Skift Take
If Accor can go from billion-dollar losses to profitability in a matter of months, Marriott shareholders should anticipate plenty of financial gains and optimism on Tuesday’s earnings call.
Cameron Sperance
The world’s largest hotel company is likely to beat its monetary chest today with possesses success and development. Each of the three major hotel companies to report earnings last week published a profit, an impressive task considering Accor lost approximately $2 billion in 2015. Business like Marriott, Hyatt, Option Hotels, and MGM Resorts International are up today– however Marriott will be a major sign of how the wider hotel market is performing offered its 30 brands across a variety of cost points. Don’t expect any summer season doldrums. “The bottled-up need and the strength of the economy plainly shows that consumers love to take a trip and they enjoy to come stay at our hotels,” Leeny Oberg, Marriott’s primary financial officer, told press reporters last week at the Americas Accommodations Investment Top. “We believed the momentum in [the 2nd quarter] was simply actually outstanding.” Oberg and other executives didn’t supply monetary specifics due to the peaceful duration leading up to today’s earnings call. However she did indicate STR information that revealed income per offered room– the market’s key performance metric– rising sharply over the last 3 months. The more than 71 percent typical tenancy recently in the U.S. was the greatest rate seen given that October of 2019, STR reported. That need to give a significant hint to expect a financial success for Marriott this week. Hilton’s $128 million 2nd quarter revenue was the very first time the company was in the black considering that the beginning of the pandemic. Marriott was able to notch a $100 million profit in the 3rd quarter of in 2015 due in part to its substantial expense savings strategies. A profit this week would mostly come from the business’s leisure development, which Oberg said was underway even before the pandemic. “Leisure has