HOTEL operator Marriott International forecast 2024 profit below Wall Street expectations on Tuesday (Feb 13), as room revenue in the United States normalises from its post-pandemic highs.
Travel demand and costs in the US have been returning to normal levels after seeing a post-pandemic spike from “revenge travel”. Travel companies are expecting their 2024 boost to come from international markets like China, the final region lagging in its recovery from the pandemic.
Marriott sees a full-year 2024 profit of between US$9.18 and US$9.52 per share, while analysts had expected US$9.69 per share, LSEG data showed.
The company’s shares were down 1.7 per cent in premarket trade.
Marriott’s revenue per available room (RevPAR), a closely watched industry metric for hotels’ top-line performance, rose 7.2 per cent year on year in the fourth quarter, boosted by higher room rates and occupancy levels in China. Full-year room revenue rose 14.9 per cent compared to 2022.
“With normalising RevPAR growth around the world, we anticipate a worldwide full-year RevPAR increase of 3 to 5 per cent and net rooms growth of 5.5 to 6 per cent,” CEO Anthony Capuano said about the current year.
Marriott reported an adjusted fourth-quarter profit of US$3.57 per share, above analysts’ estimate of US$2.12 per share.
The Ritz-Carlton owner posted quarterly revenue of US$6.1 billion, roughly in line with expectations of US$6.2 billion. REUTERS
