NEW YORK (Reuters) - Shares of Marriott International Inc MAR.N fell 8 percent on Thursday, a day after the hotel company gave a tepid forecast for the year.
The operator of such brands as Marriott, Residence Inn and Ritz Carlton hotels lowered the top end of its 2011 outlook by 2 cents to a range of $1.35 to $1.43 per share.
Marriott’s results depend heavily on whether it can raise rates on groups traveling to do business. That market tends to recover more slowly after a recession because its rates can be set years in advance.
The company has seen some rate growth in that area, Chief Operating Officer Arne Sorenson told analysts on a conference call, but a full recovery is not imminent.
“You will not see us or hear us on the aircraft carrier deck claiming victory yet,” he said.
Marriott's shares were down 8 percent at $34.18 in late morning on the New York Stock Exchange, compared with a flat S&P 500 Index .SPX, which measures the broader market.
Reporting by Helen Chernikoff, editing by Matthew Lewis