Marriott International, Inc. (NASDAQ:MAR) Q1 2024 Earnings Call Transcript

All of the rest are in that same ballpark. Clearly, as there appears — starts to appear to be a bit more of a stable view about where interest rates are going, I think, we do expect that that will help free up the transaction market a bit. I think it’s a little too soon to predict the timing of it, but we are, of course, hopeful that as we get into the back half of the year, you see — start to see a bit more clarity around exactly what the next couple of years are looking like. Clearly, there’s a view that interest rates are likely to stay a bit higher, a bit longer. And from that perspective, stability of outlook is always very helpful when you’re looking at asset sales, as well as the markets that those assets are in.

Operator: Thank you. Our last question will come from Duane Pfennigwerth with Evercore ISI. Please go ahead.

Duane Pfennigwerth: Hey, good morning. Saving the best for last. I like it. Just wanted to follow-up on the SMB commentary at the lower-end chain scales. I know it’s a much smaller percentage of your mix, but can we think about maybe the drivers or any industries that may stick out if we want to, call it, drive to business travel, maybe less goods transportation, maybe less disaster relief in some markets? I know it’s harder to analyze these trends because in many cases, they book direct, but wonder if you had any industry commentary on the lower-end SMB trends.

Tony Capuano: Yeah, I think it’s a little hard to look at maybe individual industries. Probably the one demand source we’re keeping a close eye on is government-related business, which, in that tier, is quite relevant.

Operator: Thank you. That concludes our question-and-answer session. I will now turn the call back to Tony Capuano for closing remarks.

Tony Capuano: Great. Well, thank you again for your participation and interest. We all hope to see you on the road soon. Safe travels.

Operator: This does conclude the Marriott International Q1 2024 earnings conference call. You may now disconnect your line, and have a wonderful day.