BETHESDA, Md. — Hotel operator Marriott International Inc. said yesterday that second-quarter earnings dropped 24 percent as the deteriorating economy dragged down demand, a trend the company expects will extend into next year.

While the latest adjusted earnings beat Wall Street expectations, Marriott cut its outlook for the year, and its shares fell more than 4 percent.

Marriott earned $157 million, or 42 cents per share, in the 12-week quarter that ended June 13.

That was down from the $207 million, or 51 cents per share, a year ago.

Excluding $36 million in one-time items, Marriott said earnings from continuing operations were $189 million, or 51 cents per share. The company reported $3.18 billion in revenue.

Marriott also cut its earnings outlook for 2008 to between $1.77 and $1.88 per share.

Analysts expect $1.93 per share.

Marriott International has 10 hotel and vacation ownership properties on Kaua'i, O'ahu, Maui and the Big Island.

Marriott shares fell $1.87, or 7.2 percent, to close at $24.07 after sinking to a 52-week low of $23.86 earlier in the session.