Marriott hotel revenue surges: "The shift in spending towards experiences"
The world’s largest hotel company said it’s not noticing any signs of consumers balking at traveling despite concerns about the economy.
Driving the news: Marriott International posted a 70% year-over-year increase in second-quarter revenue to $5.34 billion as people grew more comfortable traveling during the pandemic.
- “While we are closely monitoring consumer and macroeconomic trends, we have yet to see signs of a slowdown in global lodging demand,” Marriott CEO Anthony Capuano said on a conference call, pointing to pentup demand and “the shift of spending towards experiences versus goods” as drivers of the company’s surging finances.
Yes, but: Marriott’s high-end chains are bouncing back faster than its limited-service brands.
- The company’s luxury hotels in the U.S. and Canada (including the Ritz-Carlton and J.W. Marriott) recorded a 76.2% increase in revenue per available room on a constant-currency basis, while its U.S.-and-Canada premium hotels (including Sheraton and Westin) were up 146.7%.
- Limited service hotels (such as the Courtyard and Residence Inn brands) trailed the others with an increase of 63.3%.
The bottom line: What we’re not spending on stuff we’re spending on fun.