Marriott Results Top Estimates

(RTTNews) - Hotel operator Marriott International Inc (MAR) on Wednesday reported fourth-quarter net earnings of $197 million or $0.68 per share compared with $151 million or $0.49 per share last year.

Revenues for the quarter were up 11% at $3.56 billion compared with $3.2 billion in the prior year.

Analysts polled by Thomson Reuters estimated earnings of $0.65 per share on revenues of $3.48 billion for the quarter. Analysts' estimates typically exclude special items.

In the fourth quarter, Marriott's worldwide systemwide RevPAR increased more than 6 percent, and was up 6.2 percent on a comparable basis.

In North America, business and leisure transient demand were strong during the quarter, which drove limited-service systemwide RevPAR up 8 percent. Also the company's international hotels performed well, marked by leisure demand in the Caribbean and Mexico, good weather in Europe, increased travel to Egypt, and improving trends in India and Japan.

"We expect transient demand to remain strong. In fact, based on signings to date, we expect special corporate room rates across all our managed North American hotels will increase 5 to 6 percent in 2015," Marriott said.

At year-end, the company's worldwide development pipeline increased to nearly 240,000 rooms, including about 30,000 rooms approved, but not yet subject to signed contracts.

For the full year 2015, Marriott expects earnings of $3.00 to $3.12 per share, while analysts expect $3.03 per share.

For the first quarter, the company expects comparable systemwide RevPAR on a constant dollar basis to increase 5 to 7 percent in North America, 4 to 6 percent outside North America and 5 to 7 percent worldwide.

For 2015, Marriott expects comparable systemwide RevPAR on a constant dollar basis to increase 5 to 7 percent in North America, 3 to 5 percent outside North America and 5 to 7 percent worldwide.

The company anticipates gross room additions of about 7 percent, or 6 percent, net, worldwide for 2015. This does not include the about 10,000 rooms associated with the expected Delta transaction.