• Sun. Mar 3rd, 2024

Slowdown in the Post-Pandemic Travel Boom: Marriott International Inc. Misses Revenue Expectations

ByEditor

Feb 13, 2024
Marriott International Experiences Slower U.S. Business Growth Following Post-Pandemic Highs

Marriott International Inc. (MAR) reported that its fourth-quarter revenue did not meet expectations, signaling a slowdown in the post-pandemic travel boom. While North American revenue rose by 3.3% and international sales increased by 17.4%, the company’s current-quarter and full-year outlooks were lower than forecasts, causing the stock to drop about 6.3% at midday on Tuesday.

In the fourth quarter, Marriott’s overall revenue increased by 2.9% to $6.1 billion, missing estimates, while earnings per share (EPS) of $3.57 exceeded forecasts. The company also reported that overall revenue per available room (RevPAR) was up 7.2%, with only a 3.3% increase in the U.S., indicating that business traveler sales added 3%, and demand from large corporate customers continued to grow.

Marriott’s current-quarter EPS is expected to be between $2.12 and $2.19, while full-year EPS is predicted to be between $9.18 and $9.52, both below analysts’ expectations, which have caused investors concern about the future of the hotel industry as more people continue to work from home or choose remote travel options over traditional hotels.

CEO Anthony Capuano expects Marriott to return $4.1 billion to $4

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