What Happened
Shares of Marriott International (MAR -0.87%) were on the rise on Tuesday, up 4.38% to $150.92 at the closing bell. It was a good day on the markets overall, as the Dow Jones Industrial Average was up 754 points, or 2.43%, while the S&P 500 finished up 105 points, or 2.76%, on the day.
Marriott's jump was due to several factors, but perhaps most notably, it spiked on a very positive industry report.
So what
Smith Travel Research, which is the primary data source for hotel industry trends, released its monthly hotel performance report for June on Tuesday, and it was a doozy.
In June, the hotel industry reported its highest monthly room rates on record, with the average daily rate (ADR) at $155.04, up 15.3% over June 2019 (pre-pandemic). Meanwhile, revenue per available room (RevPAR) also hit a record at $108.64 -- a 10.3% increase over June 2019.
Occupancy rates, however, were down slightly, about 4.3% compared to June 2019 but are still a robust 70.1%.
Marriott also made some of its own news as it announced that it was going to open five new hotels in Jharkhand and West Bengal, India through an agreement with hotel owner Beekay Group.
Marriott was not the only hotel stock up Tuesday as Hyatt Hotels, Hilton Worldwide Holdings, and InterContinental Hotels Group, among others, were all up similarly.
Now what
Marriott and the other hoteliers may have also gotten a bit of a bump from the news that the U.S. Centers for Disease Control and Prevention ended its COVID-19 program for cruise ships, no longer requiring them to report cases. This sent cruise ship stocks higher Tuesday, but good news for the travel industry is good news for hotels.
Up next for Marriott is its second-quarter earnings report, which comes out Aug. 2. Given the surge in travel from pent-up demand and the rising room rates, it could be a good quarter for the hotelier.
