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Marriott Posts Adj. Loss In Q2; Revenue Down 72%

Marriott International, Inc. (MAR) reported a second quarter adjusted loss per share of $0.64, compared to profit of $1.56, previous year. The second quarter adjusted results included impairment charges and bad debt expense of $0.17 per share, related to COVID-19. On average, 22 analysts polled by Thomson Reuters expected the company to report a loss per share of $0.42, for the quarter. Analysts' estimates typically exclude special items. Adjusted EBITDA was $61 million, compared to $952 million, previous year. Second quarter 2020 adjusted EBITDA included $36 million of bad debt expense related to COVID-19.

Second quarter total revenues were $1.46 billion, down 72 percent from a year ago. Analysts expected revenue of $1.68 billion for the quarter. Comparable systemwide constant dollar RevPAR declined 84.4 percent worldwide, 83.6 percent in North America and 86.7 percent outside North America.

Arne Sorenson, CEO of Marriott, said, "While our business continues to be profoundly impacted by COVID-19, we are seeing steady signs of demand returning. Worldwide RevPAR has climbed steadily since its low point of down 90 percent for the month of April, to a decline of 70 percent for the month of July. Worldwide occupancy rates, which bottomed at 11 percent for the week ended April 11, have improved each week, reaching nearly 34 percent for the week ended August 1."

As of the end of the second quarter, the company's net liquidity totaled approximately $4.4 billion, representing roughly $2.3 billion in cash and cash equivalents, and $2.9 billion of unused borrowing capacity under revolving credit facility, less $0.8 billion of commercial paper outstanding.

Shares of Marriott were down nearly 3% in pre-market trade on Monday.

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