(Reuters) – Hotel operator Marriott International raised its forecast for annual adjusted profit on Wednesday, banking on international travel demand to offset normalizing domestic travel in the U.S.
International travel demand is expected to remain strong this year as global air connectivity increases and travelers flock to Asian and Middle Eastern destinations.
“Our results in the first quarter highlight the resiliency of our asset-light business model and the strength of our brands,” said CEO Anthony Capuano.
Shares of the company were down 1.4% in premarket trading.
Marriott’s results were boosted by 11% growth in room revenue in international markets, led by nearly 17% year-over-year growth in Asia Pacific excluding China.
Global room revenue – an important metric in the hospitality industry – rose by more than 4% as strong international growth was offset by an increase of only 1.5% in North America.
Quarterly revenue rose by 6% from a year earlier to $5.98 billion.
The Maryland-based company raised its 2024 adjusted profit forecast to a range of $9.31 to $9.65 per share, compared to a previous range of $9.18 to $9.52 per share.
It reported an adjusted quarterly profit of $2.13 per share, compared to $2.09 per share a year earlier.
The company added roughly 46,000 net rooms during the quarter, including around 37,000 rooms from its agreement with MGM Resorts International.
Marriott expects worldwide room revenue to increase by 3% to 5% in 2024. It sees 4% to 5% growth in the second quarter.
(Reporting by Aishwarya Jain and Doyinsola Oladipo in New York; Editing by Milla Nissi)
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