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Marriott sees slip in profits during second quarter

Marriott sees slip in profits during second quarter

Marriott International has reported net income totalled $232 million in the second quarter of financial 2019, down from $667 million for the same period last year.

The hotel giant reported diluted earnings per share of $0.69 for the quarter, compared to $1.87 in the same quarter a year-ago.

Second quarter adjusted net income totalled $525 million, compared to $619 million last year.

Revenue contracted two per cent to $5.3 billion due to lower incentive management fees from North America and cost reimbursement revenue.

Comparable systemwide constant dollar RevPAR rose 1.2 per cent worldwide at Marriott - 2.8 per cent outside North America and 0.7 per cent in North America.


Arne Sorenson, president and chief executive officer of Marriott International, said: “Worldwide RevPAR increased 1.2 per cent in the second quarter with higher leisure transient demand in Europe, the Caribbean and South America, and the Asia Pacific regions. 

“Showing great momentum, our worldwide RevPAR index increased 110 basis points in the quarter, the strongest single quarter performance since our acquisition of Starwood in late 2016.”

He added: “Our owners and franchisees continue to sign new hotel deals at a rapid pace. 

“Our development pipeline increased 3 percent in the second quarter, reaching a record 487,000 rooms, including roughly 213,000 rooms under construction. 

“Today, our pipeline includes five new all-inclusive resorts to be built over the next several years, which will be part of our newly-launched all-inclusive platform. 

“Recognising the growing demand for all-inclusive lodging, our platform will create distinctive vacation experiences while leveraging existing brands in our luxury and full-service portfolio. 

“We expect the platform will grow through both new-build properties and conversions of existing resorts, offering travellers yet another option for earning and redeeming Marriott Bonvoy points.”