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Profits down at Marriott
Hotel operator, Marriott International, has reported profits for the quarter ending 12 September as being down 18 per cent – to $93m – compared with the same period last year.
The fall was principally due to the absence of a timeshare note sale during the quarter; the result for 2002 included $12m in after-tax timeshare note sale gains.
REVPAR for the group’s full service hotel brands was up, although Marriott chair and chief executive, J.W.Marriott, Jr., said: "We can’t be certain that the trend will continue into the fourth quarter since it is more dependent on business travel and group business."
However, he added: "It does appear to us that the early stage of a recovery in transient demand is underway".
For the group’s North American properties, REVPAR fell by 0.5 per cent, a result, said the company, reflecting lower average room rates.
The quarter saw the opening of the 1000-room J.W.Marriott hotel and 584-room Ritz-Carlton hotel at the 500-acre Grande Lakes Orlando resort, which is reported to be "off to a tremendous start".
Elsewhere, the company added 46 hotels and timeshare resorts to its portfolio during the period and disposed of eight hotels. Six Marriott Hotels & Resorts opened, including three conversions, as did two Renaissance hotels, nine Courtyards and seven Residence Inns. At the end of the quarter the lodging group consisted of 2678 hotels and timeshare resorts.
Looking ahead, Marriott estimates lodging profits for the fourth quarter will total $225m - $235m, which includes estimated timeshare profits of $60m - $62m. Details: www.marriott.com