Shares of the Famous Hotel Operator Marriott International

Marriott International is one of the largest hotel chains in the world and this fact underlines the importance of this company to the hospitality business. However, even for the Marriott, the coronavirus pandemic is a major issue.

Interestingly, the U.S. hotel operator posted a bigger-than-expected quarterly loss on Monday. It is not surprising as the coronavirus pandemic affected global travel. As a result, the company suffered losses.

Its shares fell 40.3% in 2020 as the company reported an 84.4% plunge in revenue per available room (RevPAR). It is worth mentioning that, RevPAR is a key performance measure for the hotel industry.

Marriott International and its second-quarter

Fortunately, Marriott International expects a gradual rise in the occupancy rate across the world. However, it may take several years for them to return to pre-COVID period demand levels. Interestingly, its rival Hilton also expects to reach better results.

According to the statement released by Chief Executive Officer Arne Sorenson, coronavirus pandemic continues to affect their business. Nevertheless, in his statement, he mentioned positive some information as well.

Based on the information provided by Marriott International, it recorded a recovery across all regions. For example, global occupancy rates of 34% for the week from August 1 up from 11% in the week from April 11. Moreover, In China, occupancy levels reached 60%.

People should take into account that, Marriott International reopened 91% of its worldwide hotels compared to 74% in April.

Interestingly on an adjusted basis, Marriott reported a loss of 64 cents per share in the second quarter. As a reminder, the second quarter ended June 30. This is a result that surpassed expectations. Analysts expected a loss of 42 cents per share. The company previously reported a quarterly net loss in 2011.

It is worth noting that, total revenue fell 72.4% to $1.46 billion.

Marriott International as well as other hotel chains are struggling to deal with the ongoing situation.