Marriott International Inc. announced its first-quarter earnings on Monday and, like the rest of the travel industry, it was not pretty thanks to the coronavirus pandemic.
The hotel chain's profits dropped 92 percent as it earned $31 million, or 9 cents a share, through the first three months of the year compared to $375 million a year ago.
"We have taken substantial steps to preserve liquidity and mitigate the impact of these extremely low levels of demand," Marriott International CEO Arne Sorenson said in a statement. "We are confident we have sufficient resources to manage through this evolving situation."
The company also announced new North American and International leadership.
Senior executive Dave Grissen has decided to step down from his position as Group President, the Americas, toward the end of 2020 and retire from Marriott in the first quarter of 2021, after 36 years with the company. Grissen, who has been leading the company's Americas business for the past 11 years, oversees all of the Americas' lodging business comprising more than 5,640 properties and a work force of 160,000 people.
"It's hard for me to picture a Marriott without Dave Grissen, someone who has been such an integral part of this company for so long," Sorenson said in a separate statement. "Dave is the consummate strategist with the mind of an operator. … We will certainly miss Dave, but I know that the next phase of his life will be as dynamic and meaningful as his extraordinary tenure here at Marriott."
The company's lodging operations will be consolidated under two long-time Marriott leaders after Grissen steps down from his current role. Under this plan, Liam Brown will take on the role of Group President, North America and Craig S. Smith will take on the role of Group President, International.
In his new role as Group President, International, Smith will oversee all non-North American operations for Marriott including the Asia Pacific, Europe, Middle East & Africa and Caribbean & Latin America (CALA) regions. Smith, a 32-year Marriott veteran, is currently Group President, Asia Pacific.
Brown is currently Group President, Europe, Middle East & Africa. A 30-year Marriott veteran, Brown has spent the majority of his career working in the U.S. Prior to taking over leadership of the EMEA region, Brown was President, Europe, and prior to that, President, Select Brands and Owner and Franchise Services, North America. He remains well connected to the company's North American owners. The company's Canadian operations will remain part of the North American portfolio under Brown.
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