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© Reuters. FILE PHOTO: Logo of Marriott resort is seen in Vienna, Austria April 9, 2018. REUTERS/Heinz-Peter Bader/File Photo
By Doyinsola Oladipo and Aishwarya Jain
(Reuters) -Hotel operator Marriott International (NASDAQ:) forecast 2024 revenue beneath Wall Street expectations on Tuesday as U.S. room income decelerates from post-pandemic highs.
Travel demand and prices within the United States have been returning to regular ranges after a post-COVID spike pushed by “revenge travel”.
Meanwhile, journey corporations predict their 2024 increase to return from China, the ultimate area lagging in restoration from the pandemic.
“Growth is expected to remain higher in international markets than in the U.S. and Canada, with particular strength in Asia-Pacific,” Chief Financial Officer Kathleen Oberg stated on a name with traders.
Marriott expects income per accessible room, a carefully watched business metric for inns’ top-line efficiency, to extend between 3% and 5% this 12 months. This compares to 14.9% progress in 2023.
The firm’s shares have been down 5.3% in early buying and selling. Shares of rivals Hilton Worldwide and Hyatt Hotels (NYSE:) fell 3% and 4%, respectively.
Marriott forecast a full-year revenue of $9.18 to $9.52 per share, whereas analysts had anticipated $9.69 per share, LSEG knowledge confirmed.
“The generally solid report and guide is likely not enough to push the shares higher based on the strong performance of the past few months,” Jefferies analyst David Katz stated in a word.
Revenue per accessible room rose 7.2% within the fourth quarter, boosted by larger room charges and occupancy ranges in China.
Barclays analyst Brandt Montour famous Marriott seems to have stopped giving room income steering for North America.
“The U.S. is largely expected to underperform the broader globe this year,” Montour stated in a word.
Marriott posted adjusted fourth-quarter earnings of $3.57 per share, beating analysts’ forecast of $2.12 per share. Adjusted web revenue of $1.05 billion additionally surpassed expectations, largely attributable to a one-time tax profit.
The Ritz-Carlton proprietor’s quarterly income reached $6.1 billion, roughly according to estimates.
Net room progress is anticipated to extend by 5.5% to six% in 2024, as paused improvement initiatives in China resume building, Marriott stated.
Shares of trip rental firm Airbnb, which is able to report its earnings in a while Tuesday, fell 2%.