Due to the unprecedented nature of the coronavirus outbreak situation on the global economy, Marriott Vacations Worldwide Corporation (VAC - Free Report) announced the withdrawal of its full-year 2020 guidance.
This deadly severe acute respiratory syndrome coronavirus 2 or SARS-CoV-2 has claimed many lives so far and is expected to disrupt the global economy.
Stephen P. Weisz, president and chief executive officer of Marriott, stated, "Our thoughts and prayers go out to all those affected by the virus. We are following government guidelines and taking precautionary measures to keep our resorts around the world comfortable and safe for our Owners, Members, guests and associates."
Nonetheless, the company remains confident to offset this negative impact on the back of contingency plans, strong revenue-building capacities and the ability to respond appropriately to market conditions.
Coronavirus Crisis Hits Hotel Industry
The travel industry is experiencing the worst phase in the past several years. Marriot has already closed its theme parks and ski resorts. This is leading to cancellations of leisure events and closures of public beaches. Moreover, the company is reeling under near-term cancellations of owner, exchange and rental reservations at its resort businesses as well as significant declines in its Vacation Ownership sales.
Other major hoteliers like Wyndham Hotels & Resorts, Inc. (WH - Free Report) , Hyatt Hotels Corp. (H - Free Report) and Marriott International, Inc. (MAR - Free Report) have also been impacted by the coronavirus outbreak.
So far this year, shares of the company have declined 71.4% compared with the industry’s fall of 54.4% and the S&P 500’s drop of 25.3%.
Marriott Vacations currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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