Marriott Records Lower Than Expected Quarterly Profit And Revenue
Marriott has recorded lower than expected quarterly profit and revenue because of fewer bookings in its main US market, but the business showed a sharp rebound in China, which is emerging from the COVID-19 pandemic at a faster pace.
It is a long road to recovery for Marriott, analysts have said, as the hotel operator relies heavily on business travel, which remains weak due to border curbs in many countries.
Marriott, which gets approximately three quarters of its revenue from the US and Canada, said that its revenue per available room (RevPAR), which is a key measure for a hotel's top line performance, fell by 46.3% in the region, sending its shares down as much as 3.8%.
Greater China was the only market that showed positive occupancy growth as RevPAR surged by nearly 77%, while it plunged by 80% in Europe, making the continent the worst performing region due to the fresh restrictions that have been imposed.
"While recovery trajectories vary from region to region, the resiliency of demand has been most keenly demonstrated in mainland China, where occupancy is near the pre-pandemic level," Marriott CEO Tony Capuano said.
"Given rising COVID cases and strict restrictions in many countries [in Europe], 25% of the region's hotels are currently closed," he told analysts.
Percentage Of Marriott Hotels Open
Marriott, which owns the JW Marriott and Ritz-Carlton brands, said that more than 95% of its hotels are open globally.
Adjusted Profit And Total Revenue Figures
The hotel operator's adjusted profit fell by 33% to $296 million in the first quarter, below market expectation of $305.6 million, according to IBES data from Refinitiv.
Total revenue halved to $2.32 billion and missed Wall Street estimate of $2.36 billion.