Last Monday(10 August), Marriott International has reported a second-quarter net loss of $234 million, compared to a net income of $232 million in the same period in 2019.
According to a statement by the company, the second-quarter adjusted net loss totaled $210 million, compared to the second-quarter 2019 adjusted net income of $525 million. Moreover, comparable systemwide constant dollar RevPAR, a key performance measure for the hotel industry, declined 84.4% worldwide, 83.6% in North America, and 86.7% outside North America.
Arne M. Sorenson, President, and CEO of Marriott International said, “While our business continues to be profoundly impacted by COVID-19, we are seeing steady signs of demand returning. Worldwide RevPAR has climbed steadily since its low point of down 90% for the month of April, to a decline of 70% for the month of July. Worldwide occupancy rates, which bottomed at 11% for the week ended April 11, have improved each week, reaching nearly 34% for the week ended August 1. Currently, 91% of our worldwide hotels are now open compared to 74% in April, and 96% are open today in North America.”
He further stated that as of early May, all their hotels in the region are open, and occupancy levels in China have rebounded particularly well, as they recently reached 60%, compared to 70% the same time last year, and a marked improvement from single-digit levels in February.
Marriott said it has a strong pipeline of upcoming hotels, featuring approximately 510,000 rooms, 45% of which are under construction. While the company may be experiencing pandemic-related losses, it has remained dedicated to the health and safety of its customers and employees.
“Over the last few months, we have moved quickly and decisively to mitigate the impact of COVID-19 on our business. We have implemented measures to help our owners manage through the crisis and strengthen our financial position by increasing our liquidity, extending our average debt maturity, and reducing our cash outlays significantly.”
“While the full recovery from Covid-19 will clearly take time, the current trends we are seeing reinforce our view that when people feel safe traveling, demand returns quickly,” M. Sorenson concluded.