Marriott International’s profit for the first three months of the year fell sharply as the Covid-19 pandemic caused it to close many of its hotels for the duration of the health crisis.
The world’s largest hotel operator posted net income of $31 million, or 9 cents a share, compared with $375 million, or $1.09 a share, in the comparable quarter last year.
Adjusted earnings were 26 cents a share, missing the 87 cents a share analysts polled by FactSet had expected.
In Greater China, where the crisis started unfolding in January, occupancy fell 37.1%, while it declined 18.4% elsewhere in Asia Pacific. North American occupancy fell 12.4% for the quarter, the company said. Europe occupancy fell 15.3%.
30 minutes ago
Markets Update: Global Stocks Slip
Global stocks were mostly lower Monday as investors weighed the benefits of reviving economic activity against the cost of a potential resurgence in infections that could lead to renewed lockdowns.
- Futures linked to the S&P 500 index fell 0.6%, following a week in which the U.S. stocks gauge gained 3.5%.
- The benchmark Stoxx Europe 600 index was also down 0.6%.
- In Asia, Hong Kong’s Hang Seng Index closed up 1.5% higher, while Japan’s Nikkei 225 advanced 1.1%.
57 minutes ago
Wall Street Bets Virus Meltdown Gives Landlords a Chance to Grow
1 hour ago
KKR to Acquire Majority Stake in Coty’s Hair Care Businesses
Coty Inc. said private-equity firm KKR & Co. is investing $750 million in the company amid a drop in product demand due to the Covid-19 pandemic.
KKR will buy a majority stake in Coty’s professional-beauty and retail-hair businesses that include Wella, Clairol, OPI and ghd brands that would yield cashproceeds of $3 billion, Coty said.
The beauty and fragrance giant, which Monday posted wider losses for the third quarter, said the company will carve out those brands into a standalone company in which KKR will have a 60% stake.
The majority divestment would value the brands at an enterprise value of $4.3 billion, Coty said.
20 minutes ago
Heard on the Street: The Emerging-Market Debt Trap
Investors tempted to dip their toes into cheap-looking emerging-market dollar bonds should exercise caution, writes our Heard on the Street columnist Mike Bird.
The debt is cheap for a reason. Developing economies have probably not seen the worst of the coronavirus fallout.
As investors reach for yield, they will do the same thing they always do, move into riskier assets. But the coronavirus poses an even more dire threat to developing nations than to the U.S. or Europe. Many governments are reaching the limit of the financial assistance they can offer their economies.
There is a fundamental unfairness at work. Advanced economies issuing debt in their own currencies are broadly able to play economic policy on easy mode. Increases in state spending don’t trigger concerns about solvency, nor do low interest rates typically trigger steep collapses in currency values.
In the event of a surge in cases as social-distancing measures are relaxed, developed economies will react with fresh stimulus and rescue measures that poorer nations will find increasingly difficult to mimic.
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Last Updated: May 11, 2020 at 8:22 am ET