Marriott Losses Consistent With Industry Peers

Marriott International yesterday announced a significant loss for fourth quarter 2001 and considerably reduced earnings for the entire 2001 year.

The fourth-quarter loss was $116 million, while 2001 earnings of $236 million were $143 million short of 2000. The company attributed the poor performance to the reduction in travel post-Sept. 11 and the weak global economy. These results were consistent with the performance reported in recent weeks by such other large multi-brand companies as Hilton Hotels Corp. and Starwood Hotels & Resorts Worldwide.

For travel buyers, the discouraging financial results suggest that the large companies may be more open to negotiation in an effort to generate revenue. Consistent with the trend that Smith Travel Research, the lodging industry tracking firm, has reported through 2001, the declines in revenue cited by Marriott were most severe at the deluxe and upscale price points, where its brands include Marriott Hotels & Resorts, Renaissance and Ritz-Carlton, compared with the performance of the midprice brands, which include Courtyard, Fairfield Inn and SpringHill Suites.