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Marriott 2nd quarter profit rises
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Jul. 14, 2010 04:31 PM
Associated Press
BETHESDA, Md. - Marriott International Inc.
tripled its second-quarter net income and
boosted its full-year outlook as revenue
improved, the hotel operator said
Wednesday.
The company that owns Marriott, Ritz-
Carlton and other lodging brands earned
$119 million, or 31 cents per share, for the
three months that ended June 18.
That's far better than last year's net income
of $37 million, or 10 cents per share.
Excluding one-time items, which dragged
down last year's results, net income rose
more than 40 percent from a year earlier.
Revenue climbed 8 percent to $2.77 billion,
thanks to a boost in room rates and fees.
Analysts surveyed by Thomson Reuters
expected Marriott to earn 28 cents per share
with revenue of $2.75 billion.
Meanwhile, Marriott boosted its full-year
outlook, saying it expected to earn between
$1.05 to $1.13 per share. In April, the
company said it expected to earn between
95 cents and $1.05 per share for the year.
The company released second-quarter
results after the close of trading. Marriott
shares rose 29 cents to close Wednesday at
$32.16 on the New York Stock Exchange.
Hotel companies were hard-hit during the
recession as both business travelers and
vacationers stayed home. To fill empty
rooms, chains dramatically slashed prices -
a trend they've tried to reverse as the
economy improves.
On Wednesday, Marriott said it raised room
rates and expects to continue doing so in
the second half of the year and in 2011.
Meanwhile, the key performance measure of
revenue for each available room, climbed 9.9
percent at company-owned locations
around the globe.
The measure was strongest overseas, where
it rose 14.1 percent at company-owned
sites. In North America, it rose 7.9 percent.
Marriott's average room rate also climbed,
by 1.7 percent in North America - its first
gain in nearly two years.
"Business and leisure stays at our hotels are
trending up," Chairman and CEO J.W.
Marriott Jr. said in a statement.
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