Marriott cuts 2024 sales view on China drag, slower North American demand By Reuters

(Reuters) -Hotel operator Marriott International (NASDAQ:) lowered its forecast for 2024 room revenue growth on Wednesday,citing a weaker operating environment in China and expectations of softer demand in North America.

Shares of the company were down 4.7% before the bell.

Marriott expects its revenue per available room (RevPAR), an important metric in the hospitality industry, to grow between 3% and 4% this year, lowering the top end of the range from 5%.

Hotels are not immune to the consumer slowdown in China, wrote Bernstein analyst Richard Clarke.

Companies across the globe have been lowering full-year sales and profit expectations as global consumer sentiment was hurt by weakness in the Chinese economy amid a protracted property downturn.

Marriott’s quarterly RevPAR fell 4.6% in China, compared to a rise of 12% in other parts of Asia.

Meanwhile, domestic travel in the U.S. has been weak since the beginning of the year as more tourists are choosing to travel internationally to destinations in Asia, Latin America and Europe.

The group’s international RevPAR rose 6.4% in the quarter, led by a 16.8% increase in Middle East and Africa.

Incentive management fees came in at $195 million, compared to $193 million in the same period last year.

Excluding items, Marriott reported a quarterly profit of $2.50 per share, above Wall Street expectations of $2.47 per share, according to LSEG data.

Total revenue for the quarter through June 30 was $6.44 billion, up about 6% from a year earlier.