Marriott's full-year forecast dampened by China slowdown

Signage is seen at the Marriott Marquis hotel in Manhattan, New York City, US, March 23, 2022. REUTERS
Signage is seen at the Marriott Marquis hotel in Manhattan, New York City, US, March 23, 2022. REUTERS

Hotel operator Marriott International forecast 2025 profit and fee revenue below Wall Street estimates on Tuesday, hurt by poor performance at its hotels in Greater China, sending shares down 1.6 percent in premarket trading.

Marriott forecast a full-year adjusted profit of US$9.82 to US$10.19 (HK$76.6 to HK$79.48) per share, below analysts' expectations of US$10.65 per share, according to data compiled by LSEG.

Domestic travel demand in China has weakened as people tighten their purse strings due to poor macroeconomic conditions in the world's second-largest economy and worries over wage and job security. During the fourth quarter, systemwide room revenue in Greater China declined 1.7 percent.

However, outbound travel from China to other Asian countries, particularly Southeast Asian, remained strong and was driven by high-income Chinese consumers.