Marriott International’s CEO, Anthony Capuano, emphasized the significance of groups in the company’s business during the second-quarter earnings call. According to Capuano, groups accounted for 24% of the company’s worldwide room nights for the quarter. Furthermore, revenue per available room (RevPAR) increased by 10% for groups compared to the previous year.
Capuano mentioned that Marriott anticipates a slight pullback in group business during the fourth quarter due to the U.S. presidential election. Based on past election cycles, there tends to be a decrease in group bookings around the week of the election. This time, however, the impact is expected to extend to the week following the election as well.
Apart from groups, both the business and leisure segments also experienced growth during the quarter. Business RevPAR saw a 4% increase, while leisure RevPAR rose by 2%. Capuano highlighted the significant growth in business demand from small and medium-sized companies over the past few years, constituting nearly 55% of Marriott’s total business room nights.
Innovative Initiatives
Marriott introduced a new travel management platform called Business Access by Marriott Bonvoy in July, catering specifically to small businesses. This initiative aims to enhance the overall experience for business travelers and further establish Marriott as a preferred choice for corporate bookings.
Financial Performance
The hotel occupancy rate for Marriott increased by 1.7 percentage points to 71.1% during the quarter, while the average daily rate (ADR) also saw a rise of 2.4%, reaching approximately $211. Furthermore, the company reported a second-quarter net income of $772 million, an improvement from $726 million in the previous year. The total revenue for the quarter stood at approximately $6.4 billion, up from $6 billion in the same period last year.
Marriott International’s CEO Anthony Capuano acknowledged the strength of the group business and highlighted the growth in both business and leisure segments. The company’s focus on innovative initiatives and strategic partnerships are expected to drive continued success and profitability in the future.
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