Marriott International’s chief executive Anthony Capuano told reporters at the Bank of America Gaming and Lodging Conference that the company’s Middle East revenue per available room (RevPAR) fell 12% year‑over‑year in July. While still a decline, the figure represents a dramatic rebound from the 43% plunge recorded in the second quarter.
Regional conflict continues to weigh on development
Capuano noted that the Middle East accounts for roughly 3% of Marriott’s global fee revenue but makes up about 6% of its development pipeline. Ongoing regional tensions have caused supply‑chain bottlenecks and interruptions in capital flows, leading to project delays. As a result, Marriott now expects to finish toward the lower end of its full‑year net unit growth targets.
Travel demand remains robust
Despite the conflict, steady leisure and summer travel demand have helped the hospitality sector offset some of the revenue pressure. Marriott reported a 7% rise in global room revenue for July, driven by an 8% increase in the United States and Canada. RevPAR grew 5% in luxury brands, 4% in premium and select brands, and 5% in mid‑scale properties.
Capuano emphasized that consumers across demographics are prioritizing travel experiences over the purchase of hard goods. He dismissed the notion that the current surge in travel is merely a short‑lived “revenge travel” spike following the pandemic, pointing to broad‑based momentum across age groups and brand tiers.
Outlook and strategic focus
The CEO highlighted a shift toward experience‑based spending as a key driver of one of the strongest travel demand environments in nearly a decade. While acknowledging the persistent war risks that continue to cloud the outlook, Marriott remains confident that its focus on experiential offerings will sustain demand.
Capuano also rejected criticism that RevPAR growth is being driven solely by luxury properties, stating that such a view is inaccurate given the balanced performance across all brand segments.
Implications for investors and local economies
Marriott’s earnings guidance reflects the lower‑end projection for unit growth, but the company’s overall revenue momentum suggests resilience in the face of geopolitical uncertainty. The firm’s continued investment in the Middle East pipeline, despite the challenges, signals a long‑term commitment to the region’s hospitality market.
Analysts will be watching how the company navigates supply‑chain constraints and capital‑flow disruptions while leveraging strong consumer demand for travel experiences.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
