HNLbasedFlyer

For anyone looking for the hotel industry to stay viable, this appears to be good news.

Marriott in Q3 posted a surprise $100M profit - based on cost cutting and improved bookings.

https://www.reuters.com/article/us-m...-idUSKBN27M1IW

Occupancy rates in North America, its biggest market, rose to 37% in the third quarter ended Sept. 30, from 19.6% in the second quarter.

Greater China was Marriott’s best-performing market in the reported quarter, as occupancy rates jumped to 61.4% from 35.5% in the second quarter.

Marriott's total expenses fell 57.2% to about $2 billion in the reported quarter, while net profit dropped by 74% to $100 million, or 31 cents per share.

macabus

While that seems to be good news – it may also reflect some very creative accounting practices.

HNLbasedFlyer

Source of these accounting practices for Marriott?

rylan

Not surprising, since domestic hotels are basically providing absolutely nothing but a room. Elite benefits suspended, no amenities at vast majority of properties, and no housekeeping.

xooz

We may never see a free breakfast again....

MSPeconomist

This would be Marriott corporate profits, not the sum of individual hotels (although the very few Marriott owned properties would be included in the total). My question would be the long term cost of this in that price-inelastic elites and other high value customers will be more likely to book away from Marriott in the coming years. Personally, I'll never forgive Marriott for taking away my *earned* personal Ambassador, not to mention their refusal to enforce brand standards or honor elite benefits. I'll return to the places where I'm a repeat guest and have been treated well, but the others are on my "dead to me" or "try hard to avoid" lists.

OTOH, I consider no housekeeping during the stay to be an advantage if I can get enough towels and additional coffee and toiletry supplies.

GrandOldTurkey

My crystal ball says Marriott may well be stiffing ("cost cutting") lots of property owners (see the Service Trust thread) who do not have the ST ability to walk. This helps their immediate bottom line but ... We have seen that Marriott is not real loyal to employees, us guests, nor to the property owners.

UA-NYC

Cost cuts are a great way to goose profitability in the short term

Of course, that often results in paying a price in the long term

cfabar1

Lack of brand standards will be marriot’s undoing. They may have short term profits, which they may be able to exacerbate when they inevitably massively devalue points sometime next year.

anteater

This is also how I feel. Marriott made it clear they don’t value my loyalty, even as a top tier guest.

estedman

X1000

rylan

Was wondering about this also, since Marriott did not pay some substantial fees owed to property owners/management companies. That must've gone directly to the bottom line since they refused to pay the expense.

MSPeconomist

How did those unpaid fees compare to Marriott's profits? Also, will this level of profits trigger bonuses for the CEO and other top executives?

jr1202sr

Well I am about to book a 5-10K stay with another chain and would have never looked elsewhere previously. I simply am getting nothing for my Loyalty because of COVID rules at the hotels. I am lifetime so I may as well start with another chain who somehow is giving away breakfast and I can't even get a banana and Muffin. I recently had breakfast 3 straight days at McDonalds Next door to a Westin who was not offering breakfast.

rylan

The widely reported one that Marriott didn't pay to Service Properties Trust was over $11M. Not sure what other things they haven't paid.