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MAR - Marriott International Inc News Story

$148.48 -1.0  -0.6%

Last Trade - 09/04/21

Sector
Consumer Cyclicals
Size
Large Cap
Market Cap £35.26bn
Enterprise Value £42.19bn
Revenue £7.71bn
Position in Universe 260th / 6827

BREAKINGVIEWS-Capital Calls: Hotel chains check into boutiques

Wed 24th February, 2021 2:58pm
(The author is a Reuters Breakingviews columnist. The opinions
expressed are their own.)
    NEW YORK, Feb 24 (Reuters Breakingviews) - Concise insights
on global finance in the Covid-19 era.
    
    -------------------------------------------------
TURN-DOWN SERVICE. Boutique hotels’ struggles could be a lucky
break for their bigger rivals. Across the country, from Brooklyn
boutique The Tillary Hotel https://therealdeal.com/2020/12/23/two-brooklyn-hotel-projects-file-for-bankruptcy-in-one-week
 to Hotel Indigo in the California Coachella valley, properties
from Chicago https://www.chicagobusiness.com/retail/pandemic-spurs-most-bankruptcy-filings-2009
 to Sacramento https://www.bizjournals.com/sacramento/news/2021/01/22/westin-sacramento-owner-files-for-bankruptcy.html
 have succumbed to a travel slump during Covid-19. 
    It’s easy to imagine the schadenfreude from the corner
suites of larger chains like Marriott International  MAR.O  and
Hyatt Hotels  H.N . Independent hotels had been eating away at
their pricing power. Revenue per available room at a big
operator was only $5 higher than at independent hotels on
average in 2019, according to hotel data provider STR – down
from $8 in 2014. 
    Financial distress might drive smaller hotels into the arms
of bigger ones with better-padded balance sheets, speeding up a
trend. In 1990, nearly two-thirds of hotels were independent – a
figure that fell to 40% by 2018, STR says https://www.costar.com/article/692181233.
 The future of travel will still have a place for boutique
hotels, but they’ll need bigger-than-boutique finances. (By
Lauren Silva Laughlin) 

   On Twitter http://twitter.com/breakingviews
    
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