Marriott, Host Shares Gain on Earnings Report
Marriott International shares gained more than 12 percent today, closing at $22. Though it reported a first-quarter loss, adjusted earnings beat the Street's expectations, so its stock rose. But not as much as those of Host Hotels & Resorts, also based in Bethesda, whose shares gained almost 17 percent today. Most of Host's hotels are managed by Marriott.
Then, after the market closed, Host announced its first-quarter results. It lost $60 million in the quarter, compared with a profit of $63 million in the same quarter a year earlier. Revenue dropped about 16 percent, to $882 million. Funds from operations, a key measure for real estate investment trusts like Host, fell almost 70 percent, to $55 million from $180 million.
Host reported that the Washington area was the only one of its regions that saw an increase in revenue per available room. Its average RevPAR fell 19.8 percent, and it dropped as much as 26.7 percent in the Mid-Atlantic and 24.7 percent internationally. But in the D.C. region, RevPAR grew 11.7 percent in the quarter ended March 27 when compared with the quarter ended March 21, 2008. Host has 13 hotels in the area.
This morning, Marriott said it lost $23 million in the first quarter, compared with $122 million in the same quarter a year earlier. The company has cut expenses, laying off employees or cutting back hours and reducing operating expenses through measures like shutting down guest floors, reports my colleague Michael Rosenwald.
Both companies' shares are below where they were last May, their highest point in the past year. Marriott shares went as high as $37.29 then, while Host shares hit $18.81.
April 23, 2009; 4:59 PM ET
Marriott International Corp.
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