Marriott International reported its second-quarter 2020 results, which were dramatically impacted by the COVID-19 global pandemic and efforts to contain it (COVID-19).
Second-quarter 2020 comparable systemwide constant dollar RevPAR declined 84.4 per cent worldwide, 83.6 per cent in North America and 86.7 per cent outside North America;
Second-quarter reported diluted loss per share totalled $0.72, compared to reported diluted EPS of $0.69 in the year-ago quarter. Second-quarter adjusted diluted loss per share totalled $0.64, compared to second quarter 2019 adjusted diluted EPS of $1.56. Second-quarter 2020 impairment charges and bad debt expense related to COVID-19 impacted reported and adjusted diluted loss per share by $0.19 and $0.17, respectively;
Second-quarter reported net loss totalled $234 million, compared to reported net income of $232 million in the year-ago quarter. Second-quarter adjusted net loss totalled $210 million, compared to second quarter 2019 adjusted net income of $525 million. Second-quarter 2020 impairment charges and bad debt expense related to COVID-19 impacted reported and adjusted net loss by $61 million after-tax and $54 million after-tax, respectively;
Adjusted EBITDA totalled $61 million in the 2020 second quarter, compared to second quarter 2019 adjusted EBITDA of $952 million. Second-quarter 2020 adjusted EBITDA included $36 million of bad debt expense related to COVID-19;
Arne M. Sorenson, President and CEO, Marriott International, said, “While our business continues to be profoundly impacted by COVID-19, we are seeing steady signs of demand returning. Worldwide RevPAR has climbed steadily since its low point of down 90 per cent for the month of April, to a decline of 70 per cent for the month of July. Worldwide occupancy rates, which bottomed at 11 per cent for the week ended April 11, have improved each week, reaching nearly 34 per cent for the week ended August 1. Currently, 91 per cent of our worldwide hotels are now open compared to 74 per cent in April, and 96 per cent are open today in North America.
“Greater China continues to lead the recovery. As of early May, all our hotels in the region are open, and occupancy levels are now reaching 60 per cent, compared to 70 per cent the same time last year, and a marked improvement from single-digit levels in February. While Greater China’s recovery was originally led by demand from leisure travellers, particularly in resorts and drive-to destinations, we are now seeing more widespread business demand, including some group activity.
“The improvement we have seen in Greater China exemplifies the resilience of travel demand once there is a view that the virus is under control and travel restrictions have eased. Our other regions around the world have also experienced steady improvements in demand and RevPAR over the last couple of months, though the pace varies and tends to be slower in regions that depend more on international travellers.
“While the full recovery from COVID-19 will clearly take time, the current trends we are seeing reinforce our view that when people feel safe travelling, demand returns quickly. My thoughts continue to be with all who have been impacted by the pandemic.”