by Donald Wood
Last updated: 12:05 PM ET, Tue August 1, 2023
Marriott International announced continued success in the
second quarter of 2023 and raised its full-year profit forecast on the back of rebounding
demand in China and rising revenue per available room (RevPAR).
Marriott President and Chief Executive Officer Anthony
Capuano said during a second-quarter conference call that worldwide RevPAR
increased 13.5 percent, aided by significant growth in the company’s international
regions, where RevPAR rose 39 percent.
Capuano also revealed that RevPAR increased six percent in
the United States and Canada, “with many urban markets showing impressive
growth in the second quarter.” The CEO also said revenue from the group segment
rose 10 percent compared to last year.
“While conditions could change rapidly, booking trends
remain solid,” Capuano said. “We are raising our full year rooms growth and
earnings guidance and now expect to return $4.1 billion to $4.5 billion to
shareholders in 2023.”
To meet the continued leisure demand internationally and
domestically, Marriott added around 33,100 rooms to its system, including
17,300 City Express rooms in the Caribbean & Latin America region.
The hospitality company’s pipeline grew to nearly 547,000
rooms, with more than 240,000 rooms under construction around the world, which
builds on the plans announced last month to enter the affordable midscale
extended stay market in the U.S. and Canada.
For the second quarter, Marriott’s reported operating income
totaled $1.096 billion, compared to the 2022 second quarter reported operating
income of $950 million.
Earlier this month, Marriott and MGM Resorts announced an
exclusive long-term strategic licensing agreement, creating MGM
Collection with Marriott Bonvoy. The new collection will launch in October
2023 and feature 17 of MGM’s renowned properties, including a dozen resorts in
Las Vegas.
For the latest travel news, updates and deals, subscribe
to the daily TravelPulse
newsletter.
Topics From This Article to Explore
