Marriott International reported that its total revenue plunged 72.4% to USD 1.46 billion for the second quarter of 2020.
Second quarter 2020 comparable systemwide constant dollar RevPAR declined 84.4% worldwide, 83.6% in North America and 86.7% outside North America.
Second quarter reported net loss totaled USD 234 million, compared to reported net income of USD 232 million in the year‐ago quarter.
Adjusted EBITDA totaled USD 61 million in the 2020 second quarter, compared to second quarter 2019 adjusted EBITDA of USD 952 million.
The company added more than 11,400 rooms globally during the second quarter, including roughly 2,000 rooms converted from competitor brands and approximately 4,700 rooms in international markets. Net rooms grew 4.1% from a year ago.
At quarter‐end, Marriott’s worldwide development pipeline totaled nearly 3,000 hotels and approximately 510,000 rooms, including roughly 28,000 rooms approved, but not yet subject to signed contracts. Over 230,000 rooms in the pipeline were under construction as of the end of the second quarter.
Arne M. Sorenson, president and chief executive officer of Marriott International, said, “While our business continues to be profoundly impacted by COVID‐19, we are seeing steady signs of demand returning. Worldwide RevPAR has climbed steadily since its low point of down 90% for the month of April, to a decline of 70% for the month of July. Worldwide occupancy rates, which bottomed at 11% for the week ended April 11, have improved each week, reaching nearly 34% for the week ended August 1. Currently, 91% of our worldwide hotels are now open compared to 74% in April, and 96% are open today in North America.
“Greater China continues to lead the recovery. As of early May, all our hotels in the region are open, and occupancy levels are now reaching 60% , compared to 70% the same time last year, and a marked improvement from single‐digit levels in February. While Greater China’s recovery was originally led by demand from leisure travelers, particularly in resorts and drive‐to destinations, we are now seeing more widespread business demand, including some group activity.
“While the full recovery from COVID‐19 will clearly take time, the current trends we are seeing reinforce our view that when people feel safe traveling, demand returns quickly. My thoughts continue to be with all who have been impacted by the pandemic.”
Read original article