Marriott Reports Jump in Lodging Demand as Tourism Recovers

Marriott Reports Jump in Lodging Demand as Tourism Recovers
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Marriott Reports Jump in Lodging Demand as Tourism Recovers

Marriott Reports Jump in Lodging Demand as Tourism Recovers

Marriott International sales more than doubled in the second quarter compared to a year ago, the latest sign of the hotel industry’s recovery.

Revenue rose to $ 3.15 billion in the three months to June, the company said on Tuesday, from $ 1.5 billion in the last year’s quarter. The hosting giant reported a profit of $ 422 million, down from a loss of $ 234 million in the same period last year.

The company said the rebound has continued since June, with rising vaccination rates and easing travel restrictions helping to increase occupancy. The global occupancy rate reached 51% in the second quarter.

“The rate of global accommodation recovery accelerated in the second quarter and momentum continued into July,” said Anthony Capuano, general manager of Marriott, in a statement.

The company is seeing pent-up demand from small and medium-sized groups, as well as social groups that have postponed the events of the year, but bookings for large city-wide events are still under pressure. the train.

Although domestic leisure travel is recovering, this rebound is threatened by the spread of the highly contagious Delta variant of the coronavirus. The Biden administration will continue to restrict the entry of Europeans and others into the United States, citing concerns that infected travelers could contribute to an increased spread of the contagious variant across the country.

“As we closely monitor the Delta and other variant strains, we are optimistic that the upward trajectory of the global recovery will continue,” Capuano said in the statement. “Times are difficult to predict and will continue to vary by region, but I believe we are on the path to a full global recovery. “

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The company said business bookings have also increased, although other measures of business travel show it has been slower to recover. According to a recent survey by the Association of International Certified Professional Accountants, only 9% of companies report having resumed their pre-pandemic travel levels.

But travelers are combining business and leisure travel, the company said.

“This mix of travel reasons continues to be a real and measurable phenomenon and we believe it is good for our business,” Capuano said Tuesday on a earnings conference call with analysts. “We believe this will continue well beyond the end of the pandemic. “

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