by Lacey Pfalz
Last updated: 10:07 AM ET, Wed November 3, 2021
Marriott International has published a report on its third-quarter results today, November 3, detailing its steady recovery and expansion.
The company, despite reporting a total debt of $9.8 billion, considers the third quarter's results to be a good sign for its hotels. Adjusted EBITDA, or earnings before interest, taxes, depreciation or amortization, was $683 million, double that of last year's third-quarter results, which was $327 million.
After operating costs and other necessary expenditures, Marriott took in an adjusted net income of $327 million for this year's third quarter. Compared with last year's paltry $44 million in net income, the hotel corporation has seen a welcome increase that nearly reaches 2019's $387 million, reported in its third-quarter pre-pandemic.
RevPAR, or revenue per available room, is another key indicator of a hotel or hotel corporation's success. In the third quarter of 2021, RevPAR across Marriott's properties increased 120.7 percent from last year's third quarter. In the U.S. and Canada alone, it increased 135.4 percent, while it increased 81.8 percent internationally.
While RevPAR is not equivalent to hotel occupancy rates, it does show that revenue has been increasing since last year, when it hit record low rates. Back in 2020, the company's third-quarter RevPAR had decreased 65.9 percent worldwide from 2019's rate.
Worldwide occupancy reached 58 percent this quarter, the average daily rate of which was only four percent lower than pre-pandemic levels.
The corporation expects to continue its expansion throughout the pandemic. In this third quarter alone, it added 114 properties with a total of 17,456 rooms worldwide. At the end of the quarter, Marriott totaled 7,892 properties. It is developing 2,769 properties, with 1,028 properties currently under construction.
"We're proud of the dedication and perseverance our associates have demonstrated over the past year and a half, as they navigated the most challenging environment we have ever faced. With global trends improving, we believe we are well-positioned for growth as the global recovery continues. We are very optimistic about our future," said Anthony Capuano, CEO of Marriott International.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
