...Despite the anticipated slowing macroeconomic environment, we expect Marriott International Inc.'s fee-based, asset-light, high-margin business to generate significant cash flow this year. Marriott's reported comparable systemwide constant dollar revenue per available room (RevPAR) in fourth quarter 2022 was 4.6% higher than in fourth quarter 2019 due to its strong average daily rate (ADR) and continued systemwide occupancy recovery. We believe the company's guidance for systemwide RevPAR to grow 6%-11% in 2023 compared with 2022 is plausible, with international markets expanding faster than the U.S. and Canada. The company also anticipates system net rooms growth of approximately 5.5%, which includes the addition of acquired City Express franchise rooms. We assume Marriott's S&P Global Ratings-adjusted net debt to EBITDA will be 3.0x-3.5x in 2023, reflecting sustained leisure demand, strong ADRs, and a continued recovery in business transient and group bookings, as well as a recovery in...
