Marriott Cuts Full-Year Forecast For Key Revenue Measure
Marriott International Inc has cut its full-year outlook for a key revenue measure that indicates pricing power as the world's largest hotel chain faces the impact of weakening business travel due to slowing global economic growth.
The hotel chain said it now expects revenue per available room (RevPAR) to grow in the range of 1% to 2% in 2019 compared with the prior estimate of 1% to 3%.
RevPAR is a measure of a hotel's financial performance and is calculated by multiplying the average daily room rate by occupancy rate.
Net Income, Non-Tax Accrual, Earning Per Share And Revenue
Marriott's net income fell to $232 million, or 69 cents per share, in the quarter that ended on June 30, from $667 million, or $1.87 per share, a year earlier.
Marriott recorded a $126 million non-tax accrual in the quarter for the fine proposed by the UK Information Commissioner's Office in relation to the data breach in its Starwoods hotels reservation system.
On an adjusted basis, Marriott earned $1.56 per share, in line with the average analyst estimate.
Revenue fell to $5.31 billion from $5.41 billion a year earlier.