Marriott International has reported a strong set of financial results for the second quarter of the year.
The US hotel company generated net profits of US$179 million for the three months ending 30 June 2013, 25% more than the same period last year. Revenues climbed 18% to US$3.26 billion, while global comparable revPAR (revenue per available room) increased 4.7%.
“We were pleased with our second quarter results and believe they reflect the core strength of our business model,” said Arne Sorenson, president & CEO of Marriott International. “Both business and leisure transient demand were strong in the quarter, more than offsetting weak short-term group business. As occupancy rates reach 2007 peak levels for many brands, room rates are moving higher, improving hotel profitability and incentive fees.”
The rise in global revPAR was driven by a 3.2% rise in average daily rates (ADR), to US$144.33, and a 1.1% increase in occupancy, to 75.6%. The Middle East and Africa saw the strongest growth in terms of revPAR (+5.7%), but in actual terms this region remains considerably lower than other global markets. RevPAR at hotels in Asia Pacific climbed 2.5%, while Europe increased 1.2% and North America rose 5.2%.
At the end of June 2013, Marriott International operated a portfolio of 3,847 hotels, 99 more than the same time last year, while its inventory rose by just over 20,000 rooms to 666,132.
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