Marriott announces losses higher than expected

The coronavirus pandemic has affected the lives of many individuals as well as businesses. Marriott International is one of the biggest hotel operators in the US and have recently posted bigger than expected quarterly losses on August 10, 2020. The losses were caused due to the coronavirus crisis that curbed the global travel and led to a deep downfall in the room bookings. The shares of Marriott went down 40.3 percent in 2020 and fell 3 percent in premarket trading. The company reported a 84.4 percent downfall in the revenue per room available.

However, the hotel giant is expecting that the room occupancy will gradually increase across the globe , but that will take a few years to return to the pre-Covid demand levels. Arne Sorenson, the CEO of the company in a statement said that their business continues to be affected by COVID-19 and they are surely seeing a steady sign of a return in demand. The company has also assured that it is seeing a recovery across all the regions with a global occupancy rate of 34 percent for the week that ended on August 1, 2020. In China the occupancy level has reached to 60 percent and has reopened 91 percent of its hotels across the globe.

Marriott has reported a loss of 64 cents per share during the second quarter that ended on June 30, 2020. This figure is bigger than the analysts had actually expected. Earlier in 2011, Marriott has reported a loss of 42 cents per share that was due to a charge that is related to the spun-off timeshare business.

The coronavirus pandemic started off in December 2019 in China and since then it has been more than seven months the entire globe is dealing with it. A number of businesses from various sectors have been adversely affected with job and revenue losses. Many countries continue to take precautionary measures to deal with the virus.

Photo Credits: Pixabay