Marriott International reports strong third-quarter revenue
Marriott International, the world’s largest hotel chain, has raised its full-year profit forecast for the third time this year after it reported a 43.7% rise in third-quarter revenue.
The better-than-expected performance comes as more people booked its rooms, particularly business travellers.
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The company said that it expects comparable systemwide revenue per available room (RevPAR), a key metric which indicates a hotel’s financial health, to rise 2-3% this year, compared to its earlier forecast 1-3% increase.
Net income totalled US$413mn, a 460% increase over prior year results.
"The business related to the hurricane response increased North American lodging demand modestly in the third quarter, even as business transient and group demand was in line with expectations, said Arne M. Sorenson, president and CEO of Marriott International.
“Outside North America, strong leisure demand in Asia and Europe drove RevPAR above our guidance.”
The results come a year since Marriott International acquired Starwood Hotels and Resorts Worldwide, and this is largely responsible for the company rise in costs.
"It's been just over a year since the completion of the Starwood acquisition. We are pleased with our progress on the integration," added Sorenson.
The hotel giant added nearly 22,800 rooms during the third quarter, including more than 3,600 rooms converted from competitor brands and roughly 8,000 rooms in international markets.
In an exclusive interview with Supply Chain Digital, Stéphane Masson, Senior VP of Global Procurement at Marriott International, also outlined how the company has honed its supply chain to become a market-leading name in the hospitality sector.
“We’re always looking at how we can be “greener” within our supply chain,” Masson says. “Part of our e-procurement tool is allowing the hotels to identify which products are the ‘greenest’ products coming from diverse vendors. So it’s not just about finding the right product with the right vendor, but how we can educate and keep our hotels informed about what are the right products for their businesses. That’s why we are a step ahead.”
“This is an exciting time for our organisation," she adds. "We’re leading the hospitality market today, and we’re glad to be going through these acquisitions and mergers. Again, my team has done something that’s never been done before, and I am very proud of everything we’ve done so far.”
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