Comment
0
Tweet
0
Print
RSS Feeds

Marriott sees higher occupancy, rates

Wednesday - 10/3/2012, 4:55pm  ET

Bethesda-based Marriott International Inc. saw an increase in occupancy and rates in the third quarter, though revenue was lower after the hotel giant spun off its timeshare business.

Third-quarter revenue was $2.73 billion compared with $2.87 billion a year earlier.

Net income was $143 million, or 44 cents per share, topping its own estimate in July. A year ago, Marriott posted a $179 million net loss, largely from charges associated with its timeshare spinoff.

North American revenue per available room rose 7 percent, while worldwide RevPAR was up 6 percent. Average daily rates were up 4.7 percent from a year earlier.

“Pricing power continued to improve in the quarter as hotel occupancy levels approached prior peaks,” said CEO Arne Sorenson. “We are particularly bullish about our prospects in North America and expect North American systemwide RevPAR to increase 5 to 7 percent in 2013.

Marriott (NYSE: MAR), which added Gaylord hotels and other properties to its management portfolio after the quarter ended, added 35 new properties during the third quarter.

It forecasts fourth-quarter revenue per available room will increase as much as 7 percent.