Earlier in the day, Marriott reported third-quarter profit fell to $131 million, or 33 cents per share. Excluding the impact of its synthetic fuel business, adjusted earnings totaled $122 million, or 31 cents per share.

Analysts polled by Thomson Financial expected net income of 30 cents per share.

The hotel operator issued profit warnings for the fourth quarter, the full year and projected 2008 results below Wall Street estimates.

While most analysts were pleased with the quarterly results, they said investors would not like the outlooks.

"The primary difference (between the forecasts) is lower earnings from owned and leased properties, likely a result of asset sales expected to take place through the balance of the year," Smedes Rose, an analyst with Keefe, Bruyette & Woods Inc., wrote in a client note.

Joshua Attie of Citi noted Marriott's earnings guidance is historically conservative and said investors should not concentrate solely on the 2008 profit outlook.

"Investors will likely be disappointed by lower earnings per share guidance, though we think 2008 hotel operating guidance is more important, particularly since the earnings per share shortfall partially reflects non-operating items," he said.

Jefferies & Co. analyst Andrew Didora said he would be a buyer on weakness in the stock.

"Core lodging trends are strong, and Marriott's significant repurchase program should help limit downside," he wrote in a note to investors.

Shares of Marriott dropped $2.34, or 5.3 percent, to $41.98 in midday trading. The stock has traded between $37.88 and $52 over the past year.