UPDATE 3-Marriott tops Street on cost cuts, steadying demand

* Adjusted EPS 24 cents vs 15 cents estimates

* Marriott beats estimates on cost cuts, steadying demand

* Shares jump more than 7 percent (Recasts; Adds conference call comments, analyst comment)

By Deepa Seetharaman

NEW YORK, April 23 (Reuters) - Hotel operator Marriott International (MAR.N) reported a smaller-than-expected quarterly loss on Thursday, helped by sharp cost cuts and signs of stabilizing demand, sending shares up more than 7 percent.

It was the second straight quarterly loss for Bethesda, Maryland-based Marriott, which is contending with a cutback in travel globally.

The company, which operates the Marriott, Ritz Carlton, Renaissance hotels, said its net loss was $23 million, or 6 cents per share, compared to a year-earlier profit of $121 million, or 33 cents per share.

Excluding $129 million in pretax restructuring costs, the company earned 24 cents per share in the quarter, beating analyst estimates of 14 cents, according to Reuters Estimates.

Revenue fell 15 percent to $2.5 billion.

Despite the global slowdown, the company said it has seen a stabilization or slowing decline in its booking trends. Gross trends for corporate or package bookings were leveling off and new bookings were falling at a slower rate.

"There are some initial signs of demand stabilization even if that today is at very low levels," said Chief Financial Officer Arne Sorenson.

The company, which operates 3,200 lodging properties worldwide, has battled lower demand by driving down room rates and cutting general and administrative costs 16 percent in the first quarter.

The company lowered its adjusted earnings to between 20 cents and 23 cents per share in the second quarter, but said it was unable to provide a full-year outlook owing to the business environment.

"The full-year EPS guidance would have been worse if not for aggressive corporate cost savings," FBR Capital analyst Patrick Scholes wrote in a note.

RATES TO REMAIN WEAK

Still, Sorenson said while demand may have bottomed, "there is still a risk in pricing and therefore RevPAR," referring to an industry-wide metric of profitability.