Marriott Room Rates Rise in North America

Marriott International announced this week that room rates for their North American properties rose during the latest reporting period. This is the first year-to-year monthly gain that the company has reported since 2008 and is due to the economy emerging from the recession.

Although the increase wasn’t incredibly high, it was still 1% better during the period than before. Marriott International president and chief operating officer Arne Sorenson said that revenue per available room (REVpar) rose 9% during the period as well, while there was a 7.3% increase in REVpar for the second quarter, which doesn’t actually end until June 18. He explained that the strength of their brand, the expansion of leisure travel, technological advances and the growth of emerging markets foreshadow excellent opportunities for the hotel industry, along with the economy’s recovery.

Marriott International posted a 1.3% decline in REVpar for the first quarter of this year, which is much less than what they reported last year. Also during the first quarter, the company reported a 5.4% rise in profits. This year, the company’s shares have also gained 16%, increasing 1.7% recently to $31.62.

The accommodation sector has been troubled due to the recession, which caused less people to travel. In turn, this caused occupancy to fall and hoteliers to reduce their rates to attract what few people were traveling. Due to this, Sorenson is staying cautious that not every month in the near future will have positive results, but he is delighted with their figures. He added that the hotel industry will improve over time and predicts that results will likely be great over the next few years.