The Bethesda, Maryland-based hotel operator and franchisor earned $31 million, or 9 cents a share, in the three months through March, down from $375 million a year ago, as total revenue slumped 7 percent to $4.68 billion. Adjusted earnings were 26 cents a share.
The results included a $148 million, or 45 cents a share, after-tax impairment charge related to COVID-19.
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“We have taken substantial steps to preserve liquidity and mitigate the impact of these extremely low levels of demand,” Marriott International CEO Arne Sorenson said in a statement. “We are confident we have sufficient resources to manage through this evolving situation.”
Marriott ended the quarter with $1.76 billion cash and $12.23 billion debt. The company's net liquidity increased to about $4.3 billion in May as a result of raising about $2.5 billion through a note sale and amendments to cobranded credit-card agreements.
Marriott said worldwide occupancy fell by 18.2 percentage points to 50.8 percent. Revenue per available room sank 26.3 percent to $94.61.
There are some signs demand is slowly returning.
Occupancy at hotels in Greater China, the region first impacted by COVID-19, reached 25 percent in April, up from 10 percent in mid-February. Additionally, occupancy improved to 20 percent over the past two weeks in North American limited-service hotels.
Marriott was unable to give guidance due to the uncertainty caused by COVID-19, but said the virus was likely to result in "significantly lower new room openings" than for what was budgeted.
Marriott shares were down 42 percent this year through Friday, trailing the S&P 500's 9.3 percent loss.