What drove Marriott's net profit growth in Q2 2023?

Marriott's net profit growth in Q2 2023 was driven by several key factors: 1. **Revenue Growth**: Marriott reported a 34% year-on-year increase in sales for Q1 FY23, reaching $5.62 billion, which surpassed market expectations. This substantial revenue growth is a direct result of the company's strategic expansions and strong performance across various market segments. 2. **RevPAR Increase**: The company's systemwide constant dollar RevPAR (Revenue per Available Room) saw significant improvements, with a 34.5% increase globally, 25.6% in the U.S. and Canada, and a remarkable 63.1% surge in international markets compared to Q1 FY22. This indicates a robust demand for hotel accommodations, contributing to the net profit growth. 3. **Operating Margin Expansion**: Marriott's operating margin expanded from 13% to 17% year-over-year, with an operating income surge of 70.4% to $951 million for the quarter. This expansion reflects improved operational efficiency and profitability. 4. **Adjusted EBITDA Growth**: The company's Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q1 FY23 was $1.098 billion, up from $759 million in the same period the previous year. This indicates strong cash flow generation and financial performance. 5. **Share Buybacks and Dividend Returns**: Marriott repurchased 6.8 million shares of common stock for $1.1 billion in Q1, reflecting the company's commitment to returning value to shareholders. This strategic move can enhance shareholder equity and potentially boost earnings per share. In summary, Marriott's net profit growth in Q2 2023 is primarily driven by strong revenue growth, increased RevPAR, improved operating margins, enhanced cash flow generation, and effective capital allocation strategies such as share buybacks. These factors combined have contributed to the company's robust financial performance and growth.