Marriott News Center

118 posts categorized "financial"

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

 

 

01/22/2014

Marriott Signs Definitive Agreements to Acquire Protea Hospitality Holdings

Protea-HotelsBethesda, Md., USA and Cape Town, January 22, 2014 –Marriott International, Inc. (NASDAQ: MAR) and South Africa’s Protea Hospitality Holdings announced today that they have signed definitive agreements for the purchase by Marriott of Protea’s three brands and management company.  [Click here for images and b-roll.]

Under terms of the agreements Marriott will pay approximately 2.02 billion rand, or approximately US $186 million at current exchange rates, subject to normal closing adjustments.  The purchase price represents approximately 10 times anticipated pro forma 2014 calendar year EBITDA (earnings before interest, taxes, depreciation and amortization) excluding transaction costs.

The transaction is subject to receipt of certain third party and governmental consents, including exchange control approval from the South African Reserve Bank and competition approval from the South African Competition Commission and the Common Market for Eastern and Southern Africa (“COMESA”) and satisfaction of other customary conditions for transactions of this kind.  Assuming these conditions are met, Marriott and Protea plan to close the transaction on April 1, 2014.  Marriott does not expect the transaction will have a material impact on its 2014 results.

Protea has 116 hotels with 10,148 rooms in seven African countries including South Africa.  At closing, Marriott will become the largest hotel company in the Middle East & Africa region, nearly doubling its distribution there to more than 23,000 rooms.   

As part of the transaction, Protea Hospitality Holdings will create a property ownership company to retain ownership of the hotels it currently owns, entering into long-term management and lease agreements with Marriott for such hotels.  The property ownership company will also retain a number of minority interests in other Protea-managed hotels.  At closing Marriott will manage approximately 45 percent of the rooms, franchise approximately 39 percent of the rooms, and lease approximately 16 percent of the rooms. 

Marriott and Protea announced on November 7, 2013 their intent to enter into this transaction.

Note on forward-looking statements: This press release contains “forward-looking statements” within the meaning of U.S. federal securities laws, including the parties’ plans for closing on the definitive transaction documents; the resulting impact on the size of Marriott’s operations in Africa; our expectations for Protea’s proforma 2014 EBITDA and EBITDA multiple; 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 the ability of the parties to agree on definitive transaction documents, the receipt of necessary consents, and other risk factors that we identify in our most recent quarterly report on Form 10-Q.  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 the date of this press release. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

About Marriott:  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.

About Protea Hotels: Protea Hotels is the largest and leading hotel group in Africa with the most extensive footprint; more than 116 hotels throughout South Africa and six other African countries, including Zambia, Nigeria, Namibia, Malawi, Uganda and Tanzania. The company was founded in 1984 and has grown its portfolio and brands since. The group comprises of two brands, namely the mid-up market Protea Hotels (including the lifestyle brand Protea Hotel Fire & Ice!) brand and the superior deluxe African Pride Hotels, Lodges and Country Houses brand. 

Protea Hotels is the winner of 2 World Travel Awards for Best Hotel Group in Africa, winner of 3 Sunday Times Markinor Top Hotel Brand Awards, the winner of 4 Coolest Hotel Group awards in the Sunday Times Generation Next surveys and the winner of the Ask Africa South African Customer Service Award 2013.

For more information or reservations, please visit our website at www.proteahotels.com, and for the latest company news, visit www.proteahotels.com/pressroom/Pages/pressroom.aspx

CONTACTS: 
Tom Marder, (301) 380-2553, thomas.marder@marriott.com
Felicia McLemore, (301) 380-2702, felicia.mclemore@marriott.com

 

01/07/2014

Marriott International Announces Release Date for Fourth Quarter 2013 Earnings

Marriott-International-LogoBethesda, Md. – January 7, 2014 – Marriott International, Inc. (NASDAQ: MAR) will report fourth quarter 2013 earnings results on Wednesday, February 19, 2014, at approximately 5:00 pm Eastern Time (ET).  The company will hold a conference call for the investment community to discuss its fourth quarter 2013 earnings on Thursday, February 20, 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 fourth quarter earnings call under “Recent and Upcoming Events”.  A replay will be available at that same website until February 20, 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 27161857  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, 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.

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 thomas.marder@marriott.com

Marriott Sells London EDITION; Executes Agreements for Sale of Miami EDITION and New York EDITION

London EDITIONRetains Long-term Management Agreements

Bethesda, Md. - January 7, 2014 – Marriott International, Inc. (NASDAQ: MAR) today announced it has sold the London EDITION, and signed binding agreements for the sale of two other company-owned EDITION hotels currently under development in Miami Beach and Manhattan. The total purchase price for the three EDITION hotels is approximately $815 million, roughly equal to the aggregate estimated total development costs of all three hotels. The hotels will each be operated by Marriott under long-term management contracts with their new owners, which are companies ultimately owned by the Abu Dhabi Investment Authority.

The London EDITION opened in September 2013 and was conveyed to its buyer today. The Miami Beach EDITION and the New York EDITION are under construction and expected to open in the second half of 2014, and the first half of 2015, respectively. Marriott expects to convey each hotel individually to the new owner after construction is complete. The Miami Beach and New York purchase prices are fixed; development costs in excess of the agreed purchase price will not be recovered.

“The sale of all three company-owned hotels is a powerful endorsement of our EDITION brand,” said Arne Sorenson, president and chief executive officer of Marriott International. “This transaction is a key component of our strategy to build the EDITION brand by selectively developing spectacular, brand-defining hotels in gateway cities. We look forward to managing these hotels for many years.”

The residential component of the Miami Beach EDITION was not included in this transaction. Marriott will retain ownership of the residential units pending their sale to individual purchasers.

EDITION Hotels, launched by Marriott in partnership with Ian Schrager, combines the intimate, individualized and unique lodging experience for which Ian Schrager is known, with the global reach, operational expertise and scale of Marriott. Other EDITION hotels are planned for Los Angeles; Abu Dhabi; Sanya, China; Gurgaon, India; and Bangkok.

Note on forward-looking statements: This press release contains “forward-looking statements” within the meaning of federal securities laws, including consummation of the hotel sales, the anticipated times for completing construction, 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 the ability of the parties to reach binding legal agreements, satisfaction of the closing conditions included in those agreements, and weather-related or other delays in the development and construction process or project cost overruns, any of which 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 the date of this press release, and 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 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, 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 325,000 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.

Connect with felicia.mclemore@marriott.com.

 

12/06/2013

Marriott CEO Discusses Company's Move to NASDAQ and African Hotel Deal (Video)

NASDAQ Closing Bell

Arne Sorenson talks about why Marriott made the switch to NASDAQ and the company's plan to become the largest hotel company in Africa.

 

  

  

 

 

11/07/2013

Marriott International Declares Cash Dividend

MILogoHorizBlack

Bethesda, Md., Nov. 7, 2013 – 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 December 27, 2013 to shareholders of record on November 21, 2013. 

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.

Connect with thomas.marder@marriott.com

10/31/2013

Marriott CEO Says Strong RevPAR Growth and Pricing Power Boosts Q3 Results (CNBC Squawk Box)

Arne Sorenson on CNBC Squawk Box  

10/30/2013

Marriott International Reports Third Quarter 2013 Results

MILogoHorizBlack

THIRD QUARTER HIGHLIGHTS

• Third quarter diluted EPS totaled $0.52, an 18 percent increase over prior year results;

• North American comparable company-operated REVPAR rose 5.5 percent in the third quarter with average daily rate up 4.4 percent;

• On a constant dollar basis, worldwide comparable systemwide REVPAR rose 4.8 percent in the third quarter, including a 3.4 percent increase in average daily rate.  Worldwide occupancy reached nearly 75 percent in the quarter, the highest in the last six years;

• At the end of the third quarter, the company’s worldwide pipeline of hotels under signed contracts increased to over 144,000 rooms compared to nearly 141,000 rooms in the second quarter of 2013.  In addition, the company has more than 31,000 rooms approved, but not yet subject to signed contracts, compared to over 15,000 rooms in the second quarter of 2013;

• Nearly 6,600 rooms were added during the quarter, including over 2,500 rooms converted from competitor brands and roughly 2,100 rooms in international markets;
 
• Marriott repurchased 3.2 million shares of the company’s common stock for $129 million during the third quarter.  Year-to-date through October 29, 2013, the company repurchased 16.6 million shares for $669 million.

BETHESDA, Md. – October 30, 2013 - Marriott International, Inc. (NASDAQ: MAR) today reported third quarter 2013 results.  Due to the company’s change in the fiscal calendar beginning in 2013, the third quarter of 2013 reflects the period from July 1, 2013 through September 30, 2013 (92 days) compared to the 2012 third quarter, which reflects the period from June 16, 2012 through September 7, 2012 (84 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.

Third quarter 2013 net income totaled $160 million, a 12 percent increase compared to third quarter 2012 net income.  Diluted earnings per share (EPS) totaled $0.52, an 18 percent increase from diluted EPS in the year-ago quarter.  On July 31, 2013, the company forecasted third quarter diluted EPS of $0.42 to $0.46.

Arne M. Sorenson, president and chief executive officer of Marriott International, said, “We had a solid quarter with worldwide REVPAR up nearly 5 percent year-over-year.  Short-term group business picked up in North America and occupancy rates reached nearly 75 percent worldwide.  Room rates moved higher, in part due to an improving mix of business, contributing about three-quarters of the REVPAR increase in the quarter, and the number of company-operated and franchised rooms in our portfolio rose 4 percent year-over-year.

“Owner demand for our brands continues to be robust.  Our development pipeline increased for the fifth straight quarter and we’re on track to sign a record number of rooms in 2013.  In Asia, we expect to open, on average, one hotel every eight days through 2016.  In the fourth quarter alone, we expect to open the JW Marriott Hotel New Delhi Aerocity, the Tokyo Marriott, The Ritz-Carlton Chengdu, The Ritz-Carlton Tianjin and The Ritz-Carlton Bangalore. 

“In the five months since we announced that we were importing the AC Hotels brand to the Americas, we already have 15 AC Hotels signed or approved for development and are in discussions for a few dozen more.  In India, where we are rolling out our Fairfield brand specifically tailored for the local market, developers were so impressed with the brand that we had twelve signed contracts before the brand launched.  The first of these Fairfields opened just a few weeks ago in Bangalore to great reviews. 

“For 2014, we expect North America systemwide REVPAR and worldwide systemwide REVPAR to increase 4 to 6 percent.  Group revenue booking pace for 2014 North American group business improved in the third quarter and is now up over 4 percent compared to up 2 percent a quarter ago.  Group revenue booked in the 2013 third quarter for calendar 2014 was up 14 percent compared to group revenue booked for calendar 2013 in the year-ago quarter.  Given our strong development pipeline, unit growth should accelerate in 2014 as our global system of rooms is expected to expand by approximately 5 percent gross, or 3 1/2 to 4 percent net.”

For the 2013 third quarter, REVPAR for worldwide comparable systemwide properties increased 4.8 percent (a 4.7 percent increase using actual dollars).

In North America, comparable systemwide REVPAR increased 5.2 percent in the third quarter of 2013, including a 3.9 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 5.6 percent with a 4.5 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 4.9 percent in the third quarter with a 3.5 percent increase in average daily rate.

International comparable systemwide REVPAR rose 3.4 percent (a 2.9 percent increase using actual dollars).

Marriott added 44 new properties (6,580 rooms) to its worldwide lodging portfolio in the 2013 third quarter, including the London EDITION, The Prince Sakura Tower Tokyo, an Autograph Collection hotel and the Courtyard Aberdeen Airport in Scotland, which features the new European Courtyard design.  Eight properties (2,220 rooms) exited the system during the quarter.  At quarter-end, the company’s lodging group encompassed 3,883 properties and timeshare resorts for a total of over 670,000 rooms.

Beginning in the third quarter of 2013, the company changed its methodology to measure its development pipeline conforming to new STR (Smith Travel Research) guidelines designed to improve comparability across companies and more accurately measure industry supply growth.  Under the new approach, the company’s development pipeline will include all worldwide rooms with signed contracts, including rooms pending conversion to one of the company’s brands.  Using this new approach, the company’s development pipeline increased to over 850 properties with over 144,000 rooms at quarter-end compared to approximately 830 properties and nearly 141,000 rooms at the end of the 2013 second quarter.  In addition, while not included in the development pipeline, the company also has more than 31,000 rooms approved for development that are not yet subject to signed agreements as of the end of the third quarter 2013 compared to over 15,000 such rooms as of the end of the second quarter 2013.  See page A-4 for further discussion on this change in methodology.

MARRIOTT REVENUES totaled nearly $3.2 billion in the 2013 third quarter compared to revenues of over $2.7 billion for the third quarter of 2012.  Base management and franchise fees totaled $325 million, a $42 million increase from the third quarter of 2012 of which the company estimates $25 million relates to the change in the fiscal calendar.  In addition to the calendar change impact, the year-over-year increase reflects higher REVPAR at existing hotels, fees from new hotels and higher relicensing fees.  In the year-ago quarter, the company recognized $7 million of deferred base management fees related to the sale of the Courtyard joint venture. 

Third quarter worldwide incentive management fees increased $17 million to $53 million and included an approximately $12 million increase related to the change in the fiscal calendar.  Incentive management fees improved in New York and Boston, were flat in many international markets and declined in Washington, DC and Egypt.  In the third quarter, 32 percent of worldwide company-managed hotels earned incentive management fees compared to 28 percent in the year-ago quarter.

Owned, leased, corporate housing and other revenue, net of direct expenses, totaled $34 million, compared to $26 million in the year-ago quarter.  The company estimates that approximately $2 million of the year-over-year increase relates to the change in the fiscal calendar.  The remaining $6 million increase largely reflected $7 million of termination fees, compared to $2 million in the prior year, and increased results at several leased hotels.  The increase was partially offset by $2 million of pre-opening costs largely related to two EDITION hotels and $3 million of lower results at a leased property in London due to last year’s Olympic Games.

On July 31, the company estimated third quarter owned, leased, corporate housing and other revenue, net of direct expenses would total approximately $20 million for the third quarter.  Actual results in the quarter exceeded those expectations largely due to $8 million of termination and branding fees, $6 million of which were expected in the fourth quarter, as well as better than expected performance at several leased hotels.

GENERAL, ADMINISTRATIVE and OTHER expenses for the 2013 third quarter increased $35 million to $167 million.  After taking into account approximately $12 million related to the change in the fiscal calendar, routine administrative costs grew roughly $8 million, primarily from typical increases in compensation and other expenses.

GAINS AND OTHER INCOME totaled $1 million compared to $36 million in the year-ago-quarter.  The 2012 third quarter largely reflected a $41 million gain related to the sale of the Courtyard joint venture partially offset by a $7 million impairment charge on an investment.

Provision for Income Taxes
Compared to expectations, the provision for income taxes in the third quarter benefited from a slightly lower than anticipated tax rate, as well as a $7 million benefit largely related to true-ups of foreign tax provisions.

Earnings before Interest Expense, Taxes, Depreciation and Amortization (EBITDA)
EBITDA totaled $289 million in the 2013 third quarter compared to $284 million in the year-ago quarter.  Excluding the $41 million Courtyard joint venture gain from 2012 third quarter, EBITDA increased 19 percent year-over-year as shown on page A-9.

BALANCE SHEET
At the end of the third quarter, total debt was $3,156 million and cash balances totaled $144 million, compared to $2,935 million in debt and $88 million of cash at year-end 2012.

At the end of the third quarter, the company issued $350 million of Series M Senior Notes due in 2020 with a 3.375 percent interest rate coupon.  The company expects to use the net proceeds for general corporate purposes.

COMMON STOCK
Weighted average fully diluted shares outstanding used to calculate diluted EPS totaled 309.5 million in the 2013 third quarter, compared to 329.3 million in the year-ago quarter.

The company repurchased 3.2 million shares of common stock in the third quarter at a cost of $129 million.  Year-to-date through October 29, 2013, Marriott repurchased 16.6 million shares of its stock for $669 million.  The remaining share authorization as of October 29, 2013, totaled 17.6 million shares.

OUTLOOK
The company now reports its results on a calendar basis, with 2013 quarters ending on March 31, June 30, September 30 and December 31.  The fourth quarter of 2013 will include 92 days compared to 112 days in the 2012 fourth quarter.  Prior year results will not be restated or reported on a pro forma basis for the change in fiscal calendar, although REVPAR statistics will be adjusted to calendar quarters for purposes of comparability.

For the 2013 fourth quarter, the company expects comparable systemwide calendar REVPAR on a constant dollar basis will increase 4.5 to 5.5 percent in North America, 1 to 2 percent outside North America and 3.5 to 4.5 percent worldwide.  This estimate of North American REVPAR growth in the fourth quarter reflects a roughly one percent REVPAR decline due to the U.S. government shutdown in October.

The company expects fourth quarter 2013 operating profit could total $235 million to $250 million compared to $309 million in the prior year quarter.  The company’s estimated fourth quarter operating profit reflects roughly $64 million of lower operating profit due to the change in the fiscal calendar.  In addition to the shorter fourth quarter, expectations reflect the impact of the government shutdown in Washington, DC, modest REVPAR growth in international markets and the unfavorable impact of $3 million of previously deferred fees recognized in the fourth quarter of 2012.

Compared to the company’s estimates for full year 2013 provided on July 31, estimates for owned, leased, corporate housing and other revenue, net of expenses increased as a result of better than expected performance at several owned and leased hotels in the third quarter.  The estimates for full-year general, administrative and other expenses increased from prior estimates largely due to higher development costs in the fourth quarter to drive new unit growth.

The company anticipates adding nearly 30,000 rooms worldwide for the full year 2013.  The company also expects approximately 10,000 rooms will leave the system during the year.

 

Fourth Quarter 2013 Full Year 2013 
Total fee revenue         $370 million to $380 million      $1,525 million to $1,535 million 
Owned, leased, corporate housing and other revenue, net of direct expenses  Approx. $40 million Approx. $161 million
General, administrative and other expenses      $170 million to $175 million     $696 million to $701 million 
Operating income      $235 million to $250 million $985 million to $1,000 million
Gains and other income      Approx. $1 million  Approx. $15 million
Net interest expense1  Approx. $25 million  Approx. $100 million
Equity in earnings (losses)  Approx. $0 million  Approx. $(2) million
Earnings per share     $0.47 to $0.50 $1.98 to $2.01
Tax rate    31.1 percent

1Net of interest income

The company expects investment spending in 2013 will total approximately $600 million to $700 million, including approximately $100 million for maintenance capital spending.  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 billion could be returned to shareholders through share repurchases and dividends.

Based upon the assumptions above, the company expects full year 2013 EBITDA will total $1,173 million to $1,188 million.  Excluding the $41 million Courtyard joint venture gain from 2012 EBITDA, the company expects 2013 EBITDA will increase 6 to 8 percent year-over-year as shown on page A-10.

Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings review for the investment community and news media on Thursday, October 31, 2013 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 October 31, 2014.

The telephone dial-in number for the conference call is 706-679-3455 and the conference ID is 55102037.  A telephone replay of the conference call will be available from 1 p.m. ET, Thursday, October 31, 2013 until 8 p.m. ET, Thursday, November 7, 2013.  To access the replay, call 404-537-3406.  The conference ID for the recording is 55102037.

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 October 30, 2013.  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 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, 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 325,000 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 Q3 2013 Press Release Schedules - FINAL.

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