Marriott's operating profits surge 24%

July 09, 1993|By Timothy J. Mullaney | Timothy J. Mullaney,Staff Writer

Marriott Corp. said yesterday that its operating profits rose 24 percent in the second quarter, as hotel occupancy and room rates climbed at the Bethesda-based hotel company.

The hotel owner and operator said it had earnings before charges of $36 million, or 29 cents a share, compared with net income of $29 million, or 24 cents, a year earlier.

"It really seems to be a good quarter for the company," said

Camille Humphries, who follows Marriott for Alex. Brown Inc. in Baltimore.

She said occupancy for Marriott's four hotel chains -- Marriott, Courtyard by Marriott, Fairfield Inn and Residence Inn -- rose by between 2 percent and 5 percent, while average room rates ranged from flat for Marriott to an increase of 6 percent for Fairfield Inn. Marriott had 762 hotels, with about 170,000 rooms, at the end of the quarter.

Marriott said operating earnings in its contract services business rose 25 percent.

That division handles items ranging from management services for hotels that the company does not own to owning and managing rest stops on highways.

Despite the gain in operating profits, Marriott's net income was only $4 million, or less than 4 cents a share, because of a previously announced $32 million one-time charge from an accounting change.

Bloomberg Business News contributed to this article.

Marriott Corp.

Ticker .. .. .. .. .. Yesterday's

Symbol .. .. .. .. .. Cls. .. .. .. Chg.

MHS .. .. .. .. .. .. 25 7/8 .. .. .. 3/8

Period ended

June 18 .. .. .. .. ..2nd qtr. .. .. .. Year ago .. .. .. Chg.

Revenue .. .. .. .. ..$2,155,000 .. .. $2,036,000 .. .. +5.8%

Net Income .. .. .. ..$4,000* .. .. .. $29,000 .. .. .. -86.2%

Primary EPS . .. .. ..$0.00* . .. .. .. $0.24 .. .. .. .. --

.. .. .. .. .. .. .. 24 weeks .. .. .. Year ago .. .. .. Chg.

Revenue . .. .. .. .. $4,235,000 .. .. $3,989,000 .. .. +6.2%

Net Income . .. .. .. $53,000* .. .. .. $40,000 .. .. .. +32.5%

Primary EPS .. .. .. $0.42* . .. .. .. $0.31 .. .. .. .. +35.5%

Figures in thousands (except per share data.)

* Includes after-tax charge of $32 million, or 29 cents per share, to reflect an accounting change.

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