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3w ago

Marriott Cuts Growth Forecast as U.S. Government Travel Declines Persist

The hospitality giant lowers its full-year RevPAR outlook citing reduced federal bookings, while Q1 financial results exceed expectations.

A view inside the lobby of the Marriott Marquis hotel in Times Square in New York City, U.S., November 8, 2017. REUTERS/Brendan McDermid/File photo
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Marriott International’s hotels include Grosvenor House on Park Lane in London

Overview

  • Marriott reported Q1 adjusted earnings per share of $2.32 on $6.26 billion in revenue, surpassing analyst expectations.
  • The company posted global RevPAR growth of 4.1% in Q1, exceeding the consensus projection of 3.0%.
  • Marriott reduced its full-year RevPAR growth forecast to 1.5–3.5%, down from the previous 2–4% range, due to weaker U.S. government demand.
  • Federal layoffs led to a 10% year-over-year decline in U.S. government RevPAR in March, with this segment contributing 4% of U.S. and Canada room nights in 2024.
  • Industry peers Hyatt and Hilton have also revised their full-year RevPAR growth forecasts downward, reflecting broader travel demand challenges.