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Marriott sees improvement
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September 24, 2001: 8:22 a.m. ET
September bookings off sharply since attacks, but October looking up
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NEW YORK (CNNfn) - Despite a sharp downturn in September business following the terrorist attacks on New York's World Trade Center and the Pentagon, Marriott International's chief executive said October bookings already are looking better.
Bookings at its hotels fell sharply in September, but Marriott (MAR: Research, Estimates) CEO Bill Marriott told CNN's Late Edition Sunday that October is looking brighter, due mainly to conventions and other group bookings.
"It's very tough. We rely tremendously on air travel and, as you know, air travel is way down, and so we're going to have a very tough September," Marriott said. "However, bookings are holding for October. Many of the major groups that we have booked on our books in our major convention hotels are still there."
More than 6,500 people, including two Marriott managers, are dead or missing after the attacks, in which hijackers smashed two planes into the twin towers of the World Trade Center. A third plane slammed into the Pentagon.
The hotel sector has been hit particularly hard by the attacks, and Marriott, which operates more than 2,200 hotels worldwide, said it had shifted workers to part-time duties of two or three days a week in the expectation that business will bounce back before too long.
"We think travel will come back," Marriott said.
Marriott said the airline industry, hit hardest by the attacks, is having a major impact on the hotel industry. The airlines predict a 60 percent drop in September travel.
"We are predicting a 40 percent drop through the balance of the year, October, November, December," Marriott said. "We think that may be a little too tough. But we're hanging in there at about maybe a 25 to 30 percent drop."
Marriott said one hotel, which sat between the twin towers at the World Trade Center, was destroyed when the skyscrapers collapsed. A second property nearby was damaged, but Marriott hopes to reopen it within 3 to 6 months.
Marriott's assessment was in line with similar comments last week by Hilton Hotels Corp. (HLT: Research, Estimates), which said it expects business to be most adversely affected for the next six to12 weeks, with a rebound after that.
Hotel shares have plunged following the attacks, with Marriott down about 27 percent for the week.
Hilton also said it will not meet its previous guidance for third- and fourth-quarter results.
Marriott said any recovery in the hotel business will depend largely on the airline industry, which has received $15 billion in federal emergency aid.
"Well, (if) the airlines can stay in business, which they have to do, we'll be fine as they go up," Marriott said. "But they've been taking a while to come back."
Marriott's shares climbed $1.05 to finish Friday's session at $30. Hilton's shares gained 55 cents to $7.25. 
From staff and wire reports
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