Marriott witnesses summer slowdown

TD Editor

Feeling the heat this summer, hotel chain Marriott has registered a drop of 65% in its net income for the second quarter of 2019 at USD 232 million compared to USD 667 million for the same period last year. Meanwhile, the second quarter adjusted net income totalled USD 525 million, a 15% decrease from prior year adjusted results.

According to a release, the company added more than 16,000 rooms during the second quarter, including nearly 3,500 rooms converted from competitor brands and approximately 7,500 rooms in international markets.

At quarter-end, Marriott’s worldwide development pipeline totaled roughly 2,900 hotels and more than 487,000 rooms, including approximately 40,000 rooms approved, but not yet subject to signed contracts. Roughly 213,000 pipeline rooms were under construction at the end of the second quarter, the release said.

“Development pipeline increased.”

Arne M. Sorenson, president and chief executive officer of Marriott International said: “Worldwide revenue per available room (RevPAR) increased 1.2% in the second quarter with higher leisure transient demand in Europe, the Caribbean and South America, and the Asia Pacific regions. Showing great momentum, our worldwide RevPAR index increased 110 basis points in the quarter, the strongest single quarter performance since our acquisition of Starwood in late 2016.”

“Our owners and franchisees continue to sign new hotel deals at a rapid pace. Our development pipeline increased 3% in the second quarter, reaching a record 487,000 rooms, including roughly 213,000 rooms under construction. Today, our pipeline includes five new all-inclusive resorts to be built over the next several years, which will be part of our newly-launched all-inclusive platform,” he added.
You might also like

Comments are closed.

Subscribe to our newsletter
Sign up here to get the latest news, updates and special offers delivered directly to your inbox.
You can unsubscribe at any time