Marriott (MAR) - Get Marriott International, Inc. (MAR) Report reported second-quarter results that came up short of expectations, as coronavirus hammered the hotel industry, but the chain is seeing signs of renewing demand.
Marriott swung to an adjusted loss of $234 million, or 64 cents a share, as revenue fell 72% to $1.46 billion.
Analysts polled by FactSet were expecting a loss of 41 cents a share on revenue of $1.68 billion.
"While our business continues to be profoundly impacted by covid-19, we are seeing steady signs of demand returning," Chief Executive Arne Sorenson said in a statement.
"Worldwide revenue per available room has climbed steadily since its low point of down 90% for the month of April, to a decline of 70% for the month of July."
The company reported that 91% of its hotels globally are open compared with 74% in April. About 96% of its North America hotels are now open.
China has seen the biggest recovery from coronavirus lockdowns. All of Marriott's hotels in the greater China region are open, with occupancy levels approaching 60%.
"While the full recovery from covid-19 will clearly take time, the current trends we are seeing reinforce our view that when people feel safe traveling, demand returns quickly," Sorenson said.
"My thoughts continue to be with all who have been impacted by the pandemic."
Marriott says that its development pipeline included 510,000 rooms, with more than 230,000 of them under construction.
Marriott ended the quarter with $4.4 billion of net liquidity, composed of $2.3 billion of cash and equivalents plus $2.9 billion unused on its revolving-credit line, minus $800 million of commercial paper outstanding.
Marriott shares fell as much as 3% premarket. At last check they were up 0.2% at $93.97.