Marriott International Inc (NYSE:MAR) reported higher-than-expected second-quarter earnings, lifted by continued strength in international travel, even as US domestic demand softened in some segments.
The hotel giant said second-quarter revenue per available room (RevPAR), a key performance metric, rose 1.5% globally, driven by a 5.3% gain in international markets.
RevPAR in the US and Canada was flat from a year earlier, though Marriott said adjusting for the timing of the Easter holiday, the figure rose nearly 1%.
Net income for the quarter ended June 30 rose to $763 million, or $2.78 per diluted share, from $726 million, or $2.70 per share, a year earlier. Adjusted net income totaled $728 million, or $2.65 per share, topping Wall Street estimates.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) came in at $1.42 billion.
“Marriott delivered another solid quarter, highlighted by strong financial results and robust net rooms growth despite heightened macro-economic uncertainty,” said CEO Anthony Capuano.
The company signed nearly 32,000 rooms in the second quarter, more than 70% of which were outside the US and Canada. Conversions made up roughly 30% of room signings and openings in the first half of the year. Marriott’s development pipeline reached a record 590,000 rooms at the end of June.
Also during the quarter, Marriott closed its acquisition of lifestyle hotel brand citizenM, which Capuano said would broaden offerings for both guests and Marriott Bonvoy members.