EmailMarriott (MAR $36.52 -1.50) reported second quarter earnings of $0.42 per share, in-line with the Capital IQ consensus of $0.42, while revenues fell 6.6% year/year to $2.78 billion versus the $2.84 billion consensus. The company issued in-line guidance for fiscal year 2012 with EPS of $1.65-1.75 versus the $1.65 consensus, For Q3, the company expects comparable systemwide REVPAR on a constant dollar basis will increase 6-8% in North America, 5-7% outside North America and 6-8% worldwide. The company expects full year 2012 comparable systemwide REVPAR will increase 6-8% in North America.
Outside North America the co anticipates 5-7% comparable systemwide constant dollar REVPAR growth as markets in the Middle East and Asia experience softer demand growth, particularly in the Luxury segment. The company expects worldwide comparable systemwide constant dollar REVPAR will increase 6-8%. Co expects full year fee revenue could total $1,410-1,440 million, growth of 8-10% over 2011 adjusted total fee revenue of $1,307 million. Compared to prior expectations, anticipated fee revenue is modestly lower due to the impact of foreign exchange rates, the sale of the corporate housing business, some delayed hotel openings and softer REVPAR growth in some markets. For 2012, the company expects general, administrative and other expenses to total $660-670 mln, an increase of 3-4% over 2011 adjusted expenses of $643 million.
