UPDATE 3-Marriott posts loss, gives weak outlook

* Q4 net loss $0.03/shr vs year-ago profit of $0.46

* Q4 adjusted EPS $0.34

* Sees Q1 EPS at 13-15 cents; Wall St view 21 cents

* Shares rise nearly 2 pct as time-share note sale cheers (Adds company comment, byline)

By Deena Beasley

LOS ANGELES, Feb 12 (Reuters) - Hotel operator Marriott International Inc (MAR.N) posted a fourth-quarter net loss on Thursday, hurt by restructuring charges, cutbacks in business travel, and its slowing time-share business.

The company forecast continued weakness in 2009, but said it is close to selling off time-share loans, and its shares rose nearly 2 percent.

"Marriott's fourth-quarter headline earnings per share came in well below expectations, and its revised outlook for 2009 is similarly weak," Deutsche Bank analyst Chris Woronka said in a research note.

But the stock is trading at a low valuation multiple -- under 7 times estimated 2009 earnings -- which could be attractive for long-term investors, said Keefe, Bruyette & Woods analyst Smedes Rose.

Hotels are struggling as recession-hit consumers cut back on extras like travel at the same time businesses are looking to trim travel costs and avoid perceptions of frivolous spending.

Marriott, which typically manages hotels instead of owning them, reported a net loss of $10 million, or 3 cents a share, compared with a year-earlier profit of $176 million, or 46 cents a share.

"In the fourth quarter, corporate group revenue declined 13 percent at the Marriott brand as meeting planners deferred short-term training meetings, staff meetings and the like. We also saw more corporate cancellations ...," the world," Marriott Chief Financial Officer Arne Sorenson said on a conference call.

He said Marriott will reduce investment spending by $400 million this year. Other cost-saving efforts range from modifying menus and restaurant hours to reviewing room amenities, adjusting work schedules and implementing hiring freezes, Sorenson said.

The CFO also said Marriott expects to complete $250 million to $350 million in time-share note sales this year, at a breakeven price.

"That would go a long way toward supporting their investment grade (credit) rating," Rose said.

Excluding one-time items, Marriott's earnings from continuing operations were 34 cents a share.