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

15th April 2020 (Last Updated April 15th, 2020 16:00)

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

Covid-19 impact: Around 25% of Marriott hotels have closed temporarily
Marriott International headquarters in Bethesda, Maryland. Credit: Coolcaesar at English Wikipedia.

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

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.