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Marriott’s Q1 Earnings Drop on Slowing EconomyApril 19, 2008 By: David Eisen
A sluggish U.S. economy was to blame for dragging down Marriott International’s first-quarter profits, which posted at $121 million, down $61 million from the same period last year.
Revenue per available room (RevPAR), a key measure of a hotel’s performance, grew only 2.3 percent at Marriott’s North American properties, down precipitously from a year ago when the Bethesda, MD-based company posted double-digit RevPAR growth.
RevPAR did, however, grow 18.5 percent at Marriott’s international hotels, allowing it to raise daily rates by as much as 16 percent.
The threat of recession and a slight pullback in corporate and leisure travel has combined to take a toll on both Marriott and the entire hotel industry. Visit www.marriott.com.