Benzinga | Aug 3, 2021 09:10AM EDT

Marriott International Posts Mixed Q2 Results, Expects Material Impact Due To COVID-19

* Marriott International Inc (NASDAQ:MAR) reported second-quarter FY21 sales growth of 115.1% year-on-year, to $3.149 billion, missing the analyst consensus of $3.16 billion.

* Comparable systemwide constant dollar revenue per available room (RevPAR) increased 262.6% Y/Y worldwide, 274.6% in the U.S. & Canada, and 223.2% in international markets.

* Meanwhile, comparable systemwide constant dollar RevPAR declined 43.8% worldwide, 39.5% in the U.S. & Canada, and 55.6% in international markets compared to Q2 of 2019.

* The operating margin was 15.4%, with $486 million in operating income for the quarter.

* Total operating costs and expenses increased 64.6% Y/Y to $2.7 billion.

* Marriott's net debt was $9.5 billion at quarter-end, representing the total debt of $10.2 billion less cash and cash equivalents of $0.7 billion.

* Marriott added about 25,000 rooms globally during the second quarter.

* Adjusted EBITDA gained 814.8% Y/Y to $558 million.

* Adjusted EPS of $0.79 beat the analyst consensus of $0.45.

* "The rate of global lodging recovery accelerated during the second quarter and momentum has continued into July. We are particularly pleased with the resilience of RevPAR in markets where consumers feel safe traveling," said CEO Anthony Capuano.

* Marriott expects that COVID-19 will continue to be material to the company's results.

* Price action: MAR shares are trading lower by 0.60% at $144.00 in premarket on the last check Tuesday.