Marriott International, Inc. reported on Friday (Nov. 6) as part of its Q3 earnings that revenue per available room (RevPAR) fell 65.9 percent globally, 65.4 percent in North America and 67.4 percent beyond North America, in contrast to Q3 2019.
President and CEO Arne M. Sorenson said in a call with analysts that the hotel chain’s global occupancy reached a bit over 37 percent, marking an improvement of 25 percentage points from April’s 12 percent. He noted that the recovery trajectories vary greatly by area.
“The recovery in greater China, especially in mainland China, has been the strongest. Results have improved meaningfully since February, demonstrating the resiliency of travel when the virus is perceived to be firmly under control,” Sorenson said.
The executive noted that occupancy in mainland China reached 67 percent in September, which was slightly ahead of occupancy in September 2019, and an extraordinary improvement from 9 percent occupancy in February.
Sorenson noted that the company has been very pleased with the progress it is making throughout many important operational and finance areas. One of the largest operational adjustments, he said, has been its heightened cleanliness standards.
“Throughout the pandemic, we have adjusted our protocols to elevate our cleanliness guidelines and tools, and every property across our portfolio is now required to complete a monthly Commitment to Clean certification,” he said.
Hotel Development
Marriott added over 19,000 rooms globally in Q3, including approximately 1,400 rooms changed over from rival brands and roughly 7,600 rooms in international markets. Net rooms expanded by 3.8 percent from the year-ago quarter.
The hotel company’s global development pipelines totaled almost 2,900 hotels and over 496,000 rooms, with the inclusion of approximately 25,000 rooms approved, but not yet subject to signed contracts, at quarter end.
As of the conclusion of Q3, roughly 228,000 rooms in the pipeline were under construction.
Financial Results
The company’s net liquidity totaled roughly $5.1 billion, representing approximately $1.5 billion in available cash balances, $3.6 billion on borrowing capacity not used under its revolving credit facility and under $30 million of outstanding commercial paper at the conclusion of Q3.
As for its overall results, Marriott reported adjusted diluted earnings per share (EPS) of 6 cents on $2.254 billion in revenue. The results exceeded analyst expectations of a loss per share of 8 cents on $2.23 billion in revenues.
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