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Marriott lifts profit forecast on international travel demand
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Marriott lifts profit forecast on international travel demand
May 1, 2024 4:39 AM

May 1 (Reuters) - Hotel operator Marriott International ( MAR )

raised its forecast for annual adjusted profit on

Wednesday, banking on international travel demand to offset

normalizing domestic travel in the U.S.

International travel demand is expected to remain strong

this year as global air connectivity increases and travelers

flock to Asian and Middle Eastern destinations.

"Our results in the first quarter highlight the resiliency

of our asset-light business model and the strength of our

brands," said CEO Anthony Capuano.

Shares of the company were down 1.4% in premarket trading.

Marriott's ( MAR ) results were boosted by 11% growth in room

revenue in international markets, led by nearly 17%

year-over-year growth in Asia Pacific excluding China.

Global room revenue - an important metric in the hospitality

industry - rose by more than 4% as strong international growth

was offset by an increase of only 1.5% in North America.

Quarterly revenue rose by 6% from a year earlier to $5.98

billion.

The Maryland-based company raised its 2024 adjusted profit

forecast to a range of $9.31 to $9.65 per share, compared to a

previous range of $9.18 to $9.52 per share.

It reported an adjusted quarterly profit of $2.13 per share,

compared to $2.09 per share a year earlier.

The company added roughly 46,000 net rooms during the

quarter, including around 37,000 rooms from its agreement with

MGM Resorts International.

Marriott ( MAR ) expects worldwide room revenue to increase by 3% to

5% in 2024. It sees 4% to 5% growth in the second quarter.

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