Marriott Reports Near Flat Income in Third Quarter

Marriott International, Inc. reported third quarter 2008 adjusted income from continuing operations of $123 million, an increase of 1 percent over the year-ago quarter, and adjusted diluted earnings per share (EPS) from continuing operations of $0.34, up 10 percent.

The company’s EPS guidance for the third quarter, disclosed on July 10, 2008, totaled $0.30 to $0.35. Adjusted results for the 2008 quarter exclude a $29 million ($0.08 per diluted share) after-tax non-cash charge primarily related to a 1994 tax planning transaction.

Reported income from continuing operations was $94 million in the third quarter of 2008 compared to $122 million in the year-ago quarter. Reported diluted EPS from continuing operations was $0.26 in the third quarter of 2008 compared to $0.31 in the third quarter of 2007.

In the 2008 third quarter (12-week period from June 14, 2008 to Sept. 5, 2008), RevPAR for the company’s comparable worldwide company-operated properties increased 3.4 percent (1.1 percent using constant dollars) and average daily rates increased 6.2 percent (3.9 percent using constant dollars).

RevPAR at comparable worldwide systemwide properties rose 2.2 percent (0.7 percent using constant dollars) over the year-ago quarter. Third quarter international comparable company-operated RevPAR increased 13.4 percent (5.7 percent using constant dollars), including a 16.9 percent increase in average daily rate (8.9 percent using constant dollars).

RevPAR growth was particularly strong in the Middle East, the Caribbean, and South and Central America. In North America, comparable company-operated RevPAR declined 1 percent in the third quarter of 2008.

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 & Resorts) was flat with a 2.1 percent increase in average daily rates.