(Bloomberg) -- Marriott International Inc. reported earnings that beat expectations as consumer demand for vacations continued to make up for slower business travel.

• The Bethesda, Maryland-based company had adjusted earnings per share of $2.09 in the first quarter, according to a statement Tuesday. Analysts estimated $1.85, the average in a survey compiled by Bloomberg.

Key Insights

• Hotel demand has rebounded from the historic lows at the beginning of the pandemic, when operators shuttered properties and furloughed workers. Leisure travelers have been driving the recovery, checking into hotels for weekend stays even if it means paying a premium.
• The US has led other lodging markets, meaning investors will look to Europe and Asia for the next leg of the recovery. That benefits Marriott, which has a more geographically diverse portfolio than chief competitor Hilton Worldwide Holdings Inc.
• Revenue per available room, or revpar, rose 34% from the first quarter of last year, when Covid-19’s omicron variant slowed travel. Marriott expects 2023 adjusted earnings per share of $7.97 to $8.42, according to the statement. That compares with an earlier estimate of $7.23 to $7.91.
• “While the global economic picture is uncertain, demand remains strong, and we are not seeing signs of a slowdown,” Chief Executive Officer Tony Capuano said in a statement.

Market Reaction

• Marriott shares had gained 14% from the beginning of the year through Monday’s close. A Bloomberg index of Americas lodging companies was up 22%.

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