Marriott International, Inc. (NYSE: MAR) today reported diluted earnings per share of $0.50 for the second quarter ended June 15, 2001, unchanged from the 2000 second quarter. Net income increased three percent to $130 million from a year ago. Systemwide sales, which include sales at managed, franchised, leased and owned properties, were $4.8 billion for the quarter, unchanged from the prior year.
J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, said “We are pleased with our second quarter earnings in light of the significant drop in industry-wide lodging demand. As the economy slowed, the company took immediate and comprehensive steps to generate revenues and contain costs at our properties, while also sustaining customer service levels. Our efforts paid off. In the second quarter, we maintained our substantial REVPAR premiums built up over the past few years, and held the profit margin decline at our hotels to less than one percentage point.
“With more than 22,000 new hotel rooms and timesharing villas so far this year, we are well on our way to meeting our goal of 35,000 new rooms in 2001. Our expanding market share, through both new units and conversions from other lodging brands, is an important element of our profit growth strategy, especially in a softer economic climate.” Mr. Marriott continued.
Mr. Marriott also noted that the company plans to open 175,000 rooms across its lodging brands over the five-year period from 1999-2003, and at quarter-end, 95 percent of the planned rooms had opened or were under development. At the end of the second quarter, the company`s pipeline of properties under construction or approved for development remained at about 70,000 rooms.