Coming off a strong 2019, the pandemic has undone much of Marriott’s growth, with Q2 2019’s net income of US$232 million turning into a $234 million net loss in this year’s quarter. Adjusted, losses totalled $210 million compared to 2019’s income of $525 million.In the quarter, worldwide RevPAR declined 84.4, with North American RevPAR declining 83.6 percent and international RevPAR falling 86.7 percent.
Despite colossal losses, Marriot’s president and CEO, Arne M. Sorenson has said the group has been gradually improving since April.“While our business continues to be profoundly impacted by COVID-19, we are seeing steady signs of demand returning. Worldwide RevPAR has climbed steadily since its low point of down 90 percent for the month of April, to a decline of 70 percent for the month of July. Worldwide occupancy rates, which bottomed at 11 percent for the week ended April 11, have improved each week, reaching nearly 34 percent for the week ended August 1. Currently, 91 percent of our worldwide hotels are now open compared to 74 percent in April, and 96 percent are open today in North America.”
The company’s net liquidity was approximately $4.4 billion by the end of the second quarter, representing $2.3 billion in cash and cash equivalents, and $2.9 billion of unused borrowing capacity under its revolving credit facility, less $0.8 billion of commercial paper outstanding.Sorenson added: “Over the last few months, we have moved quickly and decisively to mitigate the impact of COVID-19 on our business. We have implemented measures to help our owners manage through the crisis and strengthened our financial position by increasing our liquidity, extending our average debt maturity, and reducing our cash outlays significantly.”
Marriott’s pipeline has remained strong throughout the pandemic, with 2,997 properties or 510,000 keys in the works, 45 percent of which are under construction.“While the full recovery from COVID-19 will clearly take time, the current trends we are seeing reinforce our view that when people feel safe travelling, demand returns quickly. My thoughts continue to be with all who have been impacted by the pandemic,” concluded Sorenson.