Marriott International, Inc.’s profits fell 76% in the last quarter. This dismal statistic was caused by less demand for travel and Marriot’s well-intentioned restructuring. Unfortunately, the restructuring failed and Marriott was forced to release a forecast which did not meet up to analysts’ expectations.
As we previously reported in the article “Marriott’s $23mil Loss could Spell Trouble for Timeshares“, Marriott is undergoing several cost-cutting measures with the goal of decreasing the effects on Marriott world-wide. Marriott has decreased its level of investment, reduced the number of hours employees work weekly to cut employee costs, and placed a temporary freeze on hiring.
Marriott is based out of Bethesda, MD. Reports show that net income plummeted to $37 million in the second quarter. That equals $0.10 per diluted share. There was a significant decline in revenue in the amount of 20%. Revenue was $2.56 billion. One year prior, net income was a whopping $157 million which equals $0.42 per diluted share.
Marriott’s properties include hotels and timeshares. Timeshare facilities exit costs and severance costs contributed to a total of $33 million spent on restructuring during the quarter. Marriott also reported $20 million in other costs related to reserves for loan losses and values of prior timeshare note sales. The hotel industry uses revenue per available room to evaluate businesses in the hotel industry. For Marriott, this metric was down 26.1% world-wide.
Marriott has not met the challenge of making predictions in the global market, given the current financial and economic conditions. They estimate the third quarter earnings may range between $0.09 and $0.14 per share. Analysts speculate that third quarter earnings may actually be $0.20 per share (Bloomberg News). As we previously reported in April, Marriott is suffering five year lows (Marriott Stock at 5 Year Low).
Marriott is not the only one feeling pressure because of poor financial conditions. Those same consumers who cannot afford to go on vacation (thereby keeping money out of Marriott’s coffers) are also finding it difficult to maintain their timeshares. It is a difficult situation. There are so many timeshares across the country at a time when it is difficult to find buyers. That’s why Apex Professionals wants to help you reduce your expenses by unloading your timeshare.
Apex Professionals actually helps people who no longer wish to remain locked into a timeshare agreement. We do not buy your timeshare, but offer an alernative solution. It is not cost efficient to hold onto a timeshare when it is not acting as the investment you had hoped. Face it, you don’t need another expense. Call Apex Professionals and speak to someone who can review your options. Remember, you do have a choice.
About the Author: The timeshare experts at Apex Professionals, LLC, concentrate on helping disillusioned timeshare holders to rid themselves of unwanted maintenance fees, unnecessary assessment costs, and to do away with those annoying high-interest mortgages by offering to take over unwanted timeshare agreements instantly. Related posts:
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