Earnings Preview: Marriott International

Hotel operator Marriott International Inc. reports earnings for the second quarter on Thursday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Hotel operators including Marriott been under pressure as the housing slump, economic uncertainty and soaring fuel and food prices have cut into consumers' travel spending.

In early June, Marriott reduced its forecast for second-quarter growth in North American revenue per available room to about 2 percent from its prior forecast of 3 percent to 5 percent. Revpar is considered a key gauge of a lodging company's performance.

BY THE NUMBERS: Analysts surveyed by Thomson Financial predict a profit of 49 cents per share on revenue of $3.15 billion.

ANALYST TAKE: JPMorgan analyst Joseph Greff said he expects Marriott to report a slowdown in leisure transient and corporate demand.

Lehman Brothers analyst Felicia Hendrix had a more optimistic take on the company, despite its reduced revpar forecast. She noted that manager/franchisor companies like Marriott are less affected by changes in revpar than owner/operators.

Hendrix said it "takes extremely sharp swings in revpar growth to have an impact on Marriott's overall results."

WHAT'S AHEAD: In June, Marriott Chairman and Chief Executive J.W. Marriott Jr. said he did not expect North American revpar to improve in the second half of the year.

STOCK PERFORMANCE: Marriott shares lost more than 15 percent during the second quarter. The stock has since fallen further, trading as low as $24.98 last week, its lowest price in nearly four years.