Marriott Reports $83 Million First Quarter Net Income

Marriott International, Inc. today reported first quarter 2010 results, exceeding its revenue per available room (RevPAR) and diluted earnings per share (EPS) expectations. Reported net income was $83 million in the first quarter compared to a reported net loss of $23 million in the year-ago quarter. Reported diluted EPS was $0.22 in the first quarter of 2010 compared to reported diluted losses per share of $0.06 in the first quarter of 2009.

Marriott said that while first quarter room rates were generally lower than last year, as occupancy levels continue to improve, it sees higher room rates on the horizon. It anticipates that North American systemwide RevPAR will increase by 3 to 6 percent for the full year 2010 with higher room rates by year end. International demand trends are even stronger. Marriott expects RevPAR outside North America will increase 4 to 7 percent on a constant dollar basis in 2010 reflecting strong demand in Europe, South America and Asia.

More than 8,000 new rooms joined Marriott’s system during the first quarter, including the JW Marriott Los Angeles L.A. LIVE, the JW Marriott Hill Country Resort and Spa in San Antonio, and the Shanghai Marriott Hotel Changfeng Park, the company’s 47th hotel in China. Marriott also launched its newest brand, The Autograph Collection, with two new properties, Casa Monica Hotel in St. Augustine Florida and the Grand Bohemian Hotel in Asheville, N.C.

RevPAR for the company’s worldwide comparable company-operated properties was flat (a 1 percent decline using constant dollars) in the 2010 first quarter and RevPAR for the company’s worldwide comparable systemwide properties declined 0.7 percent (a 1.3 percent decline using constant dollars).

International comparable company-operated RevPAR rose 5.8 percent (a 1.5 percent increase using constant dollars), including a 4.5 percent decline in average daily rate (an 8.3 percent decline using constant dollars) in the first quarter of 2010.

In North America, comparable company-operated RevPAR declined 1.9 percent in the first quarter of 2010. RevPAR at the company’s comparable company-operated North American full-service and luxury hotels (including Marriott Hotels & Resorts, The Ritz-Carlton and Renaissance Hotels) was down 1.2 percent with a 7.8 percent decline in average daily rate.

Marriott added 44 new properties (8,361 rooms) to its worldwide lodging portfolio in the 2010 first quarter and seven properties (1,146 rooms) exited the system during the quarter. At quarter-end, the company’s lodging group encompassed 3,457 properties and timeshare resorts for a total of over 603,000 rooms. The company’s worldwide pipeline of hotels under construction, awaiting conversion or approved for development totaled over 95,000 rooms in more than 600 hotels at quarter-end.

Marriott revenues totaled over $2.6 billion in the 2010 first quarter compared to approximately $2.5 billion for the first quarter of 2009. Base management and franchise fees rose 1 percent to $216 million reflecting fees from new hotels offset by slightly lower RevPAR. First quarter incentive management fees declined 7 percent to $40 million.