Marriott International reported a rise in quarterly profit on Thursday, as the US hotel operator benefited from higher room prices and resilient travel demand.
Hotel operators have benefited in the last few months from a recovery in international travel as consumers took advantage of a strong dollar and flexible work arrangements to vacation overseas.
Travel Recovers
"Both occupancy and rate contributed to global revenue per available room (RevPar) gains in the third quarter, and cross-border travel continued to rise," Marriott's CEO Anthony Capuano said in the statement.
The Maryland-based hotel operator posted an 8.8% rise in RevPar, a key measure for hotels' top-line performance, for the quarter, compared to a year earlier on a constant currency basis.
International room revenue increased 22%, led by Asia-Pacific as cross-border travel continues to recover.
Bookings
Marriott, which owns hotels such as Sheraton, Westin and St. Regis, has also seen a steady uptick in bookings.
The company lifted its 2023 room revenue forecast for the second consecutive quarter to 14%-15% from 12%-14%, as demand for travel encouraged hotel operators to implement price hikes in the past year.
Marriott's net income was $752 million, or $2.51 per share, in the quarter through September, compared with $630 million, or $1.94 per share, a year earlier.
Estimates
The company's revenue rose 12% to $5.93 billion, ahead of the analysts' average estimate of $5.89 billion, according to LSEG data. Its adjusted profit per share of $2.11 was in line with estimates.
The Sheraton operator — shares of which were down 2.8% at $183.50 in premarket trading — cut its annual net rooms growth forecast to between 4.2% and 4.5%, compared to the earlier projection of 6.4% to 6.7%.
Last week, rival hotel operator Hilton Worldwide Holdings beat third-quarter revenue estimates and lifted its annual forecast.
