Shares of Marriott International Inc. (MAR) - Get Marriott International, Inc. Class A Report were off by about 1% to $124.10 in premarket trading Friday after the worldwide hotel chain missed Wall Street's fourth-quarter revenue estimates.
The Bethesda, Maryland-based company reported fourth-quarter net income of $317 million, or 92 cents a share, up from with $114 million, or 31 cents a share, a year ago. On an adjusted basis, the company earned $1.44 a share, up 32% from a year ago, and beat analysts' estimates of $1.39.
Revenue totaled $5.29 billion, up from $5.25 billion a year, but came in short of Wall Street's expectations of $5.48 billion.
Full-year 2018 adjusted EPS totaled $6.21, up 48% from a year ago.
Looking ahead, the company said it expects full-year 2019 profit in the range of $5.87 to $6.10 a share, below analysts' estimates of $6.32.
Anne Sorensen, Marriott's president and CEO, said in a statement that North America systemwide RevPAR, or revenue per available room, increased only 0.2% and was adversely impacted by labor strikes in eight North American markets and weaker-than-expected transient demand for the industry. Worldwide systemwide RevPar increased 1.3%
RevPAR is calculated by multiplying a hotel's average daily room rate by its occupancy rate.
"We expect North America RevPAR will increase 1 to 2% in the first quarter," Sorensen said, "reflecting the impact of the government shutdown offset by a favorable calendar comparison. Outside North America, RevPAR growth is expected to moderate slightly in the first quarter due to the slower economic growth outlook in the Asia Pacific region."
For full year 2019, Sorensen said the company expected North America and worldwide RevPAR growth of 1% to 3% and room growth of about 5.5%.