(Reuters) -Hotel operator Marriott International posted a rise in third-quarter profit on Tuesday as resilient demand for upscale lodgings countered soft sales in its budget and select-service hotels.
Marriott Sees Increased Quarterly Profit Driven by Upscale Offerings
Marriott's Financial Performance Overview
(Reuters) -Hotel operator Marriott International posted a rise in third-quarter profit on Tuesday as resilient demand for upscale lodgings countered soft sales in its budget and select-service hotels.
Profit Growth Analysis
The Bethesda, Maryland-based company reported adjusted profit of $2.47 per share during the period, compared with $2.26 per share a year earlier.
Impact of Upscale Segments
Sales in Marriott's upscale segments, which include brands such as Ritz-Carlton and Sheraton, cater to economically resilient customers, cushioning the impact of slowing demand in its budget and select-service offerings.
Challenges in Budget Hotels
In the United States and Canada, room revenue declined 0.4% due to weaker demand in the lower chain scales, largely reflecting reduced government travel, the company said.
The luxury and premium segments comprised roughly half of the operator's total rooms as of 2024.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Pooja Desai)
