On Thursday, July 16, Marriott will report its Q2 earnings that may provide some insight as to the state of the economy.
Why is it important? Marriott operates more than 3,200 lodging properties worldwide, and the company’s performance offers insight on travel trends and consumer spending. Demand for its hotel rooms and timeshare resorts has been weak, and investors are curious about whether business picked up with the approach of summer.
What to watch for?
You’ll know the economy is improving if: Declines in hotel demand start to stabilize. If travelers are booking hotel rooms, it could mean consumer spending is increasing, despite continued layoffs nationwide.
You’ll know the economy is not improving if: Revenue per available room sinks during the quarter. Known in the industry as revpar, revenue per available room is considered a key gauge of a hotel operator’s performance. Last quarter, revpar for Marriott’s comparable company-operated properties dropped 19.6 percent.
