Marriott Hotels is expected to announce a global RevPAR decline of 23 per cent for the first quarter of the year in the wake of COVID-19.

In a statement published on its website this week, the company said while there had been early signs of improved demand across Greater China, the negative trends in the rest of the world had not yet stabilised.

"COVID-19 and efforts to contain it had a significant impact on the travel industry starting in the first quarter of 2020," the statement said.

At a glance: 

• Marriott International is expected to announce a global RevPAR decline of 23 per cent for the first quarter of the year in the wake of COVID-19.
• The company said said while there had been early signs of improved demand across Greater China, the negative trends in the rest of the world had not yet stabilised.
• Marriott has entered into a commitment letter providing for a 364-day senior unsecured revolving credit facility in an aggregate principal amount of $1.5 billion (the “364-Day Credit Facility”).

"Currently, roughly 25 percent of the company’s more than 7,300 hotels are temporarily closed.

"The company anticipates further hotel closures and erosion in RevPAR performance and does not expect to see a material improvement until there is a view that the spread of COVID-19 has moderated and governments have lifted restrictions.

We will travel again.



Soon, we will step out from behind our screens.



We will look each other in the eye—instead of the camera.



We will clink glasses. We will exchange hugs.

We will travel again.



Until then, stay healthy and stay positive.



We’ll be waiting. pic.twitter.com/MrSHnVeD99

— Marriott International (@MarriottIntl) March 27, 2020

"Marriott cannot presently estimate the financial impact of this unprecedented situation, which is highly dependent on the severity and duration of the pandemic, but expects that it will continue to be material to the company’s results."

According to Marriott, 2020 got off to a solid start, with global RevPAR down 0.3 percent worldwide and up 3.2 percent, excluding Asia Pacific for the first two months.

The company said it expects to report that in March RevPAR decreased approximately 60 percent worldwide, reflecting declines of around 57 percent in North America, 74 percent in Asia Pacific (with declines of 83 percent in Greater China and 68 percent in the rest of Asia), 71 percent in Europe, 57 percent in the Caribbean and Latin America, and 56 percent in the Middle East and Africa.

The latest figures coincide with the announcement that Marriott has entered into a commitment letter providing for a 364-day senior unsecured revolving credit facility in an aggregate principal amount of $1.5 billion (the “364-Day Credit Facility”).

The Commitment Letter provides that the available aggregate principal amount of the 364-Day Credit Facility will generally be reduced by new debt issuances (including senior notes), equity issuances and asset sales, in each case subject to certain exceptions. 

Marriott CEO and President Arne Sorenson has also moved to reassure customers over Easter with an address titled We Will Travel Again,

"We’ve all borne witness to how this insidious virus is impacting our families, our communities and our very way of life," he said.

"What we’re facing is daunting, but I am heartened by the moments of triumph in everyday acts of courage, humanity and love.

"Although these are trying times for us all, I remain optimistic that our world will thrive once again."

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