Marriott reported a 7 percent dip in fourth-quarter income Thursday, attributing the decrease to its little-known synthetic fuel business and not its core hospitality business.
The Bethesda-based company, which is the world’s largest hotel chain by revenue, reported a net income of $220 million, or 52 cents per share. That figure was down from $237 million, or 54 cents per share, in the fourth quarter of 2005. Despite the drop, Marriott still beat Wall Street analyst’s expectations, which had predicted the fourth quarter would close out at 49 cents per share.
The company’s synthetic fuel division stopped production for much of 2006 because of a decline in oil prices. Though production resumed in October, the side business contributed only $1 million in income in the fourth quarter, compared with $33 million during the previous fourth quarter.
Revenue per available room, which is an accepted hospitality industry measure for the health of a hotel, was up 9.5 percent in the fourth quarter and average daily room rates increased by 8.9 percent. Hotel occupancy was at 73 percent for the quarter, which is slightly above overall occupancy rates for hotels in the Washington region.
Marriott, which also has the Ritz-Carlton brand under its domain, is currently undergoing a global expansion. In October, the company announcedit will add 85,000 additional rooms to its portfolio by 2009.
The Associated Press contributed to this story.
