Skip to main content

Marriott Posts Third-Quarter Revenue Beat as Post-COVID Travel Picks Up

Marriott posts third-quarter revenue that beats analysts' forecasts as business and leisure travel continue to pick up, despite an uptick in Delta variant COVID cases.

Marriott International  (MAR) - Get Marriott International, Inc. Class A Report on Wednesday posted stronger third-quarter earnings vs. a year ago and revenue that beat forecasts as both business and leisure travel continued to pick up, despite an uptick in COVID cases related to the Delta variant.

The Bethesda, Md.-based hotel and resort operator posted adjusted net income of $327 million, or 99 cents an adjusted share, vs. adjusted income of $44 million, or 13 cent a share, in the comparable year-earlier period. Analysts polled by FactSet had been expecting earnings of 99 cents a share.

Revenue came in at the $3.95 billion, up 755 from $2.25 billion a year earlier and ahead of analysts’ forecasts of $3.7 billion. Adjusted earnings before income, taxes, depreciation and amortization (EBITDA) totalled $683 million in the third quarter, up from $327 million in the same period a year ago.

"We were pleased to see continued meaningful improvement in global trends in the third quarter, despite the impact of the Delta variant during the second half of the quarter,” Marriott CEO Anthony Capuano said in a statement, adding that third-quarter occupancy topped 58%, “…driven largely by continued strength in leisure demand.”

TheStreet Recommends

"Globally, leisure travel generally remained very strong throughout the quarter, while the Delta variant had the most impact on business transient demand,” added Capuano. “With the worst of the Delta variant wave now hopefully behind us, business transient demand picked up again in October, a trend we expect to continue.”

The operator of Marriott, Sheraton, Ritz-Carleton and Westin hotels and resorts added approximately 17,500 rooms globally during the third quarter, including approximately 8,500 rooms in international markets and a total of more than 2,200 conversion rooms.

At quarter end, Marriott's worldwide development pipeline totaled 2,769 properties and nearly 477,000 rooms, including roughly 25,000 rooms approved but not yet subject to signed contracts. More than 206,000 rooms in the pipeline were under construction as of the end of the 2021 third quarter, Marriott said.

At last check, shares of Marriott were up 2.54% at $164.12. Year to date the stock is up 31.54%.