Marriott sees revenue weakness in third quarter, shares fall
Marriott International Inc
The company expects revPAR, an important metric that measures a hotel chain`s health, to increase by 1.5 percent to 2 percent in the region due to Independence Day holiday falling in the middle of the week and tough comparisons to last year`s numbers that included the impact of hurricane relief efforts.
However, Marriott, which owns the Ritz-Carlton and St. Regis luxury hotel brands, kept its forecast for worldwide revPAR for the full year unchanged at 3-4 percent.
The company also raised its forecast of full-year adjusted profit to $5.81 to $5.91 per share from $5.43 to $5.55 per share.
Net income rose to $610 million, or $1.71 per share, in the second quarter ended June 30, from $489 million, or $1.28 per share, a year earlier.
Excluding items, the company earned $1.47 per share, beating the average analyst estimate of $1.38, according to Thomson Reuters I/B/E/S.
Revenue rose to $5.35 billion but missed Wall Street estimate of $5.84 billion due to a drop 5.6 percent in fee received from the properties that the company owns or leases.
The company`s shares was down at $124.45 in extended trading.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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