Hotel operator Marriott International (MAR -0.87%) reported continued declines in its business in the second quarter due to the COVID-19 pandemic. The company reported overall revenue down 72% for the period ending June 30, and revenue per available room (RevPAR) down 84.4% worldwide. This led to an adjusted quarterly loss of $210 million, or $0.64 per share, compared to average analyst estimates of a $0.41 loss per share.
The company said it is starting to see business improving, but president and chief executive officer Arne Sorenson said in a statement, "the full recovery from COVID-19 will clearly take time." He said worldwide RevPAR has climbed consistently from its low point in April to July.
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Sorenson said that the China region is leading the recovery in demand. It has had all hotels open in the region since early May, and occupancy rates of 60% are approaching the the prior year rate of 70%. Occupancy levels bottomed at single-digit levels in February. According to Sorenson, travel demand in the region first rebounded with leisure travelers, followed by business demand.
He said that while other regions around the world have shown improvement, the pace of recovery varies, and is slower in areas that rely on international travelers. Sorenson commented, "current trends we are seeing reinforce our view that when people feel safe traveling, demand returns quickly."
As of the end of the second quarter, Marriott had $2.3 billion in cash and equivalents, and net liquidity of about $4.4 billion.
