Although non-U.S. business continues "to be strong," Marriott International today said "softer demand trends" are "affecting the U.S. market." The statement comes after a
Morgan Stanley analyst last week cut revenue per available room expectations on Marriott to 2 percent from 3 percent. Marriott today said North American RevPar during the second quarter is "likely" to be 2 percent, versus prior guidance of 3 percent to 5 percent.
International RevPar grew "nearly 10 percent on a constant dollar basis" year-to-date through April, the company said, but Marriott in the U.S. "continues to see weak weekend leisure demand and is beginning to see softer mid-week demand," a sign of softening business travel. "Group business is impacted by fewer last minute group bookings," the company said.
The firm made no mention in its press statement of tearing up and renewing corporate contracts, which Morgan Stanley last week said was underway in the marketplace for the first time in seven years.