BETHESDA (dpa-AFX) - Marriott International Inc (MAR) Tuesday reported a higher third-quarter profit, as a pickup in North American corporate and leisure travel spruced up bookings and occupancy rates, with both earnings and revenue coming in ahead of Wall Street estimates.
The hotel operator said it expects fourth quarter earnings to come in line with analysts' estimates and lifted its expectations for the full year.
Following the announcement, Marriott shares gained more than 4 percent in after-hours trade on the Nasdaq.
Marriott's RevPAR for worldwide comparable systemwide properties increased 8.1 percent during the quarter, and average daily rates climbed 4.5 percent.
In North America, comparable RevPar was up 8.7 percent and average daily rates rose 5 percent.
Marriott, based in Bethesda, Maryland, posted quarterly net earnings of $192 million or $0.65 per share, compared with $160 million or $0.52 per share last year. On average, 24 analysts polled by Thomson Reuters expected earnings of $0.62 per share for the quarter. Analysts' estimates typically exclude special items.
Marriott, which operates brands including Ritz-Carlton, said revenues for the third quarter rose to $3.46 billion from $3.16 billion a year ago. Fifteen analysts had a consensus revenue estimate of $3.43 billion for the quarter.
At the end of the quarter, the company's worldwide development pipeline increased to nearly 225,000 rooms.
For the fourth quarter, Marriott expects earnings of $0.62 to $0.66 per share, while analysts currently expect $0.64 per share.
For the full year 2014, Marriott now expects earnings of $2.48 to $2.52 per share, from a prior guidance of $2.40 to $2.51 per share. Analysts currently expect earnings of $2.50 per share for the year.
For 2015, Marriott expects North American systemwide RevPAR to increase 5 to 7 percent, 4 to 6 percent outside North America and 5 to 7 percent worldwide.
Marriott stock closed Tuesday at $71.95, up $1.69 or 2.41%, on a volume of 4.4 million shares. In after hours, the stock gained $2.93 or 4.07% at $74.88.
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