Marriott Profit Falls on Merger-Related Costs
08 11월 2016 - 8:00AM
Dow Jones News
Marriott International Inc., which closed its acquisition of
Starwood Hotels & Resorts Worldwide Inc. in September, said
Monday that profit tumbled in the latest quarter, hurt by costs
linked to the merger.
For the period, the company was hit by $228 million in
merger-related costs and charges, which drove earnings down to $70
million from $210 million during the same period a year
earlier.
Overall hotel revenue per available room, or revpar, inched up
0.8% to $123.23 for both the combined legacy business and Starwood.
For the current quarter, the company expects revpar on a constant
dollar basis, stripping away currency headwinds, to land between
flat and up 1%.
Marriott also expects earnings per share between 80 cents and 85
cents, below the 87 cents projected by analysts surveyed by Thomson
Reuters.
Shares fell 2.8% to $69.12 in after-hours trading.
The $13 billion merger creates the world's largest hotel company
with more than 1.1 million rooms and about 5,700 hotels in more
than 110 countries. The merger combines Marriott brands, including
Ritz Carlton, Courtyard and Residence Inn, with W Hotels, Westin,
Sheraton and other Starwood brands.
Marriott estimates the merger will yield annual cost savings of
$250 million. The Bethesda, Md., lodging company is betting that
its large size will allow it to negotiate better terms with online
travel agents like Expedia Inc. and to convince more travelers to
book directly on its website.
The company said Monday it was targeting more than $1.5 billion
in asset sales over the next two years, and it also said it expects
to resume buying back stock in the fourth quarter.
Over all, Marriott reported a profit of $70 million, or 26 cents
a share, down from $210 million, or 78 cents a share, a year
earlier. Excluding certain items, adjusted per-share earnings were
91 cents. Adjusted third quarter results strip out merger-related
costs and the eight days of Starwood results in the quarter.
Revenue increased 10.2% to $3.94 billion.
Analysts cited by Thomson Reuters had foreseen adjusted earnings
of 88 cents on revenue of $3.89 billion.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
(END) Dow Jones Newswires
November 07, 2016 17:45 ET (22:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Expedia (NASDAQ:EXPEV)
과거 데이터 주식 차트
부터 5월(5) 2024 으로 6월(6) 2024
Expedia (NASDAQ:EXPEV)
과거 데이터 주식 차트
부터 6월(6) 2023 으로 6월(6) 2024