4Q Marriott Profit Down

　　Marriott International Inc., Bethesda, Maryland, reported a decreased profit in the fourth quarter of 2011 compared to the same period in 2010.

　　Reported net income totaled US$141 million in the fourth quarter of 2011 compared to US$173 million in the year-ago quarter. Reported diluted earnings per share were US$0.41 in the fourth quarter of 2011 compared to US$0.46 in the fourth quarter of 2010.

　　However, with the figures adjusted for Marriott’s spinoff of its timeshare division in November 2011, the company’s bottom line improved in the fourth quarter. Fourth quarter 2011 adjusted net income totaled US$159 million, an 18% increase compared to fourth quarter 2010 adjusted net income. Adjusted diluted EPS totaled US$0.46, a 31% increase from adjusted diluted earnings per share in the year-ago quarter.

　　In light of the adjusted figures, chairman and outgoing CEO J.W. “Bill” Marriott Jr. was bullish on the company’s outlook. “2011 was a great year. Occupancies and room rates improved at our hotels in most markets around the world,” said Marriott Jr. “With a growing middle class and rapid economic growth in many emerging markets, global demand is increasing steadily. In the U.S., supply growth remains modest. As a result, we expect revenue per available room to continue to improve in most markets.”

　　Marriott saw steady RevPAR growth in North America at 6.4% and particularly in limited-service segment there, which increased 7%. Improvement in Europe lagged, though, with RevPAR growth of only 1.6% and the Middle East actually decreased 8.5%.

　　Looking ahead to 2012, analyst David Loeb of Baird Equity Research said, “No surprises to RevPAR guidance; margin growth somewhat lower than we expected. However, the differences in the bottom line are relatively immaterial and consistent with the decidedly cautious approach to 2012 guidance from prior-reported hotel companies.”