Marriott suffers a third-quarter decline

SINGAPORE, 9 November 2020: Marriott International reported third-quarter 2020 results 6 November revealing a massive Covid-19 impact on its financial performance.

Third-quarter 2020 comparable systemwide constant dollar RevPAR declined 65.9% worldwide, 65.4% in North America and 67.4% outside North America, compared to the 2019 third quarter;

The hotel group reported diluted EPS totalled USD0.31, compared to reported diluted EPS of USD1.16 in the year-ago quarter. Third-quarter adjusted diluted EPS totalled USD0.06, compared to third quarter 2019 adjusted diluted EPS of USD1.47. Third-quarter 2020 impairment charges related to Covid-19 impacted reported and adjusted diluted EPS by USD0.07;

Net income totalled USD100 million, compared to reported net income of USD387 million in the year-ago quarter. Third-quarter adjusted net income totalled USD20 million, compared to third quarter 2019 adjusted net income of USD488 million. Third-quarter 2020 impairment charges related to Covid-19 impacted reported and adjusted net income by USD24 million after-tax;

Adjusted EBITDA totalled USD327 million in the 2020 third quarter, compared to 2019 adjusted EBITDA of USD901 million.

The company added more than 19,000 rooms globally during the third quarter, including roughly 1,400 rooms converted from competitor brands and approximately 7,600 rooms in international markets. Net rooms grew 3.8% from the year-ago quarter;

Marriott’s worldwide development pipeline totalled nearly 2,900 hotels and more than 496,000 rooms, including roughly 25,000 rooms approved, but not yet subject to signed contracts. Approximately 228,000 rooms in the pipeline were under construction as of the end of the third quarter.

As of the end of the third quarter, the company’s net liquidity totalled approximately USD5.1 billion, representing roughly USD1.5 billion in available cash balances, and USD3.6 billion of unused borrowing capacity under its revolving credit facility, less USD30 million of commercial paper outstanding.

Marriott International, Inc. (NASDAQ: MAR) today reported third-quarter 2020 results, which were dramatically impacted by the COVID-19 global pandemic and efforts to contain it (COVID-19).

“While Covid-19 is still significantly impacting our business, our results for the third quarter showed continued improvement in demand trends around the world,” said Marriott International president and chief executive officer Arne Sorenson.

Greater China continues to lead the recovery and demonstrates the resiliency of travel demand, with third-quarter occupancy of 61% and RevPAR recovering to down 26%, a 35-percentage point improvement compared to the decline in the second quarter… “The Asia Pacific region led deal signings in the third quarter, accounting for more than half of all rooms signed globally.”

Looking forward he said: “Although the timing of a full recovery remains unpredictable, we are pleased with the significant progress we have made in restructuring and repositioning the company to manage through these challenging times successfully. Financially, we have strengthened our liquidity position, realigned our cost structure, and minimized our cash burn. “We still have a long road ahead, but this crisis will come to an end, and I believe travel will rebound quickly.”