12 December 2022, etc.venues Monument, London
Business Travel Show Europe, presented by The BTN
21 November, London Hilton Metropole
Hotel chain sustains $466m Q3 loss
Marriott International reported an operational income of $53m for its third quarter, a 57% drop compared to the same three months last year.
The global hotel chain said it suffered an operational loss for the three months of $466m compared to a profit of $94m a year ago.
It said its adjusted results for the quarter ending September 11 excluded various charges.
Among these were a pre-tax impairment charge of $752m and an $8m restructuring charge which was primarily for severance and timeshare facilities exit costs.
Revenue per available room (revPAR) for the three months slumped 23.5% worldwide at company-operated properties compared with 2008.
In North America the drop in revPAR at company-operated properties was 20.6% while outside this region, it dropped 28.9%.
Marriott said markets outside North America had been hit by the "difficult economic climate" as well as sporting events, holidays and swine flu.
J.W. Marriott, company chairman and ceo, said revPAR in North America had dropped less than expected in the quarter with leisure travel holding up.
He added: "The hotel industry has been challenged by the economic environment. We've worked hard to rein in costs and right-size our businesses and those efforts are paying off.
"Our hotels are in great shape; owners and customers prefer our brands; and we enjoy very strong market share premiums.
"As we look ahead, while the recovery may be slow and perhaps uneven, our continued focus on driving revenue, controlling costs and strengthening our balance sheet will position us to benefit from an improving economy."
Marriott said it in its statement it was unable to provide an outlook for 2010.
But it said it expected the business climate to remain "difficult" with revPAR worldwide either flat or down 5%.
It said it expected revPAR in it as international markets to "show greater relative year on year strength" than in North America.