Here are a few highlights from Marriott's Q2 2012 conference call:
1. Marriott is seeing increased demand in North America and its revenue per average room increased by 6 percent.
2. Part of Marriott's favorable results is due to lack of new supply. Growth in supply is less than 1 percent, and the number of new rooms in 2012 is less than a third of the new rooms in 2007.
3. Group bookings and corporate bookings are increasing. However, the negotiated corporate rates are still meaningfully lower than 2007.
4. There is some delay in new construction internationally. China has a government-encouraged slowdown, which has stopped some of Marriott's new construction. Long-term, though, Marriott is bullish on China and believes there is no oversupply problem.
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