Marriott International (MAR) - Get Report on Monday reported first-quarter earnings fell, missing Wall Street's expectations, as the hotel-chain operator struggled under the crushing weight of the coronavirus pandemic.
Shares of the Bethesda, Md., company, which also owns the Ritz-Carlton and St. Regis luxury hotel brands, at last check were off 3.1% to $84.50.
Marriott, like all the other major travel-related companies, has been hammered by the coronavirus as potential travelers have stayed home.
Marriott International reported net income of $31 million, or 9 cents a share, down from $375 million, or $1.09, in the year-earlier quarter. Adjusted earnings per share came to 26 cents, missing FactSet's consensus forecast of 87 cents.
The company said the results included guarantee reserves of $148 million, as well as impairment charges and bad-debt expenses.
Revenue totaled $4.68 billion, down 7% from a year ago but coming in ahead of FactSet's call of $4.14 billion.
Revenue per available room, or RevPAR, fell 22.5%, after increasing 3.2% for the first two months of the quarter.
As the pandemic moved around the world, the company said, global RevPAR fell sharply, about 90% in April. Currently, roughly a quarter of the company's worldwide hotels are closed.
Marriott said occupancy in North America has improved to about 20% over the past two weeks. The company said it couldn't provide a financial outlook given the uncertainty over the impact of the pandemic
Occupancy in Greater China reached 25% in April, up from less than 10% in mid-February 2020.
Marriott said it cannot estimate the financial impact of the pandemic but expects it "will continue to be material to the company's results."