Marriott Worldwide has reported an adjusted web earnings of $20 million for the third quarter as the corporate continues to battle again from the influence of Covid-19 world wide.
The determine compares to an adjusted web earnings of $488 million in the identical interval final 12 months.
Adjusted EBITDA totalled $327 million within the 2020 third quarter, in comparison with a 3rd quarter determine of $901 million in 2019.
Comparable systemwide fixed greenback RevPAR declined 66 per cent worldwide over the interval – down 65 per cent in North America and 67 per cent exterior North America – when in comparison with the 2019 third quarter.
Nonetheless, the corporate added greater than 19,000 rooms globally in the course of the third quarter, together with roughly 1,400 rooms transformed from competitor manufacturers and roughly 7,600 rooms in worldwide markets.
Arne Sorenson, president and chief government officer of Marriott Worldwide, stated: “Whereas Covid-19 remains to be considerably impacting our enterprise, our outcomes for the third quarter confirmed continued enchancment in demand tendencies world wide.
“Worldwide RevPAR declined 66 per cent within the quarter, a virtually 19-percentage level enchancment from the decline within the second quarter.
“Better China continues to guide the restoration and demonstrates the resiliency of journey demand, with third quarter occupancy of 61 per cent and RevPAR recovering to down 26 per cent, a 35-percentage level enchancment in comparison with the decline within the second quarter.
“Third quarter occupancy at our lodges in North America reached 37 per cent, practically double occupancy within the second quarter, primarily pushed by leisure, drive-to demand, with enterprise and group recovering extra slowly.
“Globally, 94 p.c of our lodges at the moment are open and welcoming company.”
As of the top of the third quarter, web liquidity at Marriott totalled roughly $5.1 billion, representing roughly $1.5 billion in obtainable money balances, and $3.6 billion of unused borrowing capability underneath a revolving credit score facility.
The corporate had much less $30 million of economic paper excellent.
Sorensen added: “Though the timing of a full restoration stays unpredictable, we’re happy with the numerous progress we now have made in restructuring and repositioning the corporate to efficiently handle via these difficult occasions.
“Financially, we now have strengthened our liquidity place, realigned our value construction, and minimized our money burn.
“We now have additionally remained keenly targeted on working with our resort house owners and franchisees to considerably scale back resort stage prices and assist protect money on this extraordinarily low income setting.
“Operationally, we now have elevated our well being and cleanliness requirements to determine belief and credibility with travellers and to boost the security and wellbeing of our associates and company.”
