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Marriott International stock rises on Q1 earnings beat

Yahoo Finance Live anchors Julie Hyman and Brad Smith break down the rise in stock for Marriott International following first-quarter earnings.

Video transcript

BRAD SMITH: Another earnings story that we're tracking here this morning-- Marriott out with better-than-expected quarterly results and a boost to its full-year forecast as it benefits from pent-up travel demand. Shares right now as we begin trading are up by about 3%. Well, 2.4%-- we'll round that off too.

It was interesting the number of different rooms that this company is accelerating bringing online, Julie. We've continued to hear this in the story, trying to increase the capacity. And that's something that we got an update on in this most recent quarter as well. The company talking about how they are kind of bringing those rooms online, and that's going to help them service so many of the consumers that have opted for other services, whether that be an Airbnb or whether that be one of the other hotel chains and providers.

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But all of them are looking to add on more capacity here. As I'm just thumbing through my notes, trying to find that exact figure for you-- we'll circle back to it. Let me bring you into the chat here.

JULIE HYMAN: Yeah. I'll bring you some other-- I'll bring you some other figures here. Revenue per available room, RevPAR as they call it in the industry, up 34%. And so that's a positive number for Marriott.

Something else that is interesting about Marriott that I saw pointed out in some of the coverage this morning is the US tends to lead other markets internationally. In other words, the recovery here happening, and then we'll see also recovery happening in other parts of the globe.

I was just looking. Marriott gets about 75% of its revenue here in the US. Its competitor Hilton gets about 79% of its revenue in the US. So Marriott a little more weighted to those international markets and then, therefore at least in theory should benefit as we see that catch-up travel happening in those markets as well.

And obviously, some Americans are traveling to those markets as well. It's not just people traveling within those markets. So that's something to keep in mind too as we look at this whole travel rebound story.

BRAD SMITH: Yeah. And that story amid Marriott continuing to repurchase its own shares, part of the plan that they had rolled out. About $1.1 billion of those shares repurchased, 6.8 million shares, during the first quarter. And coming back to that number that I was referencing earlier, in the number of rooms that they're looking to bring online, the company added about 11,000 rooms globally during the first quarter-- roughly 5,800 rooms in those international markets you were speaking about as well and 2,700 conversion rooms.

The pipeline here that they're trying to get to as well-- the pipeline that they have totals more than 3,050 properties, approximately 502,000 rooms. So a lot of construction, a lot of development, that they are looking to bring online. About 200,000 of those currently in construction right now.

JULIE HYMAN: Yeah. They're really trying to take advantage of that obviously.