Marriott International (NYSE:MAR) Inc, one of the world's largest hotel operators, has raised its full-year profit forecast following a faster-than-expected recovery in international markets and strong booking trends globally.
The company expects full-year revenue per available room (RevPAR) growth between 10% and 13%, compared to its prior forecast of 6% to 11%, after posting a 34.3% rise in RevPAR during the first quarter.
Flexible work arrangements have fueled travel demand, allowing hotel operators to improve their margins that were hit hard by the pandemic.
Despite concerns about high inflation and economic slowdown, Marriott has seen a steady uptick in bookings.
"With the faster-than-expected recovery in international markets and continued solid booking trends globally to date in the second quarter, we are raising our RevPAR guidance for the full year,” Marriott CEO Anthony Capuano said in a statement accompanying the results.
Marriott now expects full-year adjusted profit between $7.97 and $8.42 per share, compared to its prior forecast of $7.23 to $7.91, after reporting an adjusted profit of $2.09 per share for the first quarter ended March, beating the average analyst estimate of $1.84 per share according to Refinitiv data.
The company's revenue rose 34% to $5.62 billion, surpassing consensus estimates of $5.41 billion.
Marriott owns popular hotel brands such as Sheraton, Westin, and St. Regis.
Shares of Marriott International (NYSE:MAR) were up 2.5% by midday on Tuesday in New York.
Contact Angela at angela@proactiveinvestors.com
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