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Marriott International has reported a rise in quarterly profit, attributing it to higher room prices and resilient travel demand. The company registered an impressive 8.8% global revenue increase per available room (RevPar) compared to the previous year on a constant currency basis.
This growth was driven by a recovery in international travel, with cross-border travel on the rise. The third quarter also witnessed an uplift in both occupancy and rate, further contributing to Marriott's RevPar gains, as per Reuters.
Positive Signs in International Travel Recovery
The last few months have seen a rebound in international travel as consumers take advantage of a robust US dollar and flexible work arrangements. Marriott International, a US-based hotel operator that owns popular hotel chains such as Sheraton, Westin, and St. Regis, witnessed an impressive 22% increase in international room revenue, predominantly led by the Asia-Pacific region.
This positive trend indicates a strong recovery in cross-border travel, boosting the overall performance of the company, observes Business Times.
Revised Revenue Forecast and Steady Uptick in Bookings
In response to the growing demand for travel, Marriott International has lifted its 2023 room revenue forecast for the second consecutive quarter. The new forecast stands at 14%-15%, compared to the earlier projection of 12%-14%. This upward adjustment reflects the increased willingness of hotel operators to implement price hikes over the past year.
Additionally, Marriott's steady uptick in bookings further reinforces the positive outlook for the company.
Marriott International's third-quarter net income reached a staggering US$752 million, translating to US$2.51 per share. This marks an improvement from the previous year, where net income stood at US$630 million, or US$1.94 per share.
The company's revenue also showed promising growth, increasing by 12% to reach US$5.93 billion. These figures exceeded analysts' average estimate of US$5.89 billion, according to LSEG data. Furthermore, the adjusted profit per share of US$2.11 remained aligned with estimates. Marriott International's rival hotel operator, Hilton Worldwide Holdings, reported better-than-expected third-quarter revenue and adjusted its annual forecast accordingly.
Despite the overall positive performance, Marriott International's growth rate forecast is between 4.2% and 4.5%, a significant decrease compared to the previous projection of 6.4% to 6.7%.
Photo: Adam Borkowski/Unsplash
