Marriott International achieved a double-digit rise in profits in the second quarter of 2012.
The US-based hotel company posted net profits of US$143 million in the April-Jun e quarter – 13% more than Q2 2011. Marriott’s revenues totaled US$2.77bn, down 7% year-on-year, but the company managed to reduce its expenditure by 8% to US$2.55bn.
The Asia Pacific region experienced the most significant growth, in terms of revenue per available room (revPAR), climbing 11% year-on-year to US$102. In real terms it remains lower than the global average of US$125.
“In the second quarter, our business performed well in most markets around the world,” said Arne Sorenson, Marriott’s President & CEO. “In North America, strengthening group business, more travel by our special corporate customers, especially in the technology and consulting industries, and the impact of modest supply growth, drove our occupancy and room rates higher. In Europe, more travellers from the United States, Russia and China helped move revPAR higher. In the Asia Pacific region, solid revPAR growth resulted from strong economic growth and maturing new hotels.”
Marriott’s development pipeline now totals 115,000 rooms, excluding the pending acquisition of US-based Gaylord Hotels. The company added however, that construction delays in the Asia and the Middle East have pushed some openings into 2013.
“We now expect to open 20,000 to 25,000 rooms worldwide in 2012, not including Gaylord branded rooms, and 90,000 to 105,000 rooms during the three-year period from 2012 to 2014,” Sorenson said.
