Marriott So Far Feeling Immune to a Downturn
Photo Caption: In July, The Ritz-Carlton New York, NoMad debuted in Manhattan 50 stories above the North of Madison Square Park district. Source: Marriott International.
Skift Take
Reading between the lines, Marriott International executives suggested that their company has so many strong fundamentals that it could shrug off choppy economic waters for the rest of the year.
Hoteliers have recently sounded relaxed about any impact of inflation and a possible recession on their industry, and Marriott International executives were no exception when the company reported second-quarter results it called "outstanding" on Tuesday.
Marriott generated $678 million in net income — a measure of profit — off of $5.3 billion in revenue.
"We have yet to see signs of a slowdown in global lodging demand," said CEO Anthony Capuano. "We continue to see double-digit increases in the average daily rate for the Labor Day [September 5] holiday weekend relative to where we were pre-pandemic."
Investors are seeking recession indicators after an apparent second-quarter of contraction in the U.S. economy and stuttering economies in the European Union.
Yet the operator of brands ranging from Ritz Carlton to Courtyard said it hadn't yet encountered pockets of traveler resistance. Forward leisure bookings for holidays, such as Thanksg
