Published on : Tuesday, May 12, 2020
During the first quarter of 2020, Marriott International has seen dollar RevPAR declined 22.5 per cent worldwide as the Covid-19 outbreak takes a huge toll on the hospitality industry.
First quarter reported diluted earnings per share totalled $0.09, compared to $1.09 in the year-ago quarter.
While, the hotel giant reported a net income of $31 million for the period, compared to $375 million last year.
In the second quarter the full impact of the coronavirus pandemic is expected to be further revealed.
Arne Sorenson, chief executive officer of Marriott International, said that in the last few months they have seen the impact of Covid-19 spread throughout their business in an unprecedented way.
The Worldwide RevPAR began the year with a strong 4.6 per cent growth rate for January, excluding Greater China, where Covid-19 was already impacting results.
During the first two months of the year, worldwide RevPAR grew 3.2 per cent, excluding the Asia Pacific region.
After the pandemic moved around the world, the global RevPAR fell sharply and, in April, worldwide RevPAR declined approximately 90 per cent.
Marriott mentioned that roughly a quarter of its worldwide hotels are currently closed.
In the first quarter of 2020 the adjusted EBITDA totalled $442 million as compared to first quarter 2019 adjusted EBITDA of $821 million.
Marriott’s worldwide development pipeline totalled nearly 3,050 hotels and nearly 516,000 rooms at the quarter end which includes more than 24,000 rooms approved, but not yet subject to signed contracts.
Over 230,000 rooms in the pipeline were under construction as of the end of the first quarter.