Marriott International Inc, the world’s largest hotel chain, reported a higher-than-expected quarterly profit, driven by higher room rates and occupancy. Shares of the company were up 4.1 percent in extended trading on Monday. The hotel chain, which owns the Ritz-Carlton and St. Regis luxury hotel brands, said it expects revenue per available room (revPAR), a key metric that measures hotel health, to rise 1-3 percent this year, up from its previous forecast of 0.5 to 2.5 percent.
RevPAR is calculated by multiplying a hotel’s average daily room rate by its occupancy rate. “RevPAR exceeded our expectations in North America and Europe due to stronger group attendance and higher-rated business transient demand,” Chief Executive Arne Sorenson said in a statement.
Marriott’s North American and worldwide systemwide RevPAR rose 3.1 percent, in the first quarter ended March 31.
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The company, whose brands also include the JW Marriott, Autograph and Courtyard, said its room rates edged up 0.6 percent while occupancy increased 1.7 percent.
Net income rose to $365 million, or 94 cents per share, in the quarter, from $219 million, or 85 cents per share, a year earlier.
On an adjusted basis, the company earned $1.01 per share, beating estimates of 91 cents, according to Thomson Reuters I/B/E/S. Total revenue for the company rose 47.4 percent to $5.56 billion.
Up to Monday’s close, shares of the Bethesda, Maryland-based company had risen 16.6 percent this year.