Marriott International has reported a strong second quarter with RevPAR increases across the board and an improved performance in the recently reopened market of China.
“With continued momentum in demand for global travel, we posted another quarter of outstanding results,” said Marriott International President and Chief Executive Officer, Anthony Capuano.
“Second quarter worldwide RevPAR increased 13.5%, aided by significant growth in all of our international regions, where RevPAR rose 39%. Greater China rebounded quickly once travel restrictions were lifted in January, with second quarter RevPAR surpassing pre-pandemic levels.”
In the US and Canada, RevPAR was up 6%, with many urban markets showing impressive growth in the second quarter.
“Within customer segments, group once again performed extremely well, with revenue rising 10% above 2022,” Capuano said of the US and Canada.
“Business transient revenue also saw strong year-over-year growth, driven by solid average daily rate growth. Leisure transient revenue rose as well, albeit more slowly, as more travellers from the region chose to visit overseas destinations,” he added.
At the end of the quarter, Marriott’s worldwide development pipeline totalled more than 3,100 properties and nearly 547,000 rooms.
More than 240,000 rooms in the pipeline, including approximately 37,000 rooms related to a recent deal with MGM Resorts International, were under construction as of the end of the second quarter.
“Just a few weeks ago, we announced our long-term strategic licensing agreement with MGM Resorts International and the creation of MGM Collection with Marriott Bonvoy,” Capuano said.
“This transaction is consistent with our strategy to pursue deals that meet customer needs, increase our distribution, and enhance the value of Marriott Bonvoy, our powerful loyalty platform.
“We are excited to have 17 iconic MGM Resorts properties available on our robust digital channels beginning later this fall and to dramatically increase our footprint in Las Vegas, an important, high-barrier-to-entry US market. With this deal, our 2023 full year net rooms growth expectation is now 6.4% to 6.7%.”
Capuano remained confident in solid booking trends even with the possibility that conditions could change rapidly.
“We are raising our full year rooms growth and earnings guidance and now expect to return $4.1 billion to $4.5 billion to shareholders in 2023,” he added.