Marriott sees coronavirus hit to Asia Pacific region, warns of lower fee revenue
Marriott International Inc said on Wednesday it expects a roughly $25 million hit to its monthly fee revenue, as the hotel operator faces low occupancy rates in the Asia Pacific region due to the coronavirus outbreak.
US airlines and hotels are extending options for customers to rebook travel to a growing list of countries, including Italy, as coronavirus cases spike outside of China and spark fears of a global pandemic.
Marriott said room additions in 2020 could also be delayed as a result of the outbreak.
“Due to the uncertainty regarding the duration and extent of the coronavirus outbreak, Marriott cannot fully estimate the financial impact from the virus, which could be material to first quarter and full year 2020 results,” the company said.
Marriott said it expects 2020 earnings, excluding the impact of the virus, to be between $6.30 and $6.53 per share.
Analysts were expecting $6.47 per share, according to Refinitiv data.
The company forecast revenue per available room growth — a measure of a hotel’s financial performance — to be between flat and up 2% in 2020.
Occupancy rate at the company rose 0.4% in North America, its biggest market, while room prices inched higher by 0.3% in the quarter.
Net income fell to $279 million, or 85 cents per share, in the fourth quarter ended December 31, from $317 million, or 92 cents per share, a year earlier.
On an adjusted basis, Marriott earned $1.57 per share, above analysts’ estimates of $1.47, according to Refinitiv data.
Revenue rose to $5.37 billion from $5.29 billion.
Source: SABC News (sabcnews.com)
