DOW JONES NEWSWIRES
Marriott International Inc. (MAR) swung to fiscal-third loss
amid write-downs of its timeshare business and sagging revenue at
its core hotel business, but results edged expectations.
Still there were signs the hotelier has seen the worst of the
declines. For the coming fiscal year Marriott expects worldwide
revenue per available room may decline as much as 5%, excluding
currency effects, with performance strengthening as the year
progresses. International markets are expected to show more
strength than in North America.
However, due to the economy, the company again declined to
provide its typical earnings guidance.
Major time-share companies such as Marriott, Starwood Hotels
& Resorts Worldwide Inc. (HOT) and Wyndham Worldwide Corp.
(WYN) have scaled back on development and sales the past year.
Marriott recently said it would stop new time-share development and
exit the luxury residential segment, which includes condominiums
and penthouses atop or adjacent to its hotels.
For the quarter ended Sept. 11, the company reported a loss of
$466 million, or $1.31 a share, compared with a prior-year profit
of $94 million, or 25 cents a share. Excluding items such as the
write-downs, earnings fell to 15 cents from 34 cents. The company
in July had forecast 9 cents to 14 cents.
Revenue decreased 17% to $2.47 billion as revenue per available
room slumped 22%. Analysts polled by Thomson Reuters most recently
expected $2.39 billion.
For the fiscal fourth quarter, the company expects earnings of
20 cents to 23 cents on revpar declines of 13% to 16% in North
America and 16% to 18% elsewhere in constant dollars. Analysts
projected earnings of 22 cents.
Shares closed Wednesday at $26.95 and didn't trade premarket.
The stock is up 40% this past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
tess.stynes@dowjones.com