Marriott International's comparable systemwide constant
dollar revenue per available room grew 1.5 percent during the third quarter,
year over year. It rose 1.3 percent in North America and 1.9 percent outside of
North America.
The company indicated full-year 2019 comparable systemwide
RevPAR on a constant dollar basis will increase roughly 1 percent worldwide, compared
to the range of 1 percent to 2 percent anticipated last quarter. Additionally,
RevPAR will rise roughly 1 percent in North America and roughly 2 percent
outside North America for 2019. For full year 2020, Marriott expects comparable
systemwide RevPAR on a constant dollar basis will be a range of flat to 2
percent growth, with North America in the middle of that range.
Marrott
launched a new meetings and events platform in the third quarter, and the
company has seen positive results so far. "For North America, new group
business booked in the quarter for comparable hotels in all future periods
increased 6 percent year over year," said president and CEO Arne M.
Sorenson, adding that new bookings made in the third quarter for 2020 increased
6 percent and new bookings for 2021 rose 10 percent. "While our booking
pace is down modestly for the fourth quarter 2019 due to the timing of the
holidays, booking pace for comparable hotels for 2020 is up at a
mid-single-digit rate year over year. About two thirds of the group business
expected for the year is already booked."
For group business in North America, "comparable hotel
RevPAR rose 2 percent for the quarter," said SVP and CFO Leeny Oberg.
Transient RevPAR was up slightly year over year, reflecting steady corporate
demand and stronger demand from leisure travelers." Sorenson also noted
that while 2020 corporate rate negotiations still are taking place, Marriott
expects 2020 corporate rates to rise at a low single-digit rate.
The company added more than 17,700 rooms during the quarter,
including about 3,100 converted from competitor brands and 6,700 in
international markets. As of September 30, Marriott's worldwide development
pipeline totaled 2,950 hotels and nearly 495,000 rooms. The company expects
room count to increase 5 percent to 5.25 percent for 2019, with similar growth
anticipated for 2020.
Systemwide occupancy rose 1.1 percentage points during the
third quarter, year over year, to 76 percent; average daily rate remained flat
at $178.39. Net income declined 23 percent from the prior year's third quarter
to $387 million.
Loyalty program Bonvoy membership reached 137 million during
the third quarter, with more than 12 million individuals joining since the
beginning of the year. In the U.S., members represented 58 percent of booked
room nights in the first nine months of 2019.
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