Marriott International grew the average daily rate
at its hotels by 4.4 percent year over year to $154.26 percent during the
second quarter.
Group booking rates increased about 5 percent, and
the company continued to reduce its corporate business volume in favor of
higher-rated retail business, according to CFO Carl Berquist. Full-service
group business booked during the second quarter for future stays grew 8 percent.
“Meeting planners are worried about securing
availability more than negotiating hard on rate,” CEO Arne Sorenson said.
The company anticipates even better group
performance during the fourth quarter, expecting revenue to grow 7 to 9 percent
year over year based on current bookings.
“Our [group] booking window is lengthening, so we've
got a bit more business on the books today for 2016 than we did a year ago for
2015,” Sorenson said.
Occupancy rose 0.6 percentage points year over year
to 77.4 percent. In North America, it reached 78 percent, up 0.2 percentage
points from last year. Revenue per available room at properties in New Orleans,
Philadelphia, Chicago, Denver, San Francisco and Washington, D.C., went up,
while spring flooding in San Antonio and civil unrest in Baltimore affected
revenue there.
Following Marriott's recent acquisitions of Delta Hotels and Resorts and Protea Hospitality Group, Sorenson said the company's
brand lineup is “reasonably complete.”
“We've got the most sets of both lifestyle and
traditional brands in the industry, and they are all performing quite well with
good momentum,” he said. “But we'll continue to kick all the tires that drive
by.”
Delta is slated for the conversion market, and
Sorenson said more than 50 properties have inquired about joining the brand in
recent months.
Marriott’s net income increased 23 percent year over
year to $447 million during the second quarter.