Marriott faces potential losses exceeding recorded amounts due to ongoing litigation related to the 2018 Starwood data security incident, including multidistrict litigation (MDL) proceedings and regulatory investigations. Uncertainties regarding class certification, damages, and legal outcomes pose significant risks. Settled and ongoing claims regarding copyrighted music use also present potential future losses. The company is also exposed to market risk, though the extent of this risk is not materially different from the prior period.
Financial Upside
Marriott anticipates $80-$90 million in annual general and administrative cost reductions starting in 2025 from a comprehensive efficiency initiative. Strong global RevPAR growth is expected, driven by demand in most regions, particularly EMEA and APEC. Significant room additions, including a licensing agreement with MGM Resorts, are expected to boost system growth. The company is also issuing senior notes and utilizing its credit facility to fund operations and potential acquisitions.
