MARRIOTT, Utah — Marriott International Corp. shares plunged on Monday as investors worried about a stock price crash that has rocked the hotel industry.
The stock is down 3.4% to $31.94 in after-hours trading.
The Marriott brand has struggled in recent years as the global hotel industry struggles to keep up with demand from new consumers, especially millennials.
The company’s earnings for the third quarter ended June 30 fell short of analysts’ expectations.
The plunge comes amid concerns that Marriott will miss earnings forecasts in the third-quarter due to the recession and other pressures, according to analysts.
Marriott said in March it expects revenue to fall to $12.9 billion in fiscal 2021.
The shares have lost more than a third of their value in recent months, dropping from $19.82 in early September to $19 in February.
The plunge has been particularly pronounced since the company announced it would reduce the number of its international hotel rooms to 25.
Last year, Marriott’s revenue dropped nearly $50 million, or 19%, to $4.4 billion.
The company also said in April that it was going to cut the number in half by 2019, reducing the number it currently operates from 12 to 8,000.
