Marriott predicts 40% boost to hotel profits for 2006

14 July 2006
Marriott predicts 40% boost to hotel profits for 2006

Marriott is predicting that its hotel business will boost operating profits by 40% this year on the back of robust second-quarter figures.

Marriott's lodging business (which covers hotels, timeshare, fractional ownership and serviced apartments) boosted operating income from $77m (£42m) to $252m (£137m) in the 12 weeks to 16 June, despite a decline in timeshare business.

Sales increased to $2.8b (£15b) from $2.56b (£1.4b) in the second quarter of 2005.

For the half year, the hotel business increased operating profit from $280m (£153m) to $482m (£263m), and turnover from $4.99m (£2.7b) to $5.46b (£2.98b).

"Given these above items, the company estimates that lodging operating income will total $950m (£518) to $980m (£534m) in 2006, an increase of 36% to 40% over 2005," the company forecast in its quarterly report.

During the second quarter, Marriott opened 33 new hotels and timeshare units (including the Marriott hotel in Leicester and five Courtyards in Europe) with a total of 4,853 bedrooms.

Its pipeline of hotels under construction has grown to 80,000, up from 60,000 at the same point in 2005, and it intends to open 25,000 of them during the current year.

Total group pre-tax profits rose to $491m (£268m) from $254m (£138m) in the first half of the year.

Marriott to make new St Pancras hotel a Renaissance >>

Marriott to open a further 50 UK hotels >>

Marriott plans huge roll-out of Courtyard >>

By Angela Frewin

Get your copy of Caterer and Hotelkeeper every week -

The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking