Marriott announces Q2 financial report: the first quarterly loss of the world's largest hotel group in 9 years

Global Travel News On the evening of August 10, Beijing time, Marriott released its second quarter financial report: the net loss was 234 million US dollars, and the global RevPAR decreased by 84.4% year-on-year.

Reuters reported that the epidemic caused the world's largest hotel chain Marriott to suffer its first quarterly loss in nearly nine years.

Arne M. Sorenson, president and CEO of Marriott, said that although Marriott's performance is still deeply affected by the epidemic, it has seen signs of demand recovery. The global RevPAR rebounded from the lowest point in April, falling by 90% year-on-year in April to 70% in July.

The occupancy rate gradually increased from 1 1% in the week of April to nearly 34% in the week of August.

Marriott predicts that the occupancy rate of its global hotels will gradually recover, but it will take several years to return to the pre-epidemic level. This judgment is similar to that of old rival Hilton. Hilton released Q2 financial report last week, and the hotel occupancy rate and RevPAR both increased month on month.

At present, 9 1% of Marriott global hotels have opened, and 74% of global hotels are still open in April.

Nevertheless, Sorensen revealed in an interview with Forbes in July that Marriott may lay off employees in the second half of this year, and it is not yet possible to predict how many employees will be affected.

operating characteristic

Marriott's total revenue in the second quarter was $65.438+$46.4 million, compared with $5.305 billion in the same period last year, down 72% year-on-year.

The total revenue in the first half of the year was US$ 66,5438+US$ 45 million, compared with US$ 654,38+US$ 0.036 and US$ 5438+US$ 70 million in the same period last year, down 40% year-on-year.

The operating loss in this quarter was $65.438+$54 million, while the operating profit in the same period last year was $409 million.

The net loss in the second quarter was $234 million, compared with a net profit of $232 million in the same period last year. The net loss in the first half of the year was $203 million, compared with a profit of $607 million in the same period last year.

After Q2 adjustment, EBITDA was $6,654.38 million+$0 billion, compared with $952 million in the same period last year, down 93.6% year-on-year.

In the second quarter, the comparable RevPAR of the whole system was US$ 65,438 +09. 1 1, down by 84.4% year-on-year, including 83.6% in North America and 86.7% in other regions.

In the second quarter, Marriott added 1. 1.4 million rooms worldwide, of which about 2,000 rooms were converted from competitive brand hotels, and the net number of rooms increased by 4. 1% year-on-year.

As of June 30th, Marriott has 7,484 hotels worldwide, with more than1.4000 rooms. Marriott has nearly 3,000 hotels and about 565,438+0,000 rooms around the world.

Marriott delayed the opening of some new hotels due to the COVID-19 epidemic, but it expects to open 70 to 80 new hotels in the Asia-Pacific region this year.

Greater China has the fastest recovery.

Sorensen said that Marriott Greater China recovered the fastest, and all hotels resumed business in early May. At present, the occupancy rate has reached 60%, compared with 70% in the same period last year; The occupancy rate in February this year was only single digits.

The recovery of Greater China was initially driven by leisure tourism, especially resorts and short-distance destinations that can be reached by car; Nowadays, the demand for tourism and group tourism in this area has also begun to increase.

Sorensen believes that the improvement of the Greater China market proves that once people see that the epidemic situation is under control and travel restrictions are lifted, the demand of the tourism market will regain its vitality.

What needs to be seen is that although the global market demand and RevPAR have improved in the past few months, the recovery situation in various places is not at the same level, and the market with high dependence on international tourists has a slow recovery.

In the second quarter, RevPAR in Greater China was $32.83, down 60.3% year-on-year; The occupancy rate was 35.5%, a year-on-year decrease of 32.2 percentage points; ADR was $92.39, a year-on-year decrease of 24.3%.

From the whole first half of the year, the RevPAR in Greater China was USD 365,438 +0.03, down 665,438+0.8% year-on-year; The occupancy rate was 30. 1%, a year-on-year decrease of 34.9 percentage points; The American Depositary Receipt was $65,438+002.92, down 65,438+07.5% year-on-year.

Craig S. Smith, president of Marriott International Asia Pacific, said in July that as far as the Asia Pacific region is concerned, it is expected to return to the pre-epidemic level next year, and the China market is expected to recover in the first quarter of 20021year, believing that Asia will lead the global recovery.

In May, more than 65,438+030 hotels under Marriott International were launched, offering high-end catering and take-out services in 49 cities across the country. As early as April, Marriott has already launched a monthly buffet breakfast card of 588 yuan in the 148 store, with an average of only 19 yuan for each meal.

By the end of the second quarter, Marriott still held about $4.4 billion in liquidity. The balance of cash and cash equivalents was $2.3 billion, and the unused line under revolving credit was $2.9 billion. In the same period, Marriott's total debt was $65,438+01800 million.

According to Reuters, Marriott expects that the consumption of funds will be slower than originally expected this year, because the booking volume has gradually recovered from the low point during the epidemic.

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