Hotel operator Marriott International Inc reported lower quarterly profit Thursday, citing weaker economic conditions in the US.
The company also said it expected anemic economic growth and soft US lodging demand to persist into next year, and its shares fell nearly 6%.
Net income declined to $157m, or $0.42 per share, in the second quarter ended 13 June from $207m, or $0.51 per share, a year earlier.
Income from continuing operations before special items fell 17% to $189m, or $0.51 a share. On that basis, analysts on average had expected $0.49 a share, according to Reuters Estimates.
Marriott said that worldwide, company-operated comparable revenue per available room rose 5.6% overall, but increased just 1.4% in North America.
"While our hotels outside the United States continue to benefit from solid global demand, business conditions have deteriorated in the United States," Chief Executive JW Marriott said in a statement.
"While there is much uncertainty," Marriott said, "we expect weak economic growth and soft US lodging demand to persist into 2009."
Second-quarter revenue increased 2% to $3.2bn.
In trading before the market opened, Marriott shares fell to $24.40 from Wednesday's New York Stock Exchange close of $25.94.
By Mark McSherry, Reuters
