Marriott Rides China and U.S. Travel Strength to $422 Million Profit
Photo Credit: Marriott vaulted into profitability thanks to strong domestic travel demand in China and the U.S. Wikimedia / Tyler Vigen
Skift Take
Hotels are not out of the woods yet. Marriott notched the best financial showing of hotel earnings season so far, but the Delta variant threatens the recovery everywhere — even in China, the company’s best-performing major market last quarter.
The travel recovery delivered a major financial win to the world’s largest hotel company.
Marriott International’s $422 million second quarter profit was the best showing by a major hotel company so far during the industry’s earnings cycle, vaulting over Paris-based Accor’s $67 million and Hilton’s $128 million profits reported last week. A fully recovered at-times China portfolio as well as strong leisure travel demand in the U.S. delivered Marriott its strong quarter.
There is a threat of looming setbacks amid outbreaks of the more contagious Delta variant of the coronavirus, but Marriott leaders generally expect the recovery momentum to continue through the end of the year.
“While we are keeping a close eye on variant strains, we're optimistic about the continued global recovery,” Leeny Oberg, Marriott’s chief financial officer, said Tuesday on a company investor call. “Our momentum has continued into July, and we expect an uptick in business travel this f
