Published on : Wednesday, June 3, 2020
Marriott International has reopened all its luxury hotels in mainland China and is seeing a steady recovery in the United States, which is its biggest market, Chief Executive Officer Arne Sorenson said on Monday.
The shares of the hotel operator, which owns the Ritz-Carlton and St. Regis luxury brands, rose as much as 8.1% to $95.64 in afternoon trading after Sorenson said the occupancy rate in China was 40% currently, up from 7% to 8% in February, when COVID-19 started spreading.
Sorenson said at a Goldman Sachs conference that it is not just a matter of leisure travel, but it is a growing business travel.
In the United States, Marriott’s hotels that remained open crossed the 20% occupancy threshold and continue to see an improvement, Sorenson said. The (U.S.) hotels that are performing strongest are those that are most dependent on drive to business.
The company had an occupancy rate of about 12% in North America in April, with 16% of its hotels closed temporarily. However, Sorenson warned that it could take Marriott International a few years to get back to levels of occupancy seen in 2019, when its global occupancy rate was 71%.
Tags: Marriott International