With 25% of its hotels shut worldwide due to Coronavirus, Marriott anticipates more closures ahead
According to Marriott, its revenue per room fell 60% globally in March, roughly the same as in the U.S. alone (57%)
In a recent statement, Marriott has announced that out of their 7,300 hotels worldwide, around 25 per cent are temporarily closed as a result of the coronavirus travel ban. The hotel chain is also anticipating more closures ahead as well as diminishing revenue per room. North American occupancy levels are at about 10%, and more than 870 hotels are temporarily closed (16%).
According to Marriott, its revenue per room fell 60% globally in March, roughly the same as in the U.S. alone (57%). The company has informed that its March revenue per available room decreased approximately 60% worldwide, reflecting declines of around 57% in North America.
About 80 per cent of hotels rooms are empty across the U.S.A. As per a new report from STR, hotel occupancy, average daily rate and revenue per available room were down significantly year-over-year for the week of March 29 through April 4. In comparison with week of March 31 to April 6th last year, hotel occupancy was down nearly 70%, with only 21.6% rooms filled.
It is estimated that if the occupancy dips below 25 per cent to 30 per cent, most hotels would prefer saving money by closing their doors.