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Marriott credits room rates, sales for 35% jump in profit

SHARE Marriott credits room rates, sales for 35% jump in profit

McLEAN, Va. (AP) — Hotel chain Marriott International Inc. said Thursday its second-quarter profit climbed 35 percent, thanks to higher room rates and increased sales across all business segments.

Second-quarter earnings increased to $186 million, or 43 cents per share, compared with $138 million, or 29 cents per share, in the prior-year period.

Adjusted income for the quarter totaled $182 million, or 42 cents per share, which excludes results from the company's synthetic fuel business. The company suspended production at its four synthetic fuel plants in April due to high oil prices and uncertainty about tax credits.

Quarterly revenue rose 7.1 percent to $2.85 billion from $2.66 billion in the year-ago period. Lodging revenue, which excludes the fuel business, increased 10 percent to $2.81 billion from $2.56 billion.

Analysts polled by Thomson Financial were expecting second quarter earnings of 40 cents per share on revenue of $2.81 billion.

All per share amounts are adjusted for Bethesda, Md.-based Marriott's 2-for-1 stock split completed on June 9.

The company's revenue per available room, a key industry gauge also known as RevPAR, grew 10.4 percent for comparable properties.