May 1 (Reuters) - Hotel operator Marriott International ( MAR )
raised its forecast for annual adjusted profit on
Wednesday, banking on international travel demand to offset
normalizing domestic travel in the U.S.
International travel demand is expected to remain strong
this year as global air connectivity increases and travelers
flock to Asian and Middle Eastern destinations.
"Our results in the first quarter highlight the resiliency
of our asset-light business model and the strength of our
brands," said CEO Anthony Capuano.
Shares of the company were down 1.4% in premarket trading.
Marriott's ( MAR ) results were boosted by 11% growth in room
revenue in international markets, led by nearly 17%
year-over-year growth in Asia Pacific excluding China.
Global room revenue - an important metric in the hospitality
industry - rose by more than 4% as strong international growth
was offset by an increase of only 1.5% in North America.
Quarterly revenue rose by 6% from a year earlier to $5.98
billion.
The Maryland-based company raised its 2024 adjusted profit
forecast to a range of $9.31 to $9.65 per share, compared to a
previous range of $9.18 to $9.52 per share.
It reported an adjusted quarterly profit of $2.13 per share,
compared to $2.09 per share a year earlier.
The company added roughly 46,000 net rooms during the
quarter, including around 37,000 rooms from its agreement with
MGM Resorts International.
Marriott ( MAR ) expects worldwide room revenue to increase by 3% to
5% in 2024. It sees 4% to 5% growth in the second quarter.