Marriott’s strong performance in the first quarter of 2018 was largely due to its international operations, despite signs that demand for hotels in the United States had moderated.
“After January’s and February’s results were better than we anticipated, demand in America did soften in march, primarily as a result of a 10% drop in RevPAR for the U.S. federal government. [revenue per available room]During a earnings call on Tuesday, Anthony Capuano, president and CEO of the company, made this statement.
RevPAR increased by 4,1% globally in the first quarter of the year. International markets were most active. RevPAR increased by 16 percent in India, and 15 percent in Japan.
Leeny O’Berg, CFO said: “March was a month that had an almost one-time effect from the shock caused by government layoffs and a number of tariff announcements.” “We don’t assume a recession scenario.”
The company’s full-service luxury properties and resorts saw the greatest strength, while its limited-service hotels and resorts showed the greatest weakness. The executives attributed this to the economic uncertainty that is affecting middle-class consumers, rather than high-end hotels.
