Roundup: Marriott, Sunrise, EagleBank, SLM, AOL
From staff and wire reports
*Marriott International said James M. Sullivan, the Bethesda firm's head of global development, will retire in April after 25 years at the company. Sullivan, 64, was the primary architect of much the company's growth in recent years, leading the department responsible for making deals with developers around the world who own most of Marriott's hotels. Marriott generally manages and franchises properties.
Sullivan will be replaced by Tony Capuano, who was responsible for Marriott's full-service hotel development in North America, the Caribbean and Latin America.
"It is certainly with very mixed emotions that I announce Jim's retirement," Marriott chief executive Bill Marriott said in a statement. "He has been instrumental to our incredible growth and success, and it's hard to imagine him not here. But I understand his desire to slow down his famous breakneck pace and spend more time with his children and grandchildren. He deserves, and has, my tremendous gratitude."
*Sunrise Senior Living reported a second-quarter loss of $31.8 million (63 cents a share), compared with a profit of $8 million (15 cents) in the same quarter last year. Revenue increased to $434 million from $408 million.
The company cited a $51.2 million decrease in its share of earnings and return on investment in unconsolidated communities as a primary factor in the second-quarter loss.
Sunrise had filed its first-quarter earnings report in August, reporting a $49.9 million loss on $433 million in revenue. In March, the company announced it completed a restatement of results from 1996 through 2005 that reduced earnings by $173 million. The restatement came after a review found accounting errors but no evidence of stock option backdating, inappropriate accounting or insider trading.
*The first bowl game to be played in the District will be sponsored by EagleBank. The EagleBank Bowl is one of two new games sanctioned by NCAA this year. As a new kid on the block, the game will start on the bottom rung: an 11 a.m. Saturday kickoff at RFK Stadium on Dec. 20, the first of 34 bowls in the upper tier of Division I.
This year's game will pit host Navy against the No. 9 eligible team from the Atlantic Coast Conference -- assuming, of course, that the Midshipmen and the No. 9 ACC team each win six games. Otherwise, organizers will have to choose from a potentially unappetizing array of bowl-eligible teams from elsewhere. Army -- which hasn't played in a bowl game since 1996 -- is scheduled to host the 2009 game. Having the service academies fits into the bowl's charitable ambition of donating some of its proceeds to veterans. EagleBank signed a four-year commitment as the title sponsor.
"We want to have a military service team play every year," said EagleBank vice chairman Bob Pincus.
*SLM of Reston wants to make $10 billion in loans not backed by the government during the next 16 months as it seeks profits, chief executive Albert Lord said. With private loans, SLM, commonly known as Sallie Mae, can set the interest rate and pass its costs along to borrowers, Lord said. Sallie Mae made $891 million in private loans in the three months ended June 30, compared with $1.89 billion of federally backed loans, according to regulatory filings.
Sallie Mae has stopped making private loans to students at schools with low graduation rates and more defaults, and will increase loans with co-signers, Lord said. While other lenders have stopped any making private loans because they see students as having poor credit histories, Salle Mae sees an opportunity, Lord said.
* Time Warner said slower growth at its AOL network that buys and sells online advertisements is threatening its chances of meeting sales goals for the rest of the year. "It had been growing like a weed," Chief Financial Officer John Martin said at a Merrill Lynch & Co. conference. "We have seen some cancellations. It gives us pause in terms of our confidence to ramp advertising in the back half of the year."
September 10, 2008; 4:17 PM ET
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