Marriott Swings To 1Q Loss As Revenue Tumbles
Marriott International Inc. (MAR) swung to a first-quarter loss on restructuring charges as revenue per room tumbled, a situation the hotel giant now expects to be worse than anticipated for the year. The hotel industry has been cutting costs after being hammered last year, and the outlook for this year is just as dire. Standard & Poor's Ratings Services predicts revenue per available room - an industry performance measure - may decline as much as 16% in the U.S. Revenue per available room, an industry measure of profitability, tumbled 20% globally in the first quarter and 16% domestically at Marriott. Chairman and Chief Executive J.W. Marriott said he was nevertheless encouraged that despite the drop, gross margin fell a less-than-expected 3.4 percentage points.