(Bloomberg)—Marriott International Inc. reported third-quarter profit that missed estimates, and the company lowered full-year projections in the face of slowing travel demand.
Adjusted earnings per share came in at $1.47, missing the average analyst estimate of $1.49. The company lowered its full-year profit guidance to a range of $5.87 to $5.90, from its earlier projection of $5.97 to $6.06.
Revenue per available room, a key hotel industry metric also known as RevPar, increased 1.5% in the quarter from a year earlier, at the midpoint of guidance for RevPar growth of 1% to 2%. Marriott also offered an initial forecast for 2020, projecting RevPar would be flat to up 2%.
Marriott has been managing through an eventful year, including fallout from a massive data breach, Chief Executive Officer Arne Sorenson’s treatment for pancreatic cancer, and a push from activist investor Jonathan Litt to reduce the number of brands in its portfolio.
Last month, the company acquired the W New York Union Square for $206 million to help showcase an update for the W brand. Marriott also bought Elegant Hotels Group Plc for $130 million to bolster its entry into the all-inclusive resort business, and sold the St. Regis New York, helping to offset cash outlays.
Shares declined as much as 3.9% in late trading before paring losses. Marriott is up 20% for the year, compared with 27% for the Bloomberg Americas Lodging Index.
To contact the reporter on this story: Patrick Clark in New York at [email protected]
To contact the editors responsible for this story: Craig Giammona at [email protected]
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