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Marriott posts bigger-than-expected loss as virus hits bookings
[NEW YORK] US hotel operator Marriott International posted a bigger-than-expected quarterly loss on Monday, as the coronavirus pandemic curbed global travel and led to a plunge in room bookings.
Marriott's shares, down 40.3 per cent this year, fell 3.8 per cent in premarket trading as the company also reported an 84.4 per cent plunge in revenue per available room (RevPAR) - a key performance measure for the hotel industry.
However, Marriott said it now expects a gradual rise in occupancy rates across the world although it may be a few years before it sees a return to pre-Covid period demand levels, echoing smaller rival Hilton's comments from last week.
"While our business continues to be profoundly impacted by Covid-19, we are seeing steady signs of demand returning", Marriott Chief Executive Officer Arne Sorenson said in a statement.
For the full year, the company currently estimates rooms could grow by 2 to 3 per cent.
The company's loss attributable to stockholders was US$234 million, or 72 cents per share, in the second quarter ended June 30, compared with net income of US$232 million, or 69 cents per share, a year earlier.
Marriott last reported a quarterly loss in the third quarter of 2011.
Total revenue plunged 72.4 per cent to US$1.46 billion.
On an adjusted basis, Marriott reported a loss of US$0.64 per share.
Analysts on average had estimated revenue of US$1.68 billion and loss of US$0.42 per share for the quarter, according to Refinitiv IBES data.