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With one notable exception – don’t expect any rate discounts at the world’s largest hotel company.

Marriott International reported a massive second-quarter profit of $772 million on Wednesday morning, roaring off strong group travel demand as well as continued strength in markets such as the US, Europe and the Middle East. In addition, the Marriott Bonvoy loyalty program now has more than 210 million members.

But while many countries in the Asia-Pacific region like Japan have shown hotel strength, it’s a different story in China.

The country, an important market for hotel companies such as Marriott and for outbound tourism to countries around the world, has been facing economic problems at home, while Chinese tourists seeking to spend in luxury markets have begun to travel to other Asian countries. – Pacific region.

“[Performance] Greater China declined about 4% in the quarter as macroeconomic pressures dampened domestic demand,” Marriott CEO Anthony Capuano said during the company’s earnings call on Wednesday. “The region was also impacted by an increase in outbound high-end travelers.”

Average hotel rates in China were about 5% lower from April to late June, according to Marriott’s financial release.

A Truist Securities report released Wednesday after Marriott’s earnings results suggested fatigue in China around “revenge travel” after the lockdown that has fueled much of the travel industry’s comeback from the COVID-19 crisis. Additionally, other economic issues such as high unemployment, real estate crisis and weak consumer spending are also responsible.

Marriott leaders noted that cities such as Macau and Hong Kong are still posting strong performances. But while high-end Chinese tourists may venture to other Asia-Pacific countries, they still haven’t returned to pre-pandemic levels in the US.

“The journey [from China] To and from the U.S. certainly hasn’t come back to that level, and we expect to see really strong outbound demand from Greater China,” said Lenny Oberg, Marriott’s chief financial officer and executive vice president of development. Adding: “But I give you the big I would again point to the overall macroeconomic picture in China, which clearly means that overall levels of travel spending may not have recovered as quickly as expected.”

No need to discount the room rate

While room rates may be lower in China, travelers shouldn’t expect bargains anywhere else in the world where Marriott has hotels. Globally, average nightly rates at Marriott have increased 3% over the past three months.

In the US and Canada, average rates are slightly higher than 2%, while in the Middle East and Africa the increase is around 11%. Room rates in Europe jumped 6%, while room rates in the Asia-Pacific region, ahead of China, rose slightly more than 5%.

The company increased operations in leisure, business and group travel demand. Of course, the Marriott Bonvoy also plays a big role: the US. And 71% of all room nights in Canada are booked by Bonvoy members.

When such reports are received Despite softening in the lower-priced segments of the hotel industry, Marriott leaders reiterated that their overall business still has strength — particularly among higher-priced hotel brands. Travelers may skip out on fancy dinners or extend trips here and there to cut costs, but there’s still plenty of runway for growth.

While Marriott broke its recent earnings call streak to announce or at least hint at a new brand, company leaders touted the strength of ongoing partnerships with companies such as Starbucks and MGM Resorts International.