Marriott International, operator of the Ritz-Carlton and Renaissance hotel chains, yesterday reported a 20 per cent rise in quarterly profit, helped by higher room rates and occupancy in North America.
The company’s net income rose to $192m (£119m), or 65 cents per share, in the third quarter ended 30 September, from $160m, or 52 cents per share, a year earlier.
The company raised its earnings forecast for the year to between $2.48 and $2.52 a share, from its previous estimate of $2.40 and $2.51 a share.
World-wide comparable revenue per available room (Revpar) – an industry measure of performance – rose 8.1 per cent and average daily rates increased 4.5 per cent.
In North America, the rise was 8.7 per cent and five per cent respectively.
Marriott had expected Revpar to increase six per cent to eight per cent in North America and 5.5 per cent to 7.5 per cent world-wide.
The company maintained its Revpar growth projection at five per cent to seven per cent and raised slightly the expected net increase in rooms to between six per cent and seven per cent from its previous view of six per cent, citing growing demand in North America.
Through Tuesday’s closing, shares were up nearly 46 per cent for the year.
Total revenue rose 9.5 per cent to $3.46bn, slightly above analysts’ projections of $3.43bn.