Marriott's Global Expansion Fuels Optimism, But US Hotel Deals Remain Scarce

Marriott International reported a $726 million profit for the second quarter, driven by revived travel demand in China and the recovery of business and group travel in the US and Canada. While leisure travel to Europe and Asia has surged, the leisure business in Canada and the US remained unchanged. Luxury hotel performance in the US and Canada was down 1.4%, but this is attributed to the limited options for travel a year ago. Marriott does not plan to discount room rates as demand for business and international travel continues to recover. The company is also considering launching a midscale brand in Europe, the Middle East, and Africa. A major technology overhaul is also in the works, including new reservations and loyalty platforms.