Marriott International, the world’s largest hotel operator, announced yesterday, Tuesday, that it would reduce its expectations for the growth of room revenues for 2025, and also expected quarterly profits for the second quarter without Wall Street’s expectations, in a new indicator of a possible decline in demand for travel in a turbulent economic environment.
The company said it is now expecting a growth in the revenue of the rooms for the full year by between 1.5% and 3.5%, compared to the previous expectations that ranged between 2% and 4%.
These numbers come a week after Hilton announced the competing company about a similar reduction in the expectations of the revenue of the rooms, while “Air BnB” has indicated the reducing the window window, in an indication of increased caution and uncertainty for consumers about travel spending.
According to data collected by the LSEG platform, Marriott expects its modified profits to the second quarter between 2.57 and $ 2.62 per share, which is less than the estimates of analysts, which amounted to $ 2.68 per share.
Although a slowdown in the growth of revenue for each room is available in both the United States and Canada during the month of March, the company said that the revenues of the rooms in the region during the first quarter grew by 3%.
During the first quarter of the year, Marriott exceeded expectations by achieving average profits of $ 2.32 per share, compared to the average expectations of $ 2.25 per share.
As for the revenue level, it amounted to 6.26 billion dollars, an increase of 5% over the same period last year, outperforming the average expectations of 6.17 billion dollars.
Marriott runs prominent brands such as Sheraton, Courtyard and Rezkal Carlton, and is closely monitoring the changes in consumer behavior in light of fears of a possible economic slowdown, nourished by the escalation of trade tensions due to US President Donald Trump’s volatile policies.
