Marriott Tops Profit Estimates On Higher Prices, Travel Demand
Marriott International Inc's quarterly profit topped Wall Street forecasts as the hotel chain benefited from higher room prices during a period of growing global travel.
Marriott, which owns the Ritz-Carlton and St. Regis luxury brands, also increased its forecast for a key measure of hotel health.
The company now expects revenue per available room (RevPAR) to rise 3% to 4% this year, compared with an earlier forecast of a 1% to 3% increase.
Last month, Marriott's smaller rival Hilton Worldwide Holdings Inc also raised its RevPAR forecast, thanks to higher spending from consumers and businesses, which contributed to stronger demand for hotel rooms.
Marriott, which also owns the JW Marriott, Autograph and Courtyard brands, said room rates in North America rose 1.1% in the first quarter.
Its net income rose to $398 million or $1.09 per share in the three months ended March 31, from $371 million or 95 cents per share a year earlier.
Excluding items Marriott reported earnings of $1.34 per share, ahead of analysts' average expectation of $1.22, according to Thomson Reuters I/B/E/S.
Revenue inched up 1.9% to $5 billion but fell well short of analysts' estimates of $5.75 billion.