Marriott International Inc (NASDAQ:MAR) today reported first quarter 2020 results, which were dramatically impacted by the COVID-19 global pandemic and efforts to contain it.
First-quarter 2020 comparable system-wide constant dollar RevPAR declined 22.5% worldwide, 30.4% outside North America and 19.5% in North America;
First-quarter reported diluted EPS totaled $0.09, compared to $1.09 in the year-ago quarter. First-quarter adjusted diluted EPS totaled $0.26, compared to first quarter 2019 adjusted diluted EPS of $1.41.
First-quarter reported net income totaled $31 million, compared to $375 million in the year-ago quarter. First-quarter adjusted net income totaled $85 million, compared to first quarter 2019 adjusted net income of $482 million.
Said CEO Arne M. Sorenson, "In the last few months we have seen the impact of COVID-19 spread throughout our business in an unprecedented way. Worldwide RevPAR1 began the year with a strong 4.6% growth rate for January, excluding Greater China, where COVID-19 was already impacting results.
"For the first two months of the year, worldwide RevPAR grew 3.2%, excluding the Asia Pacific region. As the pandemic moved around the world, we saw global RevPAR fall sharply and, in April, worldwide RevPAR declined approximately 90%. Currently, roughly a quarter of our worldwide hotels are closed.”
While many of the company's managed hotels earned incentive management fees in the quarter under the terms of their contracts, no incentive fees were recognized under accounting standards due to the significant uncertainty created by COVID-19 as to the extent to which the company will be entitled to such fees on a full-year basis.
MAR shares dropped $4.79, or 5.5%, to $82.38
