Marriott’s RevPAR increases, net income drops in Q2 2019
The company also incurred $22 million of expenses
Hospitality giant Marriott International’s RevPAR for Q2 2019 increased, despite a drop in net income, the group revealed.
According to the information released, the group registered an increase of 1.2% in RevPAR.
Arne M. Sorenson, president and chief executive officer of Marriott International, said: “Our worldwide RevPAR index increased 110 basis points in the quarter, the strongest single quarter performance since our acquisition of Starwood in late 2016.”
Marriott’s net income totalled $232 million in the 2019 second quarter, compared to 2018 second quarter reported net income of $667 million.
Second quarter 2019 adjusted net income totalled $525 million, compared to 2018 second quarter adjusted net income of $619 million.
Sorenson added: “Our owners and franchisees continue to sign new hotel deals at a rapid pace. Our development pipeline increased 3% in the second quarter, reaching a record 487,000 rooms, including roughly 213,000 rooms under construction.”
The company also incurred $22 million of expenses and “recognised $22 million of insurance recoveries related to the data security incident it disclosed on November 30, 2018”.
The company also “recorded a $126 million non-tax deductible accrual in the second quarter for the fine proposed by the U.K. Information Commissioner’s Office in relation to the data security incident.
Marriott intends to respond to the fine and defend its position.