Marriott posts bigger-than-expected loss as virus hits bookings

This photo taken on January 11, 2018 shows a woman walking past Marriott signage in Hangzhou in China’s Zhejiang province.

– | AFP | Getty Images

U.S. hotel operator Marriott International posted a bigger-than-expected quarterly loss on Monday, as the coronavirus pandemic curbed global travel and led to a plunge in room bookings.

Marriott’s shares, down 40.3% this year, fell 3.8% in premarket trading as the company also reported an 84.4% plunge in revenue per available room (RevPAR) – a key performance measure for the hotel industry.

However, Marriott said it now expects a gradual rise in occupancy rates across the world although it may be a few years before it sees a return to pre-COVID period demand levels, echoing smaller rival Hilton’s comments from last week.

“While our business continues to be profoundly impacted by COVID-19, we are seeing steady signs of demand returning”, Marriott Chief Executive Officer Arne Sorenson said in a statement.

For the full year, the company currently estimates rooms could grow by 2 to 3 percent.

The company’s loss attributable to stockholders was $234 million, or 72 cents per share, in the second quarter ended June 30, compared with net income of $232 million, or 69 cents per share, a year earlier.

Marriott last reported a quarterly loss in the third quarter of 2011.

Total revenue plunged 72.4% to $1.46 billion.

On an adjusted basis, Marriott reported a loss of $0.64 per share.

Analysts on average had estimated revenue of $1.68 billion and loss of $0.42 per share for the quarter, according to Refinitiv IBES data.

Products You May Like

Articles You May Like

California and Oregon 2020 wildfires in maps, graphics and images
Sacramento Kings’ Harrison Barnes talks coronavirus, social justice and his new role at First National Bank
Journalists Are Still Getting Biden’s Tax Plan — And 401(k) Taxation — Wrong
Netflix Cheer star charged over child sex images
Shares of furniture retailer Herman Miller soar 35% as home office sales surge

Leave a Reply

Your email address will not be published. Required fields are marked *