(Reuters) – Hotel operator Marriott International said on Tuesday it forecast 2024 profit below Wall Street expectations, as revenue per room in the United States normalizes after surging after the pandemic.
U.S. travel demand and costs are falling back to normal levels, after soaring with the post-COVID recovery. Tour operators now expect international markets like China to support activity in 2024.
Marriott forecast full-year 2024 earnings of between $9.18 and $9.52 per share, while analysts had expected $9.69 per share, according to LSEG data.
The stock lost 1.7% in pre-market trading on Wall Street.
Marriott’s revenue per available room (RevPAR), a closely watched indicator of hotel performance, rose 7.2% year-over-year in the fourth quarter, boosted by higher prices and occupancy levels in China. Over the full year, RevPAR increased by 14.9% compared to 2022.
“As RevPAR growth normalizes around the world, we expect RevPAR to increase by 3% to 5%” in 2024, said Chief Executive Officer Anthony Capuano.
Marriott reported fourth-quarter adjusted earnings of $3.57 per share, above analysts’ estimate of $2.12 per share.
The owner of the Ritz-Carlton reported quarterly revenue of $6.1 billion, roughly matching forecasts of $6.2 billion.
(Reporting by Aishwarya Jain in Bangalore and by Doyinsola Oladipo in New York, French version Corentin Chappron, editing by Kate Entringer)
Copyright © 2024 Thomson Reuters