Marriott CEO on higher prices: ‘I think it’s sustainable’

Marriott International Inc (NASDAQ: MAR) could continue to command “pricing” well beyond the busy summer season, said CEO Tony Capuano this morning on a CNBC interview.

CEO’s remarks on ‘Squawk on the Street’

A hotel room currently costs about 20% more than it did before the pandemic in 2019. Explaining what’s needed for it to sustain without hurting demand, the chief executive said:

Marriott is scheduled to report its financial results for the current quarter on August 2^nd. Wall Street, at present, rates the stock at “overweight” and sees upside to $176 on average that represents a 20% increase from here.

Do higher rates pose a threat for Marriott?

Higher rates tend to be a headwind for the “construction” space, but CEO Capuano is convinced the rate hikes in 2022 are not going to be much of a threat for Marriott International.

He reiterated the company’s commitment to expanding on its “luxury” segment that currently makes up about 10% of its global footprint. In the U.S., Marriott is also seeing a “steady growth” in foreign guests, he concluded.