US hotel chain Marriott International Inc has cut its fourth-quarter forecast for a key measure of hotel health, blaming uncertainty related to weak demand in North America, its biggest market.
Marriott, which owns the Ritz-Carlton and St. Regis luxury hotel brands, forecast revenue per available room (revPAR) to rise 2% across the world in the fourth quarter. It had earlier forecast growth of 2.5% to 3%.
The Bethesda, Maryland-based company also said it now expects 3% growth in full-year revPAR worldwide, at the low end of its earlier forecast of a rise of 3% to 4%.
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Smaller rival Hilton Worldwide Holdings Inc last month indicated a slowdown in its business by cutting the top end of its full-year revPAR growth target against the backdrop of growing international trade worries.
Additionally, there are concerns that the hotel industry, which has gained from a strong economy and robust travel demand, may be set to decelerate.
Income, Revenue And Room Rate
Marriott's net income dropped to $483 million in the quarter ended September 30 from $485 million.
The company's revenue fell about 1% to $5.05 billion, missing estimates of $5.37 billion.
While fewer people booked Marriott rooms across the world in the quarter, the average room rate rose 2.2%.