Las Vegas Sun

March 18, 2024

THE ECONOMY:

Marriott International reports fourth-quarter loss

Company lost $10 million in last quarter of 2008

Marriott International Inc., a big player in the Las Vegas hotel and timeshare resort industries, today reported a quarterly loss as the national recession weakened the travel industry and reduced occupancy and rates at Marriott properties.

The Bethesda, Md., company said its fourth quarter 2008 loss from continuing operations was $10 million, or 3 cents per share, versus a profit in the 2007 quarter of $236 million, or 62 cents per share. Revenue fell from $4.1 billion to $3.8 billion. Marriott stock fell on the news, trading early today at $14.40 per share, down 71 cents or 4.7 percent.

Occupancy at the company's hotels and resorts slipped 3.7 percentage points to 65.3 percent in the 2008 quarter vs. the 2007 quarter, while the average nightly room rate fell 2.1 percent to $135.59, Marriott said.

Chief Executive J.W. Marriott Jr. said the company is working to cut costs. He summed up challenges facing the company in a statement: "Results in the fourth quarter of 2008 demonstrated the impact of economic disruption to our business. Despite these highly challenging times, our priorities are straightforward. First, we are focusing on driving higher market share at the property level and through new room additions. Second, we are enhancing our cash flow by reducing investments in new projects. And third, we are reducing costs in all areas of our business to reflect the realities of the marketplace.''

Marriott runs or licenses its name to about a dozen properties in the Las Vegas area including the JW Marriott Las Vegas Resort in Summerlin and the Grand Chateau timeshare development on Harmon Avenue near the Las Vegas Strip. Its brand names locally include Marriott Suites, Residence Inn, Courtyard, Renaissance, Fairfield Inn and Ritz-Carlton.

In the fourth quarter the company posted $192 million in one-time expenses -- including $152 million in non-cash charges -- for restructuring costs and writeoffs to reflect the downturn in business worldwide. Restructuring charges totaled $55 million pretax and included severance costs, facilities exit costs and the write-off of costs for discontinued development projects.

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