"I don't think the hotel industry is that much different after the outbreak than it was before," Sorenson told a Goldman Sachs travel and Leisure conference on June 1.
Arne Sorenson, President and chief executive of Marriott International, has repeatedly claimed that the coronavirus had a bigger impact on the hotel industry than the September 11 terrorist attacks and the 2008 financial crisis combined.But Mr Sorenson believes it is not accurate to say that coronavirus will forever disrupt the hotel business model.
Sorenson looks back at the 1991 recession, the 2001 Internet bubble, the Sept. 11 terrorist attacks and the 2008 financial collapse.Hotels eventually recover to pre-crisis levels after each recession, and Mr Sorenson expects them to do so after the coronavirus outbreak.
What's more, sorensen noted that while web conferencing, telecommuting, and people traveling are holding back the hotel industry, they won't have a permanent impact.
The rebound has begun
At the height of the coronavirus outbreak in early 2020, Marriott had a occupancy rate of 7 to 8 percent in China, and marriott has begun Posting hotel vacancies in markets such as Chengdu and Wuhan.The company is also implementing regional marketing strategies to attract Chinese travelers, including promotional gift CARDS to drum up business and stimulate consumer demand.
Average occupancy in China has recently risen by 40 per cent, Mr Sorensen says, suggesting that leisure and business travel are starting to make a comeback.
"The U.S. lags behind China in terms of recovery, but the domestic travel base is also strong, which bodes well for hoteliers."Mr. Sorensen said occupancy rates at U.S. opening hotels are already above the average 20%, and some of Marriott's extended stay brands, such as Residence Inn, are as high as 40%.
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