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April 15, 2020

Covid-19 impact: Around 25% of Marriott hotels have closed temporarily

Hospitality company Marriott International noted that around 25% of its locations have closed temporarily due to the Covid-19 pandemic.

Hospitality company Marriott International noted that around 25% of its locations have closed temporarily due to the Covid-19 pandemic.

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Globally, Marriott International has around 7,300 hotels.

The company anticipates further closures as the world struggles to contain the spread of this novel coronavirus.

Marriott also noted that it is expected to report a 23% drop in global revenue per available room (RevPAR) in the first quarter of this year. Currently, it is compiling all data.

In the same period, RevPAR in North America slipped around 20%. Overall, the company is expected to report a 60% fall in RevPAR in March 2020.

The hospitality company is yet to determine the financial impact of the pandemic, as the negative trends around the world is yet to stabilise.

However, Marriot noted that RevPAR has gradually improved in Greater China with occupancy increasing by nearly 20% in the first week of this month after restrictions were relaxed.

The number of closed hotels in the region has also dropped from more than 90 in mid-February to under 20 locations currently.

In North America, around 870 hotels, or 16% of its total number of locations in the region, are closed.

Around 500 Marriot hotels in Europe, or 79%, have shuttered operations temporarily.

The Middle East and Africa region; and the Caribbean and Latin America reported closures of around 54% and 69% respectively.

Marriott International also announced a new $1.5bn 364-day revolving credit facility amid the evolving Covid-19 crisis.

The company has also taken a series of steps to mitigate the impact of the pandemic on its business performance.

It includes trimming 2020 corporate general and administrative costs; reducing senior executive salaries; and requesting owners and franchisees to lower cash outlays.

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Navigate your business through the ‘new normal’

COVID-19 continues to dominate headlines the world over. It has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities.  Faced with an explosion of conflicting information on how to plan and implement successful recovery strategies, decision-makers are in dire need of a single, reliable source of intelligence.   GlobalData’s COVID-19 Executive Briefing gives you access to unparalleled data and insights to successfully navigate the uncertain road to recovery across the world’s largest industries. Understand every aspect of this disruptive theme by delving into: 
  •  COVID-19 infection update, with statistics on the spread, testing by country, as well as the latest data on vaccines and therapeutic developments 
  • Economic impact overview, covering stock market indices, GDP, unemployment rates, policy responses & GlobalData’s economic recovery scorecards 
  • Sector developments, with access to sector insight summaries, cross-sector indices and the leaders and laggards in each industry vertical 
Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today. 
by GlobalData
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