Marriott Profit, Worldwide RevPAR Up In 3Q

　　Marriott International posted a profit of US$143 million in the third quarter of 2012, up from a loss of US$179 million during the same period in the previous year.

　　The profit increase was driven by lower costs rather than increased revenue. Marriott International, Bethesda, Maryland, saw its total revenues decline to US$2.7 billion from US$2.8 billion in the third quarter of 2011, but lower expenses from the timeshare spinoff and real estate resulted in US$2.5 billion in costs in the third quarter of 2012 instead of the US$3 billion in expenses it saw during the same period in 2011.

　　In North America, comparable systemwide RevPAR increased 6.3% in the third quarter of 2012, including a 4.9% increase in average daily rate. RevPAR for comparable systemwide North American full-service and luxury hotels increased 6.8% with a 4.6% increase in average daily rate. RevPAR for comparable systemwide North American limited-service hotels increased 5.9% in the third quarter with a 5% increase in ADR.

　　International comparable systemwide REVPAR rose 5%, a 1.5% year-on-year decline using actual dollars, including a 3.8% increase in ADR, a 2.6% year-on-year decline using actual dollars, in the third quarter of 2012.

　　“We were pleased with our third quarter performance. Pricing power continued to improve in the quarter as hotel occupancy levels approached prior peaks. Group revenue at comparable Marriott Hotels and Resorts in North America rose 8% in the third quarter with room rates up 3%. Transient RevPAR rose 6% with strong last-minute retail demand and reduced discounting,” said Arne Sorenson, Marriott International president and CEO.

　　For the fourth quarter, the company expects comparable systemwide REVPAR on a constant dollar basis will increase 5% to 7% in North America, increase roughly 3% outside North America and improve 4% to 6% worldwide. The company expects to add approximately 28,000 rooms worldwide for the full year 2012. The company also expects approximately 10,000 rooms will leave the system during the year.

　　“Looking ahead, we expect 2013 worldwide constant dollar RevPAR to increase at a mid single-digit rate despite moderate economic growth in many markets around the world. We are particularly bullish about our prospects in North America in 2013. In that market, negotiations for special corporate business are already underway and we are targeting room rates to increase at a high single-digit rate. Group revenue on the books for 2013 for the Marriott brand in North America is up over 7% with rates up nearly 4%,” said Sorenson.