Marriott International Inc. tripled its second-quarter net income and boosted its full-year outlook as revenue improved, the hotel operator said Wednesday.
The owner of Marriott, Ritz-Carlton and other lodging brands, Marriott International earned $119 million, or 31 cents per share, for the three months that ended June 18.
That's far better than last year's net income of $37 million, or 10 cents per share. Excluding one-time items, which dragged down last year's results, net income rose more than 40 percent from a year earlier.
Revenue climbed 8 percent to $2.77 billion, thanks to a boost in room rates and fees.
Analysts surveyed by Thomson Reuters expected Marriott to earn 28 cents per share with revenue of $2.75 billion.
Hotel companies were hard-hit during the recession as both business travelers and vacationers stayed home. To fill empty rooms, chains dramatically slashed prices — a trend they've tried to reverse as the economy improves.
On Wednesday, Marriott said it raised room rates and expects to continue doing so in the second half of the year and in 2011. Meanwhile, the key performance measure of revenue for each available room, climbed 9.9 percent at company-owned locations around the globe.
The measure was strongest overseas, where it rose 14.1 percent at company-owned sites. In North America, it rose 7.9 percent.
Marriott's average room rate also climbed, by 1.7 percent in North America — its first gain in nearly two years.
"Business and leisure stays at our hotels are trending up," Chairman and CEO J.W. Marriott Jr. said in a statement.
Marriott boosted its full-year outlook, saying it expected to earn $1.05 to $1.13 per share. In April, the company said it expected to earn between 95 cents and $1.05 per share for the year. Analysts expect a per-share profit of $1.04.
Marriott is based in Bethesda, Md. and has more than 3,400 properties in 70 countries making it one of the largest U.S. hotel companies.
Its shares climbed 19 cents to $32.35 in after-hours trading Wednesday after closing at $32.16.
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