Marriott beats estimates on travel demand recovery
2022.08.02 19:30
FILE PHOTO: A Marriott flag hangs at the entrance of the New York Marriott Downtown hotel in Manhattan, New York November 16, 2015. REUTERS/Andrew Kelly
NEW YORK (Reuters) -Marriott International Inc on Tuesday topped Wall Street estimates for revenue and profit in the second quarter, boosted by demand for leisure travel.
Travelers (NYSE:TRV), largely free of restrictions related to COVID-19, are spending heavily on hotels, airplane tickets and car rentals. That trend has so far showed no signs of slowing down, even as some worry about high inflation and the potential for an economic slowdown.
“The shift of spending towards experiences versus goods, sustained high levels of employment and the lifting of travel restrictions and opening borders in most markets around the world are fueling travel,” Marriott Chief Executive Officer Anthony Capuano told investors on a call.
Revenue per available room (RevPAR) increased 70.6% worldwide, 66.1% in the United States and Canada, and 87.8% in international markets when compared to the same period a year earlier.
Marriott, which operates the Sheraton and Ritz-Carlton hotel chains, reported adjusted earnings of $1.80 per share, far higher than the Wall Street consensus of $1.56 a share, according to Refinitiv data.
Second-quarter net income totaled $678 million, or $2.06 per share, compared to $422 million, or $1.28 a year ago.
Marriott’s second-quarter revenue rose 70% year on year to $5.34 billion. Analysts had expected $4.92 billion, Refinitiv data shows.
Looking ahead, the company expects third-quarter earnings per share, excluding items, of $1.59 to $1.69 per share. That compares with analysts’ estimates for $1.58 per share.
Shares in the company fell about 2% in morning trading, in line with the broader market.
