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UPDATE 1-Marriott narrows key North America revenue forecast, shares slip

(Adds forecast, share movement)

Aug 7 (Reuters) - Marriott International Inc, the world's largest hotel chain, narrowed its forecast for the revenue it expects to earn this year from its rooms in North America, sending the company's shares down more than 2 percent in extended trading on Monday.

The narrower forecast for North America RevPAR a key metric calculated by multiplying a hotel's average daily room rate by its occupancy rate comes after Marriott raised its outlook for the metric in May.

The company, owner of the Ritz-Carlton and St. Regis luxury hotel brands, now expects North America RevPAR to rise between 1 to 2 percent in fiscal 2017, compared with its previous forecast of an increase of rise of 1 to 3 percent.

Marriott also said North American systemwide RevPAR would be roughly flat in the current quarter ending September.

The company's North American systemwide RevPAR rose 0.9 percent in the second quarter, while worldwide RevPAR rose 2.2 percent.

Marriott, whose brands also include the JW Marriott, Autograph and Courtyard, said its room rates in North America rose 1.3 percent.

Smaller rival Hilton Worldwide Holdings Inc indicated last month that corporate travel has room to grow as business customers wait for more clarity from the government on public policy and tax reform before boosting travel spending.

Marriott's net income soared nearly 68 percent to $414 million, or $1.08 per share, in the three months ended June 30.

Marriott, also benefiting from its acquisition of Starwood Hotels, said revenue rose 48.5 percent to $5.80 billion. The $12.41 billion acquisition closed in September last year.

Analysts on average had expected profit of $1.02 per share and revenue of $5.61 billion, according to Thomson Reuters I/B/E/S.

The company's shares were down 2.14 percent at $103.90 after the bell. Hilton's shares were down 1.2 percent. (Reporting by Arunima Banerjee and Anya George Tharakan in Bengaluru; Editing by Savio D'Souza)