Marriott International 2Q23: Travel Recovers as Borders Begin to Open

Aug 7, 2023 | Corporate Insights, No Bull Economics

Marriott’s 2Q23 systemwide constant dollar RevPAR (revenue per available room) comp increased +13.5% y/y worldwide, +6% in the U.S. & Canada, and +39.1% in international markets. This has important implications for consumer spending…

Macro/Consumer

  • Mariott reported that last year there were meaningfully fewer choices for travel, because of remaining covid restrictions. This year, there has been a big exodus of Americans traveling to China & Europe.
  • Leisure room nights from U.S. & Canadian travelers jumped +90% y/y in Asia Pacific and +20% y/y in Europe during 2Q23.
  • The inbound international occupancy rate of U.S. hotels has historically been under +5% & this is beginning to recover as borders open. Notably, this rate in NYC was 13% during 2Q23 as foreign travelers flock to the Big Apple. Miami was 12% during the quarter vs. 15% pre-covid.
  • As evidenced by the table below, luxury properties in the U.S. & Canada have been underperforming Marriott’s lower-priced properties, suggesting that wealthier travelers are traveling overseas (as opposed to domestic travel) while less affluent consumers are increasing their domestic travel.  
Marriott 2Q23 ADR Chart

Sales Prospects

  • Marriott is forecasting strong growth for 2H23 based upon going forward booking trends.
Marriott 2Q23 Comp Forecast Chart
Marriott 2Q23 Financials
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