Marriott International's systemwide third-quarter business transient revenue per available room rose 4 per cent year over year, the company reported on Monday (2 November).
In the US and Canada, Q3 business transient RevPAR increased 5 per cent year over year. Growth in average daily rate accounted for most of those business transient RevPAR gains, according to Marriott CFO Jen Mason. “We expect those trends will continue," Mason added.
Third-quarter group RevPAR rose 6 per cent year on year globally and 7 per cent year on year in the US and Canada.
Mason and Marriott CEO Anthony Capuano kept remarks about the segment performances brief in contrast to competitors Hilton Worldwide and Hyatt Hotels Corp. during their earnings calls last week.
Marriott executives during the call didn’t address the planned corporate job cuts the company confirmed last week.
Marriott Q3 metrics
Marriott's systemwide third-quarter RevPAR increased 6.5 per cent year on year to $137.91. ADR rose 4.8 per cent year on year to $190.33, and occupancy rose 1.1 percentage points to 72.5 per cent.
Across Europe, third-quarter ADR grew 4.1 per cent year on year to $262.44, while occupancy rose 1.7 percentage points to 77.9 per cent. RevPar for the region increased 6.4 per cent year on year to $204.38.
In the US and Canada, third-quarter ADR increased 4.9 per cent year on year to $197.93, while occupancy rose 1.7 percentage points to 73.9 per cent.
Mason said that while luxury continues to outperform, select-service performance improved quarter over quarter, and bookings through October have the company feeling good about its select brands.
Marriott raised its full-year RevPAR growth outlook to 4.5 per cent to 5 per cent year on year, up from its previous projection of 3 per cent to 3.5 per cent. Fourth-quarter RevPAR is projected to increase 4.5 per cent to 5 per cent year on year.
Total third-quarter revenue increased 8 per cent year over year to more than $7 billion. Third-quarter net income rose 9 per cent year on year to $794 million.
As of 30 September, Marriott's global pipeline was more than 4,200 properties, or more than 634,000 rooms, a more than 6 per cent year-on-year increase.
The Marriott Bonvoy membership base grew to approximately 309 million members worldwide at the end of the quarter.
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