Hotel Updates
Marriott Sees Rise In Quarterly Rates
By Michael B. Baker
July 20, 2010
Marriott International last week reported average daily rates were up slightly year-over-year during the second quarter, a trend it expects will continue into next year.
During the quarter, average daily rates in North America were up 1.2 percent compared with the second quarter of 2009, the first time rates have moved upward in the region in nearly two years, according to Marriott Chairman and CEO J.W. Marriott Jr. Globally, rates were up 1.6 percent.
Revenue per available room increased by 7.9 percent in North America and by 9.9 percent globally, which were bigger increases than the company had expected, according to Marriott. Systemwide occupancy was up by 4.5 percentage points in North America and by 5.4 percentage points worldwide.
"Business and leisure stays at our hotels are trending up," according to Marriott. "We anticipate even more favorable pricing in the second half of 2010 and into 2011."
The company also reported that it opened 6,500 new rooms during the quarter and expects to open 30,000 new rooms total for the full year. These include conversions to its new Autograph Collection brand, a collection of upper upscale and luxury boutique hotels around the world.
As with most major hotel companies, Marriott's development is skewed internationally. Marriott's total pipeline stands at 95,000 rooms, 39 percent of which are international. Of the rooms currently under construction, two-thirds are outside of North America, according to Marriott.
—Northstar Travel Media