Marriott Profit Plunges 92% as Bookings, Revenue per Room Fall Precipitously

Marriott International announced financial results for first quarter of 2020.

The hotelier reported that bookings plunged as the result of coronavirus-led government lockdowns that closed 25% of its properties.

“As the pandemic moved around the world, we saw global RevPAR fall sharply,” said Arne Sorensen, the company’s CEO, who added that, in April, worldwide RevPAR declined approximately 90%.

“These are extremely challenging times, but I am confident that we will be able to successfully navigate through them,” he said.

Net income slumped to $31 million in the first quarter, from $375 million, while revenue fell 7% to $4.68 billion.

The company reported a 22.5% decline in revenue per available room to $84.51 from the same period in 2019.

The company said that the results “were dramatically impacted by the Covd-19 global pandemic and efforts to contain it.”

The hotel chain’s global pipeline remains strong, however, with 3,050 hotels and about 516,000 rooms, of which 230,000 were under construction as of the end of the first quarter.

(Photo: Accura Media Group)