BETHESDA, Md. (TheStreet) -- Marriott International (MAR) disappointed investors with a surprise third-quarter loss because of charges to its timeshare operations, though adjusted earnings beat expectations and a key industry metric of room revenue saw a big jump.
Marriott booked a net loss of $179 million, or 52 cents per share, for the quarter, compared with a year-earlier profit of $83 million, or 22 cents per share.
Marriott said earlier this year it plans to spin off its timeshare business, splitting itself into two separate, publicly traded companies. Costs related to the timeshare business dragged down the hotelier's third-quarter results. Excluding those charges, adjusted earnings came to $104 million, or 29 cents a share, topping analysts' consensus call by 2 cents.
Marriott shares have fallen more than 30% in 2011. The stock closed Wednesday's session up 4% at $28.18, and was tacked on 0.3% in after-hours activity following its earnings report. The company said revPAR -- or revenue per available room, a key metric in the hotel industry that multiplies a property's room rate by its occupancy rate -- jumped 8.7% across its global portfolio of hotels, which include its namesake brand as well as Ritz-Carlton and Renaissance Hotels, among others. Investors paid close attention to Marriott's first outlook for 2012. Since Marriott is the first of the major hoteliers to report quarterly results, its view could shed light on how other sector players such as Starwood Hotels & Resorts Worldwide (HOT), Hyatt Hotels (H) and Wyndham Worldwide (WYN) have been faring in recent months, and what the industry expects for next year.
Marriott expects revPAR growth of 3% to 7% in North America, outside North America and worldwide next year. For the fourth quarter ending in December, the company sees earnings of 40 to 45 cents a share. Wall Street's current consensus view is for a profit of 49 cents a share in the quarter. Business and leisure travel trends have dropped dramatically in recent years amid economic recession and uncertainty, but revenue, room rates and occupancy figures have been creeping back up, particularly among business travelers. -- Written by Miriam Marcus Reimer in New York.
>To contact the writer of this article, click here: Miriam Reimer. >To follow the writer on Twitter, go to @miriamsmarket.
>>See our new stock quote page.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV