International boosted rates during the first quarter of 2011 amid "very
strong" corporate transient demand and "building" group demand.
rates at Marriott International properties increased in North America by 2.4
percent year over year and by 5.9 percent outside of North America. Occupancy
rose 2 percentage points in North America and 3 percentage points across all other
regions, contributing to a revenue per available room increase of 5.8 percent
in North America and 11.2 percent in the rest of the world. CFO Carl Berquist noted
that corporate transient rate negotiations are now complete, with rate
increases averaging in the high single digits, as projected.
led the way on price increases in 2010," Berquist said during a conference
call with investors. "Today, competitors are raising rates as well, so we
are not overpriced."
income for the quarter was $101 million, up 22 percent from the first quarter of
Marriott noted group business during the quarter was weaker than expected,
Berquist said the company viewed that as an anomaly, adding that group business
on the books for the rest of the year so far is 10 percent higher than last
president and COO Arne Sorenson said group bookings are benefiting from the
company's sales strategy, started in 2007, to move sales out of individual hotels and into regional centers that cross-sell across all Marriott brands. Most
groups with 100 to 300 room nights now are booked via those centers, he said,
noting that Marriott has regional sales offices covering most states and plans
to complete the rollout this year.