U.S. hotel operator Marriott International (NYSE:MAR) posted a bigger-than-expected quarterly loss on Monday, as the coronavirus pandemic curbed global travel and led to a plunge in room bookings.
Marriott’s shares, down 40.3% this year, somehow found their feet and gained 44 cents in early Monday trading to $94.19, as the company also reported an 84.4% plunge in revenue per available room (RevPAR) - a key performance measure for the hotel industry.
However, Marriott said it now expects a gradual rise in occupancy rates across the world although it may be a few years before it sees a return to pre-COVID period demand levels, echoing smaller rival Hilton’s comments from last week.
"While our business continues to be profoundly impacted by COVID-19, we are seeing steady signs of demand returning," Marriott Chief Executive Officer Arne Sorenson said in a statement.
For the full year, the company currently estimates rooms could grow by 2% to 3%.
The company’s loss attributable to stockholders was $234 million, or 72 cents per share, in the second quarter ended June 30, compared with net income of $232 million, or 69 cents per share, a year earlier.
Marriott last reported a quarterly loss in the third quarter of 2011. Total revenue plunged 72.4% to $1.46 billion.
On an adjusted basis, Marriott reported a loss of $0.64 per share.
Analysts on average had estimated revenue of $1.68 billion and loss of $0.42 per share for the quarter.
