Marriott Stock Slides as 2024 Guidance Disappoints

Marriott International’s (MAR) second-quarter results Wednesday came pinch disappointing revenue per disposable room (revPAR) guidance, sending nan immense edifice company's shares sharply lower.

The edifice concatenation trimmed its full-year revPAR projection to betwixt 3% and 4%, compared pinch anterior guidance of 3% to 5%, citing a weaker operating situation successful Greater China and softer expectations successful nan U.S. and Canada.

In nan 2nd quarter, Marriott's worldwide revPAR grew astir 5% year-over-year to $150.24, and nan institution reported astir 15,500 nett rooms added. All told, Marriott operated astir 9,000 properties pinch astir 1.7 cardinal rooms astatine nan extremity of nan period. 

Marriott’s nett income totaled $772 cardinal successful nan period, up 6%, and earnings per stock (EPS) climbed 13% to $2.69. 

"Owner penchant for our brands remains strong,” Chief Executive Officer (CEO) Anthony Capuano said. “We signed astir 31,000 rooms successful nan quarter, 75% of which were successful world markets. Our momentum astir conversions [of hotels to Marriott brands] continued, accounting for 37% of room additions successful nan quarter."

Capuano said nan institution continues to expect nett rooms maturation astatine 5.5% to 6% for nan afloat year.

Marriott shares were down astir 5% successful mid-afternoon trading Wednesday, astatine their lowest level since January.