Marriott 2Q Earnings Flat, May Reflect Industry

Marriott International, the first hotel company to report second-quarter 2002 earnings, yesterday announced results that were flat compared with the same quarter in 2001.

With a decrease in occupancy rates and room revenues, Marriott said it was able to maintain earnings levels by aggressively controlling costs. Analysts expect Marriott's results to foreshadow the lodging industry's performance generally as other hotel companies announce earnings in the coming weeks.

Marriott attributed the drop in occupancy and revenues to decreases in transient business travel, suggesting that buyers will be in a strong bargaining position as negotiations for 2003 rates get underway in the next few months.