WASHINGTON, D.C. Marriott International reported that its first-quarter earnings rose 29%, beating Wall Streets estimates. The company also said, however, that its 2001 results would be more likely to miss forecasts due to the economic downturn.
Marriott, which operates more than 2,000 hotels in the U.S. and 58 properties overseas, posted net earnings of $121 million, or $0.47 per diluted share for the quarter ended March 23, compared with $94 million, or $0.37 per diluted share, a year earlier.
Wall Street analysts had expected earnings of $0.42 to $0.46 per share, with an average of $0.45, according to Thomson Financial/First Call.
Marriott said total sales for the quarter rose 13% to $2.44 billion, compared with $2.17 billion a year earlier.
Marriotts U.S. properties saw RevPAR growth of 2.5%, however, occupancy fell two points to 72.9%.
The news of Marriotts strong first quarter is good for the lodging industry. Since Marriott was the first to report on its first quarter, many were eagerly anticipating the news in the hopes that it would shed some light on how the industry as a whole is doing.
But, Marriott also warned that it was more likely to report 2001 earnings below the projected $2.12 a share due to the economic slowdown as well as cost pressures in labor and energy. (4/17/01)
SOURCE: Reuters