Marriott International Inc. has detailed the rise to recovery in its Q3 results, showing that revenue was up by 1 percent for the period. With hotels filling quickly and new projects continuing to open across North America, this is a promising sign of growth ahead.
Marriott International Inc. (MAR) revealed today that revenue rose 2% in the third quarter, up from $4.29 billion to $4.35 billion, beating estimates of analysts who expected earnings per share to be at 7 cents on sales of $5.08 billion
Today, November 3, Marriott International released a report on its third-quarter performance, highlighting its steady recovery and growth.
Despite having a total debt of $9.8 billion, the firm sees the third quarter’s performance as a positive indicator for its properties. Adjusted EBITDA, or profits before interest, taxes, depreciation, and amortization, was $683 million, more than twice the $327 million reported in the third quarter of last year.
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Marriott earned $327 million in adjusted net income for the third quarter of this year, after deducting operating costs and other essential expenses. The hotel firm has witnessed a nice boost in net profits from last year’s pitiful $44 million, virtually matching the $387 million posted in its pre-pandemic third quarter.
Another important indication of a hotel’s or hotel corporation’s profitability is RevPAR, or revenue per available room. The third quarter of 2021 saw a 120.7 percent rise in RevPAR across Marriott’s properties compared to the third quarter of previous year. It rose 135.4 percent in the United States and Canada alone, and 81.8 percent globally.
While RevPAR is not the same as hotel occupancy rates, it does demonstrate that revenue has been rising since last year’s record lows. The company’s third-quarter RevPAR has plummeted 65.9% globally from the previous year’s rate in 2020.
The average daily rate was just four percent lower than pre-pandemic levels this quarter, with worldwide occupancy reaching 58 percent.
Throughout the epidemic, the company plans to continue expanding. It added 114 hotels with a total of 17,456 rooms in the third quarter alone. Marriott had 7,892 properties at the end of the quarter. It is presently working on 2,769 properties, with 1,028 of them under development.
“We’re pleased of our employees’ devotion and resilience over the last year and a half as they negotiated the most difficult climate we’ve ever encountered.” We feel we are well-positioned for growth as the global economy continues, with global trends improving. “We are quite enthusiastic about our future,” stated Marriott International CEO Anthony Capuano.
To read the whole report, please click here.