Investing.com -- Marriott International, Inc. (NASDAQ:MAR) has lifted its full-year profit guidance in a sign that the hotel chain is reaping the benefits from a surge in travel demand, following the removal of COVID-era restrictions.
The Maryland-based group, which operates hotels and resorts around the world, said on Tuesday that it now expects to post adjusted earnings per share (EPS) of $8.36 to $8.65 in its current fiscal year. It previously guided for EPS of $7.97 to $8.42, while Bloomberg consensus estimates had placed the figure at $8.33.
President and Chief Executive Officer Anthony Capuano noted that booking trends are "solid," but flagged that "conditions could change rapidly."
Despite lingering worries over a possible economic slowdown, customers have shown that they are eager to resume travel after the pandemic.
The boom in travel demand has helped to push up the prices offered by hotels, in turn boosting results. At Marriott, worldwide revenue per available room, a crucial gauge of top-line performance, rose on a constant currency basis by 13.5% in the three-month period ended June 30 compared to a year earlier.
Adjusted diluted income per share in the second quarter also grew to $2.26 versus $1.80 in the corresponding timeframe in 2022 and topped projections of $2.17.