Marriott International Provides Business Update Amidst The Rapidly Evolving Coronavirus Situation
BUSINESS PERFORMANCE UPDATE
2020 got off to a solid start. Global RevPAR1 growth in the first two months of the year was down 0.3 percent worldwide and up 3.2 percent excluding Asia Pacific. For January and February, RevPAR increased 3.5 percent in
Today there are very early signs of improvement in
In the rest of the world, where the crisis is much more recent, the trend lines are still negative.
The company is taking numerous proactive steps to mitigate the negative financial and operational impacts of COVID-19. Business contingency plans have been implemented and will continue to be adjusted in response to the global situation. At the property level, contingency plans include measures such as closing food and beverage outlets, reducing staff and closing floors or even entire hotels. The company has also temporarily deferred most brand standards to help owners and franchisees, including delaying renovations due in 2020 by one year, deferring required furniture, fixtures and equipment funding and suspending brand standard audits.
At the corporate level, these steps include making significant cuts in senior executive salaries, requiring temporary leaves in
BALANCE SHEET UPDATE
In the current environment, a major priority is preserving liquidity. Marriott has a
UPDATE ON 2020 OUTLOOK
Given the meaningful coronavirus impact experienced to date and the uncertainty and fluidity of the ongoing situation, Marriott withdraws all aspects of its outlook and assumptions for 2020 provided in its press release on
Marriott plans to hold a conference call for the investment community to discuss this update on
The conference call will be webcast simultaneously via Marriott's investor relations website. Those wishing to access the call on the web should log on to http://www.marriott.com/investor, and click the link for the call under "Business Update". A replay will be available at that same website until
The telephone dial-in number for the conference call is 706-679-3455. Please use conference ID 5881206 when dialing into the call. Due to anticipated call volumes, those wishing to join the conference call should dial-in at least 20 minutes prior to the scheduled start time.
A telephone replay of the conference call will be available from
Marriott may post updates on its response to COVID-19 and other matters on its investor relations website at http://www.marriott.com/investor or Marriott's news center website at https://news.marriott.com/. It is possible that the information Marriott posts on these websites could be deemed to be material information. Therefore, Marriott encourages investors, the media, and others interested in the company to review and subscribe to the information Marriott posts on these websites. The contents of these websites are not incorporated by reference into this press release or any report or document Marriott files with the
Note on forward-looking statements: This press release contains "forward-looking statements" within the meaning of federal securities laws, including statements related to the expected effects on our business of the COVID-19 pandemic; RevPAR and occupancy trends; the impact of contingency plans and cost and investment reductions; our liquidity and working capital expectations; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including those we identify below and other risk factors that we identify in our most recent annual report on Form 10-K. Risks that could affect forward-looking statements in this press release include the duration and scope of the COVID-19 pandemic and impact on the demand for travel, transient and group business, and levels of consumer confidence; actions governments, businesses and individuals take in response to the pandemic, including limiting or banning travel; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies, travel, and economic activity; the pace of recovery when the COVID-19 pandemic subsides; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the effects of steps we and our property owners and franchisees take to reduce operating costs; competitive conditions in the lodging industry; relationships with clients and property owners; the availability of capital to finance hotel growth and refurbishment; the extent to which we experience adverse effects from the Starwood data security incident; and changes in tax laws in countries in which we earn significant income. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release. We make these forward-looking statements as of
1 All occupancy and RevPAR statistics are comparable, systemwide, constant-dollar and include hotels that have been temporarily closed due to COVID-19. All changes refer to year-over-year changes for the comparable period.
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Connie Kim, Media Relations, 301-380-4028, firstname.lastname@example.org; Jackie Burka McConagha, Investor Relations, (301) 380-5126, email@example.com; Betsy Dahm, Investor Relations, (301) 380-3372, firstname.lastname@example.org