16 October, etc.venues Monument
30 October, JW Marriott Grosvenor House
1st November 2023, etc.venues County Hall
Marriott International’s first-quarter business remained steady, while the company's revenue per available room (revpar) and demand increased, particularly in China as the country removed its Covid-19 travel restrictions.
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Anthony Capuano, Marriott’s president and CEO, said demand was strong for all regions, with international markets “particularly robust”.
The company attributed revenue growth and increased demand to travel restrictions being lifted throughout Asia Pacific, particularly in China, which “significantly boosted first quarter demand in the region,” said Capuano during an earnings call.
In Q1, Marriott reported systemwide revpar of $116.45, up by 34 per cent on the first quarter of 2022. International revpar reached $108.80 in the first quarter, which was a 63 per cent rise year-on-year.
Marriott’s total occupancy in Q1 reached 65.3 per cent, up by 11 percentage points compared to the same quarter in 2022. Internationally, occupancy increased at an even faster pace – up by 18.3 percentage points year-on-year to 63.9 per cent - the bulk of which was “overwhelmingly” driven by travel within the Asia-Pacific market.
The company’s systemwide average daily rate (ADR) in the first quarter increased by 11 per cent year-on-year to $178.31, while international ADR increased by 16 per cent to $170.39.
Marriott reported Q1 revenue of $5.62 billion, up by 34 per cent on the same period last year. Net income rose to $757 million for the quarter, compared with income of $377 million in Q1 of 2022.
Capuano attributed Marriott’s steady recovery to increased rates and “higher special corporate negotiated rates and 15 per cent growth in group ADR”.
According to company executives, group rates for 2023 are currently up by 26 per cent compared with a year ago.
Meanwhile, Marriott’s “day-of-the-week trends in the US and Canada continue to point to the blending of business and leisure trips,” added Capuano.
Executives on the call also pointed to the average length of a business travel stay increasing by more than 20 per cent from 2019 levels as an indiction of the recovery for the sector in North America.