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Marriott profit higher than expected

Bethesda, Maryland – 9 May 2017 –
Marriott International reported a higher-than-expected quarterly profit, driven by higher room rates and occupancy.

The company, which owns the Ritz-Carlton and St. Regis luxury hotel brands among others, said it expects revPAR to rise 1-3 percent this year, up from its previous forecast of 0.5 to 2.5 percent.

“RevPAR exceeded our expectations in North America and Europe due to stronger group attendance and higher-rated business transient demand,” chief executive Arne Sorenson said.

Marriott’s North American and worldwide systemwide RevPAR rose 3.1 percent, in the first quarter ended March 31.

The company, whose brands also include the JW Marriott, Autograph and Courtyard, said its room rates edged up 0.6 percent while occupancy increased 1.7 percent.

Net income rose to US$365 million in the quarter from US$219 million.

Total revenue rose 47.4 percent to US$5.56 billion.