Marriott Int’l Reports 2Q EPS

WASHINGTON, D.C.— Marriott International reported diluted earnings per share (EPS) of $0.50 for the second quarter ended June 15, 2001, unchanged from the 2000 second quarter. Net income increased 3% to $130 million from a year ago. Systemwide sales, which include sales at managed, franchised, leased and owned properties, were $4.8 billion for the quarter, unchanged from the prior year. Marriott Lodging reported a 5% decrease in operating profit and roughly flat sales in the 2001 second quarter. Results generally reflected lower RevPAR for comparable units and fewer owned hotels, somewhat offset by new unit additions worldwide and growth in the timeshare business. Across all of Marriott’s lodging brands, RevPAR for comparable company-operated U.S. properties decreased 4.4% in the 2001 second quarter, larger reflecting lower transient demand. Among the company’s full-service brands, RevPAR declined 5.1%. Full-service occupancy decreased nearly six percentage points to 75.3%, while average room rates for these hotels rose more than 2%. RevPAR for limited service properties decreased 2.9%, resulting from a five-percentage-point lower occupancy rate. This was offset by a 3.5% increase in room rates. Marriott Vacation Club International’s (MVCI) contract sales increased 17% in the second quarter relative to a year ago, reflecting continued strong demand for timeshares, particularly at the company’s resorts in Hawaii, California and Florida.