Marriott International’s reported RevPAR growth of 1.8% over 2019 figures in an “outstanding” third quarter for the company.
In the United States and Canada, Marriott’s largest region, RevPAR exceeded 2019 levels by 3.5% in the third quarter, while international markets fell 2.4%. Adjusted earnings before interest and taxes (EBIDTA) for the quarter totaled US$985 million.
“We are very pleased to report another quarter of exceptional results,” said Anthony Capuano, general manager of Marriott International.
“Global RevPAR more than fully recovered, increasing nearly 2% from 2019. In Q3, RevPAR vs. 2019 improved sequentially from Q2 across all regions globally. “
In the United States and Canada, the occupancy rate has increased this year, reaching 72% in September, only 2 percentage points behind September 2019.
Capuano pointed to leisure as a powerful driver of this growth.
“Transient leisure demand remained very robust and the group’s RevPAR more than fully recovered to 2019 levels during the quarter,” he said.
“Transient business demand, while still lagging the recovery, has continued to improve.”
In EMEA and CALA, Marriott saw RevPAR growth of nearly 10% and 18% in 2019, respectively, with demand driven by the strong US dollar and increased cross-border travel.
Looking ahead, Capuano is confident that global RevPAR will continue to increase.
“While we carefully monitor macroeconomic trends, bookings across all of our customer segments remain strong, contributing to the continued momentum of our business,” he said.
“We expect continued global demand growth in the fourth quarter and expect global RevPAR to increase 2-4% from 2019.”
Marriott added approximately 14,000 rooms between July and September and, at the end of the quarter, its global development pipeline totaled more than 3,000 properties and more than 502,000 rooms, with approximately 204,800 rooms under construction.
In mid-October, the company announced the acquisition of the City Express portfolio of brands, marking its entry into the affordable midscale segment.
“We see significant opportunities to further expand the brand in the CALA region and globally, as we have done successfully with other brand acquisitions,” Capuano said.
“After closing, we look forward to providing our guests with more stay options and our owners and franchisees with new opportunities to grow their portfolios.”