Business and leisure travel increase boosting Marriott’s profits

by Tiffany Millar on October 7, 2010

On Wednesday, Marriott International was able to report a return to profits as a boosts in both business and leisure travel helped the hotel chain to move back into the black.

Marriott posted earnings of $83 million, bringing it back up to 22 cents per share. This compares to the hotel giant’s staggering losses of $466 million last year. Revenue for the second quarter rose from $2.47 billion to $2.65 billion.

The most recent figures are on target with analysts predictions with the closet prediction coming from FactSet Research, who said that Marriott would see profits of 23 cents per share for $2.65 billion in revenue. The firm’s fee revenue increased by nine per cent as comparable profits per available room.

Furthermore, the hotelier’s average daily room rate increased by 1.8 per cent. Marriott added 5,000 rooms to its portfolio during the third quarter, which included 2,000 rooms abroad.

According to JW Marriott Jr, chief executive of the hotel group, corporate and leisure demand increases have restored the company’s profit to the black causing the firm to lead the US industry in pushing room rates hikes. The company said that 2011 was expected surpass 2010 in profits with the group growing an additional six to eight per cent during this year’s last quarter.

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