Delta Air Lines CEO Ed Bastian provides insight into the state of the industry amid the coronavirus pandemic.
Marriott International Inc. is seeing signs that its business is recovering from the sharp slowdown caused by stay-at-home orders meant to slow the spread of COVID-19.
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The Bethesda, Maryland-based hotel chain operator reported revenue per available room totaled $41.24 in the third quarter, a 19% increase from the previous three months but far below last year, when travel had yet to be battered by lockdowns and social distancing.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MAR | MARRIOTT INTERNATIONAL INC. | 103.42 | +2.51 | +2.49% |
“While COVID-19 is still significantly impacting our business, our results for the third quarter showed continued improvement in demand trends around the world,” CEO Arne Sorenson said in a statement. “Greater China continues to lead the recovery and demonstrates the resiliency of travel demand.”
Occupancy in the Greater China region reached 61%, a 10-percentage point decline from a year ago. Revenue per available room, meanwhile, rebounded to $63.05 and was down just 26% from a year ago.
Business in North America, however, has taken longer to bounce back. An occupancy rate of just 37% in the three months through September was still nearly double that of the prior three months.
Marriott said 94% of its hotels worldwide are open for business.
The company reported a third-quarter profit of $100 million, or adjusted earnings of 6 cents per share, an improvement from the $234 million loss during the previous quarter. Marriott earned $387 million in the same period last year.
While the company returned to profitability, revenue sank 57% from the previous year to $2.25 billion.
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Marriott shares were down 33% this year through Thursday, underperforming the S&P 500’s 8.66% gain.
