For the past few years, the vacation accommodation industry has been greatly affected by the economic meltdown. Some companies were even forced to shut down their operations. But this year, as the economy is recovering, many timeshare companies are bouncing back. One of these companies is the Marriott International which reported its first quarter 2010 results showing exceeding revenue per available room (REVPAR) and diluted earnings per share (EPS) expectations.
For the first quarter of 2010, the net income totaled $83 million. That’s a 5% decline compared to first quarter 2009 adjusted net income. Meanwhile, the diluted EPS totaled $0.22, down $0.02 from adjusted diluted EPS in the year-ago quarter. Last February, the company forecasted first quarter diluted EPS of $0.15 to $0.21.
On the other hand, the reported net income was $83 million in the first quarter of 2010 compared to a reported net loss of $23 million in the year-ago quarter while the reported diluted EPS was $0.22 in the first quarter of 2010 compared to the reported diluted losses per share of $0.06 in the first quarter of 2009.
According to J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, in the first quarter, they welcomed increasing numbers of business guests to their hotels as travelers got back to work in most markets around the world. Corporate roomnights for the company in North America also rose 16% in the first quarter as business demand strengthened dramatically.
This year might be a great turnaround for the vacation industry. In contrast to the last two years, this industry has been challenged with profitability and the number of owners trying to get out of their timeshares. But now that the economy is recovering, many timeshare and accommodation companies are already showing dramatic improvements.