Marriott Q2 Profits Exceeds Consensus
Marriott International Inc (NYSE: MAR) reported a rise in its Q2 profits as a result of cost cutting and an increase in room rates in North America.
The Bethesda, Maryland-based hotelier reported its Q2 earnings at $119 million, or $0.31 per share, from $37 million or $0.10 per share in the year-ago period. The company had earlier forecasted its earnings within a range of $0.25 to $0.29 per share. MAR’s revenue for the quarter rose 8.2% to $2.8 billion, from $2.6 billion in the year ago-period. The analysts were expecting Marriott to earn $0.28 on revenue of $2.75 billion.
The company’s total expenses increased 3.3% to $2.5 billion and revenue per available room (revPAR) for the company's hotels worldwide rose 8.5% in the quarter.
Marriott forecast its revPAR for the third quarter to rise between 6%-8% across the world. The company expects its revPAR for the full year to increase between 4% and 6% worldwide.
Marriott’s Chief Executive J.W. Marriott, Jr mentioned, "Combined with productivity improvements achieved over the last year, strong unit growth and increasing demand, we look forward to growing cash flow and strong earnings in 2010 and beyond."
Shares of MAR moved up 0.25% to $32.24 in after-hours trading.
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