Skift Take
Marriott's level of profitability is unheard of in the hotel industry at the moment, but some of the cost cutting that made it possible isn't permanent.
The world’s largest hotel company proved Friday major profits are possible, even in the depths of a global pandemic.
Marriott reported a $100 million third quarter profit at a time when competitors like Hyatt and Hilton are still losing money. Even companies like Choice Hotels and Wyndham, which were also profitable during the quarter, came nowhere close to Marriott’s haul.
Company leaders chalk up the financial success to a combination of significant cost cutting and brand diversity in strong markets. But there are still headwinds ahead in Marriott’s quest for a full financial recovery.
“While the recovery is going to take longer than anyone would like, we see encouraging signs demand can be resilient,” Marriott CEO Arne Sorenson said during an investor call Friday morning. “I am confident we are well-positioned for now and the future.”
The third quarter was one of significant performance rebuilding from the financial worst seen from the pandemic (so far) earlier this year. Occupancy in China, Marriott’s best-performing market at the moment, grew from 9 percent in February to 61 perce
