Marriott International on Monday forecasted that demand
growth would flatten in the fourth quarter and in 2017, during its first
earnings report since acquiring Starwood Hotels & Resorts on Sept. 23.
The world's largest hotel company forecasted that fourth-quarter
revenue per available room (RevPAR) wouldn't change much from a year earlier, and
that next year's RevPAR would rise about 1%.
Shares of Marriott were down more than 2% in after-hours
For the third quarter, Marriott's revenue rose to $3.9
billion, up from $3.6 billion a year earlier. Marriott's third-quarter results
included $168 million in revenue from Starwood's eight days as part of the
Including the Starwood properties, Marriott's global RevPAR
advanced 2.2% from a year earlier, factoring out currency effects, while North
American RevPAR rose 2.6%.
Among Marriott's legacy brands, Renaissance and Autograph
Collection each had RevPAR gains of more than 5%. Select-service brands Courtyard,
Fairfield Inn and SpringHill Suites each had RevPAR gains of less than 2%.
Marriott completed its $13 billion acquisition of Starwood
in September, gaining 11 brands in the process, including W, Westin, Sheraton
and St. Regis. With Starwood, Marriott oversees almost 6,000 hotels totaling
1.17 million rooms across 30 brands.