Marriott is staying committed to the wider Middle East even as the Israel/Hamas war rages on.
"No, absolutely not," Marriott CEO Anthony Capuano said at the Yahoo Finance Invest conference on Tuesday when asked if he was rethinking the company's commitment to the region.
Marriott operates 27 hotels in the Middle East, mostly in countries like Israel and Lebanon.
Capuano says the fresh conflict hasn't materially impacted Marriott's results as it represents a small portion of the business.
"We have got a robust pipeline across the region. When you think about our core priorities, one of those core priorities is to keep our traveling public within the Marriott's ecosystem," Capuano added.
Marriott's third quarter performance and outlook continued the upbeat trends seen throughout the lodging industry in 2023, fueled by post-pandemic demand. The results come despite the aforementioned geopolitical tensions in the Middle East and limited travel between the US and China.
The purveyor of the Ritz-Carlton brand saw third quarter revenue per available room in the US and Canada grow 4.4% from a year ago. Occupancy levels rose 1.3% and average daily rates improved 2.5%.
The company's more budget-friendly Westin and Sheraton brands saw the best performances in terms of revenue per available room and average daily rates.
Overall, net sales increased 12% year over year to $5.93 billion. Adjusted earnings per share gained 29% from the prior year to $2.51. Profits were supported by Marriott repurchasing $950 million of its stock —close to 7% of its market cap.
Capuano expects Marriott to stay aggressive on the buybacks in the medium-term given the travel recovery. He added that Marriott is experiencing strong holiday and 2024 booking trends.
Marriott sees full-year revenue per available room rising 6% to 7.5%.
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Brian Sozzi is Yahoo Finance's Executive Editor. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn. Tips on deals, mergers, activist situations, or anything else? Email brian.sozzi@yahoofinance.com.
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