Marriott revenue below expectations
US-based Marriott International Inc (NASDAQ:MAR). the operator of the world's largest hotel chain, returned to profitability in the second quarter of 2021 amid renewed demand for summer travel.
According to a Marriott press release, the chain reported net profit of $422 million, or $1.28 per share, in April-June, compared with a net loss of $234 million, or $0.72 per share, in the same period a year earlier.
Earnings excluding non-recurring factors were $0.79 per share versus a loss of $0.57 per share a year earlier, beating the consensus forecast of $0.47 per share by experts polled by FactSet.
Marriott's quarterly revenue more than doubled to $3.15 billion from $1.46 billion, but came in below the average market forecast of $3.23 billion.
Revenue per available room (RevPAR) jumped 262.6% year-on-year in April-June, down 43.8% from the same period in 2019. In China, RevPAR in the second quarter was almost the same as in 2019, the company said.
Hotel occupancy rate last quarter was 50.8%, 32.8 percentage points higher than last year and 24.1 percentage points lower than in the second quarter of 2019.
Marriott shares are down 2.8 per cent in trading on Tuesday. The company's capitalisation has risen 6.7 per cent since the start of the year and now stands at around $47.2bn.
Marriott International operates more than 7,000 hotels in 131 countries under 30 brands. The company's most famous hotel chains include Ritz Carlton, Courtyard, Residence Inn, Marriott, St. Regis, Le Meridien, Sheraton and Four Points.
