Marriott’s profits slump in latest quarterly report as headwinds kick in

Marriott CEO Arne Sorenson.

Marriott International has reported a 23 per cent drop in quarterly profit and has adjusted its growth guidance for revenue per available room to the lower end.

Marriott is the world’s largest hotel company, with some 7,200 properties, but the cooling hotel market has forced it offer comparable revenue per available room at the low end of its guidance.

For the September quarter, the company reported comparable revenue per available room rose 1.5 per cent world-wide, within the company’s guidance for 1 per cent to 2 per cent.

Third-quarter profit dropped to $387 million, lower than expected.

Marriott chief executive Arne Sorenson said the growth rate has moderated across its markets and that political demonstrations in Hong Kong have also impacted growth.