#Americans #Staying #Home #Election #Season #Marriott
Key takeaways
- Marriott International said revenue per available room is expected to decline 3% in November, double the decline seen during the previous election.
- Chief Financial Officer Kathleen Oberg said the hotel group had “significantly fewer” bookings.
- Other hospitality companies said demand tends to slow on Election Day.
The Harris-Biden rivalry is turning Americans into homebodies, according to one hotel chain.
The election reduced demand to a greater extent than previous election cycles, said Kathleen Oberg, chief financial officer of Marriott International (MAR). Marriott had “significantly fewer” bookings for this week and next, Oberg said on an earnings call Monday.
“The impact of the election on the United States and Canada.” [revenue per available room] “It is expected to be around negative 300 basis points in November and negative 100 basis points for the quarter, double previous election cycles,” Oberg said in the call, a transcript of which was made available by AlphaSense. (A basis point is one-hundredth of a percentage point.)
Marriott on Monday reported profits of $584 million in the third quarter, down from $752 million a year ago. The company said diluted earnings per share were $2.07, compared to $2.51 a year earlier. The hotelier’s global revenue per available room, which grew 3% year over year in the third quarter, is expected to stabilize in the fourth quarter, CEO Anthony Capuano said.
Some other travel and hospitality companies said demand has declined as the presidential election approaches, as Americans vote and await the results of the race between Vice President Kamala Harris and former President Donald Trump.
“What happens during national elections is that people tend to stay home,” Joseph Ferraro, president and CEO of Avis Budget Group (CAR), said during his company’s conference call Monday.
#Americans #Staying #Home #Election #Season #Marriott
