Marriott declares ‘outstanding’ Q2 results

Resort large Marriott Worldwide has introduced “excellent” outcomes for the second quarter, with its European properties recording a “notably sturdy” restoration in income.

The US-based firm stated it had seen demand proceed to extend throughout all buyer segments all through the April-June quarter, as world revpar (income per out there room) exceeded 2019 ranges in June.

Marriott added that its common each day fee (ADR) had been “strong” in the course of the quarter and was seven per cent above comparable 2019 ranges at $175.99. Worldwide occupancy charges additionally continued their restoration to succeed in 68 per cent throughout the corporate’s 30-plus world manufacturers.

CEO Anthony Capuano stated: “Marriott’s second quarter outcomes spotlight shoppers’ love for journey. We reported excellent outcomes, as momentum in world lodging restoration continued.

“Europe additionally skilled notably sturdy revpar restoration, largely because of the return of worldwide guests, with June revpar exceeding 2019.”

Complete income for Marriott rose by 70 per cent within the quarter to $5.3 billion in comparison with Q2 in 2021, with internet revenue up by 61 per cent to $678 million year-on-year.

Marriott’s European properties recorded the very best occupancy stage exterior of North America at 67.5 per cent for the second quarter, a rise of 46 share factors on the identical interval in 2021. Though it remained 9 factors down on 2019’s occupancy.

Common each day fee in Europe was up by 44 per cent to $200.79 year-on-year and revpar by 355 per cent to $135.51, in contrast with the second quarter of 2021. ADR was additionally 8.4 per cent increased in Europe than in Q2 2019, illustrating the power of the restoration in resort demand throughout the continent.

“I’m happy with the exceptional work our group has completed for the reason that starting of the pandemic,” added Capuano. “This has been probably the most difficult interval in our firm’s historical past, however the resiliency of our associates and our enterprise mannequin have by no means been extra evident.  

“With our strong money movement and earnings, we resumed share repurchases in the course of the second quarter, along with paying a money dividend. Trying forward, we’re optimistic about our monetary outlook and robust money technology and count on to return greater than $2.2 billion to shareholders by dividends and share repurchases in 2022.”

Marriott continues to develop its portfolio of accommodations with 97 properties and 17,000 rooms added globally within the quarter, together with 9,200 rooms exterior North America. The corporate has a complete of round 8,100 properties globally and 1.5 million rooms on its system.

There are additionally one other 2,950 accommodations and 495,000 rooms within the firm’s improvement “pipeline”, together with 203,300 rooms at the moment underneath building.

“Signing exercise has accelerated in 2022, setting a second quarter report,” added Capuano. “We signed 23,000 rooms all over the world within the second quarter, practically 30 per cent of which had been conversions from competitor manufacturers.  

“Conversions proceed to be a significant development driver, comprising roughly 25 per cent of room additions within the quarter.”