Marriott’s second quarter results showed a slowdown of growth in its U.S. core markets and Canada. Revenue per available room was flat, and soft demand from government and business was weighing on the company. The company cut its full year forecast.
In the United States and Canada, it was flat. In North America and Canada, the growth was flat.
Anthony Capuano said, “Continued growth in the luxury segment has been offset by a decrease in select service demand. This is due largely to reduced government trips and weaker demand from business travelers.”
Main drag was the weak U.S. : part uncertainty due to Trump tariffs, and part due to when Easter fell – a one-time event.
Richard Clarke, an analyst at Bernstein Research, said that mainstream chains such as Courtyard and Fairfield struggled, while luxury brands like The Ritz-Carlton saw their RevPAR increase by 6%.
RevPAR growth was 5% in the international markets. The net rooms grew by 4.7% (excluding the CitizenM acquisition) and 15,500 new rooms were added. The pipeline of development grew by 5.5%, reaching record levels.
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