Marriott Cuts Q4 Forecast On Weak N. America Demand

By Dave Simpson
Marriott Cuts Q4 Forecast On Weak N. America Demand

US hotel chain Marriott International Inc has cut its fourth-quarter forecast for a key measure of hotel health, blaming uncertainty related to weak demand in North America, its biggest market.

Marriott, which owns the Ritz-Carlton and St. Regis luxury hotel brands, forecast revenue per available room (revPAR) to rise 2% across the world in the fourth quarter. It had earlier forecast growth of 2.5% to 3%.

The Bethesda, Maryland-based company also said it now expects 3% growth in full-year revPAR worldwide, at the low end of its earlier forecast of a rise of 3% to 4%.

Hilton Slowdown

Smaller rival Hilton Worldwide Holdings Inc last month indicated a slowdown in its business by cutting the top end of its full-year revPAR growth target against the backdrop of growing international trade worries.

Additionally, there are concerns that the hotel industry, which has gained from a strong economy and robust travel demand, may be set to decelerate.


Income, Revenue And Room Rate

Marriott's net income dropped to $483 million in the quarter ended September 30 from $485 million.

The company's revenue fell about 1% to $5.05 billion, missing estimates of $5.37 billion.

While fewer people booked Marriott rooms across the world in the quarter, the average room rate rose 2.2%.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.