Marriott Posts 23% Drop in Net Income in 3rd Quarter
It’s no secret that not many have been thrilled with Marriott since the Bonvoy rebranding. And it might be catching up with the hotel chain. Marriott International has reported a 23% decrease in net income for the third quarter.
Marriott Third Quarter 2019 Results
Marriott’s reported net income totaled $387 million in the 2019 third quarter, compared to 2018 third quarter reported net income of $503 million. Third quarter 2019 adjusted net income totaled $488 million, compared to 2018 third quarter adjusted net income of $598 million.
The company added more than 17,700 rooms during the third quarter, including roughly 3,100 rooms converted from competitor brands and approximately 6,700 rooms in international markets. At quarter-end, Marriott’s worldwide development pipeline totaled roughly 2,950 hotels and nearly 495,000 rooms, including more than 31,000 rooms approved, but not yet subject to signed contracts. Approximately 214,000 pipeline rooms were under construction at the end of the third quarter.
12 million guests joining Marriott Bonvoy since the beginning of the year, program membership reached 137 million in the quarter.
Conclusion
Maybe Marriott is getting Bonvoyed itself? That’s definitely a huge drop and their bottom line is clearly hurting. But is not all bad news for the hotel chain as they have added 12 million members to the program this year thus far, and they keep expanded in the US and around the world.
How has Marriott Bonvoy treated you so far? Let us know!
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Hands up everyone who is surprised by this. I thought so. What does it say when a once loyal member delights in their misfortune and says, “This looks good on you?” This CEO is killing a once respected brand.
I am an Ambassador for 2019. In July, because of dreadful service at the individual properties I stopped staying and switched to Hyatt. The benefits just didnt make up for the lies and bad service. I am NOT surprised that Marriot is getting hammered on the market.
I love Marriott and I purposely stay there. Not once have I been treated bad and have stayed all over the world. If I did have a problem I would take it up with the hotel and get it fixed and act like an adult. Most people on here are just whining because they can. Marriott is the biggest hotel chain in the world with a lot of options . They are here to make money just like everyone else. If you don’t like it then don’t stay. Same problems have happened with every single business and most rebound. No I don’t work for Marriott. I just honestly never had a crappy stay. It travelled 38 nights this year to 4 different countries and all in Marriott owned properties.
Need to get the Old Starwood leadership to fix it.. Bonvoy is bad bad bad…
As soon as the economy tanks they will come begging back with promotions
I totally agree with what John pointed out. I moved to the Hyatt and Hilton. It is easy to get a reward night and a better price at Hilton chain. Hyatt chain treats its high-level loyalty member really well, also Hyatt hotel can always grantee high-quality stay almost anywhere. For Marriot, I could say it deserve it and I am not surprised it dropped. As a titanium member this year, I have not experienced any special or different to let me keep loyalty in the next year. I remembered there was one night that I stopped in one small town where a Marriot hotel was located on the river side. When I checked in, I asked them whether I could upgrade to the river-side room which I originally booked the city-side. They even have not checked the computer and told me that the river-side was sold out. The truth is that I really found there had room on that day in the Marriot APP.
To be honest, the difference between these two rooms is not that much, probably just $15. But since this time, I decided that I would never stay in Marriot Chain except it is really unavoidable to stay.
I have had several experiences at Marriott properties, where as a titanium member, I asked for an upgrade to be told immediately that they were “sold out” when they were not. Very irritating–so much for long time loyalty.
As a SPG loyalist, I can’t really think of anything good to say about either Marriott or Bonvoy. Legacy Starwood hotels have generally been pretty on point about adhering to the old standard, but things are substantially worse at legacy Marriott hotels. I’m not even blaming the hotels themselves, since it’s just the Marriott way. Partly, I just miss SPG’s value proposition and integrity, but mostly I’m simply fed up with the misrepresentations and numerous outright lies. I’m titanium for the rest of the year, but don’t see ever hitting a similar level in the future.
While smokers maybe a minority, there should be a live and let live attitude.
Making the St. Regis Singapore complete smokeless and closing the Cigar Bar at the Westin Tokyo, to name a few, certainly has made me look for other options…
SPG Plat: “Marriott who?”
How has Marriott Bonvoy treated me? I don’t know. I have not stayed at a Marriott property since August 2018.
As one that has stayed at Marriott’s from the early 80’s, earned about 4MM points in their program, and now down to 600K points, I am not happy with them. I booked them over Hyatt and others and was very loyal to them. I have just booked a place outside of Dubai that is costing me 100K points per night. This place was just 60K per night about 1-1/2 years ago. They are turning their personal concierge lounges into M clubs on the 1st floor that are just cold and impersonal. It seems to me that Hyatt is getting it right and Marriott is getting it wrong. Marriott wants to price their hotels like Hilton, yet my wife picked up 450K Hilton points with just credit cards. Same for me. Tell us how to earn 900K points that easy with Marriott, but Marriott wants to price, in points, their hotels. I seriously doubt Marriott reads these kind of blogs. If they did, they would know why me, and so many others, are now paying other hotel chains our dollars and not Marriott. Marriott just does not get it. Some financial guy at Marriott will try and make up a story on this. We travellers know the real story why their business is down 23%. Let’s hope it falls further and Marriott will return to treating us like they use too.
Here, here. I’m not at all surprised in the 23% drop. I was a loyal Marriott customer but I’ve had nothing positive since the merge with SPG. I know that hotels change their loyalty programs to benefit themselves and seldom does it benefit the customer but this is over the top.
I’m using up my Marriott points but see no reason to give them my money.