Marriott's Midprice Brands Report Unexpectedly Poor Results

Reflecting the downbeat performance of the U.S. lodging industry overall, Marriott International today reported a 6 percent drop in lodging profits for 2002.

Chairman and CEO J.W. Marriott Jr., 70, described the market last year as "the toughest demand environment our industry has ever seen." Across all of its brands, Marriott's North American portfolio saw revenue per available room fall 5.7 percent, compared with 2001. Unexpectedly, such midprice brands as Courtyard by Marriott and Fairfield Inn by Marriott--assumed to be beneficiaries of trading down by travel buyers forsaking full-service brands for less expensive alternatives--fared even more poorly. RevPAR for these brands slumped 7.8 percent for the year, compared with a drop of 4.8 percent for the full-service sector.

Meanwhile, Marriott marked the opening of its 2,500th hotel worldwide in December.