Marriott International Reports First Quarter Results

Marriott International, Inc. reported diluted earnings per share (EPS) from continuing operations of $0.33 in the first quarter of 2008, down 18 percent from the first quarter of 2007. The company’s EPS guidance for the 2008 first quarter, disclosed on Feb.14, 2008, totaled $0.32 to $0.36.

Marriott said attendance at group meetings was on track during the quarter and group cancellations remained lower than 2007 levels. Group meeting bookings for the remainder of 2008 are strong.

In the 2008 first quarter (a 12-week period from Dec. 29, 2007 to March 21, 2008), RevPAR for the company’s comparable worldwide system-wide properties increased 4.4 percent (3.5 percent using constant dollars). RevPAR at comparable worldwide company-operated properties rose 6 percent (4.5 percent using constant dollars) over the year-ago quarter and average daily rates increased 6.3 percent (4.8 percent using constant dollars).

In North America, company-operated comparable RevPAR rose 2.3 percent in the first quarter of 2008. RevPAR at the company’s comparable company-operated North American full-service and luxury hotels.

RevPAR growth was particularly strong in Manhattan, Los Angeles, Orlando and Seattle. In the 2008 first quarter, international company-operated comparable RevPAR increased 18.5 percent (11.5 percent using constant dollars), including a 16 percent increase in average daily rate (9.2 percent using constant dollars) and a 1.5 percentage point improvement in occupancy to 70.5 percent.

Singapore, Moscow, Paris, Panama and Dubai were particularly strong markets. Marriott revenues totaled $2.9 billion in the first quarter, a 4 percent increase from the same period in 2007. Base management and franchise fees rose 8 percent to $244 million as a result of REVPAR improvement and unit expansion. Incentive management fees rose 4 percent to $74 million.