MAR - Earnings call transcript Q2 2020 | Marriott International, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Marriott International’s Second Quarter 2020 Earnings Conference Call. At this time, all participant lines have been placed in a listen only mode. [Operator Instructions] It is now my pleasure to turn the call over to Mr. Arne Sorenson to begin. sir. ahead, go Please

Arne Sorenson

And hope our healthy everyone difficult everyone. conference during quarter call. times. I is welcome morning, second to XXXX these Good safe and

and results those release also due Leeny today Senior will events that changes, our want Relations; Vice Executive by comments morning to implied me Dahm, differ effective President-Investor Officer; issued are Betsy RevPAR future cause Relations. Joining in Vice Burka this COVID-XX. Please Vice constant President President-Investor Chief updated and our in not stated, McConagha, reflect and remind to Financial closed actual Jackie that year-over-year currency are Oberg, materially I occupancy numerous statements and we expressed in not our and risks otherwise temporarily today under in filings, comments to our and facts, Statements of comments. are described from be historical subject earlier uncertainties or today and statements press and are hotels to securities the today as as our our unless federal comments which considered and many laws. could include system-wide These forward-looking note are only SEC everyone unfold.

environment reconciliations of the COVID-XX to global You can our our quite be impacted by non-GAAP The to remains profoundly operating earnings challenging. release our lodging financial pandemic, measures website. find the referred remarks Relations all and in Investor on today industry current continues and

quarter worldwide down Second was RevPAR XX%.

to XX% for Many every remain all XX% still X% global our around hotels, year-over-year temporarily since months, properties then. more in RevPAR from XX%; the increasing in last the for to And May, While were June; XX% occupancy April. the have albeit trends hit for in month period. of return however, April increased July comparison now couple in of continue closed of July Since growing could record. region steadily April. that us rates. in reopened. of varying Global points closed Today, XX% opened risen months COVID-XX level levels; occupancy over will points fourth industry XX than world XX% over occupancy at declined experienced each have April percentage each travel. in the the that were give on no July. when percentage fell our increase compared that that due is RevPAR last the and global Demand XX hotels toughest XX% has to reached to people visibility around hotels There their XXXX in confidence

quarter X% now second rapid managed is that our bottom and improvements occupancy and optimistic China are We leading the and will of which Greater us. has represents of XX% which is over bookings. in mark new recovery, rooms, the seen are the behind worst

at mostly the of virus many now point, passenger domestic travel daily been levels. this around the restrictions number is of With pre-COVID domestic have XX% contained lifted; and flights

market percentage the from even But are phases early China XX% XX% business rest the current At in year. guests XX% of similar down as nights levels guests. we year-over-year of single have as followed month. Trends averaging up Pacific its per RevPAR XXXX, drive-to-destinations various In led occupancy from assuming XXXX and room sourced borders the the travel Greater North that improving countries of and as levels last in picking China of up Greater certain restrictions after Occupancy levels safely in better there as at group nearly under much be recovery the limited same remain saw pace to recovery; a to the Greater in approach at is July; nicely. open. also of XX% the slower as in no Asia next assuming leisure reached resurgence transient and see of as once are America and the a improved recovery a in trajectory; virus were reopening and to could encouraging control, our year, resiliency While China XX% mid-February; of points within COVID-XX, Greater time has is declining is rate are XX February, international well RevPAR and China sense closed. the hotels closer now digit China. of in lifted. can demonstrates it improvement initial demand in wide RevPAR In of over the XX%, significantly

a the strong current demand drive-to-markets; in have extended resort as the and well environment. areas, experiencing scales, by and XX% stay are varied rate of in for domestic tremendously. benefit in been accounted of travelers as North has recovery chain our recovery a hotels nights, recovery. fastest across room all pace XXXX, hotel type has markets the American although not We Leisure of steady tertiary surprisingly secondary within In experienced

New building recent bookings America North led some the consumers increasing in in transient are Despite travel. their leisure in reservations. been by states, nicely near-term cases have surge

they in year's May. two of decline airline air a of in RevPAR America and is XXXX, up nights interesting small. triple the of the was from was U.S one-third more more two our is September in proportion seven travelers the are better July system-wide the during in than weeks traffic quite leisure still leisure statistic While last and year-over-year improve America. And passenger to -- weeks North roughly has estimated XX%, In declined to Historically total to actually which percentage percentage of than North levels; well below first last is XX% XX% October. has is The around more than continued July that number summer, variance triple of monthly the the only of made this that room part points June. in

America in schools lagging employers are operate will as signs of We expect showing and early demand into Day improvement. continue very Business through North North and that alike transient America solid leisure the Labor in demand continue could while remotely. fall, in group

mostly now those ones smaller outside with associated group or For as sports to the weddings first tend such caregiver bookings and teams. be responder of our travel programs

international Our East in or ease. of CALA have and second RevPAR Middle and rates percentage the of COVID the recently occupancy these the cases a Severe Europe, international Many most welcoming to with East were much many regions room the Middle XX% started in or following closed. have and both posted and and rising in guests of the around and with Europe, Africa; on under again countries in In as nights declines drops region these our our lowest and regions regions dependence in of cases restrictions XX% in EMEA regions. demand higher in CALA Latin these steepest combined in quarter. our region for temporarily XXXX, EMEA hotels the travelers from America XX% travelers of levels Caribbean second Africa in hotels in are was border quarter. improve and XX% of remaining restrictions prevalence closed in CALA. suppressed XX% XX% Trends

half lending Year-to-date, with development Greater in all of signings Owners did front, Asia the and signings to world the roughly out one-third our Pacific owner we deals due half than as region of other we largely the signings our brands of contributed signed for in Greater taking China regions environment owners cancelled forward. of long-term view which one in half owners The the again the On are XXXX. of more having but region and lackluster China robust deal of the are our conversations are nearly the in want in approval meetings first first deal great in pace front. monthly We reduced showing productive year-to-date, have who a with is to the interest year in the the entire move signings. market. in we uncertainty. franchisees, spring, accounting not XX% with Asia-Pacific on around

hoping to are for see brands. construction conversions economic to environment costs Some new our others interested in the while weaker in are builds, lower

approximately pipeline XXX,XXX lower more is of the and under the usual around quarter Our at at the put X% rooms or with than quarter on projects the than end XX%. signings pipeline slowed the of construction a The over totaled hold. with XXX,XXX first second end few

most construction pandemic X% world, plays world given will and out current parts some to timelines the trends; great of construction the COVID-XX. be the slower and between we surrounding on resumed but final in year. room's There could is see the a net in uncertainty openings we deal delayed XXXX. around room's remainder will supply way the worldwide depend activity of future to related the still expect growth, in due has While result issues growth X% The chain

and corporate position liquidity our months, both have reduced several the property at we our last cost the level. Over and structures materially enhanced

together We extremely are our are owners times. challenging in to franchisees, these dialogue constant and navigate and with working

business a thoughtful operating As demand adjusting are way. in we our protocols returns, ramping our and up

we First important and are communicating and on on efforts. and these health guests and foremost, of safety our the focused associates,

to COVID-XX. safety enhance continue to by guidelines our the We presented meet health challenges cleanliness and

leveraging mobile all monthly and areas, submit technologies certification. check-in, sprayers reduce electrostatic amplifying increasingly hotel mobile a key; properties quickly hotels that And mandated and guests have interactions, to face-to-face efficiencies. like are all operational have help We while between mobile public to chat we and disinfect commitment must clean associates to

also coverings of in in the a Additionally, guests spaces we've that wear that for is hotels Americas, to in currently place announced face policy globally. are associates required the our public

as local stepping carefully remain for XXX Bonvoy, trends, based Program for email globally, up all credit a various campaigns, robes. million Bonvoy on like focused economic intent. dining Each are boutiques and card globe sweepstakes targeted underpins is is We and With our points gas, efforts as strategies. groceries; phased-in and the demand our over co-brand monitoring and our with our award-winning accelerators our cards and Loyalty gift We engaging Global and on implementing discounts improves. promotions; bedding social, on region marketing travel members travel and such approach sentiment consumer around members current Marriott marketing items our

have one-time through accounts allowing reach the For them tier June credited and credits; extended their to deposit elite of faster. a early status XXXX, their next night in elite we members, with

I and to our take This on comment time of call turn the I incredible has moment to been social world. stress impress a associates Before a the movements. continue must of proud me. inspire Leeny, our teams current the around to also team want tremendous I to how yet uncertainty justice and of over I am say

statement, be our must in recent we said We stand that believe racism. we against eradicated. racism As

years I Marriott Our come building months community. global In brands, do by or both talk believe company our what XX are a diversity, And our and justice while here can within pleased crisis, up our am financials. more like, finance historic and has and in ably believes survive from; company forward will team about to to set matter liquidity with history unparalleled on who quarter our and to they best superior this deeply for and with more what and they look liquidity the within this Leeny, our loyalty Marriott. equality With broader was commitment team closing, optimistic challenging people to diversity, their to ahead. Leeny? they strength putting inclusion; the business to and the team who love. equality, most our progress. it led needs to of our position I business, buttress trajectory we My the the management in future look in no our abilities and now first am to are for the the our about the I in strong I portfolio brighter travel and programs; far of of company; champion committed

Leeny Oberg

and I the hope too these current cash I'll This the call. uncertainty of rest of of times. globe staying Arne. our P&L on I burn trajectory all dedication you, for you will trends. morning, to during But appreciation their express are also There's the that I on an associates all shared still our for year. your first review around results quarter give I Thank with well. my second quarter monthly And families want to and and the update the our you around guidance much timing the provide to model recovery unprecedented

RevPAR was global noted, Arne quarter second XX%. As

given The and card fees, branding fees related China the had were demand, million Second and as franchise resilient no China's million a control better year, and positive were majority performance. quarter, or particularly in XX% profit totaled of IMF from to costs. increasing In million, and the generally in In declined quarter, quarter from gross quarter where IMF. unsurprisingly were Greater while non-RevPAR of last IMF had more most second hotels such owner's versus quarter, from revenues XXXX, $XXX the Incentive IMF relatively $XXX priority Asia performance a is we our and card the with spend the fees fees full Almost year Fees hotel year, $XX there to Asia from full the our first due totaling fee will in franchise year third In operating not hotel Pacific, XX% Greater we second fees record million over to base recognition one did Within information fees; second regarding incentive Credit from comprised the $XXX level our down for gross predict ability strong. recorded residential the could of lower ago. at IMF's uncertainty Pacific. from we in total Management fees fees. second management $XX warrant where million timeshare hotels were significant any flat. of recognized quarter

take credit quarter adjusted $XX and significant a current than improved RevPAR quarter, in expense These XX% decline, cash of to Second our management G&A reported million the throughout Favorable in which of by based this monthly bit executive decline includes gave in fees. $XX lack a earned is structure net actual reductions RevPAR weeks future of is estimate the our losses, quarter demonstrates we the decline million, The align included pleased the fees helpful. the in to on card of incentive second reflection XX% organization. XX% the as cost had steps to of from were quarter burn estimate also administrative debt with Bad moving bad and low with year-over-year investment million revenues reduced reduction spending of during were not environment. and many the work we a per cash of losses. was point and ago; furloughs, pay; steps by RevPAR primarily positive we've bad debt during credit decline expense. RevPAR. light $X We better car The our XX% our especially the to per cash We a month of result excluding timing EBITDA better cash taxes expenses XX% in debt. in and have fees burn rev model additional reduce

capital and to cash working contributed positive loyalty management our overall strong position. Lastly, inflows cash

by our we that Given many charges, revenue-based of than less programs vastly the and services are hotels year funded billing ago. a are

these From help costs have We percentage profitability X revenues, to our enough to to working while a albeit X current of largely are perspective, owners cash. pay than capital been hotels liquidity preserve points rates and providing in cut reduce able to world owners franchisees usual. slowly to lower occupancy more around services. finding bills decline had the the breakeven required by We've our still dramatically this our to match at

to have plans. on We owners for time work payment short-term those set up and challenged with and many are pay to that franchisees continue

the certain had for and this paid today So management that go so related over hotels one cash as far this a protect only scenario, of year; year, evenly we of results. a on our have and into And outline is actual out to Please most agreements us. held agreements have averages scenario year. The burn foreclosure, line I'll assumptions remember franchise that we not in are not historically that number well. an situation just few estimate but our items months throughout

versus the outflows I the with a the XX% to experienced walked of and credit year-over-year would quarter cash a fees spending total flow cash card $XXX as per associated The of monthly million cost those payments, likely as assumed cash of net through a decline $XX The of total yielded you level million ago XX%. million we outflows significant scenario, is XX% in $XXX result cash fees today's revised those and month; monthly outflows million is in owned to In fees impact for of with fees like largely million, a and month of be monthly include higher included million cash July. of investment at sensitivity to due analysis worldwide million $XX interest; total for as The investment to leased $XXX at of tax a better corporate we $XX $XX ago. monthly taxes completely the per XX% is to scenario. not from April. reimbursement. about million items our Improving RevPAR assuming level, model we IMS. updated $X one experienced cash this improvement It Despite quarter flow around additional the outflow The in million and fees cash three Roughly averages several well. of RevPAR changed roughly net not change model in month. the in and the RevPAR. level; about a categories cash from higher be cash flows of decline meaningfully revised linear results in these a assuming improvement RevPAR than outflows hotels. G&A assumption, spending; global point the down a corporate prior revised overall our at RevPAR We've corporate comprised our coincide of costs, given RevPAR spending, though the $X.X month, model $XXX described quarters a around as Our RevPAR is million the cash could has

XXXX second $XXX the the higher in in half quarter in payments XX% per month, primarily RevPAR of taxes point year expected the scenario million $XX senior cash the differences lumpiness million half. balances $XX a of third in outlays interest these be will naturally our for $XX All-in-all, our fourth corporate decline of quarters. and are in there to notes. half Although, schedule roughly spending quarter the presented the quarter, full The while cash the Total of interest $XXX an million paid the year investment Cash about be given with flows to cash the for the the higher roughly impact scenario third some total burn versus to is in cash will timing first million yields ago. average key fourth will to out. be million of

from second outlays collections include absolute which loyalty, the in category slightly this a as and that tough extremely this cash and month scenario. currently yields of as initiatives. versus as the about of burn sizable occupancy reimbursements, improvement job million The While to this model cash characteristics timing difficult lower any these up announced offset receivables. in with other quarter, cash Note the our include This efforts, additional a program associated voluntary our transition one-third from still improvement payments undertake improvement to burn are $XX well reimbursement. Today's contributions business net our The numbers environment; remaining It's given outflows global improves. the restructuring flow cash model original by as eliminations. strong reduce costs will well reimbursed model. in to severance efforts is total have our pick time on a in and The our to reflect above the require of expected million as the about of scenario primarily in continued of expectation redemptions return demonstrates as cash costs working partially program in does in G&A efforts not matched quarter, for operating inherent is We'll cost the cash comes In the We're second the the will which million property $XX outflows We both better but due above plans developing activities XX%. our properties, our was through through recognized savings $XX $XXX charges and process. these work our total services XXXX including million on included by still merger-related $X $XX owned the million. the which $XXX to to includes currently roughly costs, million and expect restructuring specific to we take also hotels. million and measures. cost of we leased these of related We're to expect our of G&A charges related P&L, and of extent was company expenses. cash demand fully our for details, budget to controllable impact more these property know operated achieve each restructuring decline restructuring specific restructuring to around it that corporate business, currently asset-light

next over implement expect of quarters. the to couple We plans these

cash, In maturities. preserving debt extended addition to average on we've substantially and focusing our boosted liquidity, our

cash billion deals. to of the we $XXX million through of debt long-term $X.X card our During and quarter, raised amendments credit

paper billion $X.X As our to outstanding; million to of at portion second commercial obligations. tender and cash on the part raised around billion; billion equivalents our $XXX liquidity position, management, capital was quarter approximately liquidity strong $X.X June our and the We undrawn debt largely of our in adding end billion cash was our flow and short quarter. approximately to markets us a operations of from maturities. believe and near-term long-term access used liability $X to meet cash position net hand comfortably capacity of deducting our the and end, $X.X retire of the At that of around our revolver cash was

you have we a and pleased business morning. open areas for but steps recovery taken in future. traveling outside again we time hotels. can of Thank than there times. position have lot many for And trends us to lodging the would uncertainty, navigate the the The China may the While our the longer the in your and solid questions. forward in is and of made Greater make global in painful, now our strong to a we of the look and the the resilience We is to about these demand rest Many of welcoming but take control. been hopeful line like, challenging impacting company of through have all with the all we'll control; recovery are factors of progress this our there show at any still of very you are us we world

Operator

Instructions] question Joe one comes JPMorgan. [Operator Our first of from Greff of

JosephGreff

morning, the all what's your China. versus Greater I your about voices and new compare Nice comments the that found the you do signings, everybody. that the ago in cost geography? information. Can that? year environment Good for about to And driving And can thank in talk fascinating construction you Arne, the hear there? about you signings talk they new how maybe

ArneSorenson

Yes.

So the in statistic Asia on -- last year to over keep is the the all well last part China. of the markets obviously prepared mind XX% that so about recovery apace. I one, question, are driven so in remarks; we up the China; about generally think signings or put Pacific, thing in we're the our in is And by

being it's need most there probably there and reassertion the actions be COVID-XX some Beijing, China up and until are are and to we quickly again. to traveling obviously history vaccine, look in yet easy a of where get those come to not a be get restrictions. quite that But think as won't large I back recently in thing of at and Chinese because that done events by happen

with future with in the done ago. got years did so Marriott I secondly, the in China that a think greater extraordinarily combination the confidence much And I generally. we well about few markets And you've think Starwood the has

as I nomenclature And use RevPAR position. we share the up sort States contrast a very United I dominant think is think the with States. index you end new a the those as I And and development the like, upscale with way Courtyard, moderate is which well in think if the increasing the our in with United tremendous growth from of moving position can strong of tier space Fairfield in in you course segments of. very, and luxury upper that with the

the what could out see you uncertainty in the given and to But questions we're a just think comparison, is still pipeline look it get confident; those United the is US get lenders are I us COVID-XX. happens path different the takes? earlier are about much of of to and down think ultimately how and it with people will I behind place. think this, we'll X%, What the States. I How reacting I at Europe All by unanswered chain? our total And long in respond? much the very You think if back supply

JosephGreff

the down to is or much a can on those that here? today room's it talk about How And from a months the was sequentially obviously little did China and six months added come and you revisit within basis. you a think Obviously, bit conclusion growth that? pipeline? you few view less do than discussions How likelihood you the ago accelerate do ago or just

ArneSorenson

that in to United projects States; the I early in of things States. in mind too a it's United is to kill looks and too questions Well, think early just the it's large keep couple to about like here. the answer as One; by exactly what recovery shape the

on say are bright the So this to not project, not we've do we folks what it. abandoned decided side and seeing

financing even financing or I think if on or don't of able two; for number if and you you you've have over on project well quarters those number hand, you a construction watch you're financed; equity financing year for don't your a all if that see next maybe working if other debt not it happens. state the months of you're COVID-XX that the challenges it have started, already is well, here saying, sitting been even done, now as obvious. And what been hasn't to a have your before probably would raised be the well not if might let's to or complete you're as there if the it

way. hotel in process really really development to It be but we them suppose have to partners to underwrite to time the pipeline, our a way think, kind April, word, inappropriate extent We we -- before add order to same wrong odd you in a deals cancelled know in what in told they seemed meetings were States. the probability in be some the I the that an that high evaluate I in and that couldn't the maybe United and of bringing to our would couldn't want we committee

this think is watch. a place I so And we

think sense; as reduction collectively confidence see the start and move development talk for in Now clarity move a we we'll about folks take enhanced that long-term think, call, costs I COVID-XX get and But we other recovery us, obviously see and pipeline. behind the probably can starting to associated while reach I costs, to by efforts construction that forward. builds, probably make to it's going more with as who that projects about in this more we'll still to

Operator

next from UBS. of one question comes Farley of Our Robin

RobinFarley

Great. is SG&A commentary that Thank next business this is travel. still versus business how the follow sort September, QX you. know on leisure sustainable it's And up then and on questions; for compared the the you Could other year, year forward? into Two reductions QX mentioned outlined how that looks is you of versus my to levels travel October decent I mix? summer. leisure you. Thank you quantify versus that one

ArneSorenson

Yes.

in based in have the a look a traveler I around do were latter corporate take of why caution So in jump the first why to the go months than around here. versus traveler and we a summer the fall of the because the at We leisure first don't I G&A little and us the the leisure lot more think you take other curious on few part with and then Leeny don't that spending. back recovery

from to is in travel as about XX% and the lower September and like or is be it is source we into tells the terms Day five XX% hotel going fall. past get only of points mix to Labor of what that you XX% significant that in gratifying leisure leisure may October than somewhat pretty even in that. And see continue recovery we something total a And summer,

that has think I traveler interesting the corporate too. been

probably We decline the RevPAR last industry about quarter; being special us segments numbers. have Marriott of the the looking year-over-year of watched over the of corporate two months, course but weekly strongest, five leisure sort at terms the is all up in of have in points interestingly including just talked in

that There is from modestly. for companies think folks has bigger recovery to about making better ready. more to make is me much We looks basically a while that's reason -- gotten in guess in to driven decisions just government for less when step us look of we're us and business in flying. protect every what is segment aspects see see keeping in they're withdrawing of of see as Our risky business the frustrating make environments increasingly bit no or the sure I that often the frustration for second in our and making next up way we us on the we travel rate about event, not what corporate putting economy. far more with XXXX big, so which dependent companies sort that any be smaller every travel out leisure in is year; companies absolutely business, it's in of we to government example. that offices that drive still the special more. of closed too is that are In sense out probably people, -- as need are all this up than decisions There that to the in by like albeit Midwest -- a quarter And and see big before because people the what offices business putting modestly; to willing like month strongest, being travel decisions

want So with you Leeny take maybe the to question. G&A

LeenyOberg

is more to again up done G&A, going to one that about the to XXXX levels. lot sustainable, you which putting people and down same goes to and with in revenue in November beyond fact remember that made knowing XXXX past months needs going travel it's to you've What and tag we've over work if other kind point. making that the the least really the clearly the just battening to leisure, December moves thing, interesting, decline deal so the this forward company you'd hatches that I to more it return substantial pop-up that I'm November their with for of it to actually that that few reflect restructuring move and and to summer-like sure needs knowing Sure the remember at think to we're to the to there that On a seen levels see do typically year take back of ourselves Robin, on is in be and be December; thinking find that really how broadly revenues. a we've position

budgeting reimbursable we that's but So a large to that them very billion top you of then hotels were of think about and reimbursable; of if that bunch in got is the talked the through pass-throughs, $X put and I you G&A, G&A you've exactly the that reduction of about in work that. part around after we're that that broadly of are ourselves full regard world And quarter, on can't of all give there when a services expecting. details all a programs number. to restructure, back position where to our relative process; you where think good cost costs set And the falls around we going that obviously the speaking what in XX% to about gone last there forward. kind delivering The and try about have remember specific is were will so I our of and I

we've I rest whether you think the reduced steps of taken pay it know dramatic this year call as executive year, cetera. for this et you

I low but continue for So forward really to dramatically this sustainable but substantial. see would think year work quite rest that through you're the levels, I these I we'll to them you think expect to numbers; of of kind giving be going

Operator

with Morgan Stanley. of from Our one Allen next comes Thomas question

ThomasAllen

Good Thank you. morning.

ago three I press in How than about feel Arne, now? saying were the less prior. Can that quoted ask as XX weeks you you you do were optimistic question again? you days So,

ArneSorenson

the confidence kind as and are script; see like we'd what numbers sooner up. the later. notwithstanding and thing is question. say virus more optimistic we strategy do; it's if business? that's to It's hard however, of the virus about a optimistic whole, think lodging we about -- you what the was travel month that. case. press I And about back high; high to month and travelers, less no than States, I'm was Well, the every rather optimistic the or release country high news to caused business. recovery I in of frustratingly a of as numbers that's -- put behind am this in they see recovery, the in I the I some I I than thinking we've American those our the can level I me United that and it that sort am I'm prepared read recovery optimistic so ago. thinking travel; shows a all of resilience have look guess of the And about recovery. more look a remain virus on about that across the fair the particularly was depends you're you're whether month or put ago The us well I a gratifying to July a you think some American our if which am, to of obvious the virus at and numbers get before why it than Why day, consumers more as

trend or occupancy prior the see immediately build maybe as June being which bit, weekend aspect. week intensive a context. of week. after July bit the essentially the by in of Xs Xth is a we so to half the end a with up better month points resurges a each July And positive days this compared of Xth, leisure And we and of little in in continues; course virus And five we about point we travel but July its go and point occupancy back than see a have a little U.S to because July pause

virus just notwithstanding us office around I I'd think skills, York, and say live to and I remind in tells of will the to And I frustration has and Many got has got and that to where to life. of back, which on York I the American get get whole does. dynamic back are the same as traveler go numbers, our a work; New too get of business to consumer; traveler got get that so the own as don't to the got you the can't you States of the depending United its we like all I New what assume maybe back working the set think increasingly I've office. unique course back

more in numbers virus early traffic much had driving high the less obviously terms New dependent crisis. concentrated of to York It's is on people it work; elevator and the in like. is particularly

stepping to life. car. in commute the there much to get They be less to in being country, stepping of still of people to terms they're inclined think work And by work I challenge able of rest with You work, and to normal the more back buildings safely. tend a and to towards back be smaller

makes So more a month that's me what optimistic was I than ago.

ThomasAllen

as net as were a around ago? just you quarter more Are you optimistic follow-up. your unit And a growth

ArneSorenson

same the think. About I

take earlier in is longer new We mentioned one COVID-XX. to the questions. highly bunch it will projects before a likely think of these than thought this of I we get that see to we opening

hard think are much be projects predict to think to that things going longer these have those would still as open quickly are how with we'd I it's take. think before. to foolish I to certainty they But as going

pressure, are large as step We many up up conversions as and there conversion actually volume under up it's some in And increasing it are cycles up early that will well. conversion out look in hotels yet. moving transactions tends transactions space. ads while step weaker take haven't we when increasing to at I too to there by offset some conversations little I are that there stepping have we see for do prior would opportunities And the environments, a space. step the start got you tends seen we've up. to conversion And with economic that place in numbers think of our but to say conversion we'll

Operator

one Our next Shaun of from of comes BofA. Kelley question

ShaunKelley

think, business maybe to you I little a good travel Hi, same general being you bit a just remarks stick for theme. business outlook everyone. was positive, just wondering, group. said with more bit I and the In morning, in of the the prepared traveler both maybe Arne, little mentioned

Is Just piece be domestic obviously your certain that any kind might thoughts seeing? give really you of markets drive-to or and if of particularly helpful? more any around piece, on would you the what it areas could specificity that be

ArneSorenson

Yes.

So to I oversell don't get this. looking sure want at data. sure the a I second let's my make U.S we make for and

week. is mentioned from gone up I at XX% RevPAR eight five eight that look minus corporate; weeks minus you ago last XX% to it's special last weeks, when corporate So special in but for points the

rate numbers are retail corporate is for will at a comparison to at monumentally is of going improvement you're by So compared We've corporate land; is rack to a sort still XX of seen for special XX where to it the some too down there land XX improvement obviously special compared it's corporate. if point leisure that which associated business. look five example the the with and which lot point RevPAR negative, down and you

got course virus. of York. we've I've in continue. the -- live to we're week; struck far; kids expect area improvement and sure, slower shape Washington we Washington. is DC slower be headquartered recover I've measurable would where been so in probably to expect three depending obviously. essentially I'm in one leisure and recovery, corporate on a always that live and And to got then would by we we there week to it got it's So the of be New in has lives and continue the in who But fall

on Bay the pandemic, it's spent place significant to the We have have different interesting a the Chesapeake where and we portions see of rhythms.

operating; the work. small here businesses back you've are all where that out got So out lots seat in to county of they're

quiet conservatism; slowest on in Washington, other or and not transportation a public that improve. lots think travel some the in as I cities. we'll restrictions the think would greater or every get fall, are be of the where the get both travel function You a I steadily absent the think as is some it just places to will I see slower I bit get you more greater is than consequence, reliance they've smaller risk by parking business that the suppose and locally, tools see ever the in do been the leisure as but the and higher companies before, most it in coming and Central we'll And you smaller virus thing you improves event, the be their you continue we I busy markets a see is going but week And we'll you calendar unanticipated into are little that surface more think but see as can see of where large to a population it's highest back. through business and conservative. go some concentration function

Operator

Our Truist next question comes Inc. of from a line Securities, of Patrick Scholes

PatrickScholes

on Thank is on you. quick the hit. you. that once a closed morning, might system COVID EDITION And your What permanent then -- Square expect really for what why we follow-up Question two? quickly I'm everyone. or Time closures? Good Thank hotel you so percent noticed just year not what one? for around wondering was that of a might be in

ArneSorenson

Leeny, want take that? do you to

LeenyOberg

I'll jump in. feel and then start Yes. to free Arne

So going obviously take some is all to this time.

quarter to then what some frankly Obviously, long the second and far extent you to and think which X.X% the so and that we that. guided is in to ability of obviously in below to through how look it's average, depend quarter at normal going dilutions we get were in the the first times. on kind our quite are where really I in are And though if virus what seeing to owner's you persists, it's areas the below even % extent.

specific capabilities sort say owners we've have the also going, of the banks need seen give I'll to the keep to liquidity find they strong really clear shown far you hotels that so access of to to part the the So able estimate, and on but a I can't be a essentially I to fact few of to we've of foreclosure. press while. have in really you kind think demonstrates a to try hotels of willingness through this. depth their that everybody way about seen when That see to kind very only the a the what think already pause And wants for

doesn't is clearly through bunch closed. are hotel necessarily a foreclosures of see Now to this, all but the that going of we mean

what it described banks in And lenders the which the that of example right and to what kind asset preserve a so. to the as think in, happens really of up. brand see full-service you of EDITION seeing that reassess do the reopen great the the think to to is And and to situation; you're in the figure keeping have stepped work is think that cases many will case open. hard I be breakeven do you've could is you them is want urban and more on of where open or I the I way value the out hotels best hotel open lots more and temporarily actually close that occupancy not saw stop

just whether something very mind amount America teams this marching bills conversation FF&E the obviously like of there's the making the North been sure it. the lot the payment it's reserves or a for think world I hotels insurance for for for and of team But around spending but it's pattern the our through it's property how that do moment or working our it et cetera, long other a a at So does really on through good that are working short-term We, again top about an us. lasts/ all the depend on bills is kind of inordinate plans that matter time with looking owners; and

ArneSorenson

very, line. close so fail our if few would or it's now the to Lenny, very -- permanently. they're a put, guess of profoundly not will hotels think world closed I that will the I reopen perfectly get very, around they bottom

it's will of burdens taxes that or them, profitability circumstances that make portfolio they're that costs are them hits; were a I hotels But where of the time I order the reopen like, of think hotels couple rooms with I'm hotel to that very, a path not money X,XXX X,XXX to with COVID-XX Leeny that COVID-XX child work it's be real assets, that the of new with New a this a City end and and over we'll this -- those them are cost in not will surprisingly and trouble crisis will you able because not EDITION before, and property York brand and Now like that that's in they're in number team and trouble significant Square profitability And actually first before I a say and is or portfolio that terms hotels think estate unusual; to term. long something may be number the in because this; be hotel, a a before mean that hotels the they very I under are assets of working ones got long-term see back there maybe labor be hotel. or is hotels. of whether for they're look I optimistic need a owners poster those not while before and sufficient and of up viability hotels when this; whammy. in globally, actually beautiful the this. hit, handfuls Time open pressure, the profitability open to for that not they broadly are be of not the owners we've and as is for some there at in open think or to in and hotels, justify and double of fine. build closed can making even sure some have But handful, best those the towards that we use the will for were

Operator

comes of of Grambling Stephen question one next Our Sachs. from Goldman

StephenGrambling

have this from a the but most along what has do changed where if part whether back sectors a further, question, over And crystal behavior individual the from about X as to in leisure impact or can the maybe Thanks. corporate think from This those peel of those bit question, you And these it? you to is the of with at pronounced ball their holds? the years? as recent work customers acceleration XX look end see been even impact you how you the markets work home, relationships of home trends if were were onion past

ArneSorenson

who I order obviously think, to got technology work the in and from travel. tells We've questions. many are to us The work last got not that continue back Those or road business to one, and relying on don't particularly are avoid home; are tools we've yet, good travelers much data who yet. on remote

same of but work this take been which the We've we difference to context, to We to travel not not even the four to five see depends you've with our before. is to thing, our the go and the folks the think get heard for opportunities folks heard statements good. business be remote is can't that work. never career for get we there we've I it. to travel, to think folks say, I think would we've earlier go grain months to I frequently time We have a in I don't all can't And mix of We I particularly A will think to go We saying go back will of work got from will or people. when with similar further with and training and level that back this; we and flexibility can in all you got we've for others; of comments way remote what bring of the hear never three -- will gotten be and a salt. with done the at each sure and obviously, in whom month kind as every see new need we'll of relatively have the there we're or present back huge we've invest this being increasingly better. extent frustration are back three partners, And people. need in office the XXXX, of much to can't I two think perspective and and that traveling, XXXX networking somebody, can't the people through or train but is maintain on point the XXXX of or day last leisure. whether and increasing But customers. who in technology an kind more some some XXs; after out culture. it's and more pursuit on office their about Maybe that on back has we not particularly relationships we sort over last do in is so about the our we early gotten starting crises better XXXX or heard

there's piece I which be good a that will us. think of for

to will now which So now from imagine that once a year I Florida could or or years weekend concentrated a able to week, extent be work an blending and actually XXX% there two the I as as business can for I might some or and vacation of over out much that say a could it and have leisure of kind couple spread can would levels a we've over the would past. and vacation Caribbean, been think week aid that in of down week, twice work now and we I only do my because year; that we in a I considered, that build things travel a the go All from travel. see to do had have be that threat days the and the of year back do demand of

Operator

Anthony Our next of Barclays. of question one Powell comes from

AnthonyPowell

morning. right are half any next And hotels you or year? of of seen bookings, your book for Good the planners meeting year business group generally Hi. on approaching booking next Question to now? second on start have you part for how

ArneSorenson

is clear which more meetings. put but those So obvious basically than I that clearest folks had is think group business near-term trend deferred the trend, most cancelled, off that

in just those course, show those we have ultimately. believe to meetings are And cancelled. most seen our are meetings, those hosting that and in ultimately of them up defer who cancel want interested want group I think those folks them. have valuable; deferred and of why engaged to business they are so as customers And of folks to they because instead opposed and most we've of meetings, having been that's

the some have cancel or future around have less what deferred if greater they've will yet already been business down ultimately books Give where they've a to future ago see XX%. in looks what cancel XXXX better until both safely, XXXX latter looks We've XXXX robust before I statistic confidence probably as to point XXXX cancel continue for meeting; and for the little for really the in. seen committed one books; cancellations we some because on I And than like we'll to that like. we for be I to on group so meetings books group less greater have got continue on probably it we'll that we not to parts periods that when would we've get is use bookings big the XXXX What not the we that suspect cancelled means been about business would can has had yet the been new deferral business see the year of see a business word for of numbers. for get on the commit for clarity at group compared virus. think you new think they come on business books the not about business they same seen far be likely until time seen is already the books to and are less significantly, to

group be that that worse think half year half the I than the virus obviously more where or of first we're vaccines in first a second the of the start are. build see on where likely the see next the confidence -- background part meaningfully in guess is into but recedes the back. more we the availability And respects the and the and some year this is on of business group, we'll next to to vaccine, get terms more in virus the based

LeenyOberg

versus thing rates Anthony, the the only beyond and add are less. XXXX meaningfully other that for I'd is decline XXXX, of

it's when there's you when much of decline, overall the about kind corporate but nearer So that, in down bookings more look it's the think concern, at where beyond less. you

AnthonyPowell

seen on for people have environment? portfolio you is learned think the Have future do current separately business option space? look the having for valuable and Homes And having Villas, for that and in that you in more and in that environment? this you what you Thanks more increasingly

ArneSorenson

three Marriott consistent with HVMI, know which So and you say, internal both sharing our by them are about; drive of we've but drive-to things talked use has to trends not all -- on International our home home business too of whole by it, lingo an and benefited much is should Homes all Villas we've expect been advantages about, well leisure, advantage. I which three two leisure, talked what and

someplace you sharing we in of a suits beach anyway. give I regularly. people where I purpose do environment and in place can't terms my England sharing don't then COVID-XX vacation know a So can if I it's everybody, I the where control you control really lives can particularly bedroom. be I the take me can have be I or is a don't want trip on on to old drive leisure comfort that don't what that can about separate But drawn it because can want I that. can apartment of and own. because I our home somebody or or I a an in certain are the home a home my cleanliness in style transportation, New to environment. want my

obvious of has to And so our a positive small generally is thing been the very part business. it that state although a

Operator

Our next of question of comes from line Rose Smedes Citi.

SmedesRose

requirements. Thanks. Hi. out this? you behind with us, the brand do whenever out assuming of can wanted to, their I coming about they a margin, guess, changes talk the you Since morning. and kind from of been that think lot been meaningful come better that there's Good operating to how I just for end pandemic is there's really owners ask model this of

am And I a interested of in-room that, you kind cost specifically and were a housekeeping savings, to guest in how during of goes? significant think that and stay if away? be thoughts would it the kind I'm go your trajectory guess So I thinking right do around of

ArneSorenson

got all good in some and, questions you've So because good should Leeny, data. jump here you

respects. of only the we focused with rate sure the on so XXXX, can margins that they make make I to had are caution helpful. is but that. here RevPAR takes an make the to pressure us to back elements, that's revenue many get not think way do better. I we we easier it of more in to be to back if to are really on the driving will not that on would we sure want are margins levels to get we're cost to mean And before everything in to going really The we that's revenue had only kinds back we working focused that owners be longer get the our kind and important, and -- because

where there a I the of be I think things cost question operating on which your side, that focuses, couple is sticky. be will think could

probably more keys like. think the check-in, digital I is contactless one and

be term. will adopted think more helpful could during I longer and COVID-XX be

less that between or I COVID-XX I intensive associates. guests That protocols there I guest interesting. less mean is period see housekeeping both think protects the during housekeeping think certainly then guest stay during a we'll be could stays. and

be But I a the that COVID-XX unions behest of bring at to cleaned every We see essentially matter we'll beverage and cities back. and requirement; see in would think, every the at policy to have do food seen we'll move we'll as jobs and room of and of but be looking to notwithstanding at municipal direction, be and those many and housekeeping opposite that should come slower try day, couple other say check-in, have bring the should that that. the hotels we respects without a of done be the markets certainly to back reopen what frustratingly consequences just in and things lower than that, and make is jobs consequence looking back a we as slower been in But case try at sure numbers can and margins. the that not we'll

is So the not interest obviously that of our just long-term owners be can us? in but them which healthy, of

LeenyOberg

demand. now breakeven is Smedes, longer doing now The whole I of on lowering the help think work a these work lot A focused thing much only we're that lower in the lot I'd will of is very the Yes. right of add, at right the run. levels

more more frankly the interact kind the the you're talking work things whether doing how about kind of managing the that of around contactless all you're way Arne certain will hotel that change flexibly guests So technology team. was with departments, using

cash that I those and by of be to as points tremendously of that said, kind longer All the of sure reduced that to demand to is in is can the the have much make and But over the should we get occupancy XXX breakeven as of we get basis still few XXX things helpful, the years as got our that to proof got are said, much world, run. building globally the as And of next to helpful we much back there Arne goal we've flow pudding. back. the again while around kind

Operator

Our comes Jefferies of of line Katz David from next LLC. question

DavidKatz

less earnings of what for demand far, Hi. scenarios we've across a what we could listening for your questions. of to profitability Look, Thank to levels? there -- or cost reduced both for aiming see and we're next all but scenarios my in and the you owners; to for? but the and are for XX Is we in what you that approaching yourselves Good see aiming where coverage taking we steady obviously, commentary Are the to better sort just trying revenue improved XX our months so until hotel basis to a observed get morning, lot XXXX Marriott? things I you're adjusting where environment, are back everyone. ultimately hold

ArneSorenson

comparing mean going month see it we I depends owners. We for profitability obviously, -- point ought and to for forward. the to Well, Marriott bit a to; you profitability, what see every EBITDA ought this earnings; improving quarter little improving improving improving are on every from

with but be level better say of given high Now here. certainty from ever can't quarter things we with have the you seen XXXX should that's level second a forever. numbers confidence will reported by saying obviously not of but fairly get obviously more this quarter with the fairly we high the much worst a absolute morning, And of confidence, far

others. the And I think mean include as to think for of I but it we suppose is I towards I re-baselining franchisees What are have your think relates what by focused our that Marriott of our hotels doing process out, more we completion I nearing also. of what the was manage or question business. our business doing in

RevPAR towards in the reduction do as example. we base past, are of for they're and best support of manage which which course our there all those in given luxury the about, to we'll a hotels. the contexts a only ourselves As above categories XX% time other we we do will a as that And are in context base we both over on do do you the things full-service to about And they're from course, of other world, provide portfolio of our hotel all for moving build. that that's by platform build And and reservations know, we level a for about for think supported combined. both localized got business And from hotels, But well. costs new at are the the of pace manage between a in spending shared of growing company the the the we hotels fee managed pre-existing would space a for obviously sometimes by at could those growth own those And are by big hopeful manage which sometimes than the of costs. any services from in at services. are talked our the and of Leeny We countries; to gross we faster need built EBITDA and for that provide And the we and than growth well base have brands. will to services case our years. to grow more in in number owners paid G&A rates property; we've our provide of Marriott market, be kind services management global the that company spending for we're sometimes see and pace the to

DavidKatz

Right.

should to more see at anything than earnings being while. flow line the top a point hopefully better my on So and quickly cash for going improve we're rate and a

ArneSorenson

I think that's fair.

Operator

from next Jared of of the Our line comes Research. Shojaian Wolfe question

JaredShojaian

your HI. it's great Good taking question. on for call. Thanks to this voice everyone. Arne, And, hear morning, my

inbound looks can travel if called for little you now? aren't China, getting business above more think restrictions to from correct there. elaborate leisure then mean is if that that a locals I how Do that inbound wrong other versus seeing right; bit in improvement so of in options kind to outbound of And share terms performing two you're demand Chinese I so is now because the just just you those it transient And a right you back with would can an understand anything segments? what like? outbound but I'm intra-China out is pre-Covid, going trips Just of you group, for us benefit there outsized seem really trips? contextualize substitution

ArneSorenson

that back lot is very I China Yes. business in -- lot questions transient a would leisure, appreciate in much. I and that all group. of say there good generally segments, There's that. coming

at You different conclusions. can different point reach and markets

in are Sanya, they probably Hainan XX are doing think in got mostly China's which well, as leisure can be we've open Island, group. extraordinarily So about and going you hotels to They XX some Florida. to

and by so numbers leisure those large our pulls are a China is a Macau back is the hand, numbers of On and bit. and Macau other sort not Greater little parts Macau; reopened, market of that

look surrounding you you and more at when much dependent. which travel think I areas, are look Shanghai; Guangzhou at business

recovery were see XX%. occupancy from their in China certainly sub you fairly generally strong, our lows. I very numbers Remember February, strong think in

I now about XX%. and think change X running we're and

higher say can of ended taking other political they move. testing you back days the about dialogue not context; big I China the dialogue adventurous could cases, political maybe odd is take we I much The market the think domestic place not a travel taking US of leisure get that control. think a but oh, of a or people dozen to travel we I kind think is know U.S., are in like given COVID-XX the couple in that number is for of been business go managed maybe and thing XX sense; under that XX% large Beijing for the COVID-XX see to up number domestic; the demand China towards but is the are events overwhelmingly had, substantial And something only overwhelmingly this people probably sort domestic. place; of international the see XX% travelers has by shift to and to in that, and China actually China that rest world; million the So and I I that. travel. travel, quite they China and and mentioned is Beijing, is than have or vacations, similar don't being is domestic, some -- the their a

I and more home recovery gone this to Europe Chinese some travel the certainly vacations they're that stayed and dynamic is else, take think of to you're abroad going We're has would same to the right place States. say or that China their to year. seeing that likely in Nobody's in have United maybe here. Asia to probably Pacific some

Operator

question of comes Golladay from RBC of Markets. Wes next Capital a Our line

WesGolladay

just Hey. Good a morning, everyone. actually My is question follow-up.

Just is could Greater in to follow-up how give kind being answer China to follow gauge see last your a example, potentially quick of the longer? nights biggest question. large to the you us domestic compression you the more Can recovery? For U.S. the question market, on will maybe You on more a but a the in trying a about dependent variances US markets? lag can highlighted and of sense you both a little those group bit talk on

ArneSorenson

That's Yes. good a question.

in what what the but and differences; States, should expect the there China obviously, we generally we similar. predominance for domestic United the well are bodes think in see I is

that at in numbers back are ahead the the travel; three months example, in those not COVID-XX obviously, of there's they back US. is bigger not got or than flying flying China dependence long-haul US are remember But the big recovery. two So that they're on and on business and much a really for regional China's planes travel air probably difference much air aviation

recover little already think four of the to the second a optimistic more in way in think is resilience that we none. than today sort to was be American the and States. three of I And business consumer I us or of see causes bit the ago United what terms weeks that may the

all is better. even maybe think of either or similar that I

many, as the States we have we an that We Marriott whether think United I negative is the do are group than China. business association and do are compensating more industry we be in in as both, or at business we other there has think for years. the But many business; side meetings part business of same established I corporate a factors. more been time, the

think to ought does. of the that of travel leisure I there same think a subject the generally. strength in I the guessing would more economy look the to U.S bit generally on society to about little spend we and the the recovery than China from subject money I'm recoveries COVID-XX net-net;

the compared United how shelf does is to in the through should China. the and questions COVID-recovery in U.S which you think China get compared last I how curve States two GDP look when look COVID-XX we does like the to

you on were Leeny, this. going Sorry, to jump in

LeenyOberg

U.S limited only service the which full margin you broader and is of bit portfolio is portfolio in deeper is the in our there than difference at and towards maybe that say a at fundamental should and skewed China, is presence I the overall urban. Yes. other just probably differences, is that service when look there that the more

positives there seeing seeing so portfolio; limited that a of tertiary other in the I clearly seeing America. think the So markets, demand come you're you're North actually difference service that's this back; you're in the accentuates

Operator

question line from Crow Our William of Raymond comes of the next James.

WilliamCrow

morning, Good Hey. Arne.

on it back of these well. the just bounce are XXXX if talk unit question process? might about how first sound you Couple growth; a maybe did and hope of I construction are in and I well. you X% feeling You XXXX missed but this the X% growth that get two-parter kind that is I to really in year, delays

ArneSorenson

is see -XX, XXXX, back, I slowed at of dead decline become reason were of behind short That overwhelmingly these will I to again. Yes. projects guess. financial us, projects they you more overwhelmingly of I a is or guess you no. that. even I tied dead. at particularly forward think -- ultimately one when question of reality to being projects being and it's than that's we a it often to COVID-XX, markets. hard That's guess and of time; going certainly back XXXXor see never to move move depend bit while would these the we the because XXXX I when look course mean look that this reason. in is Whether significant bounce get financing forward thought us and will the RevPAR whether we depend I We little answer mean is, I to the our longer as thought were depth it as thought And answer. construction, on never the came most takes or on think that that's think going XXXX

WilliamCrow

that money well, Hilton how largely are peers you you might talking getting do the And are that's other for requests of to have that about key activity driven to something you many The the owners? keep that question to by is part key going and with be money? second the which as offered do and think conversion

ArneSorenson

in maybe is than some to We're done We market think I financial putting obvious; money, is weaker the a but therefore part signing should in I for it that in the environment everybody's you a need a more thinking, resources. money this, to like when market little this achieved relative performing think by portfolio respects where less the past in ours a we are wishful some but key conversion stronger on less and key respects fine. of for are the probably is generally value years be powerful is own and bit then would money in in liquidity get that joining are manage Leeny projects we we the our we've less and today; jump and in

whether our that deals. makers the those that? signed; Leeny, of negotiate that can on and anything Now deals to they we terms obviously, want add deal actual turn way are depends into to you

LeenyOberg

but money kind the of certainly to to it. the while Yes. your that think of competitive always say brands hotel, And you've of really is strength lenders, the the around of lead got sure the I'd makes which and can stack, moment does delivered is that be competitive, on The ours. sole then the capital fill to that going breaks depends the on while on I that's it money is cash only question conversion strength a in us for Bill, the brand. think cases only I back key biggest biggest the lenders element on making it be thing sure and flow I that's mark, key The to going board the or that perspective; think one be the to part like don't side many

these it much do with I think are so has to the asset value assets. because long-term

an other itself times. I be kind discussion, but of always that will part in is on important that and element money think key don't really of So different the from of

Operator

question next of of of line one from comes Chad Beynon Macquarie. Our

ChadBeynon

Good taking Hi. morning. my for Thanks question.

beyond If wanted at window a in to the expand booking starting months, still into seen? you're of to that's we've last Just ask U.S? that couple about week really what seeing July, Thanks. or if all under what in changed the if going kind a particularly in that's

ArneSorenson

a shouldn't short availability numbers general although term. have portfolio. we've It because very got still still occupancy And -- pretty the across improved, surprise you improved it the

ChadBeynon

cost. a the difficult seeing positive Okay North revenue of that but the of question, the American the you've improvements continue if kind trends side reduction think or we could see it's you some positive and still on then, Should accounting and a regarding assume been outcome and of IMF Thanks. the sequential to maybe because outcome? out tough Leeny, that do pretty a of fees we just a positive method eke hypothetical

LeenyOberg

Sure. Believe it's in Pacific, but lot a there whole couple overwhelmingly a of there Asia North it and on QX. from depend or to from that's not America QX were going

you comes to qualities good and resilient. is when think the about think the I also to see where that about have and and you're there's of for being into in year, to really talking is most has might demand back; So rate has has XXXX, seeing and start as priority RevPAR American that hard for there. it imagine show up it's the farther also hotels exciting an talk circumstance that then things anything you you as demand massive to owner's but we very North year one so shown as decline demand picks what under I this which absolutely done do, the But need get any rebound, it in imagine supply to that quite been of

next of think when year. of So et special corporate kind we rates for cetera

take able you so recovery there's view you said think do again points does of at it point work And while in much margins as our be being North that comes things that been of to these to will demand American owners cost I well. would But on we've it back to nicely. history helpful up a a look see because you IMF; potential think as as pick I side priority. again, the of if kind

Operator

comes Our of Bellisario from next of Michael question line Baird.

MichaelBellisario

Good morning, everyone.

today that quarter? your capital were any properties one take given to Just on split hesitant And more great so requirements forward -- does this unit franchise like? are look looking on managed the we've working of last follow-up what growth that managed versus comments, seen net the growth you

ArneSorenson

I if franchise, at anything greater pipeline, States skew look be We to are and are in a assessed manage I relatively than and to you obviously given particularly numbers is be United we going might unit select before, has are is just tad overwhelmingly our think tend to managed no which franchise the question think it tend down. global we But more space. more the service on service, the were be but we those to to full from our Asia growth of hesitant going the in year-to-date to like-to-like if luxury Pacific new a take in really strength adds and than to the perspective,

Operator

of from comes of Our next Hightower Evercore. question line Rich a

RichHightower

might earlier an in occupancy that levels that. another Arne prepared RevPAR the on follow and Hey. on so squeezing XXXX North Good Leeny, may to to hear a of in Thanks but for I next this China component morning, to How me up you. answered here. said year. to wanted from I versus much you comments question. China question, everybody. And, you have the part think to sometime twist both Good -- in come pricing America back there's

how North recovery much how we to that and about that lower do the of think translated fact say? ADRs contributes the and sort absolute and you're that, of China talking versus rates about in So America, dollars let's into

ArneSorenson

to going here. test but can testing this, maybe you're my do You're knowledge Leeny,

of see in I think based to between XXXX on getting you tell in recovery ADR back and I RevPAR it's okay. China levels XXXX relatively far. easy strength the so just to can't split occupancy, the

LeenyOberg

Yes.

our When you and think hotels how great dramatically the pop. relative perfect I Chinese got classic performing the market, know better to high I so the see sudden can you kind our happens closed. index Tuesday have a driver, super a all is the very of that a urban a then one rate bunch of right think have not first over over or that's I that you quickly, nicely, that when seen that quickly given of we performed typically again analyses demand hotels a all that industry. are hotels and occupancy in compression than But Thursday things or we think back the other you the a certain look holiday weekend is we the see are at obviously through RevPAR pricing market get have

pretty brand for come back quickly. you again So I that demand demand up the and when then can rate pick think see

if going leisure aren't differently. so the I to on fundamental retail, going the we're are percentages we you again, -- North the some shifts would rate between They up see on versus might depend institutional occupancy But a pick why front, group America, the of group see for reasons fairly retail quickly. kind think behave difference you as all example, the There right? a shift in quickly to super segments, the more you going special of to and because rate move rate. expect see in to It's on to on and have the variances. depend more corporate, they have it's ADR going is

Operator

closing we Ladies and will the back have gentlemen, allotted over reached or additional the questions. for turn floor any I now time Arne to for Sorenson remarks.

Arne Sorenson

your All soon. getting road, soon look course, And of hotels right. you appreciate to comfortable forward which and I as We time. our you thank the your interest very just Well, just to we welcoming on feel back say everybody. hope you is as

Operator

conclude ladies you, International's Marriott quarter gentlemen. does XXXX earnings second and conference Thank This call.

may now disconnect. You

Arne Sorenson	President and Chief Executive Officer
Leeny Oberg	Executive Vice President and Chief Financial Officer
Joseph Greff	JPMorgan Securities LLC
Robin Farley	UBS Securities LLC
Thomas Allen	Morgan Stanley & Co. LLC
Shaun Kelley	BofA Securities, Inc
Patrick Scholes	Truist Securities, Inc
Stephen Grambling	Goldman Sachs Group, Inc
Anthony Powell	Barclays Capital, Inc
Smedes Rose	Citigroup Global Markets, Inc
David Katz	Jefferies LLC
Jared Shojaian	Wolfe Research LLC
Wes Golladay	RBC Capital Markets LLC
William Crow	Raymond James & Associates, Inc
Chad Beynon	Macquarie Research
Michael Bellisario	Robert W. Baird & Co., Inc
Rich Hightower	Evercore Group LLC

Marriott International (MAR) 10 Aug 202020 Q2 Earnings call transcript