The Good News for Marriott and Hilton Is That April Is Finished
(Bloomberg) -- The worst month in hotel industry history is over.
Marriott International Inc. saw revenue per available room, which measures room prices and occupancy, decrease 90% in April, the company said in a statement Monday. That mirrored Hilton’s April performance, making the impact from the Covid-19 pandemic more severe than wars, terrorist attacks and previous economic downturns.
“This has been by far the most significant crisis ever to impact our business,” Marriott Chief Executive Officer Arne Sorenson said on a conference call with analysts.
The good news, Sorenson added, is that April “seems to have defined the bottom.”
Marriott reported adjusted earnings per share of 26 cents for the first quarter, compared with an average analyst estimate of 80 cents. The company’s shares slipped as much as 6.3% to $81.72 on Monday. The stock had plunged 42% this year the close of trading on May 8.
Roughly a quarter of Marriott’s 7,300 hotels are closed. Marriott said there are signs that its business in Greater China is starting to bounce back. Occupancy at hotels in the region hit 25% in April, up from less than 10% in February.
Still, the numbers show there is a long way to go. Marriott’s limited-service hotels in North America are benefiting from people driving to vacation destinations. At those properties, occupancy has stabilized at the low level of roughly 20%.
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