As the economic impacts of COVID-19 continues to trouble the hospitality industry, hotel groups, tourism companies and airlines have been opting to furlough staff, reduce pay and enact various other cost-costing measures. According to GlobalData associate analyst Rheanna Norris, hotel group Marriott International is in a good position to survive the pandemic.
Norris commented: “Marriott is in the fortunate position of having large cash reserves and has just under 50% of its $4.5bn revolving credit facility left to tap into. This is a huge advantage for Marriott as it attempts to overcome the inevitable financial hardship caused by COVID-19.”
Norris added that the group’s strong international brand image, which across 130 countries, will work in its favour to enable loyal customers to return to its hotels once the world recovers. She said that the market power of Marriott puts it above of its competition in terms of coping with coronavirus.Norris concluded: “It has been predicted by Marriott’s CEO that the impact of COVID-19 on the travel and tourism industry will be worse than 9/11 and the 2008 recession combined. However, the hotel industry has advanced since these times, with technologies and tools in place to adapt to external impacts.”