Marriott's stock drops after wider-than-expected loss, revenue falls below forecasts

Shares of Marriott International Inc. sank 3.5% in premarket trading Monday, after the hotel operator reported a wider-than-expected loss and revenue that fell more than forecast, although trends improved during the quarter as the economy recovers amid reopenings following closures resulting from the COVID-19 pandemic. The company swung to a net loss of $234 million, or 72 cents a share, from net income of $232 million, or 69 cents a share, in the year-ago period. Excluding non-recurring items, the adjusted loss per share was 64 cents, compared with the FactSet consensus for a loss of 41 cents. Total revenue dropped 72% to $1.46 billion, below the FactSet consensus of $1.68 billion, as revenue per available room (RevPAR) fell 84.4% globally and 83.6% in North America. RevPAR improved to a decline of 70% for the month of July after hitting a low point of down 90% in April. As of early May, all hotels were open, with occupancy levels reaching 60%, compared with 70% a year ago. "While the full recovery from COVID-19 will clearly take time, the current trends we are seeing reinforce our view that when people feel safe traveling, demand returns quickly," said Chief Executive Arne Sorenson. The stock has tumbled 38.1% year to date through Friday, while the S&P 500 has gained 3.7%.

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