RevPAR hits historic low for Marriott
The company is expecting a 60% drop for March 2020
Marriott International is predicting it could see its worldwide RevPAR drop by as much as 60% once it collates its data for March 2020.
While the group has been enacting a range of cost-cutting measures, including salary reductions and hiring freezes, it is still struggling to find a way to boost occupancy amid travel and movement restrictions. For Q1 2020, Marriott is expecting to see a 23% drop in global RevPAR, with approximately 25% of its 7,800 hotels temporarily closed.
The group said in a statement: “The company anticipates further hotel closures and erosion in RevPAR performance and does not expect to see a material improvement until there is a view that the spread of COVID-19 has moderated and governments have lifted restrictions.”
Region by region, March RevPAR is estimated to have fallen by 57% in North America, 74% in Asia Pacific, 71% in Europe, 57% in the Caribbean and Latin America and 56% in the Middle East and Africa.
Occupancy rates equally have taken a heavy hit during the pandemic. North American occupancy rates are currently around 10% for Marriott, with 16% of its hotels in the area temporarily shut. Occupancy in Europe is currently under 10%, with around 500 hotels, or 79%, temporarily closed. The Middle East and Africa region currently has roughly 150 hotels temporarily closed, or 54%, while hotels temporarily closed in the Caribbean and Latin America total nearly 200, or 69%.
Marriott International CEO and president Arne M. Sorenson has said the economic ramifications of COVID-19 are proving to be worse than 9/11 and the 2009 financial crisis combined.