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Shares of Marriott, which owns the JW Marriott and Ritz-Carlton brands, fell 2.6% to $142.90 in premarket trading.
Analysts have said that major chains like Marriott and smaller rival Hilton will take longer to recover as they rely heavily on business travel, which remains weak due to border curbs in place in many countries.
Marriott, which gets nearly three quarters of its revenue from the United States and Canada, said its RevPAR, a key measure for a hotel’s top line performance, fell 46.3% in the region in the three months ended March 31.
Greater China was the only market for Marriott to show positive occupancy growth, with RevPAR surging nearly 77%.
“While recovery trajectories vary from region to region, the resiliency of demand has been most keenly demonstrated in mainland China, where occupancy is near the pre-pandemic level,” Chief Executive Officer Tony Capuano said.
Last week, Hilton said Asia, including China, was its only market with positive quarterly occupancy rates and the smallest year-over-year fall in RevPAR.
Marriott’s adjusted profit fell 33% to $296 million in first quarter, below market expectation of $305.6 million, according to IBES data from Refinitiv.
Total revenue halved to $2.32 billion and missed Wall Street estimate of $2.36 billion.
