Marriott International’s first-quarter earnings were being very well below estimates as a crucial income metric plunged due to the coronavirus-fueled collapse in desire for lodge rooms.

The pandemic has pressured the operator of the Marriott, Ritz-Carlton and St. Regis chains to near roughly a quarter of its lodges worldwide, with income for each accessible room (RevPAR) falling sharply in the final month of the quarter finished March 31.

“In the final number of months, we have viewed the impact of COVID-19 distribute all through our business enterprise in an unprecedented way,” Marriott CEO Arne Sorenson claimed in a news release.

He observed that global RevPAR, excluding the Asia Pacific region, grew 3.2{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} in the first two months of the year but as the pandemic distribute, the metric fell sharply, declining 22.5{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} for the quarter as a complete. In April, it plunged somewhere around 90{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2}.

Marriott shares fell 5{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} to $eighty two.eighty in buying and selling Monday as the firm also noted that overall income dipped 7{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} to $4.68 billion in Q1 while internet income declined to $31 million, or 9 cents a share, from $375 million, or $one.09 for each share, a year previously. Modified earnings were being 26 cents for each share.

Analysts had envisioned modified earnings of 87 cents for each share on income of $4.fourteen billion.

As TheStreet studies, “Marriott, like all the other big vacation-associated businesses, has been hammered by the coronavirus as probable travelers have stayed household.”

Sorenson claimed Marriott had “taken substantial steps to maintain liquidity and mitigate the impact of these extremely lower stages of demand” these as lowering running costs “dramatically” and issuing $one.6 billion in bond final month.

He pointed to some positive indicators, with occupancy at Marriott lodges in China, in which the pandemic originated, reaching 25{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} in April, up from significantly less than ten{312eb768b2a7ccb699e02fa64aff7eccd2b9f51f6a579147b7ed58dbcded82a2} in mid-February.

“Looking at our occupancy and booking trends, it seems that lodging desire in most of the relaxation of the world has stabilized, albeit at quite lower stages,” Sorenson claimed. “Occupancy was all over twenty percent around the earlier two months in North American limited-support lodges, benefitting from leisure and drive-to desire.”

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Arne Sorenson, coronavirus, COVID-19, earnings, hospitality, lodges, Marriott International, income for each accessible room