Dip in US revenue prompts shorter forecast for Marriott

Marriott Hotel at 525 Lexington Avenue and Marriott Hotel CEO Arne Sorenson (Credit: Getty Images)

A dip in North America revenues has prompted Marriott to slightly lower its forecast.

Marriott, the parent company of brands Westin, Ritz-Carlton and Renaissance, said it had previously forecasted its comparable systemwide revenue per available room (RevPAR) at between 3 and 4 percent, but has lowered it closer to 3 percent, following a weaker than expected third quarter, according to the Wall Street Journal.

The forecast, described during a during an analyst conference call Tuesday, revealed the company’s third-quarter profit dipped 0.4 percent to $483 million, and total revenue dropped 1 percent to $5.05 billion. The company’s shares fell 5.1 percent Tuesday.

The company also pointed to a weaker turnout out for Yom Kippur, the Jewish holiday, which this year fell during the week.

Company CEO Arne Sorenson said that the weak performance in September applied not only to Marriott, but across the whole industry. “The sky is not falling, notwithstanding the weak September,” Sorenson said.

Hyatt Hotels Corp. and Hilton Worldwide Holdings Inc. have also reportedly lowered their outlook on growth in RevPAR.

Marriott is dealing with more than 7,000 striking workers affecting 21 properties in San Jose, San Francisco and Boston. [WSJ] — David Jeans

Recommend0 recommendationsPublished in Real Estate

Share this story with your network.

Share on facebook
Share on twitter
Share on linkedin
Share on email
Share on print


Recent Stories

Del Marie: locked down, but not out

The rapper-dancer-performance poet rolls with the pandemic punches. 2020 started off so well. January and February were great months for 27-year-old rapper, dancer, and performance

Read More »

Speak with a local expert now.

Learn more about this recent happening by speaking with an agent.