Marriott reports strong quarter, dismisses shared economy worries

Marriott International reported that its net income for second quarter 2015 totaled US$240 million, a 25% increase over Q2 2014 net income. RevPAR rose 5.4% for the quarter.

Marriott also added more than 20,000 rooms in the second quarter, with more than 9,600 rooms attributed to its purchase of Delta Hotels & Resorts.

“There is a strong appetite from our partners to grow the Delta brand,” said Arne Sorenson, president and CEO of Marriott, on the earnings call. Marriott has reportedly received inquiries regarding the possible conversion of more than 50 hotels in the United States and Canada to the Delta brand.

“Our perspective has not changed from a quarter or two ago,” Sorenson added. “We are confident that the strength of our brands will continue to produce an extraordinary amount of cash. We remain pretty bullish for what’s to come.”

When asked about Airbnb’s threat to the industry, Sorenson dismissed concern. Airbnb recently launched a new product suite designed to be easier to use for companies booking corporate travel.

“We think that business travelers are more like to stay in traditional hotels as the risk profile is especially important for corporations,” Sorenson said. “However, for younger travelers especially, we think it’s good that Airbnb is drawing travelers into the marketplace sooner than they might have done based on cost.”