Marriott’s Full-Year Profit Forecast Climbs Amid China Demand, RevPAR Growth

Marriott International announced continued success in the second quarter of 2023 and raised its full-year profit forecast on the back of rebounding demand in China and rising revenue per available room (RevPAR).

Marriott President and Chief Executive Officer Anthony Capuano said during a second-quarter conference call that worldwide RevPAR increased 13.5 percent, aided by significant growth in the company’s international regions, where RevPAR rose 39 percent.

Capuano also revealed that RevPAR increased six percent in the United States and Canada, “with many urban markets showing impressive growth in the second quarter.” The CEO also said revenue from the group segment rose 10 percent compared to last year.

“While conditions could change rapidly, booking trends remain solid,” Capuano said. “We are raising our full year rooms growth and earnings guidance and now expect to return $4.1 billion to $4.5 billion to shareholders in 2023.”

To meet the continued leisure demand internationally and domestically, Marriott added around 33,100 rooms to its system, including 17,300 City Express rooms in the Caribbean & Latin America region.

The hospitality company’s pipeline grew to nearly 547,000 rooms, with more than 240,000 rooms under construction around the world, which builds on the plans announced last month to enter the affordable midscale extended stay market in the U.S. and Canada.

For the second quarter, Marriott’s reported operating income totaled $1.096 billion, compared to the 2022 second quarter reported operating income of $950 million.

Earlier this month, Marriott and MGM Resorts announced an exclusive long-term strategic licensing agreement, creating MGM Collection with Marriott Bonvoy. The new collection will launch in October 2023 and feature 17 of MGM’s renowned properties, including a dozen resorts in Las Vegas.