Marriott Announces Second Quarter Losses Related to Coronavirus

Marriott International announced a massive loss during a second-quarter earnings call Monday.

The hotel giant reported net loss totaling $234 million in the second quarter, compared to reported net income of $232 million in the year-ago quarter. Net loss totaled $210 million, compared to the second quarter 2019 adjusted net income of $525 million.

Marriott also reported an 84.4 percent drop in revenue per available room (RevPAR), a key performance measure for the hotel industry. Officials said that despite the rough times during the coronavirus outbreak, they expect a gradual rise in occupancy rates across the world.

Marriott CEO Arne Sorenson believes it will take a few years for occupancy rates to return to pre-pandemic levels. “While our business continues to be profoundly impacted by COVID-19, we are seeing steady signs of demand returning,” Sorenson said during the call.

There are positive signs to come from the earnings report, though, as officials reported the early stages of recovery across all regions, with global occupancy rates of 34 percent in August, which was a massive spike from the 11 percent reported in April.

Occupancy levels in China have rebounded particularly well, as they recently reached 60 percent. Marriott also revealed it reopened 91 percent of its worldwide hotels, a jump from the 74 percent open in April.

While the company may be experiencing pandemic-related losses, it has remained dedicated to the health and safety of its customers and employees. In July, Marriott announced guests at all Marriott properties are required to wear face-coverings in common areas.

This post was published by our news partner: TravelPulse.com | Article Source