Marriott International Inc. (NASDAQ: MAR)reported a weak forecast for revenue per available room (revPAR) in North America for the third quarter, sending shares of the world’s largest hotel chain down nearly 4%.
The Company expects revPAR, an important metric that measures a hotel chain’s health, to increase by 1.5% to 2% in the region due to the Independence Day holiday falling in the middle of the week and tough comparisons to last year’s numbers that included the impact of hurricane relief efforts. However, Marriott kept its forecast for worldwide revPAR for the full year unchanged at 3 to 4%.
The Company also raised its forecast of full-year adjusted profit to USD 5.81 to USD 5.91 per share from USD 5.43 to USD 5.55 per share. Net income rose to USD 610 Million, or USD 1.71 per share, in the second quarter ended June 30th, from USD 489 Million, or USD 1.28 per share, a year earlier.
Excluding items, the Company earned USD 1.47 per share, beating the average analyst estimate of USD 1.38. Revenue rose to USD 5.35 Billion but missed Wall Street estimate of USD 5.84 Billion due to a drop 5.6% in fee received from the properties that the Company owns or leases.