Marriott profit beats estimates as travel recovery accelerates
Aug 3 (Reuters) – Hotel operator Marriott International Inc (MAR.O) beat Wall Street estimates for quarterly profits on Tuesday as a recovery in travel began to help a struggling global tourism industry.
Marriott’s findings come at a time when a new wave of COVID-19 cases fueled by the Delta variant of the coronavirus is hitting countries around the world, potentially disrupting travel plans.
The company, which owns hotel brands such as the JW Marriott and the Ritz-Carlton, said second-quarter occupancy in its major markets of the United States and Canada and Greater China reached 56, respectively. , 1% and 62.4%, against 19.6% and 35.5%. one year earlier.
Although the occupancy rate has recovered from last year’s lows, it remains well below the rates seen before the pandemic.
The company’s comparable RevPAR – a key performance metric for the hospitality industry – fell 43.8% in the reported quarter, compared to the second quarter of 2019.
“As we keep a close eye on the Delta and other variant strains, we are optimistic that the upward trajectory of the global recovery will continue,” said Managing Director Anthony Capuano.
Excluding items, Marriott gained 79 cents per share, beating the average analyst estimate of 45 cents per share, according to IBES data from Refinitiv.
Revenue rose 115.1% to $ 3.15 billion, but fell short of Wall Street’s expectations of $ 3.21 billion.
Marriott shares rose about 0.8% in pre-market trading.
Reporting by Ashwini Raj; Additional reports from Ankit Ajmera; Editing by Shailesh Kuber
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