Marriott Profit Rises, But Outlook Weak

(RTTNews) - Marriott International Inc (MAR) on Wednesday reported an increase in profit for the third quarter, as customers flocked to its hotel properties driving up occupancy and room rates. Marriott's quarterly earnings topped Wall Street estimates, but revenue fell short of expectations. The hotel chain detailed a weak earnings outlook for the fourth quarter.

Bethesda, Maryland-based Marriott's third-quarter profit rose to $210 million or $0.78 per share from $192 million or $0.65 per share last year. On average, 21 analysts polled by Thomson Reuters estimated earnings of $0.74 per share for the quarter. Analysts' estimates typically exclude special items.

Marriott's revenues for the third quarter increased 3 percent to $3.58 billion from $3.46 billion last year. Fifteen analysts had a consensus revenue estimate of $3.65 billion for the quarter.

Marriott's revenue available per room, or RevPAR, for worldwide comparable system wide properties increased 4.5 percent, up 4.2 percent in North America and 6.2 percent internationally.

RevPAR is a metric used to measure financial performance in the hospitality industry, calculated by multiplying a hotel's average daily room rate by its occupancy rate.

Occupancy rose 0.4 points to 77.2 percent, while average daily rates rose 4 percent to $150.72.

Looking forward to the fourth quarter, the company expects earnings of $0.74 to $0.78 per share. Analysts currently estimate earnings of $0.80 per share.

For the full year, Marriott now expects earnings of $3.12 to $3.16 per share, down from its earlier forecast of $3.10 to $3.18 per share. Analysts currently estimate earnings of $3.11 per share.

MAR closed Wednesday's trading at $76.89, down $1.10 or 1.41%, on the NYSE. The stock further, dropped $2.34 or 3.04% in the after-hours trade.