Bulletin: Marriott International Inc. Revenue And EBITDA Base Case Revised Following Q1 Earnings; Ratings Remain On Watch Negative

NEW YORK (S&P Global Ratings) May 12, 2020--Marriott International Inc. (BBB-/Watch Neg/--) announced in its first quarter 2020 earnings report that systemwide revenue per available room (RevPAR) declined 22.5% and its adjusted EBITDA declined 46% (including bad debt expense and guarantee reserves taken during the quarter), reflecting the impact of the COVID-19 pandemic on travel and hotel demand during the quarter. The RevPAR trend was substantially worse in April across the world, and we expect Marriott's systemwide RevPAR will be very low in the second quarter. The company also said it took substantial measures reducing its monthly run-rate pass through payroll and other operational costs at North American managed hotels in its system by two-thirds; substantially reduced other reimbursable hotel

...May 12, 2020 NEW YORK (S&P Global Ratings) May 12, 2020--Marriott International Inc. (###-/Watch Neg/--) announced in its first quarter 2020 earnings report that systemwide revenue per available room (RevPAR) declined 22.5% and its adjusted EBITDA declined 46% (including bad debt expense and guarantee reserves taken during the quarter), reflecting the impact of the COVID-19 pandemic on travel and hotel demand during the quarter. The RevPAR trend was substantially worse in April across the world, and we expect Marriott's systemwide RevPAR will be very low in the second quarter. The company also said it took substantial measures reducing its monthly run-rate pass through payroll and other operational costs at North American managed hotels in its system by two-thirds; substantially reduced other reimbursable hotel expenses related to reservation systems, technology, and marketing; cut selling, general, and administrative (SG&A) expenditures by 30%; and deferred anticipated investment spending...

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