The COVID-19 pandemic is having a more severe and sustained financial impact on Marriott’s business than 9/11 and the 2008 financial crisis, combined. From the first warning signs of this unprecedented event, the company took a number of steps to adapt and strengthen its business including reducing costs significantly and improving its liquidity.
Today, Marriott informed its associates that the company will need to implement additional measures in light of the increasing likelihood that it will be some time before lodging demand and RevPAR levels recover. Specifically, the company informed above-property associates in the United States that furloughs and reduced work week schedules which began in April will be extended through October 2, 2020.
Marriott is also rolling out a voluntary transition program for on-property and above-property associates in the United States who may choose to leave the company to pursue other opportunities. Similar voluntary programs are being considered in other parts of the world.
Given the company’s expectation that prior levels of business will not return until beyond 2021, the company anticipates a significant number of above-property position eliminations later this year.
The company is not able at this time to predict how many associates will be affected by these separations or any resulting charges or cost savings.
Marriott International, Inc. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of more than 7,300 properties under 30 leading brands spanning 134 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company offers Marriott Bonvoy™, its highly-awarded travel program. For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com. In addition, connect with us on Facebook and @MarriottIntl on Twitter and Instagram.