Marriott News Center

125 posts categorized "financial"

08/07/2014

Marriott International Declares Cash Dividend

Bethesda, Md., August 7, 2014 - Marriott International, Inc. (NASDAQ: MAR) today announced that its board of directors declared a quarterly cash dividend of twenty cents ($0.20) per share of common stock.

The dividend is payable on September 26, 2014 to shareholders of record on August 21, 2014.

Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda, Maryland, USA, with more than 4,000 properties, and more than 690,000 rooms in 78 countries and territories. Marriott International reported revenues of nearly $13 billion in fiscal year 2013. The company operates and franchises hotels and licenses vacation ownership resorts under 18 brands. Marriott has been consistently recognized as a top employer and for its superior business ethics. The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 45 million members. For more information or reservations, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.

Connect with thomas.marder@marriott.com 

07/29/2014

Marriott International Reports 2014 Second Quarter Results

MI LogoHIGHLIGHTS

 Second quarter adjusted diluted EPS totaled $0.71, a 25 percent increase over prior year reported results.  Reported diluted EPS totaled $0.64;
 
• North American comparable systemwide RevPAR rose 6.0 percent in the second quarter with average daily rates up 3.7 percent;

• On a constant dollar basis, worldwide comparable systemwide RevPAR rose 5.8 percent in the second quarter, including a 3.5 percent increase in average daily rate;

• Marriott repurchased 5.0 million shares of the company’s common stock for $300 million during the second quarter.  Year-to-date, the company repurchased 12.8 million shares for $706 million;

• Comparable company-operated house profit margins increased 110 basis points in North America and 80 basis points worldwide in the second quarter;

• The company’s adjusted operating income margin increased to 47 percent compared to 43 percent in the year-ago quarter;

• At the end of the second quarter, the company’s worldwide development pipeline increased to nearly 215,000 rooms, including more than 30,000 rooms approved, but not yet subject to signed contracts;

• Over 18,700 rooms were added during the second quarter, including over 10,000 rooms associated with the Protea transaction and nearly 3,200 rooms in other international markets;

• Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $408 million in the quarter, a 10 percent increase over second quarter 2013 adjusted EBITDA.

BETHESDA, MD – July 29, 2014 - Marriott International, Inc. (NASDAQ: MAR) today reported second quarter 2014 results.

Second quarter 2014 net income totaled $192 million, a 7 percent increase compared to second quarter 2013 net income.  Diluted earnings per share (EPS) totaled $0.64, a 12 percent increase from diluted EPS in the year-ago quarter.  Second quarter 2014 results reflect a $15 million pretax ($9 million after-tax and $0.03 per diluted share) impairment charge, an $11 million pretax ($7 million after-tax and $0.02 per diluted share) litigation reserve and a $7 million pretax ($5 million after-tax and $0.02 per diluted share) unfavorable foreign exchange impact related to Venezuelan currency devaluation.  Excluding these items, second quarter adjusted net income totaled $213 million and adjusted diluted EPS was $0.71.  On April 29, 2014, the company forecasted second quarter diluted EPS of $0.63 to $0.68, which did not include the three items discussed above.  See page A-11 for the adjusted EPS calculation.

Arne M. Sorenson, president and chief executive officer of Marriott International, said, “Results in the quarter exceeded our expectations as worldwide RevPAR increased nearly 6 percent.  In North America, strong transient demand drove RevPAR higher and room rates rose nearly 4 percent.    

“With strong franchisee and owner demand for our brands, we are on pace to have another record development year in 2014 with contracts for roughly 295 hotels with nearly 46,000 rooms already signed, or nearly a dozen hotels per week, and well ahead of our 2013 first half signings pace.  At the end of the second quarter, our development pipeline reached a record 215,000 rooms.

“We were pleased to announce a few weeks ago that the 3,400-room Atlantis, Paradise Island will be joining the Autograph Collection later this year, further accelerating our growth in the luxury and lifestyle space.  The Autograph Collection is just one brand in our luxury and lifestyle portfolio (The Ritz-Carlton, Bulgari Hotels & Resorts, EDITION, JW Marriott Hotels, Autograph Collection, Renaissance Hotels, AC Hotels by Marriott, Protea Fire & Ice Hotels and Moxy Hotels) catering to next generation travelers, a fast growing customer segment.  Representing nearly 30 percent of our current development pipeline, we expect to increase our room distribution of these luxury and lifestyle brands by 50 percent over the next few years.

“We are bullish on the remainder of 2014.  The strong RevPAR growth in the second quarter combined with very strong group bookings for the third quarter give us the confidence to increase our full year 2014 North American and worldwide RevPAR growth guidance to 5 to 7 percent.  We are also increasing our expectations for gross room additions to 7 percent, 6 percent net, based on strong development interest in our brands.  Through the first two quarters, we have returned $766 million to our shareholders through dividends and share repurchases and are on pace to return $1.35 billion to $1.6 billion to shareholders for the full year.”

For the 2014 second quarter, RevPAR for worldwide comparable systemwide properties increased 5.8 percent (a 5.9 percent increase using actual dollars).

In North America, comparable systemwide RevPAR increased 6.0 percent in the second quarter of 2014, including a 3.7 percent increase in average daily rate.  RevPAR for comparable systemwide North American full-service hotels (including Marriott Hotels, The Ritz-Carlton, Renaissance Hotels, Gaylord Hotels and Autograph Collection Hotels) increased 5.3 percent with a 3.5 percent increase in average daily rate.  RevPAR for comparable systemwide North American limited-service hotels (including Courtyard, Residence Inn, SpringHill Suites, TownePlace Suites and Fairfield Inn & Suites) increased 6.8 percent in the second quarter with a 4.1 percent increase in average daily rate.

Excluding Venezuela, international comparable systemwide RevPAR rose 4.6 percent (a 5.1 percent increase using actual dollars) in the second quarter.

Marriott added 162 new properties (18,729 rooms) to its worldwide lodging portfolio in the 2014 second quarter, including 113 properties (10,016 rooms) related to the Protea transaction.  Nine properties (1,134 rooms) exited the system during the quarter.  At quarter-end, the company’s lodging group encompassed 4,087 properties and timeshare resorts for a total of nearly 697,000 rooms.

The company’s worldwide development pipeline increased to roughly 1,300 properties with nearly 215,000 rooms at quarter-end, including 213 properties with more than 30,000 rooms approved for development, but not yet subject to signed contracts.

MARRIOTT REVENUES totaled nearly $3.5 billion in the 2014 second quarter compared to revenues of approximately $3.3 billion for the second quarter of 2013.  Base management and franchise fees totaled $370 million compared to $343 million in the year-ago quarter, an increase of 8 percent.  The year-over-year increase largely reflects higher RevPAR and new unit growth.

Second quarter worldwide incentive management fees increased 28 percent to $82 million primarily due to strong RevPAR and unit growth, as well as favorable timing of fee recognition.  The company anticipates that incentive management fee revenue will increase at a high teens rate for full year 2014.  In the second quarter, 40 percent of worldwide company-managed hotels earned incentive management fees compared to 34 percent in the year-ago quarter.

Worldwide comparable company-operated house profit margins increased 80 basis points in the second quarter with improvement in both room rates and productivity.  House profit margins for comparable company-operated properties outside North America increased 30 basis points and North American comparable company-operated house profit margins increased 110 basis points from the year-ago quarter.

Owned, leased and other revenue, net of direct expenses, totaled $70 million, compared to $65 million in the year-ago quarter.  Improved results reflected strong performance at several leased hotels, the addition of a property the company acquired in the fourth quarter of 2013, the impact of the Protea portfolio acquired at the beginning of the quarter and higher residential and credit card branding fees, partially offset by $13 million of lower termination fees.  Results for the second quarter of 2013 included $4 million of expenses related to international lease terminations.

DEPRECIATION, AMORTIZATION, and OTHER expense totaled $47 million in the 2014 second quarter compared to $33 million in the year-ago quarter.  The increase in expense largely reflects a $15 million impairment charge resulting from the reallocation of costs between the Miami EDITION hotel and the Miami EDITION residences.  The estimated cost of the total Miami EDITION project, which includes both the hotel and residences, remains unchanged from last quarter.  Prior year results included a $5 million impairment of deferred contract acquisition cost.

GENERAL, ADMINISTRATIVE and OTHER expenses for the 2014 second quarter totaled $159 million, a 1 percent decline compared to the year-ago quarter.  Expenses for the quarter included a $7 million foreign exchange loss associated with the Venezuelan Bolivar.  Expenses in the second quarter of 2013 included a $5 million performance cure payment.

On April 29, the company estimated general and administrative expenses for the second quarter would total $165 million to $170 million.  Actual expenses in the quarter were below the range largely due to lower than expected spending, some of which was favorable timing, and lower bad debt expenses, partially offset by the foreign exchange impact discussed above.

GAINS AND OTHER INCOME totaled $3 million in the quarter compared to $10 million in the year-ago quarter.  In the 2013 second quarter, the company recorded an $8 million gain on the sale of an investment in equity securities.

EQUITY LOSSES increased $6 million in the second quarter to an $8 million dollar loss largely due to an $11 million litigation reserve.

Adjusted Earnings before Interest Expense, Taxes, Depreciation and Amortization (EBITDA)
Adjusted EBITDA totaled $408 million in the 2014 second quarter, a 10 percent increase over 2013 second quarter adjusted EBITDA of $372 million.  See page A-8 for the EBITDA calculation.

BALANCE SHEET
At the end of the second quarter, total debt was $3,404 million and cash balances totaled $192 million, compared to $3,199 million in debt and $126 million of cash at year-end 2013.

COMMON STOCK
Weighted average fully diluted shares outstanding used to calculate diluted EPS totaled 298.7 million in the 2014 second quarter, compared to 314.0 million in the year-ago quarter.

The company repurchased 5.0 million shares of common stock in the second quarter at a cost of $300 million.  Year-to-date, Marriott repurchased 12.8 million shares of its stock for $706 million.  The remaining share authorization as of July 29, 2014, totaled 26.5 million shares.

OUTLOOK
For the 2014 third quarter, the company expects comparable systemwide RevPAR on a constant dollar basis will increase 6 to 8 percent in North America, 4 to 6 percent outside North America and 5.5 to 7.5 percent worldwide.

The company expects full year 2014 comparable systemwide RevPAR on a constant dollar basis will increase 5 to 7 percent in North America, 4 to 6 percent outside North America and 5 to 7 percent worldwide.  On April 29, 2014, the company forecasted worldwide and North American RevPAR growth of 4.5 to 6.5 percent for full year 2014.

The company anticipates gross room additions of 7 percent worldwide for the full year 2014 including the 10,016 rooms associated with the Protea acquisition.  Net of deletions, the company expects its portfolio of rooms will increase by approximately 6 percent by year-end 2014. 

The company assumes full year fee revenue could total $1,685 million to $1,725 million, growth of 9 to 12 percent over 2013 fee revenue of $1,543 million. 

For 2014, the company anticipates general, administrative and other expenses will total $640 million to $650 million, flat to down 1 percent compared to 2013 expenses of $649 million.

Given these assumptions, 2014 diluted EPS could total $2.40 to $2.51, a 20 to 25 percent increase year-over-year.  This full year EPS outlook reflects reported second quarter results, including the $0.07 of unfavorable adjustments in the quarter.

 

Third Quarter 2014 Full Year 2014
 Total fee revenue          $425 million to $435 million              $1,685 million to $1,725 million
 Owned, leased and other revenue, net of direct expenses  Approx. $50 million      Approx. $235 million
Depreciation and amortization  Approx. $30 million      Approx. $145 million
 General, administrative and other expenses      $160 million to $165 million  $640 million to $650 million
 Operating income      $280 million to $295 million  $1,125 million to $1,175 million
 Gains and other income      Approx. $0 million  Approx. $5 million
 Net interest expense1  Approx. $25 million  Approx. $95 million
 Equity in earnings (losses)  Approx. $0 million  Approx. $(10) million
 Earnings per share      $0.59 to $0.63  $2.40 to $2.51
 Tax rate    32.0 percent

1Net of interest income

The company expects investment spending in 2014 will total approximately $800 million to $1.0 billion, including approximately $150 million for maintenance capital spending and $193 million associated with the Protea transaction.  Investment spending also includes other capital expenditures (including property acquisitions), new mezzanine financing and mortgage notes, contract acquisition costs, and equity and other investments.  Assuming this level of investment spending, approximately $1.35 billion to $1.6 billion could be returned to shareholders through share repurchases and dividends.

Based upon the assumptions above, the company expects full year 2014 adjusted EBITDA will total $1,465 million to $1,515 million, an 11 to 14 percent increase over the 2013 full year adjusted EBITDA of $1,325 million.  See page A-9 for the adjusted EBITDA calculation.

Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings review for the investment community and news media on Wednesday, July 30, 2014 at 10 a.m. Eastern Time (ET).  The conference call will be webcast simultaneously via Marriott’s investor relations website at http://www.marriott.com/investor, click the “Recent and Upcoming Events” tab and click on the quarterly conference call link.  A replay will be available at that same website until July 30, 2015.

The telephone dial-in number for the conference call is 706-679-3455 and the conference ID is 59383825.  A telephone replay of the conference call will be available from 1 p.m. ET, Wednesday, July 30, 2014 until 8 p.m. ET, Wednesday, August 6, 2014.  To access the replay, call 404-537-3406.  The conference ID for the recording is 59383825.

Note on forward-looking statements: This press release and accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including RevPAR, profit margin and earnings trends, estimates and assumptions; the number of lodging properties we expect to add to or remove from our system in the future; our expectations about investment spending; and similar statements concerning anticipated future events and expectations that are not historical facts.  We caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those we identify below and other risk factors that we identify in our most recent quarterly report on Form 10-Q.  Risks that could affect forward-looking statements in this press release include changes in market conditions; the continuation and pace of the economic recovery; supply and demand changes for hotel rooms; competitive conditions in the lodging industry; relationships with clients and property owners; and the availability of capital to finance hotel growth and refurbishment.  Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release.  We make these forward-looking statements as of July 29, 2014.  We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda, Maryland, USA, with more than 4,000 properties in 79 countries and territories.  Marriott International reported revenues of nearly $13 billion in fiscal year 2013.  The company operates and franchises hotels and licenses vacation ownership resorts under 18 brands, including: Marriott Hotels, The Ritz-Carlton, JW Marriott, Bulgari, EDITION, Renaissance, Gaylord Hotels, Autograph Collection, AC Hotels by Marriott, Moxy Hotels (expected opening in 2014), Courtyard, Fairfield Inn & Suites, SpringHill Suites, Residence Inn, TownePlace Suites, Protea Hotels, Marriott Executive Apartments and Marriott Vacation Club timeshare brand.  Marriott has been consistently recognized as a top employer and for its superior business ethics.  The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 45 million members.  For more information or reservations, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com

IRPR#1

For a complete set of financial tables, click here Download MAR Q2 2014 Press Release Schedules - FINAL

Contacts:
thomas.marder@marriott.com or betsy.dahm@marriott.com

 

07/15/2014

Marriott International Ranked Top Hotel Company on the FORTUNE 500®

Marriott-International-logoMarriott International (NASDAQ: MAR) has been named to the FORTUNE 500, ranking 219 overall, up from 2013’s ranking of 230, and ranking as the top hotel company in the hotels, casinos and resorts category.  Marriott is also the highest ranked company on the list with its headquarters in the Washington, DC-area.  

FORTUNE magazine’s annual selection of the nation's largest companies, ranked by revenue, includes a survey of companies that are incorporated in the U.S. and operate in the U.S. and file financial statements with a government agency.

Marriott is also included on this year’s FORTUNE “The Best Places to Work” list and the magazine’s The World’s Most Admired List, which measures a company’s corporate reputation. 

The company recently made headlines announcing Atlantis, Paradise Island in the Bahamas joining its Autograph Collection and in April when it became the largest hotel company in Africa after completing the acquisition of the Protea Hospitality Group.  Marriott has more than 4,000 properties and more than 690,000 rooms in 78 countries and territories around the world.  And, as of the end of quarter one, the company had more than 200,000 rooms in its global development pipeline, a 35 percent increase from a year ago.  

For more information or reservations, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.

Connect with felicia.mclemore@marriott.com

06/27/2014

Marriott International Announces Release Date for Second Quarter 2014 Earnings

Bethesda, Md., June 27, 2014 - Marriott International, Inc. (NASDAQ: MAR) will report second quarter 2014 earnings results on Tuesday, July 29, 2014, at approximately 5:00 pm Eastern Time (ET).  The company will hold a conference call for the investment community to discuss its second quarter 2014 earnings on Wednesday, July 30, 2014 at 10 a.m. ET.  Mr. Arne Sorenson, Marriott International's president and chief executive officer, and Mr. Carl Berquist, Marriott International's executive vice president and chief financial officer, will discuss the company's performance.

The conference call will be webcast simultaneously via Marriott’s investor relations website.  Those wishing to access the call on the web should log on to http://www.marriott.com/investor, and click the link for the second quarter earnings call under “Recent and Upcoming Events”.  A replay will be available at that same website until July 30, 2015.  A transcript of the call will also be available on the company’s website.

The telephone dial-in number for the conference call is 706-679-3455.  Please use conference ID 59383825 when dialing into the call.  To help ensure you do not miss any of the conference call, please dial-in or link to the call on the web 10 minutes prior to the scheduled start time.  News media will be able to access the conference call in a listen-only mode. 

A telephone replay of the conference call will be available from 1 p.m. ET, Wednesday, July 30, 2014 until 8 p.m. ET, Wednesday, August 6, 2014.  To access the replay, call 404-537-3406.  The conference ID for the recording is 59383825.

Visit Marriott International, Inc. (NASDAQ: MAR) for company information. For more information or reservations, please visit our web site at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.

Connect with felicia.mclemore@marriott.com

 

05/29/2014

Marriott International CEO to Speak at Goldman Sachs Conference June 3

CaptureRemarks to be Webcast.

Bethesda, Md., May 29, 2014 – Arne Sorenson, president and chief executive officer at Marriott International, Inc. (NASDAQ:MAR), will speak at the 2014 Goldman Sachs Lodging, Gaming, Restaurant and Leisure Conference on Tuesday, June 3.  Mr. Sorenson’s presentation will be at approximately 9:15 a.m., Eastern Time, and will be webcast live.

To access the webcast, please go to http://www.marriott.com/investor, and then click on the link to the “Goldman Sachs Lodging Conference” under “Recent and Upcoming Events.”

The webcast will be available until September 3, 2014 at the same site. 

Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company based in Bethesda, Maryland, USA, with more than 4,000 properties, and more than 690,000 rooms in 77 countries and territories and reported revenues of nearly $13 billion in fiscal year 2013.  For more than 80 years, the company has been committed to guest satisfaction.  Marriott has been consistently recognized as a top employer and for its superior business ethics.  The company also manages the award-winning guest loyalty program, Marriott Rewards® and The Ritz-Carlton Rewards® program, which together surpass 45 million members.  For more information or reservations, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.  

Connect with thomas.marder@marriott.com; or betsy.dahm@marriott.com

05/09/2014

Marriott International Increases Dividend More Than 17 Percent

MI MNCBethesda, Md., May 9, 2014 – Marriott International, Inc. (NASDAQ: MAR) today announced that its Board of  Directors raised the company’s quarterly cash dividend by 3 cents ($0.03) to twenty cents ($0.20) per share, which represents a more than 17 percent increase over the previous quarterly dividend amount of  $0.17 per share. The dividend is payable on June 27, 2014 to shareholders of record on May 23, 2014.

Marriott International, Inc. (NASDAQ: MAR) is a leading lodging company based in Bethesda, Maryland, USA, with more than 4,000 properties in 78 countries and territories and reported revenues of nearly $13 billion in fiscal year 2013.  The company operates and franchises hotels and licenses vacation ownership resorts under 18 brands. For more information or reservations, please visit our web site at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.

Contact:  Tom Marder, (301) 380-2553, thomas.marder@marriott.com

04/29/2014

Marriott International Reports First Quarter Results

Marriott International logo
HIGHLIGHTS

• First quarter diluted EPS totaled $0.57, a 33 percent increase over prior year results;

• North American comparable systemwide RevPAR rose 6.3 percent in the first quarter with average daily rates up 3.3 percent;

• On a constant dollar basis, worldwide comparable systemwide RevPAR rose 6.2 percent in the first quarter, including a 3.2 percent increase in average daily rate;

• Marriott repurchased 7.0 million shares of the company’s common stock for $356 million during the first quarter.  Year-to-date, the company repurchased 9.0 million shares for $467 million;

• Comparable company-operated house profit margins increased 160 basis points in North America and 130 basis points worldwide in the first quarter;

• Adjusted for cost reimbursements, the company’s operating income margin increased to 41 percent compared to 38 percent in the year-ago quarter;

• At the end of the first quarter, the company’s worldwide development pipeline increased to over 200,000 rooms, including nearly 30,000 rooms approved, but not yet subject to signed contracts.  The pipeline does not include the more than 10,000 rooms associated with the Protea transaction, which was completed on April 1st;

• Nearly 6,000 rooms were added during the first quarter, including over 1,000 rooms converted from competitor brands and 3,300 rooms in international markets;

• Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $339 million in the quarter, a 12 percent increase over first quarter 2013 adjusted EBITDA.

BETHESDA, MD – April 29, 2014 - Marriott International, Inc. (NASDAQ: MAR) today reported first quarter 2014 results.  Due to the company’s change in the fiscal calendar beginning in 2013, the first quarter of 2014 reflects the period from January 1, 2014 through March 31, 2014 (90 days) compared to the 2013 first quarter, which reflects the period from December 29, 2012 through March 31, 2013 (93 days).  Prior year results have not been restated for the change in fiscal calendar, although revenue per available room (RevPAR), occupancy and average daily rate statistics are reported for calendar quarters for purposes of comparability.

First quarter 2014 net income totaled $172 million, a 26 percent increase compared to first quarter 2013 net income.  Diluted earnings per share (EPS) totaled $0.57, a 33 percent increase from diluted EPS in the year-ago quarter.  First quarter 2014 results reflect a $10 million impairment charge and a net $16 million tax benefit.  On February 19, 2014, the company forecasted first quarter diluted EPS of $0.47 to $0.52.

Arne M. Sorenson, president and chief executive officer of Marriott International, said, “We are delighted to report solid results in the first quarter of 2014.  We continue to enjoy strong preference for our brands, sustained economic growth and favorable industry supply trends in many markets around the world. 

“North American group and transient demand exceeded our expectations during the quarter, driving RevPAR and house profit margins higher.  We were particularly pleased to see higher food and beverage spending by both groups and transient guests.

“While hotel industry supply in North America is growing only modestly, particularly in the full-service segment, we are taking a greater share of new hotels being developed around the world, reflecting owners’ and franchisees’ confidence in our brands and operational strength.  At quarter-end, we had over 200,000 rooms in our development pipeline, a 35 percent increase from a year ago.

“On April 1, we became the largest hotel company in Africa after completing our acquisition of the Protea Hospitality Group.  We look forward to new opportunities for growth in Africa.
 
“Looking ahead, we expect demand to remain strong, with North American comparable company-operated RevPAR increasing 4 ½  to 6 ½ percent in 2014 and property-level house profit margins improving 100 to 150 basis points.  We expect 5 percent net rooms growth worldwide and another year of record signings from our development team.

‘We remain committed to increasing RevPAR, growing our distribution globally and controlling costs in order to drive earnings and shareholder value.  Over the past 4 years, we have repurchased 103.1 million shares for approximately $3.8 billion and 21.6 million shares for $973 million in the last four quarters alone.”

For the 2014 first quarter, RevPAR for worldwide comparable systemwide properties increased 6.2 percent (a 5.9 percent increase using actual dollars).

In North America, comparable systemwide RevPAR increased 6.3 percent in the first quarter of 2014, including a 3.3 percent increase in average daily rate.  RevPAR for comparable systemwide North American full-service hotels (including Marriott Hotels, The Ritz-Carlton, Renaissance Hotels, Gaylord Hotels and Autograph Collection Hotels) increased 6.5 percent with a 3.6 percent increase in average daily rate.  RevPAR for comparable systemwide North American limited-service hotels (including Courtyard, Residence Inn, SpringHill Suites, TownePlace Suites and Fairfield Inn & Suites) increased 6.2 percent in the first quarter with a 3.1 percent increase in average daily rate.

International comparable systemwide RevPAR rose 5.7 percent (a 4.4 percent increase using actual dollars) in the first quarter.

Marriott added 32 new properties (5,855 rooms) to its worldwide lodging portfolio in the 2014 first quarter, including The Ritz-Carlton Kyoto, the JW Marriott Dongdaenum Square Seoul and the Pier One Sydney Harbour, an Autograph Collection hotel.  Fourteen properties (2,154 rooms) exited the system during the quarter.  At quarter-end, the company’s lodging group encompassed 3,934 properties and timeshare resorts for a total of nearly 680,000 rooms.

The company’s worldwide development pipeline increased to more than 1,200 properties with over 200,000 rooms at quarter-end, including 186 properties with nearly 30,000 rooms approved for development, but not yet subject to signed contracts.  The company’s pipeline at quarter-end does not include the 10,148 rooms associated with the Protea transaction.

MARRIOTT REVENUES totaled nearly $3.3 billion in the 2014 first quarter compared to revenues of over $3.1 billion for the first quarter of 2013.  Base management and franchise fees totaled $318 million compared to $304 million in the year-ago quarter.  The year-over-year increase largely reflects higher RevPAR and non-room revenue partially offset by $5 million of lower fees due to the three additional days in the year-ago quarter as a result of the change in the fiscal calendar.

First quarter worldwide incentive management fees increased $5 million to $71 million.   Incentive fee growth in the first quarter was somewhat constrained by tough comparisons to last year’s Hurricane Sandy recovery in New York, the inauguration in Washington, DC and the Super Bowl in New Orleans.  In the first quarter, 36 percent of worldwide company-managed hotels earned incentive management fees compared to 33 percent in the year-ago quarter. 

On February 19, the company estimated total fee revenue for the first quarter would total $380 million to $395 million.  Actual total fee revenue in the quarter was within the expected range.  

Worldwide comparable company-operated house profit margins increased 130 basis points in the first quarter.  House profit margins for comparable company-operated properties outside North America increased 70 basis points and North American comparable company-operated house profit margins increased 160 basis points from the year-ago quarter.

Owned, leased and other revenue, net of direct expenses, totaled $49 million, compared to $45 million in the year-ago quarter.  Improved results at several leased hotels and results from a property the company acquired in the fourth quarter of 2013 were partially offset by lower termination and residential branding fees. 

On February 19, the company estimated first quarter owned, leased and other revenue, net of direct expenses would total approximately $45 million for the first quarter.  Actual results in the quarter exceeded those expectations by $4 million largely due to better than expected performance at several international hotels.

DEPRECIATION and AMORTIZATION expense totaled $36 million in the 2014 first quarter compared to $25 million in the year-ago quarter.  The increase in expense largely reflects a $10 million impairment charge for the company’s owned EDITION hotels due to higher estimated construction costs.  These hotels are contracted for sale at a fixed price.

GENERAL, ADMINISTRATIVE and OTHER expenses for the 2014 first quarter totaled $148 million, a 10 percent decline compared to the year-ago quarter.

On February 19, the company estimated general and administrative expenses for the first quarter would total $155 million to $160 million.  Actual expenses in the quarter were lower than expected largely due to favorable timing.  

Provision for Income Taxes
The provision for income taxes in the first quarter was lower than anticipated due to a net $16 million non-cash tax benefit largely related to a settlement with the IRS.

Adjusted Earnings before Interest Expense, Taxes, Depreciation and Amortization (EBITDA)
Adjusted EBITDA totaled $339 million in the 2014 first quarter, a 12 percent increase over 2013 first quarter adjusted EBITDA of $303 million.  See page A-6 for the EBITDA calculation.

BALANCE SHEET
At the end of the first quarter, total debt was $3,302 million and cash balances totaled $184 million, compared to $3,199 million in debt and $126 million of cash at year-end 2013.

COMMON STOCK
Weighted average fully diluted shares outstanding used to calculate diluted EPS totaled 303.3 million in the 2014 first quarter, compared to 320.0 million in the year-ago quarter.

The company repurchased 7.0 million shares of common stock in the first quarter at a cost of $356 million.  Year-to-date, Marriott repurchased 9.0 million shares of its stock for $467 million.  The remaining share authorization as of April 29, 2014, totaled 30.3 million shares.

OUTLOOK
For the 2014 second quarter, the company expects comparable systemwide calendar RevPAR on a constant dollar basis will increase 4 to 6 percent in North America, outside North America and worldwide.

The company expects full year 2014 comparable systemwide RevPAR on a constant dollar basis will increase 4.5 to 6.5 percent in North America, 4 to 6 percent outside North America and 4.5 to 6.5 percent worldwide.

The company anticipates gross room additions of 6 percent worldwide for the full year 2014 including the 10,148 rooms associated with the Protea acquisition.  Net of deletions, the company expects its portfolio of rooms will increase by approximately 5 percent by year-end 2014. 

The company assumes full year fee revenue could total $1,665 million to $1,705 million, growth of 8 to 11 percent over 2013 fee revenue of $1,543 million. 

For 2014, the company anticipates general, administrative and other expenses will total $640 million to $650 million, flat to down 1 percent compared to 2013 expenses of $649 million.

Given these assumptions, 2014 diluted EPS could total $2.39 to $2.53, a 20 to 27 percent increase year-over-year. 

 

Second Quarter 2014 Full Year 2014
 Total fee revenue         $440 million to $450 million $1,665 million to $1,705 million
 Owned, leased and other revenue, net of direct expenses $60 million to $65 million $220 million to $230 million
Depreciation and amortization Approx. $30 million     Approx. $130 million
 General, administrative and other expenses     $165 million to $170 million $640 million to $650 million
 Operating income     $300 million to $320 million     $1,105 mllion to $1,165 million
 Gains and other income     Approx. $0 million  Approx. $5 million
 Net interest expense1 Approx. $25 million  Approx. $100 million
 Equity in earnings (losses) Approx. $0 million Approx. $0 million
 Earnings per share     $0.63 to $0.68  $2.39 to $2.53
 Tax rate   32.0 percent

1Net of interest income

The company expects investment spending in 2014 will total approximately $800 million to $1.0 billion, including approximately $150 million for maintenance capital spending and $193 million associated with the Protea transaction.  Investment spending also includes other capital expenditures (including property acquisitions), new mezzanine financing and mortgage notes, contract acquisition costs, and equity and other investments.  Assuming this level of investment spending, approximately $1.25 billion to $1.5 billion could be returned to shareholders through share repurchases and dividends.

Based upon the assumptions above, the company expects full year 2014 adjusted EBITDA will total $1,440 million to $1,500 million, a 9 to 13 percent increase over the 2013 full year adjusted EBITDA of $1,325 million.  See page A-7 for the adjusted EBITDA calculation.

Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings review for the investment community and news media on Wednesday, April 30, 2014 at 10 a.m. Eastern Time (ET).  The conference call will be webcast simultaneously via Marriott’s investor relations website at http://www.marriott.com/investor, click the “Recent and Upcoming Events” tab and click on the quarterly conference call link.  A replay will be available at that same website until April 30, 2015.

The telephone dial-in number for the conference call is 706-679-3455 and the conference ID is 10575194.  A telephone replay of the conference call will be available from 1 p.m. ET, Wednesday, April 30, 2014 until 8 p.m. ET, Wednesday, May 7, 2014.  To access the replay, call 404-537-3406.  The conference ID for the recording is 10575194.

Note on forward-looking statements:  This press release and accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including RevPAR, profit margin and earnings trends, estimates and assumptions; the number of lodging properties we expect to add to or remove from our system in the future; our expectations about investment spending; and similar statements concerning anticipated future events and expectations that are not historical facts.  We caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those we identify below and other risk factors that we identify in our most recent annual report on Form 10-K quarterly report on Form 10-Q.  Risks that could affect forward-looking statements in this press release include changes in market conditions; the continuation and pace of the economic recovery; supply and demand changes for hotel rooms; competitive conditions in the lodging industry; relationships with clients and property owners; and the availability of capital to finance hotel growth and refurbishment.  Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release.  We make these forward-looking statements as of April 29, 2014.  We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Marriott International, Inc. (NASDAQ: MAR) is a leading lodging company based in Bethesda, Maryland, USA, with more than 3,900 properties in 71 countries and territories as of quarter-end and reported revenues of nearly $13 billion in fiscal year 2013.  The company operates and franchises hotels under 16 brands, including Marriott Hotels, The Ritz-Carlton, JW Marriott, Bulgari, EDITION, Renaissance, Gaylord Hotels, Protea Hotels, Autograph Collection, AC Hotels by Marriott, Courtyard, Fairfield Inn & Suites, SpringHill Suites, Residence Inn, TownePlace Suites, Marriott Executive Apartments; licenses vacation ownership resorts under the Marriott Vacation Club, Grand Residences by Marriott and Ritz-Carlton Club brands; and licenses and manages residential properties under several of its brands.  There are approximately 330,000 employees at headquarters, managed and franchised properties.  Marriott is consistently recognized as a top employer and for its superior business operations, which it conducts based on five core values: put people first, pursue excellence, embrace change, act with integrity, and serve our world. For more information or reservations, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.  

Click here to Download MAR Q1 2014 Press Release Schedules - FINAL

Contacts: 
Tom Marder, (301) 380-2553, thomas.marder@marriott.com 
Betsy Dahm, (301) 380-3372, betsy.dahm@marriott.com

04/10/2014

Travel Through Marriott’s Interactive 2013 Annual Report and “Find Your World”

Marriott International 2013 Annual ReportBethesda, Md., April 10, 2014, Marriott International Inc., (NASDAQ: MAR) is encouraging travelers and shareholders to “Find their World” through the company’s interactive 2013 Annual Report. Designed with modern social media platforms as inspiration, the interactive report uses captivating images of some of Marriott’s hotels in more than 70 countries across the globe to guide readers through the company’s major achievements and innovations of 2013, including mobile check-in, the announcement of Moxy® hotels and the acquisition of African hotel chain Protea. [Download images and video.]
Always environmentally conscious, Marriott decided to print only the executive letters, corporate information and Report on Form 10K this year, encouraging the reader to experience Marriott online and on-the-go. More information about Marriott’s Spirit To Serve and commitment to the global community can be found in the online report.

Additional features in the 2013 Annual Report include:

- A year-in-review video with a preview of the company’s 4000th hotel, The Marriott® Marquis® Washington, DC, due to open in May 2014.

- A creative map featuring roll-over regional highlights such as the opening of The London EDITION®, and the first Fairfield by MarriottSM in India.

- Links to executive blogs, Facebook and Twitter pages, so you can stay connected with Marriott on your computer, smart phone or mobile device.

- “Marriott International at-a-glance” downloadable fact sheet.

Through performance details, the report reaffirms Marriott’s position as a true leader in the lodging industry, supported by the many awards won by the company in 2013 including: FORTUNE®’s Most Admired Lodging Company, a 100% score on the Human Rights Campaign Corporate Equality index, and a place on the Ethisphere Institute’s World’s Most Ethical Companies list. Visit the 2013 Marriott International Annual Report and find inspiration for your next travel adventure at www.marriott.com/investor.

Connect with felicia.mclemore@marriott.com or megan.ryan@marriott.com

02/19/2014

Marriott International Reports Fourth Quarter and Full Year 2013 Results

 HIGHLIGHTS 

  • Full year diluted EPS totaled $2.00, a 16 percent increase over prior year results. Excluding the $0.08 per share Courtyard joint venture gain in 2012, diluted EPS grew 22 percent year-over-year;
     
  • North American comparable company-operated REVPAR rose 5.1 percent in the fourth quarter and 5.4 percent for full year 2013;
     
  • On a constant dollar basis, worldwide comparable systemwide REVPAR rose 4.3 percent in the fourth quarter and 4.6 percent for full year 2013;
     
  • Comparable company-operated house profit margins increased 130 basis points in North America and 90 basis points worldwide for the full year;
     
  • At year-end, the company’s worldwide development pipeline increased to over 195,000 rooms, including nearly 30,000 rooms approved, but not yet subject to signed contracts;
     
  • Nearly 26,000 rooms were added in 2013.  In the fourth quarter alone, nearly 7,700 rooms were added, including over 3,900 rooms in international markets;
     
  • The company signed a record 67,000 rooms in 2013;
      
  • For full year 2013, Marriott repurchased 20.0 million shares for $829 million including 4.4 million shares for $200 million in the fourth quarter;
     
  • For full year 2014, Marriott expects North American and worldwide Systemwide constant dollar REVPAR to increase 4 to 6 percent;
     
  • Return on invested capital totaled 32 percent in 2013. 

BETHESDA, MD – February 19, 2014 - Marriott International, Inc. (NASDAQ: MAR) today reported fourth quarter and full year 2013 results.  Due to the company’s change in the fiscal calendar beginning in 2013, the fourth quarter of 2013 reflects the period from October 1, 2013 through December 31, 2013 (92 days) compared to the 2012 fourth quarter, which reflects the period from September 8, 2012 through December 28, 2012 (112 days).  Full year 2013 reflects the period from December 29, 2012 through December 31, 2013 (368 days) compared to full year 2012, which reflects the period from December 31, 2011 through December 28, 2012 (364 days).  Prior year results have not been restated for the change in fiscal calendar, although revenue per available room (REVPAR), occupancy and average daily rate statistics are reported for calendar quarters for purposes of comparability.

Full year 2013 net income totaled $626 million compared to $571 million for full year 2012.  Full year 2012 net income included the $25 million after-tax Courtyard joint venture gain. 

Full year 2013 diluted earnings per share (EPS) totaled $2.00 compared to $1.72 in 2012.  On October 30, 2013, the company forecasted full year diluted EPS of $1.98 to $2.01.

Arne M. Sorenson, president and chief executive officer of Marriott International, said, “2013 was a year of firsts.  Strong REVPAR growth and new hotels drove Marriott’s fee revenue to a record $1.5 billion.  We signed contracts with owners and franchisees for 67,000 new rooms, the most productive year in our history averaging more than one hotel every day.  Our development pipeline reached a record 195,000 rooms.

“Our North American group sales organization booked $3.4 billion in new group business in 2013 for all future periods, eclipsing their prior record from 2007.  Group revenue on the books for 2014 is running more than 4 percent higher than 2013 levels for the Marriott brand.  Special corporate negotiated rates are nearly complete with room rates expected to rise about 5 percent in 2014.

“Marriott Rewards and Ritz-Carlton Rewards signed a combined 3.4 million new members, contributing to the nearly 50 percent growth in membership over the last 5 years.  Roughly 45 percent of that 5-year growth was outside the U.S.  In 2013, a record 25 percent of room nights were booked on Marriott.com.  Marriott mobile reservations surged by 67 percent in 2013 and we introduced mobile check-in for all Marriott Hotels in the United States, another industry first.

“For 2014, we expect worldwide systemwide REVPAR to increase 4 to 6 percent.  With our strong development pipeline and the anticipated addition of the Protea hotels in Africa, we expect rooms growth will accelerate to approximately 6 percent gross or roughly 5 percent, net of deletions.

“During 2013, we were pleased to return over $1 billion to our shareholders through dividends and share repurchases, the top end of our expectations for the year.  In 2014 we could return an additional $1.25 billion to $1.5 billion to our shareholders.  In fact, we have already repurchased 5 million shares for $246 million dollars year-to-date.  Over the last three years, we have returned over $3.9 billion to our shareholders through share repurchases and dividends and reduced our average fully diluted shares by 17 percent.”

For the 2013 fourth quarter, REVPAR for worldwide comparable systemwide properties increased 4.3 percent (a 4.1 percent increase using actual dollars).

In North America, comparable systemwide REVPAR increased 4.7 percent in the fourth quarter of 2013, including a 3.3 percent increase in average daily rate.  REVPAR for comparable systemwide North American full-service and luxury hotels (including Marriott Hotels, The Ritz-Carlton, Renaissance Hotels and Autograph Collection Hotels) increased 5.9 percent with a 4.3 percent increase in average daily rate.  REVPAR for comparable systemwide North American limited-service hotels (including Courtyard, Residence Inn, SpringHill Suites, TownePlace Suites and Fairfield Inn & Suites) increased 3.6 percent in the fourth quarter with a 2.5 percent increase in average daily rate.

International comparable systemwide REVPAR rose 3.2 percent (a 2.3 percent increase using actual dollars) in the fourth quarter.

Marriott added 47 new properties (7,681 rooms) to its worldwide lodging portfolio in the 2013 fourth quarter, including The Ritz-Carlton Almaty in Kazahkstan, the JW Marriott Hotel Hanoi and the Hotel Am Steinplatz, an Autograph Collection hotel in Berlin.  Fourteen properties (2,532 rooms) exited the system during the quarter.  At year-end, the company’s lodging group encompassed 3,916 properties and timeshare resorts for a total of nearly 676,000 rooms.

The company’s worldwide development pipeline increased to approximately 1,165 properties with over 195,000 rooms at year-end, including approximately 170 properties with nearly 30,000 rooms approved for development, but not yet subject to signed contracts.  The company’s pipeline at year-end 2013 does not include the approximately 10,000 rooms associated with the Protea transaction.

MARRIOTT REVENUES totaled $3.2 billion in the 2013 fourth quarter compared to revenues of over $3.7 billion for the fourth quarter of 2012.  Base management and franchise fees totaled $315 million compared to $369 million in the year-ago quarter.  The company estimates that the change in fiscal calendar resulted in approximately $72 million of lower fees year-over-year.  The calendar change impact was partially offset by higher REVPAR and non-room sales at existing hotels, as well as fees from new hotels.

Fourth quarter worldwide incentive management fees totaled $73 million compared to $90 million in the fourth quarter of 2012.  The company estimates $19 million of the lower year-over-year fees relates to the change in the fiscal calendar.  In the year-ago quarter, incentive management fees included the $3 million favorable impact of the recognition of previously deferred fees.  In the fourth quarter, 32 percent of worldwide company-managed hotels earned incentive management fees compared to 30 percent in the year-ago quarter.  For full year 2013, 39 percent of worldwide company-managed hotels earned incentive management fees compared to 33 percent in the year-ago quarter.

Owned, leased, corporate housing and other revenue, net of direct expenses, totaled $50 million, compared to $56 million in the year-ago quarter.  The company estimates that approximately $10 million of the year-over-year decrease relates to the change in the fiscal calendar.  Increased results at several leased hotels and higher residential and credit card branding fees partially offset the effect of the calendar change.  The 2013 fourth quarter included $2 million of pre-opening costs largely related to the London EDITION hotel.

On October 30, the company estimated fourth quarter owned, leased, corporate housing and other revenue, net of direct expenses would total approximately $40 million for the fourth quarter.  Actual results in the quarter exceeded those expectations largely due to $3 million of residential and credit card branding fees, as well as better than expected performance at a few owned and leased hotels.

GENERAL, ADMINISTRATIVE and OTHER expenses for the 2013 fourth quarter totaled $200 million.  On October 30, the company estimated general and administrative expenses for the fourth quarter would total $170 million to $175 million.  Actual expenses in the quarter were higher than expected largely due to higher costs related to new unit development and increases in incentive compensation (mainly associated with the company’s very strong development pipeline), as well as higher than anticipated legal expenses, impairment of deferred contract acquisition costs and bad debt reserves.

INTEREST EXPENSE totaled $32 million in the fourth quarter, compared to interest expense of $41 million in the year-ago quarter.  The company estimates that approximately $5 million of the year-over-year decrease relates to the change in the fiscal calendar.  The decrease in interest expense in the quarter also reflects the impact of a senior debt retirement and new senior debt issuance at a lower interest rate, partially offset by lower capitalized interest.  Capitalized interest totaled $7 million in the quarter, compared to $10 million in the year-ago quarter.

Provision for Income Taxes
The provision for income taxes in the fourth quarter was lower than anticipated largely reflecting the $12 million benefit related to adjustments of state and foreign tax provisions based on recent tax filings for prior years.

Adjusted Earnings before Interest Expense, Taxes, Depreciation and Amortization (EBITDA)
To facilitate comparisons with its competitors, the company has revised its presentation of EBITDA to now present depreciation expense that owners and franchisees reimburse to the company as a separate line item and revised its presentation of adjusted EBITDA to add back share-based compensation expense. 

On this basis, adjusted EBITDA in 2013 totaled $1,325 million, a 9 percent increase over 2012  adjusted EBITDA of $1,217 million.  For the fourth quarter, adjusted EBITDA totaled $321 million, an 18 percent decline from fourth quarter 2012 adjusted EBITDA of $390 million.  See page A-8 for the adjusted EBITDA calculation. 

Beginning in the first quarter of 2014, the company plans to reclassify depreciation and amortization expense from “Owned, leased and corporate housing - direct” and “General and administrative and other” and present it as a separate line item on its Consolidated Statements of Income for all periods presented.  The income statements for each quarter and full year 2013 reflecting this revised presentation are presented on pages A-13 to A-17.  The company’s outlook for 2014 reflects this new presentation.

In connection with this change, in the fourth quarter of 2013, the company revised its presentation of depreciation and amortization on its Consolidated Statements of Cash Flows in the Form 10-K report that it expects to file later this week.  Please see the Form 10-K report for additional information on these changes.

BALANCE SHEET
At the end of the fourth quarter, total debt was $3,199 million and cash balances totaled $126 million, compared to $2,935 million in debt and $88 million of cash at year-end 2012. 

COMMON STOCK
Weighted average fully diluted shares outstanding used to calculate diluted EPS totaled 307.5 million in the 2013 fourth quarter, compared to 322.2 million in the year-ago quarter.

The company repurchased 4.4 million shares of common stock in the fourth quarter at a cost of $200 million.  For full year 2013, Marriott repurchased 20.0 million shares of its stock for $829 million.  To date in 2014, Marriott has repurchased 5.0 million shares of its stock for $246 million.  On February 14, 2014, the board of directors increased the company’s authorization to repurchase shares by 25.0 million shares for a total authorization of 34.3 million shares as of February 19, 2014.

OUTLOOK
For the 2014 first quarter, the company expects comparable systemwide calendar REVPAR on a constant dollar basis will increase 4 to 6 percent in North America, 3 to 5 percent outside North America and 4 to 6 percent worldwide. 

The company expects full year 2014 comparable systemwide REVPAR on a constant dollar basis will increase 4 to 6 percent in North America, 3 to 5 percent outside North America and 4 to 6 percent worldwide.

The company anticipates gross room additions of 6 percent worldwide for the full year 2014 including the Protea hotels.  Net of deletions, the company expects its portfolio of rooms will increase by approximately 5 percent by year-end 2014. 

The company assumes full year fee revenue could total $1,650 million to $1,700 million, growth of 7 to 10 percent over 2013 fee revenue of $1,543 million.  The company’s estimated first quarter total fee revenue reflects roughly $5 million of lower fees due to the three additional days in the year-ago quarter related to the change in the fiscal calendar.

As depreciation and amortization will be presented as a separate line item in its Consolidated Statements of Income beginning in the first quarter of 2014, the company is presenting the guidance table below consistent with this change.  See pages A-13 to A-17 for quarterly and full year 2013 results restated for the change in presentation.

For 2014, the company anticipates general, administrative and other expenses will total $640 million to $650 million, flat to down 2 percent compared to 2013 expenses of $651 million, excluding depreciation and amortization.

Given these assumptions, 2014 diluted EPS could total $2.29 to $2.45, a 15 to 23 percent increase year-over-year. 

 

First Quarter 2014 Full Year 2014
 Total fee revenue         $380 million to $395 million $1,650 million to $1,700 million
 Owned, leased, corporate housing and other revenue, net of direct expenses Approx. $45 million $210 million to $220 million
Depreciation and amortization Approx. $30 million     Approx. $120 million
 General, administrative and other expenses     $155 million to $160 million $640 million to $650 million
 Operating income     $235 million to $255 million     $1,090 mllion to $1,160 million
 Gains and other income     Approx. $5 million  Approx. $10 million
 Net interest expense1 Approx. $30 million  Approx. $110 million
 Equity in earnings (losses) Approx. $0 million Approx. $0 million
 Earnings per share     $0.47 to $0.52  $2.29 to $2.45
 Tax rate   32.0 percent

1Net of interest income

The company expects investment spending in 2014 will total approximately $800 million to $1.0 billion, including approximately $150 million for maintenance capital spending.  Investment spending also includes other capital expenditures (including property acquisitions), new mezzanine financing and mortgage notes, contract acquisition costs (including the approximately $200 million payment associated with the Protea transaction), and equity and other investments.  Assuming this level of investment spending, approximately $1.25 billion to $1.5 billion could be returned to shareholders through share repurchases and dividends.

Based upon the assumptions above, the company expects full year 2014 adjusted EBITDA will total $1,425 million to $1,495 million, an 8 to 13 percent increase over the 2013 full year adjusted EBITDA of $1,325 million.  See page A-9 for the adjusted EBITDA calculation.

Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings review for the investment community and news media on Thursday, February 20, 2014 at 10 a.m. Eastern Time (ET).  The conference call will be webcast simultaneously via Marriott’s investor relations website at http://www.marriott.com/investor, click the “Recent and Upcoming Events” tab and click on the quarterly conference call link.  A replay will be available at that same website until February 20, 2015.

The telephone dial-in number for the conference call is 706-679-3455 and the conference ID is 27161857.  A telephone replay of the conference call will be available from 1 p.m. ET, Thursday, February 20, 2014 until 8 p.m. ET, Thursday, February 27, 2014.  To access the replay, call 404-537-3406.  The conference ID for the recording is 27161857.

Note on forward-looking statements
:  This press release and accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including REVPAR, profit margin and earnings trends, estimates and assumptions; the number of lodging properties we expect to add to or remove from our system in the future; our expectations about investment spending; and similar statements concerning anticipated future events and expectations that are not historical facts.  We caution you that these statements are not guarantees of future performance and are subject to numerous risks and uncertainties, including those we identify below and other risk factors that we identify in our most recent quarterly report on Form 10-K or Form 10-Q.  Risks that could affect forward-looking statements in this press release include changes in market conditions; the continuation and pace of the economic recovery; supply and demand changes for hotel rooms; competitive conditions in the lodging industry; relationships with clients and property owners; and the availability of capital to finance hotel growth and refurbishment.  Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release.  We make these forward-looking statements as of February 19, 2014.  We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Marriott International, Inc. (NASDAQ: MAR)
is a leading lodging company based in Bethesda, Maryland, USA, with more than 3,900 properties in 72 countries and territories and reported revenues of nearly $13 billion in fiscal year 2013.  The company operates and franchises hotels and licenses vacation ownership resorts under 18 brands, including Marriott Hotels, The Ritz-Carlton, JW Marriott, Bulgari, EDITION, Renaissance, Gaylord Hotels, Autograph Collection, AC Hotels by Marriott, Courtyard, Fairfield Inn & Suites, SpringHill Suites, Residence Inn, TownePlace Suites, Marriott Executive Apartments, Marriott Vacation Club, Grand Residences by Marriott and The Ritz-Carlton Destination Club.  There are approximately 330,000 employees at headquarters, managed and franchised properties.  Marriott is consistently recognized as a top employer and for its superior business operations, which it conducts based on five core values: put people first, pursue excellence, embrace change, act with integrity, and serve our world. For more information or reservations, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com

Click here to Download MAR Q4 2013 Press Release Schedules  

Contacts: 
Tom Marder, (301) 380-2553,
thomas.marder@marriott.com 
Betsy Dahm, (301) 380-3372, betsy.dahm@marriott.com

02/14/2014

Marriott International Declares Cash Dividend; Announces Increase in Stock Buyback Authorization

Marriott International logoReturned Over $1 Billion in Stock Buybacks and Dividends in 2013.

Bethesda, Md. – February 14, 2014 – Marriott International, Inc. (NASDAQ: MAR) today announced that its board of directors declared a quarterly cash dividend of seventeen cents ($0.17) per share of common stock.  The dividend is payable on March 28, 2014 to shareholders of record on February 28, 2014. 

Marriott also announced that its board has increased the authorization to repurchase the Company’s Class A common stock by an additional 25 million shares, for a total of approximately 34.4 million shares currently authorized for repurchase.  Shares may be purchased in the open market or in privately negotiated transactions.

In 2013, the company repurchased 20 million shares for $829 million, including 4.4 million shares for $200 million in the fourth quarter.  Combined with cash dividends of $196 million paid in 2013, the company returned over $1 billion in cash to shareholders.  To date in 2014, Marriott has repurchased nearly 4.9 million shares for approximately $238 million. 

Marriott International, Inc. (NASDAQ: MAR) is a leading lodging company based in Bethesda, Maryland, USA, with nearly 3,900 properties in 72 countries and territories and reported revenues of nearly $12 billion in fiscal year 2012.  The company operates and franchises hotels and licenses vacation ownership resorts under 18 brands. For more information or reservations, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.

Contact:
Tom Marder
(301) 380-2553
thomas.marder@marriott.com