"There is tremendous growth in global travel today," President and Chief Executive Arne Sorenson said in a statement. "Travelers are on the road, attending meetings, making sales calls and taking family vacations."

Net income was $104 million, or 30 cents a diluted share, in the first quarter ended March 23, compared with $101 million, or 26 cents a share, a year earlier. Marriott bought back 4.2 million common shares in the first quarter.

Analysts expected profit of 29 cents a share, according to Thomson Reuters I/B/E/S.

Revenue at the hotel company slipped to $2.55 billion from $2.78 billion a year earlier.

But Marriott noted revenue from corporate guests rose more than 9 percent in the quarter, helped by higher room rates.

Spokeswoman Laura Paugh noted better-than-expected attendance from big groups that booked business years ago, while business also picked up with smaller groups. She also said groups spent more money on food and drinks.

"There just seems to be a lot more optimism everywhere you look on the group side," Paugh said.

Marriott (MAR.N), whose brands include Ritz-Carlton, Residence Inn and Courtyard by Marriott, said it expects systemwide revenue per available room, which multiplies occupancy rate by the room rate, to rise 6 percent to 8 percent this year, compared with a prior view of 5 percent to 7 percent growth.

Shares of Marriott rose more than 3 percent to $39.22 in afterhours trading after the results were posted from their close of $37.83 on the New York Stock Exchange on Wednesday.

(Reporting by Karen Jacobs; Editing by Bernard Orr, Phil Berlowitz)

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