Marriott International has declared a strong performance in the second quarter of 2023 and has revised its full-year profit forecast upwards due to the resurgence in demand in China and a rise in revenue per available room (RevPAR).
During a conference call for the second quarter, Marriott's President and Chief Executive Officer, Anthony Capuano, announced a worldwide RevPAR increase of 13.5 percent, driven by significant growth in international regions, where RevPAR rose by an impressive 39 percent. In the United States and Canada, RevPAR increased by six percent, particularly in various urban markets, showing substantial growth.
Furthermore, revenue from the group segment saw a rise of 10 percent compared to the previous year. Capuano expressed confidence in the company's solid booking trends, though acknowledging the possibility of rapid changes in the market conditions. As a result, the company has raised its full-year rooms growth and earnings guidance and is now anticipating returning $4.1 billion to $4.5 billion to its shareholders in 2023.
To meet the ongoing demand for leisure travel both internationally and domestically, Marriott expanded its system with approximately 33,100 rooms, including 17,300 City Express rooms in the Caribbean & Latin America region. The company's pipeline has also grown, with nearly 547,000 rooms in development, over 240,000 of which are currently under construction worldwide. Additionally, Marriott is planning to enter the affordable midscale extended stay market in the U.S. and Canada.
In the second quarter, Marriott reported an operating income of $1.096 billion, a notable increase compared to the same period in 2022, which had an operating income of $950 million.
Notably, earlier this month, Marriott and MGM Resorts announced a strategic licensing agreement, forming the MGM Collection with Marriott Bonvoy. This collection, set to launch in October 2023, will feature 17 of MGM's renowned properties, including a dozen resorts in Las Vegas.