Marriott’s Hotel Momentum Faces Drag From Slowdown in China and U.S. Election
Photo Credit: The garden outside Al Bustan Palace, a Ritz-Carlton Hotel, in Oman. Marriott International
Skift Take
Despite strong performance elsewhere, weakness in Greater China — Marriott's second-largest market outside the U.S. — has led to a slight downward revision in the company's full-year RevPAR growth forecast.
Marriott International signaled confidence in continued growth on Wednesday, forecasting a strong overall global performance for the year despite noting some storm clouds on the horizon.
Executives highlighted a softening in China, rising caution by travelers in spending, and more-than-expected bookings weakness in November around the U.S. presidential election as developments they're watching.
The world's largest hotel operator said it expected its revenue per available room (RevPAR), a key sector metric, to grow between 3% and 4% this year. That represented a lowering of the top end from 5%, which had been the forecast in May.
Executives on an earnings call blamed the adjustment in outlook on greater-than-expected weakness in China. China's RevPAR fell 4% year-over-year in the quarter.
The company also said that group bookings for the first half of November faced headwinds because of the U.S. presidential election. They also noted some tren
