearly. on a quarterly basis, the revenue witnessed a rise of 28.87%, as compared to $187 million in Q2 2021. This segment contributes 6.68% to the total revenue in Q3 2021.
Marriott International, Inc. is a global corporation headquartered in the United States that owns, operates, franchises, and licenses accommodation facilities such as hotels, residences, and timeshares. The company’s headquarters are in Bethesda, Maryland. Marriott is one of the largest hotel chains in terms of available rooms globally. It includes 30 brands and 7,642 properties in 131 countries and territories with 1,423,044 rooms.
Did you like Marriott International’s Revenue by Segment statistic?
Access more such KPI data points and segment financials on thousands of US stocks, with Business Quant.
You can get started here.
Always know what you’ll pay. No hidden costs or surprises.
* Billed annually, local taxes extra.
* Local taxes extra.