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Key Takeaways
- Marriott International said revenue per available room is expected to be down 3% in November — double the decline seen during prior elections.
- CFO Kathleen Oberg said the hotel group has “meaningfully lower” bookings.
- Other hospitality businesses have said demand tends to cool around Election Day.
The Harris-Biden matchup is turning Americans into homebodies, according to one hotel chain.
Marriott International (MAR) CFO Kathleen Oberg said the election has curtailed demand to a greater degree than prior election cycles. Marriott has “meaningfully lower” bookings for this week and the next, Oberg said Monday on an earnings call Monday.
“The election impact on U.S. and Canada [revenue per available room] is forecasted to be around negative 300 basis points in November and negative 100 basis points for the quarter, double that of past election cycles,” Oberg said on the call, a transcript of which was made available by AlphaSense. (A basis point is a hundredth of a percentage point.)
Marriott on Monday reported $584 million in profit in the third quarter, down from $752 million a year ago. Diluted earnings per share were $2.07, compared to $2.51 a year prior, the company said. The hotelier’s global revenue per available room, which grew 3% year-over-year in the third quarter, is expected to flatten in the fourth, CEO Anthony Capuano said.
Some other travel and hospitality businesses have said demand was down heading into the presidential election, as Americans vote and await results in the race between Vice President Kamala Harris and former President Donald Trump.
“What happens during a national election is that people tend to stay home,” Avis Budget Group (CAR) President and CEO Joseph Ferraro said during his company’s conference call on Monday.