Marriott Quarterly Earnings Up Sharply

Marriott International yesterday announced that net income for the first quarter rose 27 percent from the same period in 2004. Revenue per available room for company-operated hotels worldwide increased 9.2 percent. As the first of the large, multi-brand hotel companies to report quarterly earnings, Marriott's strong performance is evidence that the lodging industry rebound that gained traction in 2004 still has momentum.

Of particular concern to many travel buyers was Marriott's attribution of strong RevPAR growth primarily to rate increases, indicating that hotels have been successful in aggressively hiking prices, at least in the high-demand cities.

"The favorable demand momentum that we saw building in 2004 has continued into 2005," said chairman and CEO J.W. Marriott Jr. Marriott cited Orlando, Miami, New Orleans and New York as markets where demand was particularly strong because of increased group business or an influx in international business and leisure travel.