China business travel returns for Marriott, revenue tumbles
Marriott has reopened 91% of its hotels globally as business travel reemerges in China and worldwide occupancy, which tumbled to 11% in April, reached 34%.
The company reported quarterly profits on Monday that fell far short of expectations, however, and revenue plunged.
Shares dipped about 3% before the opening bell.
In China, where business travel and even some group events resumed, occupancy levels reached 60%, about 10% lower than the same period last year, Marriott said.
“The improvement we have seen in greater China exemplifies the resilience of travel demand once there is a view that the virus is under control and travel restrictions have eased,” CEO Arne Sorenson said in a prepared statement.
Marriott had a net loss of $234 million for the second quarter after a $232 million profit in the April-June period last year. Adjusted for one-time items, Marriott lost 64 cents per share, far worse than the loss of 41 cents that Wall Street had expected, according to a survey by FactSet.
Revenue plunged 72% to $1.5 billion, just shy of analyst projections.