Marriott Earnings Show Continued Recovery

Marriott International today announced second-quarter earnings that show a year-over-year 13 percent increase in revenue per available room systemwide, as well as strong gains in occupancy, up nearly 6 percent, and average daily rate, up 3.7 percent. Comparisons with 2003 early in the quarter reflected last year's depressed market due to the onset of the Iraqi invasion. The comparisons, however, were no longer valid by the end of the quarter, when travel patterns had returned to normal. As the first of the large multi-brand hotel companies to report quarterly earnings, the Marriott results can be seen as a bellwether of the industry's performance overall.

For buyers, the positive results are confirmation that the rebound hotel companies first reported at the end of last year has proven to be sustainable.

"After three difficult years, strong demand returned to the markets most impacted by the downturn," said J.W. Marriott Jr., chairman and CEO. Marriott made note of the jump in international travel to the United States during the quarter, a segment that had lagged in the aftermath of the 2001 terrorist attacks.