Marriot shares slide on delayed opening of some properties in China – Reuters

Nov 3 (Reuters) – Marriott International Inc ( MAR. O) stated on Thursday China’s rigorous COVID-19 policies were postponing openings of some residential or commercial properties in the nation, a crucial market for hotel operators, where pandemic healing has actually been unequal compared to United States.

” The market in China is most definitely where we’re seeing the most obstacles,” Chief Executive Anthony Capuano stated throughout an expert call.

Shares of the Sheraton-owner fell as much as 6% in early morning trade. Earnings per offered space (RevPAR) from Greater China was $6406 in 2021 company-wide, behind U.S. & & Canada and Middle East & & Africa.

U.S. business have actually had a bumpy ride in handling China’s zero-COVID policy this year, with some business such as Tesla ( TSLA.O) keeping employees separated to keep factories running. Those associated with the realty sector have actually likewise needed to handle a residential or commercial property crisis.

About 60% of Marriott’s tasks in the pipeline in China remain in the high-end and upper high end tier, which are considerable cash generators, Capuano stated.

The business, nevertheless, continued to gain from strong travel need in other places regardless of financial headwinds, with Marriott joining its competing Hilton Worldwide Holdings Inc ( HLT.N) in raising its yearly earnings projection on Thursday.

” Looking forward we anticipate that the economic crisis will silence, however not thwart, development in the U.S. hotel market. This may, in truth, be the very first economic crisis where GDP decreases while RevPAR continues to grow,” stated Jan Freitag, CoStar Group’s nationwide director of hospitality analytics.

Marriott now anticipates 2022 adjusted revenue per share of in between $6.51 and $6.58, compared to its previous projection of $6.33 to $6.59 per share.

For the quarter through September, Marriott published a 36.3% increase in RevPAR at $12060, compared to a year previously on a continuous currency basis.

Its profits increased almost 35% to $5.31 billion, falling somewhat except experts’ typical price quote of $5.34 billion, based on Refinitiv information.

Adjusted earnings per share was $1.69, one cent above expectations.

( This story has actually been fixed to state “one”, not “when” in last paragraph)

Reporting by Priyamvada C in Bengaluru; Editing by Saumyadeb Chakrabarty, Milla Nissi and Shailesh Kuber

Our Standards: The Thomson Reuters Trust Principles.


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