GO
Loading...

Marriott Profit Falls 7%, But Results Top Analysts' Estimates

Hotel chain operator Marriott International said its fourth-quarter profit fell 7% due to lower contributions from its synthetic fuel business, but adjusted results beat Wall Street expectations as business travel demand drove strong pricing.

Net income dropped to $220 million, or 52 cents a share, versus $237 million, or 54 cents a share, in the year-ago period. The company's synthetic fuel business contributed about $1 million to 2006 quarterly results, down sharply from $33 million, or 7 cents a share, last year.

Adjusted earnings, which exclude synthetic fuel, totaled $219 million, or 52 cents a share, compared with $204 million, or 46 cents a share, a year earlier.

Revenue climbed to $3.86 billion, up 6% from $3.64 billion in the 2005 period, as management and franchise fee revenue rose 19% and incentive management fees soared 39%.

Analysts surveyed by Thomson Financial were expecting profit of 49 cents a share on revenue of $3.76 billion.

RevPAR, or revenue per available room, a key industry measure, increased 8.4% for global systemwide properties open at least a year. International systemwide same-store revPAR increased 13.9% in the quarter.

The company, which operates such brands as Ritz-Carlton, JW Marriott and Fairfield Inn, has more than 2,800 lodging properties in the U.S. and 67 other countries.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Don't Miss

  • Chad Devereaux examines bricks on Nov. 6, 2011, that fell from three sides of his in-laws' home in Sparks, Oklahoma, after two earthquakes hit the area in less than 24 hours.

    "Oklahoma is the most striking case, where the number of earthquakes is now at record levels," says a USGS official.

  • Private Jet

    Like migrating birds, private jet setters follow a basic instinct when it comes to their flight paths: They follow better weather.

  • Fake Apple Watches... can you tell the difference?

    CNBC's Eunice Yoon reports Apple Watch is officially available today but already fake watches are hitting the streets.

U.S. Video