Marriott International has reported that the second quarter of 2023 saw RevPAR increases across various areas and an improvement in the performance of the properties in the company’s China portfolio.
Marriott International President and Chief Executive Officer, Anthony Capuano, said that with continued momentum in demand for global travel, the company chose to release its results.
“Second quarter worldwide RevPAR increased 13.5 percent, aided by significant growth in all of our international regions, where RevPAR rose 39 percent. Greater China rebounded quickly once travel restrictions were lifted in January, with second-quarter RevPAR surpassing pre-pandemic levels,” said Capuano.
RevPAR (revenue per available room) was up by six percent in the United States and Canada, with impressive growth in the second quarter from urban markets. Revenue in the United States and Canada was also up by ten percent.
Capuano said that business transient revenue has also seen strong year-on-year growth driven by daily rate growth. Leisure transient revenue also rose, although at a slower pace, as more travellers from the region chose international destinations to visit.
Marriott’s worldwide development pipeline has totalled more than 3,1000 properties by the end of the second quarter, almost 547,000 rooms. More than 240,000 rooms are in the pipeline, as well as 37,000 rooms in a recent deal with MGM Resorts International, which had commenced by the end of the second quarter of 2023.
The recent partnership with MGM Resorts International resulted in the creation of the MGM Collection with Marriott Bonvoy. This transaction is consistent with Marriott’s strategy to pursue deals that can assist with customers’ needs, as well as increase its distribution and enhance the value of its loyalty programme.
Capuano stated that the company was excited to have 17 iconic MGM Resorts properties available on Marriott's robust digital channels, which will begin later in 2023. This deal will also dramatically increase Marriott’s presence in Las Vegas, an important venture and entry to the United States hotel and hospitality market. After the full 2023 financial year, net room growth is expected to be between 6.4 to 6.7 percent. Capuano said that solid booking trends would continue, even with the possibility that conditions could change in an instant.
“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.”
