WASHINGTON and HONOLULU (HawaiiNewsNow) - Marriott International made more than $100 million profit in the first quarter, but it was less than expected, and the company says its mainland conference business is down.
Revpar - revenue per available room - was 6.5 percent higher than the same time last year. While a healthy improvement, Marriott had originally expected 7 percent improvement.
"We are optimistic," said CEO J.W. Marriott Jr. "Overall business transient demand is very strong and corporate group demand is building."
The quarter at a glance:
- Revenue: $2.78 billion. Year ago: $2.63 billion.
- Net income: $101 million. Year ago: $83 million.
- Per share: 26 cents. Year ago: 22 cents.
Analysts had predicted earnings of 28 cents per share, though Marriott did warn them that conference business was off, especially in the Washington, D.C., area where Marriott was founded and where it still has 5% of all its properties.
Marriott has done better in Hawaii, where it also has a cluster of large properties including a substantial timeshare operation. First quarter timeshare revenues were down slightly.
The company added 100 properties to its global portfolio during the winter quarter.