Marriott International’s CEO, Anthony Capuano, highlighted the significance of groups in the hotel company’s business during the second-quarter earnings call. He mentioned that groups accounted for 24% of the company’s worldwide room nights for the quarter, with revenue per available room (RevPAR) for groups experiencing a 10% increase from the previous year. This demonstrates the strong performance of the group business within Marriott International.
Impact of U.S. Presidential Election
Despite the positive outlook for group business, Capuano noted that there might be some pullback in the fourth quarter due to the U.S. presidential election. Historical data shows that there is typically a slight softness in group bookings during election weeks, and this year is no different. The unique attributes of this particular election cycle have caused this trend to extend into the week following the election as well.
In addition to the success of group business, the business and leisure segments also showed positive growth in the second quarter. Business RevPAR increased by 4%, while leisure RevPAR saw a 2% rise. Capuano highlighted the significant growth in business demand from small and medium-sized companies, now accounting for nearly 55% of Marriott’s total business room nights. The recent launch of Business Access by Marriott Bonvoy further solidifies Marriott’s commitment to serving business travelers.
Marriott International’s hotel occupancy for the quarter increased by 1.7 percentage points to reach 71.1%, while the average daily rate (ADR) rose by 2.4% to approximately $211. The company reported a second-quarter net income of $772 million, up from $726 million in the previous year, with revenue totaling around $6.4 billion. These positive financial results reflect Marriott’s strong performance and growth trajectory in the hospitality industry.
Marriott International’s group business continues to lead the way in driving revenue and growth for the company. Despite potential challenges related to the U.S. presidential election, the overall outlook for Marriott International remains positive. With a focus on innovation and meeting the evolving needs of business and leisure travelers, Marriott International is well-positioned for continued success in the future.