By Connor Hart

Marriott International's shares fell 4.7% after the hotel operator said profit fell in the fourth quarter and guidance for the current quarter fell short of expectations.

In the first quarter, Marriott said it expects adjusted per-share earnings of $2.20 to $2.26, missing the $2.37 that analysts polled by FactSet had modeled.

For 2025, the company forecasts adjusted per-share earnings between $9.82 and $10.19, also below the $10.64 that analysts are looking for.

Marriott expects gross fees to rise to between $5.4 billion and $5.5 billion this year, shy of the $5.53 billion expected by Wall Street as the business faces lower credit-card fees, residential branding fees and foreign-exchange headwinds.

The company also plans to spend up to $1.1 billion in 2025 on improving its technology, renovating its hotels and adding new rooms. "Looking ahead, I am incredibly optimistic about Marriott's future," said Chief Executive Anthony Capuano.

On Tuesday, the Bethesda, Md., company reported a quarterly profit of $455 million, or $1.63 a share, compared with $848 million, or $2.87 a share, in the prior year's quarter.

Adjusted per-share earnings were $2.45, beating the $2.39 that analysts polled by FactSet had forecast.

Increased prices and occupancy, as well as strong demand for international travel, drove revenue 5.5% higher to $6.43 billion, in line with analyst expectations, according to FactSet.

Revenue per available room, or RevPAR, an important performance metric in the hospitality industry, increased 5% worldwide, boosted by 4.1% growth in the U.S. and Canada and a 7.2% rise in international markets.

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(END) Dow Jones Newswires

February 11, 2025 15:35 ET (20:35 GMT)

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