Marriott Bounces Back as Activity in China Surges

Marriott reported some dramatic improvements in the third quarter as travel demand rebounded in China.

Average occupancy at hotels in China hit 61% during the quarter, down just 10% from a year ago. Marriott said in July that leisure demand – particularly at resorts – was the first to return in China, but business and group travel is also picking up.

Occupancy in North America was 37% as some leisure demand returned. That was down 40% from the July-September period a year ago. Business and group travel has been slower to come back, Marriott said.

Occupancy in Europe was 21% for the quarter, down 58% from a year ago.

Marriott rival Hilton, which reported earnings Thursday, saw a similar dynamic. Occupancy was highest in Asia, where it reached 53%, and lowest in the Americas – excluding the U.S. – at 25%. U.S. occupancy was 44%.

Marriott, the world's largest hotel company, on Friday reported earnings of $100 million in the July-September period, down from $387 million in the same quarter a year ago. It said 94% of its hotels are now open worldwide.

Earnings, adjusted for one-time items, were 6 cents per share. Wall Street had been expecting an 8 cent loss, according to a survey of analysts by FactSet.

Revenue fell 57% to $2.25 billion, slightly better than analyst projections.

Shares of the Bethesda, Maryland, company slipped about 1% before the opening bell.