Marriott International closes 25% of its hotels

Marriott International reported that about a quarter of its hotels worldwide are closed as a result of the COVID-19 pandemic.

In the first quarter of 2020, the company recorded a year-on-year drop of 6.6% in revenue, to $ 4.681 billion.

At the same time, Marriott International made a net profit of $ 31 million, while in the first quarter of 2019 it was $ 375 million.

“In the past few months, we have seen the impact of COVID-19 spread throughout our business in an unprecedented way. The global RevPAR started the year with a strong growth rate of 4.6 percent for January, excluding Greater China, where COVID-19 was already impacting the results, “said Arne M. Sorenson, president and CEO of Marriott International.

RevPAR is the most important meter used in the hotel industry to assess the financial performance of an establishment or a chain. It is an abbreviation of English Revenue Per Available Room, income per available room.

“During the first two months of the year, the global RevPAR grew 3.2 percent, excluding the Asia Pacific region. As the pandemic moved around the world, we saw that the global RevPAR fell sharply and, in April, the global RevPAR decreased by approximately 90, ”he added.

Marriott International and its assets

The company added 88 new properties (14,525 rooms) to its global accommodation portfolio during the first quarter of 2020, including nearly 2,100 rooms converted from competing brands and approximately 7,200 rooms in international markets.

Eighteen properties (3,670 rooms) left the system during the quarter.

At the end of the quarter, Marriott International’s global accommodation system totaled more than 7,400 timeshare properties and complexes, with nearly 1,392,000 rooms.

At the end of the quarter, the company’s global development portfolio totaled 3,035 properties with nearly 516,000 rooms, including 1,238 properties with more than 230,000 rooms under construction and 149 properties with more than 24,000 rooms approved for development, but not yet subject to signed contracts.