Host Marriott Trimming Operating Costs

Host Marriott Corp., owner of 122 hotels that include Marriotts and Hyatts, said it is cutting overtime hours, running its restaurants fewer hours and buying energy in bulk to cope with slowing profit. The real estate investment trust said its fourth-quarter funds from operations rose 15% to $153 million, or 64 cents a share, on a 9.3% gain in revenue to $850 million. The results beat expectations of 58 cents, based on the average estimate of analysts polled by First Call/Thomson Financial. “We’re doing [the cuts] now so we can be ahead of the game and maintain margins,” Chief Executive Christopher Nassetta told analysts. Executives said the company expects revenue per available room, a key measure of industry profit, to rise 2% to 3% this year, down from an increase of 6.6% in 2000. Shares of Bethesda, Md.-based Host Marriott fell 23 cents to close at $12.33 on the NYSE.