(TAN): Marriott International reported operating loss of USD 154 million in Q2, compared to Q2 2019 operating income of USD 409 million. It reported net loss of USD 234 million in Q2, compared to USD 232 million in the year-ago period.
The company attributed the losses to the COVID-19 pandemic that has dealt a devastating blow to the travel and hospitality sector.
Arne M. Sorenson, president and CEO of Marriott International, said, “While our business continues to be profoundly impacted by COVID-19, we are seeing steady signs of demand returning…. Greater China continues to lead the recovery. As of early May, all our hotels in the region are open, and occupancy levels are now reaching 60%, compared to 70% the same time last year, and a marked improvement from single-digit levels in February. While Greater China’s recovery was originally led by demand from leisure travelers, particularly in resorts and drive-to destinations, we are now seeing more widespread business demand, including some group activity.”
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At quarter-end, Marriott’s worldwide development pipeline totaled nearly 3,000 hotels and approximately 510,000 rooms, including roughly 28,000 rooms approved, but not yet subject to signed contracts. Over 230,000 rooms in the pipeline were under construction as of the end of the second quarter.
As of the end of the second quarter, the company’s net liquidity totaled approximately USD 4.4 billion, representing roughly USD 2.3 billion in cash and cash equivalents, and USD 2.9 billion of unused borrowing capacity under its revolving credit facility, less USD 0.8 billion of commercial paper outstanding.
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