Rolling Stone

Found this regarding their 3rd quarter earnings call. Looks like hopes for lower rates won't materialze next year...


BETHESDA, Maryland—The outlook for hotels in 2012 has been largely obscured this year by the violent swings in the capital markets. But Marriott International executives on Thursday indicated the picture they see for next year is one of cautious optimism.

“For the upcoming year, we have not seen weakening demand in our business, but at the same time, we read the same newspapers and we can’t avoid the risk,” Arne Sorenson, Marriott’s president and COO, said during the company’s third-quarter earnings conference call.

Revenue-per-available-room growth is likely to be in the range of 3% to 7%, Sorenson said.

“With strong demand and low supply growth, returning to peak 2007 RevPAR is on the horizon,” he said.

Group revenue on the books for Marriott is up 7% for 2012. And on the corporate side, the company’s survey of meeting planners found that two-thirds indicated companies intend to spend the same or more on hotels in 2012.

Corporate negotiated rate likely will be higher in 2012, Sorenson said.

“Our strong book of group business gives us good negotiating leverage,” he said, adding, “We feel very good about the bookings going forward.”

Sorenson was asked by an analyst how much pushback the company is getting from its corporate clients.

“I think we’ll end up positive, but to be sure, our corporate customers read the same newspapers we do, and it’s a negotiated process,” he said. “They will use the risk of a slowdown (in the economy) any way they can.”

bigguyinpasadena

PR puff piece released by MI.
According to Reuters the company did OK-not great-with a loss of 179 million for the quarter.

"Marriott, which runs Marriott, Residence Inn and Ritz-Carlton hotels, posted a quarterly net loss of $179 million, or 52 cents a share, compared with a profit of $83 million, or 22 cents, last year."

http://www.reuters.com/article/2011/...79463P20111005

I wish them well-I will no longer be contributing to thier coffers however.

travelexpert

As a lifetime Gold just 75 nights away from lifetime Platinum--I rarely stay at Marriott's when paying out of pocket.

Their rates are generally too high, and value not great.

And even for business--I find HGI vastly more compelling than CY.

socrates

According to Wall Street the company did just fine - the loss was expected and attributed to the MVCI division which will be spun off before years end, RevPAR for CONUS and non CONUS hotels continues to climb as pricing power returns which leads the street to believe 2012 will be a good year for the company and industry as a whole (I know this isn't how anyone should measure a company's success but you should see MI's net free cash flow)

bigguyinpasadena

The best financial move they could make would be firing Ed French.
Marriott will not see a dime from me until that happens.

And"spinning off" the MVCI? I wonder if the folks at TUG have heard about this yet

travelexpert

Pray--tell us more? Who is he, and why is he so bad?