Marriott profits triple on fuller hotels, higher rates

Bethesda, Maryland-based Marriott International benefited from a strong summer for travel, with net income that almost tripled thanks to fuller hotels and higher room rates.

Marriott also opened 77 new hotels last quarter, adding more than 14,000 rooms. At the end of the quarter, it had more than 3,000 hotels in its development pipeline, including more than 1,000 currently under construction.

Marriott’s revenue per available room increased 36.3% compared to the same quarter a year earlier. The company’s international markets saw the biggest increase, at 66.1%.

Marriott had $5.3 billion in third quarter revenue, compared to $3.9 billion in the same quarter a year ago. Net income nearly tripled to $630 million, compared to $220 million in the third quarter of 2021.

“While we are carefully monitoring macroeconomic trends, bookings across all our customer segments remain strong, contributing to the ongoing momentum in our business. We expect continued demand growth around the world in the fourth quarter,” said Marriott CEO Anthony Capuano.

In the U.S. and Canada, Marriott’s largest region, room revenue exceeded pre-pandemic levels by 3.5%. Occupancy at its hotels reached 72% in September, just 2% below the same month in 2019.

Average nightly room rates at Marriott’s company-operated North American properties was $236.69, up 16.4% from a year earlier. Average nightly rates at its company-operated International markets was $162.61, up 20.4%.

Jeff Clabaugh

Jeff Clabaugh has spent 20 years covering the Washington region's economy and financial markets for WTOP as part of a partnership with the Washington Business Journal, and officially joined the WTOP newsroom staff in January 2016.

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