According to CEO Anthony Capuano, total business transient room nights and average daily rate (ADR) also increased during the quarter. The segment, he said, was responsible for 33% of the company’s room nights during the period.
Capuano said that nearly 55% of business transient room nights came from small and midsize enterprises (SMEs) in the quarter. He added that that market has grown significantly over the last few years.
Despite those increases, Marriott reduced its projected full-year RevPAR forecast to 3%-4% above 2023 levels, down from the previous 4%-5% forecast. Capuano said the reduction was mostly due to softening demand and rates in China.
Group RevPAR in the second quarter increased 9% year over year, Capuano said, including a 4% increase in ADR and a 5% increase in occupancy. Leeny Oberg, CFO, added that the company expects a slowdown in group business in November due to the US presidential election.
Business Access by Marriott Bonvoy, the company’s recently introduced travel management program option for SMEs, “is already seeing great interest,” said Capuano. He added, “We’re extremely pleased with the initial account signups and users of the platform, both of which have outpaced expectations.”
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