Mon. Feb 26th, 2024
Marriott International Experiences Slower U.S. Business Growth Following Post-Pandemic Highs

Marriott International Inc. (MAR) reported fourth-quarter revenue that was below expectations, indicating that the post-pandemic travel boom is slowing down. While North American revenue rose 3.3%, international sales increased by 17.4%. However, the company’s current-quarter and full-year outlooks were lower than forecasts, leading to a drop in the stock price of about 6.3% at midday on Tuesday.

Despite missing estimates, Marriott’s overall fourth-quarter revenue increased by 2.9% to $6.1 billion, and earnings per share (EPS) of $3.57 exceeded forecasts. The company reported that overall revenue per available room (RevPAR) was up by 7.2%, with only a 3.3% increase in the U.S., indicating that business traveler sales added 3%, and demand from large corporate customers continued to grow.

Marriott’s current-quarter EPS is expected to be between $2.12 and $2.19, while full-year EPS is projected to be between $9.18 and $9.52 – both of which are below analysts’ expectations. CEO Anthony Capuano expects Marriott to return around $4 billion to shareholders in 2024, offsetting the half billion dollars spent on purchasing the Sheraton Grand Chicago hotel in 2019 – despite this news shares of Marriott International have dropped by around 6% but are still nearly 34% higher than they were a year ago at 1:21 p

By Editor

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