Marriott shares slide due to delayed opening of some properties in China According to Reuters

© Reuters. FILE PHOTO: Signage for the New York Marriott Marquis is seen in Manhattan, New York, November 16, 2015. REUTERS/Andrew Kelly

(Edited to say “one”, not “once” in the last paragraph)

By Priyamvada C

(Reuters) -Marriott International Inc said on Thursday China’s strict COVID-19 policies are delaying the opening of some properties in the country, a key market for guest operators. hotels, where the epidemic’s recovery has been uneven compared to the United States.

“The market in China is definitely where we’re most challenged,” Chief Executive Anthony Capuano said on an analyst call.

Shares of the Sheraton owner fell as much as 6% in morning trading. Revenue per room availability (RevPAR) from Greater China is $64.06 in 2021 across the company, behind the US & Canada and the Middle East & Africa.

American companies have struggled to cope with China’s no-COVID policy this year, with some like Tesla (NASDAQ:) having kept workers isolated to keep factories running . Those involved in the real estate sector have also faced a property crisis.

About 60% of Marriott’s projects underway in China are in the luxury and high-end segments, which are significant money generators, Capuano said.

However, the company continues to benefit from strong travel demand elsewhere despite economic difficulties, with Marriott joining its rival. Hilton Worldwide Holdings (NYSE: Inc) in raising its annual profit forecast on Thursday.

“Going forward, we expect that the recession will decelerate, but not derail, growth in the US hospitality industry. This could be the first recession as GDP,” said Jan Freitag. decrease while RevPAR continues to increase,” said Jan Freitag. CoStar Group (NASDAQ: Country director for hotel analytics.

Marriott now expects 2022 adjusted earnings per share of $6.51 to $6.58, compared with a previous forecast of $6.33 to $6.59 for per share.

For the quarter through September, Marriott posted a 36.3% RevPAR increase at $120.60, compared with a year earlier on a constant currency basis.

Its revenue rose nearly 35% to $5.31 billion, down slightly from the median analyst estimate of $5.34 billion, according to Refinitiv data.

Adjusted earnings per share were $1.69, one percent above expectations.

Source by [author_name]


News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button