Marriott reported some dramatic improvements in the third quarter as travel demand rebounded in China.
Average occupancy at hotels in China hit 61 per cent during the quarter, down just 10 per cent from a year ago. Marriott said in July that leisure demand – particularly at resorts – was the first to return in China, but business and group travel is also picking up.
Occupancy in North America was 37 per cent as some leisure demand returned. That was down 40 per cent from the July-September period a year ago. Business and group travel has been slower to come back, Marriott said.
Occupancy in Europe was 21 per cent for the quarter, down 58 per cent from a year ago.
Marriott rival Hilton, which reported earnings Thursday, saw a similar dynamic. Occupancy was highest in Asia, where it reached 53 per cent, and lowest in the Americas – excluding the U.S. – at 25 per cent. U.S. occupancy was 44 per cent.
Marriott, the world’s largest hotel company, on Friday reported earnings of $100 million in the July-September period, down from $387 million in the same quarter a year ago. It said 94 per cent of its hotels are now open worldwide.
Earnings, adjusted for one-time items, were 6 cents per share. Wall Street had been expecting an 8 cent loss, according to a survey of analysts by FactSet.
Revenue fell 57 per cent to $2.25 billion, slightly better than analyst projections.
Shares of the Bethesda, Maryland, company slipped about 1 per cent before the opening bell.
