Marriott profits surge

Marriott profits surge

Marriott International has posted a strong rise in profits for the third quarter of the year.

Beijing Marriott Hotel City Wall
Beijing Marriott Hotel City Wall

The US-based hotel giant generated net profits of US$143 million for the quarter ending 30 September 2012 – 40.2% more than its adjusted net profit of US$102m in the same period last year.

The result was partially driven by an 8% rise in quarterly revenues, which totalled US$2.73 billion, as management and franchise fees rose 9% and the company earned US$7m of deferred management fees following the sale of its Courtyard joint venture.

International revenue per available room (revPAR) rose 5.0%, led by hotels in the Middle East & Africa (+13.0%), Asia Pacific (+6.8%), Europe (+3.8%) and Latin America (+3.0%). The company’s North American revPAR grew 6.3%.

Arne M. Sorenson, President & CEO of Marriott, said the hotel market was recovering well. “We were pleased with our third quarter performance. Pricing power continued to improve in the quarter as hotel occupancy levels approached prior peaks. Group revenue at comparable Marriott Hotels & Resorts in North America rose 8% in the third quarter with room rates up 3%. Transient revPAR rose 6% with strong last-minute retail demand and reduced discounting.”

For the final quarter, Marriott said it expects international revPAR to increase in the region of 4-6%. If achieved, Marriott has forecast full-year revenues of approximately US$1.4 billion, with operating income of US$921-941m.

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