Marriott International this week reported average daily
rates were up slightly year- over-year during the second quarter, a trend it
expects will continue into next year.
During the quarter, average daily rates in North America
were up 1.2 percent compared with the second quarter of 2009, the first time
rates have moved upward in the region in nearly two years, according to
Marriott chairman and CEO J.W. Marriott Jr. Globally, rates were up 1.6 percent.
Revenue per available room increased by 7.9 percent in North
America and by 9.9 percent globally, which were bigger increases than the
company had expected, according to Marriott. Systemwide occupancy was up by 4.5
percentage points in North America and by 5.4 percentage points worldwide.
"Business and leisure stays at our hotels are trending
up," according to Marriott. "We anticipate even more favorable
pricing in the second half of 2010 and into 2011."
The company also reported that it opened 6,500 new rooms
during the quarter and expects to open 30,000 new rooms total for the full
year. These include conversions to its new Autograph Collection brand, a
collection of upper upscale and luxury boutique hotels around the world.
As with most major hotel companies, Marriott's development
is skewed internationally. Marriott's total pipeline stands at 95,000 rooms, 39
percent of which are international. Of the rooms currently under construction,
two-thirds are outside of North America, according to Marriott.