Marriott International Inc (NYSE:MAR) shares slipped more than 5% after the hotel chain’s profit guidance disappointed investors.
For the full year, the company expects adjusted earnings per share of $9.82 to $10.19, below Street expectations of $10.63 to $10.65.
First quarter EPS in the range of $2.20 to $2.26 was below estimates of $2.35.
RevPAR, which refers to the revenue generated per available room, is expected to grow by 2% to 4%.
The company’s weak guidance drew focus from better-than-expected earnings for Q4.
Total revenue for the fourth quarter increased by 5% year-over-year to $6.43 billion, ahead of estimates of $6.4 billion.
Earnings per share of $2.45 topped estimates of $2.38 but was down from $2.87 in the year-ago quarter.
The company's Q4 RevPAR grew 5% year-over-year, driven by gains in average daily rate and occupancy.
International RevPAR was up 7%, led by the Asia Pacific and Europe, the Middle East and Africa.
Shares of Mariott traded down 5.4% at $288 in the early afternoon on Tuesday.