Bethesda-based Marriott International Inc. earned net income of $192 million, or 64 cents per diluted share, during the second quarter of this year, the hotel company announced Tuesday.
That’s a 7.3 percent increase over the second quarter of last year, which exceeded analysts’ expectations — and those of President and CEO Arne Sorenson.
“With strong franchisee and owner demand for our brands, we are on pace to have another record development year in 2014,” Sorenson said in a statement.
Analysts polled by Thomson Reuters expected per-share profit of 61 cents, the Wall Street Journal reported. Marriott itself forecast earnings of 59 cents to 63 cents.
Revenue totaled $3.48 billion, up from $3.26 billion in the second quarter of 2013. Management and franchise fees increased 8 percent from the year-ago quarter.
The results were driven in large part by strong growth in RevPAR, or revenue earned per available room. In North America, RevPAR grew by 6 percent, with a 3.7 percent increase in the average daily room rate during the quarter ended June 30.
Additions to the company’s hotel portfolio also contributed to the positive results.
The company added 162 properties worldwide — totaling 18,729 rooms — during the second quarter. Another 215,000 rooms are in the development pipeline. About 30 percent of those rooms will be in “luxury and lifestyle” hotels, Sorenson said.
Marriott repurchased 5 million shares of its common stock for $300 million during the second quarter. So far this year, the company has repurchased 12.8 million shares for $706 million.
Marriott — which has more than 4,000 properties in 79 countries — reported revenue of nearly $13 billion in fiscal 2013.
The company’s share price was $65.69 at when markets closed Tuesday, up 33 percent since the beginning of the year.
– Alissa Gulin