Marriott Earnings: Travel Demand Remains Resilient, Led by International Recovery

Narrow-moat Marriott's first quarter once again showcased resilient travel demand, with its revenue per available room, or revPAR, up 34% from a year ago, ahead of its 30%-32% guidance. This represented 106% of 2019's level, above our 102% forecast and the 102% reported in the previous quarter. Demand improved across all segments in the quarter, led by a 63% revPAR lift in international markets. Specifically, China revPAR growth was up a stout 78%, driven by travel restriction removals during the past few months. China revPAR was at 95% of 2019's level in the quarter, despite airlift capacity in the country measuring 20% in the quarter, as citizens traveled domestically via trains and cars.