WASHINGTON, DC Marriott International officials, and analysts who track the company, agree that the brand s current economic boom cannot last.
“The economy cannot stay this hot forever,” said Laura Paugh, vp/investor relations for Marriott International.”While our unit growth story is very much intact, [rental rates are]bound to slow down as the economy starts to slow a little bit.”
Investors have been buying up stock in the company, which operates Marriott, Courtyard, Ritz-Carlton and Renaissance hotels worldwide. As a result, the company has been raising its room rates and managing more hotels to take advantage of the thriving leisure industry. But analysts believe this could be the tail end of the booming international travel industry.
“Most people believe the economy cant keep up this torrid pace of 4 % to 5%[gross domestic product]growth,” said David Anders, analyst for Merrill Lynch & Co. in a statement. (10/10/00)
Source: Washington Times; Washington, DC