On May 27th, local time in the United States, Marriott International Hotel Group (Marriott, NASDAQ: MAR) released news that it was affected by the impact of the new coronary pneumonia epidemic on its performance and updated the company’s global staff position arrangement.
Announcement issued by Marriott shows that employees have been notified that the company will take time in view of the recovery of hotel business needs and the level of salesable income (RevPAR) Some additional measures. Specifically, the employees of the US regional group office have been notified that short-term leave and work time reduction measures that will be implemented from April will be postponed to October 2, 2020.
In addition, Marriott International will also launch an “autonomous transition” program in the United States, for US hotel employees and group US offices who may choose to leave the company to find other development opportunities Employees provide help. In addition to the U.S. region, Marriott is also considering launching similar programs in other regions of the world to assist group office employees in need in order to make them excessive.
In March of this year, Marriott mentioned in its temporary contingency plan that at the group level, the measures to be taken include a significant reduction in the company ’s senior management in North America Salary, short-term leave for group employees in North America, group employees in various regions of the world reduce weekly working hours, reduce unnecessary travel and expenses, etc.
According to Marriott ’s original expectations, the company ’s “vacation” began in early April and is expected to last 60 to 90 days.
Marriott stated in a statement on May 27 that the global epidemic of the New Coronary Pneumonia epidemic had a greater impact on Marriott ’s performance than the “911” incident and the 2008 global The superposition of financial crises is more serious and lasting.
According to Marriott ’s unaudited first-quarter 2020 financial report as of March 31, 2020, which was released on May 11, Marriott ’s total revenue for the first quarter was $ 4.681 billion, Year-on-year decrease of 6.6%; net profit of US $ 31 million, a year-on-year decrease of 91.73%; adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of US $ 442 million, a year-on-year decrease of 46.16%.
Marriott expects that the company ’s business in the same industry will return to the level before the epidemic or after 2021, and later this year, Marriott may also significantly reduce the group ’s offices Job post. Marriott said it is not yet possible to estimate how many employees will be affected by job compression and the resulting cost or cost savings.
However, it can be seen that as the epidemic in China gradually stabilizes, the performance of Marriott Hotel Greater China has improved.
Provided by Marriott Statistics show that the number of Marriott hotels suspended in Greater China has been reduced from 90 in February to the current three, but all hotels will resume operations in June.
< / div> After the outbreak, until the first week of April, Marriott ’s business gradually recovered, and the occupancy rate of hotels in mainland China in April this year was approximately 20%. However, Marriott data shows that during the May Day holiday this year The overall hotel occupancy rate in Mainland China has reached more than 60%, Hainan, Hangzhou, Xi’an and other places have reached 70%, and Chengdu has reached 90%. Globally, Marriott hotel occupancy rates in restored countries include South Korea, Australia and New Zealand.
On the other hand, as Marriott ’s performance in Greater China improves and hotel occupancy rates in the region gradually pick up, Marriott ’s hotels in Greater China also have The resource arrangement has been adjusted accordingly, including the establishment of a Greater China Career Center, and the release of internal job opportunities in Greater China to all Marriott employees through multiple channels.