A stellar performance from Marriott International Inc.'s time-share operations in Hawai'i helped push the company's earnings higher in the first quarter, the nation's largest hotel operator reported yesterday.

A 21 percent increase in time-share sales and services revenue was "primarily driven" by contract sales at the Marriott Maui Ocean Club, the company said.

Nonetheless, Marriott's stock price fell the most in four years yesterday after the company reduced its forecast for revenue per available room in North America by 1 percentage point. Marriott's earnings rose to $182 million, or 44 cents a share, Bethesda, Maryland-based Marriott said.

Time-share sales and services revenue, net of direct expenses, totaled $57 million for the first quarter, exceeding the $45 million to $50 million expected for the period.

In addition to strong sales at the Marriott Maui Ocean Club, the company reported "better than expected development profits" at its other time-share projects in Hawai'i and St. Kitts and St. Thomas in the Caribbean. Marriott's other Hawai'i time-share properties include the Ko Olina Beach Club on O'ahu and the Kaua'i Beach Club and Waiohai Beach Club on Kaua'i.

Marriott said it expects time-share contract sales to rise by 5 percent to 10 percent this year, led by strong sales in Hawai'i, St. Kitts and San Francisco.

Marriott is the largest U.S. owner, manager and franchiser of hotels with about 2,900 hotels and time-share properties.

Excluding results from its synthetic fuel unit, Marriott earned 40 cents a share, 2 cents higher than the average estimate of analysts surveyed by Bloomberg. Revenue climbed 7.4 percent to $2.9 billion.

Profit a year earlier was $61 million, or 14 cents a share, including an expense of $109 million, or 25 cents a share, related to new accounting rules for the time-share industry.

Average room rates rose 8.3 percent in the first quarter because demand increased from corporate travelers while supply was limited by building costs and lengthening approval times for new construction.

RevPar worldwide rose 6.6 percent for the 12 weeks ended March 23, outpacing the 5.2 percent increase in North America. Hotels in downtown markets gained 9.1 percent, Marriott said.