Bethesda, Maryland  -  the world's largest lodging company, Friday reported a decline of 34 per cent in first-quarter profits compared to the same period last year.

Net income fell to 121 million dollars, or 33 cents a share, from 182 million dollars, or 44 cents, a year earlier, Marriott said in a statement. The figures met analysts' expectations.

Higher energy prices, dropping home values, and struggling corporate performance have led to cutbacks in travel.

Marriott balanced out a slow-down in the US with increased sales overseas and by selling rooms in places like New York to travellers from abroad taking advantage of the declining dollar.

Revenue rose 3.9 per cent to 2.95 billion dollars, the Bethesda, Maryland-based company said. (dpa)