Marriott Hits Profit Setback Due to Delta Variant
Photo Credit: Marriott has reasons to brag about its third quarter financial performance, but the Delta variant impacted its profitability more than some of its competitors. Wikimedia / Raimond Spekking
Skift Take
It was still a strong quarter for Marriott, but the Delta variant weighed heavy on the company due to its greater exposure to China and reliance on big corporate travel contracts.
The world’s largest hotel company still has some of the best profits of any major hotel company this earnings season, but the Delta variant hindered its China recovery in the third quarter.
Marriott reported a $220 million profit for the third quarter, up from the $100 million profit seen during the same period last year but a drop from the $422 million profit seen in the second quarter of this year. That’s $20 million less than what Hilton, which has lagged Marriott for much of the pandemic, reported last week.
A leading factor behind the weaker showing stems from China’s zero-tolerance approach to relatively small outbreaks of new coronavirus cases. Analysts generally expected Marriott to face challenges this quarter due to its exposure in China.
But company leaders pointed to significant recoveries in other parts of the world and across many travel sectors as signals the company is still throttling toward a rebound.
“I firmly believe the long-term recovery is on track,” Marriott CEO Anthony Capuano said on a Wednesday call with investors and analysts. “I’m looking ahead with a
