Marriott International Inc logo

MAR - Marriott International Inc News Story

$148.48 -1.0  -0.6%

Last Trade - 09/04/21

Consumer Cyclicals
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
 to Hotel Indigo in the California Coachella valley, properties
from Chicago
 to Sacramento
 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
 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
    Earlier in Capital Calls:
    Vaccines are D.C. leverage*:nL4N2KU4E9 
    Reckitt cleanup deserves premium*:nL4N2KU3C6
    Hermès bags are the new safe asset*:nL4N2KU3BB
    Mitsubishi reverses into France*:nL1N2KU03I
    Wells Fargo slims down*:nL8N2KT5WY
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.