Continuing a trend set by other hotel companies as they've
released their second-quarter earnings, Marriott International has lowered its 2019
global revenue per available room guidance from a range of 2 percent to 3
percent to a range of 1 percent to 2 percent. The company acknowledged that
global economic growth has slowed from the level anticipated when the year
began. Marriott also lowered its North American RevPAR guidance from a range of
1 percent to 3 percent to a range of 1 percent to 2 percent.
The company reported year-over-year second-quarter
comparable systemwide constant dollar RevPAR growth at 1.2 percent worldwide.
North American RevPAR grew 0.7 percent; outside North America, it rose 2.8 percent.
Systemwide occupancy remained flat at 76.1 percent. Average daily rate rose 1.1
percent to $163.23.
"Gross group revenue bookings made in the second
quarter for all future periods increased 6 percent, and booking pace for the next
12 months is up at a low-single-digit rate, largely related to strong corporate
demand," president and CEO Arne Sorenson said, adding that new group
bookings at legacy Starwood hotels were particularly strong in the second
quarter. He also noted, "In addition to significant savings in procurement
and lower loyalty charges, our hotels benefitted from lower commission rates on
group intermediaries."
The company added more than 16,000 rooms during the second
quarter. As of June 30, Marriott's worldwide development pipeline totaled more
than 487,000 rooms across roughly 2,900 hotels. About 213,000 rooms were under
construction as of June 30. Net income for the quarter was $232 million, a 65
percent decrease from the second quarter of 2018.
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