(Reuters) -Marriott International Inc on Tuesday forecast first-quarter adjusted profit above Wall Street estimate after the U.S.-based hotel operator benefited from strong travel demand even as the prospects of a global economic recession persist.
Shares of the company were up 1.4% in premarket trading.
Pent-up desire to travel coupled with a strong U.S. dollar and flexible work arrangements have enabled hotel operators to boost their margins through the key holiday season.
The company expects its adjusted profit in the current quarter to come in between $1.82 and $1.88 per share, compared with $1.66 per share, as per Refinitiv data.
“While concerns about the macroeconomic environment persist around the world, booking trends to date remain robust and we have significant momentum in our business,” said Chief Executive Officer Anthony Capuano.
Marriott, which owns hotels such as Sheraton, Westin and St. Regis, posted a 28.8% rise in its revenue per available room (RevPAR), a key measure for a hotel’s top-line performance, in the fourth quarter on a constant-currency basis.
Excluding special items, the company earned $1.96 per share, ahead of average analysts’ expectations of $1.83 per share.
Its quarterly revenue rose about 33% to $5.92 billion, compared with an estimate of $5.47 billion.
(Reporting by Priyamvada C in Bengaluru; Editing by Sherry Jacob-Phillips)
