Marriott International has lowered its first-quarter revenue
per available room projection for North America, citing group business growth
below expectations as a major reason.
At the J.P. Morgan Gaming, Lodging, Restaurant & Leisure
Management Access Forum in Las Vegas on Monday, Marriott CFO Carl Berquist said
the company projects North American RevPAR during the first quarter will
increase by 5 percent to 6 percent year over year, down from its earlier
projection of a 6 percent to 8 percent increase. Projected small-group booking
levels did not materialize, he said.
"We had good group performance in December and January,
and we used that as the basis for guidance," Berquist said. "In
February, group came in up 15 percent, but not at the levels we thought it
would be."
Additionally, Berquist said four particular markets were
coming in below expectations: New York, Orlando, Atlanta and Washington, D.C.
In New York's case, Berquist said a large amount of new supply came online with
low rates, which slowed Marriott's ability to raise rates. Snowstorms also
slowed travel to New York and Atlanta. In Washington, threats of a federal
government shutdown slowed government contractors' group and transient travel,
he said.
Transient travel otherwise was coming in as expected,
Berquist said, adding that he did not see a loss in market share from rate
increases achieved during corporate negotiations.