Marriott Profit Beats As North America Room Rates, Occupancy Rise | Reuters
Marriott International MAR.N posted a better-than-expected quarterly profit as increased business travel boosted occupancy and allowed the company to raise room rates in North America.
The company, which owns the Marriott, Ritz-Carlton, Renaissance and Autograph Collection hotel brands, said comparable systemwide revenue per available room rose 6.3 percent in North America in the first quarter ended March 31.
"North American group and transient demand exceeded our expectations during the quarter, driving RevPAR (revenue per available room) and house profit margins higher," Chief Executive Arne Sorenson said in a statement.
RevPAR is calculated by multiplying a hotel's average daily room rate by its occupancy rate.
Marriott was helped also by higher business group bookings as Easter fell after the quarter ended, unlike last year when the holiday hurt business bookings in the March quarter.
Group business refers to a block of room bookings as well as catering and banquet services for group events such as meetings or social functions.
Marriott's average daily room rate rose 3.3 percent to $141.66 across its properties in North America.
