Marriott Profit Declines, Misses Estimates

(RTTNews) - Hotel operator Marriott International Inc. (MAR), Wednesday reported a lower fourth-quarter profit due mainly to a truncated quarter arising from the shift in its fiscal calendar. The results also fell short of Wall Street estimates.

Meanwhile key metrics of REVPAR and occupancy were strong during the quarter as more business and vacation travelers visited its properties in North America and elsewhere.

Marriott, which owns brands such as the Ritz-Carlton and Renaissance, hopes to benefit from room expansions and has a strong pipeline in the offing.

The hotel operator provided a somewhat soft earnings guidance for the first quarter while expectations for fiscal 2014 appear positive.

Bethesda, Maryland-based Marriott posted fourth-quarter net income of $151 million or $0.49 per share, compared with $181 million or $0.56 per share last year.

On average, 26 analysts polled by Thomson Reuters expected earnings of $0.50 per share for the quarter. Analysts' estimates typically exclude special items.

The recent quarter had 92 days versus 112 days in the prior year, reflecting the change in its fiscal calendar.

Revenues for the fourth quarter dropped to $3.2 billion from $3.7 billion in the prior year. Sixteen analysts had a consensus revenue estimate of $3.32 billion.

The company said the change in its fiscal calendar impacted base management fees by $72 million.

Revenue per available room, or REVPAR, for worldwide comparable system-wide properties in the quarter was up 4.3 percent to $98.22. This metric in North America was up 4.7 percent while the international region gained 3.2 percent.

Worldwide comparable system-wide occupancy was up 80 basis points to 68 percent, with growth in both North America and elsewhere.

During the quarter, Marriott added 47 new properties, or 7,681 rooms, to its worldwide portfolio. At the end of the December 2013, its lodging group included 3,916 properties or 676,000 rooms, versus 3,801 properties or 660,000 rooms a year ago.

For the first quarter, Marriott expects adjusted earnings of $0.47 to $0.52 per share. Analysts currently expect earnings of $0.50 per share for the quarter.

For fiscal year 2014, the company expects adjusted earnings of $2.29 to $2.45, per share, while analysts expect $2.33 per share.

For 2014, the company expects worldwide system-wide REVPAR to increase 4 percent to 6 percent.

Last November, Marriott signed a letter of intent with South Africa-based Protea Hospitality Holdings to acquire Protea Hotel Group's hotel operations and brands in a bid to bolster its position in the African hotel market.

Marriott stock closed Wednesday at $51.54, up $0.16 or 0.31%, on a volume of 2.8 million shares on the NYSE. In after hours, the stock dropped $0.28 or 0.54% at $51.26. In the past year, the stock has traded in the range of $38.17 - $51.97.