High-end hotel demand boosts Marriott earnings

Hotel News - 04/10/2012

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Hotel conglomerate Marriott International exceeded analysts’ expectations with figures posted on Wednesday.

Net income for the US-based firm totalled to some $143 million (£89 million), the figures showed. Experts note the number comes in stark contrast to the $179 million lost posted one year prior.

Officials from the company said the boost came largely thanks to increasing demand for its high-end names, notably Ritz-Carlton. Moreover, Marriott’s president and chief executive Arne Sorensen said in a statement that pricing power has seen ongoing improvement over the last three months.

The figures also revealed that revenues for the third quarter amounted to some $2.73 billion from an adjusted figure of $2.52 billion.

According to industry analyst Patrick Scholes from Suntrust Robinson Humphrey Inc, the company’s revpar (revenue per available room) escalated by 6.8 per cent for the Marriott's high-end properties in North America and by 6.3 per cent when including all properties in the region.

Meanwhile, properties worldwide saw a 6 per cent rise in revpar in the last quarter, despite the company having cutting its forecast from 7 per cent to 5 per cent in July.

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