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Marriott Drops as Adjusted Profit Beats, Revenue Falls Short

Marriott swung to a first-quarter net loss but reported adjusted earnings ahead of analyst estimates. The stock is lower.
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Shares of Marriott International  (MAR)  slipped after the hotel operator reported mixed first-quarter results, weighed down by the COVID-19 pandemic and lack of travel. 

"We were pleased to see demand improve meaningfully during the first quarter," Chief Executive Tony Capuano said in a statement. 

"We are welcoming more and more guests to our hotels as consumers are traveling again once they feel it is safe." 

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The Bethesda, Md., company swung to a first-quarter net loss of $11 million, or 3 cents a share. On an adjusted basis the company reported profit of 10 cents a share. Revenue fell 51% to $2.32 billion.

Analysts surveyed by FactSet were expecting GAAP earnings of 3 cents a share, or adjusted earnings of 4 cents, on revenue of $2.38 billion.

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The company says that recovery trajectories have been strongest in mainland China, where occupancy is near pre-pandemic levels. 

Occupancy in the country has reached 66%,nearly the same as it was in March 2019, with demand strong from both leisure and business travelers, the company said. 

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Marriott reported net debt of $9.6 billion at the end of the quarter, which is about on par with the $9.5 billion in debt the company held at the end of 2020.

"As vaccines roll out around the world and government restrictions ease, I am optimistic that demand will continue to strengthen," Capuano said. 

"We have seen signs that there is a significant amount of pent-up demand, regardless of trip purpose, and we look forward to welcoming travelers in increasing numbers." 

Shares of Marriott at last check were off 2.9% at $142.41.