Marriott posts 3Q loss on time-share charges

[October 08, 2009]  BETHESDA, Md. (AP) -- Marriott International Inc. lost $466 million in its third quarter on hefty impairment charges from its time-share business, which has declined drastically in the recession.

The hotel operator said Thursday that it lost $1.31 per share for the period ended Sept. 11, compared with earnings of $94 million, or 25 cents per share, a year earlier.

Excluding impairment charges of $502 million, or $1.41 per share, restructuring costs and other items, adjusted income from continuing operations was $53 million, or 15 cents per share.

Bethesda, Md.-based Marriott previously said it would record the impairment charges because it needed to cut prices, sell undeveloped land and scale back development in its time-share business at high-end resorts amid weak demand for luxury real estate.

Adjusted results surpassed analyst expectations for profit of 13 cents per share.

Revenue fell 17 percent to $2.47 billion but still topped Wall Street expectations for revenue of $2.39 billion.

Comparable revenue per available room at company-operated properties worldwide declined 23.5 percent in the third quarter. That measurement is considered a key measurement of health for lodging companies.

Looking ahead, Marriott expects fourth-quarter adjusted income from continuing operations in a range of 20 to 23 cents per share. Revenue per available room at comparable North American hotels will decline between 13 percent and 16 percent, Marriott said.

Analysts polled by Thomson Reuters expect 22 cents per share in earnings.

Marriott did not provide specific earnings and sales guidance for 2010 but said that business will remain tough because of the weak economy and that an accounting change may lift earnings between $30 million and $50 million.

[Associated Press]

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