Marriott International Inc, the world's largest hotel chain, said second-quarter profit fell 24 percent and forecast more declines this year as US companies and consumers curb travel.
Net income dropped to $157 million, or 42 cents a share, from $207 million, or 51 cents, a year earlier, Marriott said in a statement published yesterday.
The Bethesda, Maryland-based company said earnings this year may be as much as 21 cents a share lower than its April forecast.
Marriott said the revenue it gets per available room in North America, a measure called Revpar, may decline as much as 1 percent this year. Consumers and companies are trimming travel as the economy weakens and gasoline prices soar.
"We expect weak economic growth and soft US lodging demand to persist into 2009," Chief Executive Officer J. Willard Marriott said in the statement.
Marriott now expects 2008 earnings to be $1.77 to $1.88 a share, down from the $1.98 to $2.08 it forecast in April, the second time this year it lowered projections.
The company runs more than 3,000 hotels in 67 countries under its namesake brand and others including Ritz-Carlton, Courtyard, and Residence Inn.
Marriott declined 99 cents, or 3.7 percent, to $25.94 on Wednesday in New York Stock Exchange composite trading.
The hotel company had declined 24 percent this year before yesterday.
Excluding one-time items and including a tax provision, earnings per share in the quarter beat the average estimate of analysts by 2 cents. Revenue increased 2 percent to $3.19 billion from $3.12 billion, boosted by overseas sales.
Eighteen analysts surveyed by Bloomberg estimated average earnings of 49 cents per share. The average revenue estimate of 10 analysts was $3.2 billion.
The company's fiscal second quarter covers the 12 weeks that ended June 13.
Source:China Daily/Agencies
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