Marriott Sees Strong Corporate Growth

Marriott International reported a strong uptick in corporate-customer room sales during the fourth quarter, and CEO Arne Sorenson expects business to be similarly strong in the year ahead

"Make no mistake, business travelers are on the road," Sorenson said during Marriott's fourth-quarter earnings call. While the energy and manufacturing sectors were weak, the company saw significant strength in technology, professional services, healthcare, pharmaceuticals, automotive and media. "In fact, room sales from our nearly 300 largest corporate customers increased 4 percent in the fourth quarter, 7 percent excluding energy and manufacturing companies," he said.

Sorenson said Marriott's corporate customers expect to travel "at least as much in 2016 as in 2015." With negotiations for 2016 nearly complete, he expects corporate pricing to increase at a mid-single-digit rate.

The company also reported strong group business, as North American group revenue for the fourth quarter increased 6 percent year over year and attendance at meetings "exceeded expectations." New group business booked during the fourth quarter for any future period increased 10 percent year over year, while full-year group revenue booking pace is up 7 percent. Sorenson said that with occupancy high and meeting space limited, groups are booking earlier than in the past.