Press Release: Marriott International, Inc.
January 9, 2001
WASHINGTON, DC -- Marriott International, Inc. (NYSE: MAR) yesterday discussed recent operating trends with a fixed
income investor group.
Arne Sorenson, executive vice president and chief financial officer, said yesterday that demand for Marriott's
lodging products remains strong. Revenue per available room (REVPAR) for managed, comparable U.S. hotels (across
all brands) is expected to increase 6.5 percent to 7.5 percent in the fourth quarter 2000. REVPAR in 2001 is expected
to increase approximately 4 percent (assuming 2.5 percent to 3.0 percent GDP growth). Although the company has
not yet closed its books for 2000, it advised investors that earnings per share in the 2000 fourth quarter is expected
to achieve First Call consensus of $0.58. Further, the company continues to expect to earn $2.17 per share in 2001.
With recent concerns about an economic slowdown, the company noted that in the event that REVPAR growth was slower
than expected, a one point change in REVPAR is expected to change lodging operating profit by $15 - $20 million
pretax or less than 3 percent of operating income. In addition, while all of the Marriott brands increased their
REVPAR premium versus the competitive set during 2000 (as of November Smith Travel data), REVPAR premiums are expected
to increase further in the event of an economic slowdown.
At year end 2000, the company's total debt was approximately $2.1 billion.
Investment spending in 2001 is expected to include approximately $50 million for maintenance spending and approximately
$500 million for new company-developed hotels. Timeshare spending is expected to total approximately $200 to $300
million. Also, roughly $500 million may be invested in equity slivers, mezzanine financing and mortgage loans.
Sales of 38 hotels and senior living communities in 2000 totaled $817 million. In each case, the company has continued
to operate the properties. Additional asset sales are likely in 2001.
Unit growth in the lodging business was strong in 2000, with the company adding approximately 38,000 rooms (gross)
to its system. Lodging unit expansion is expected to remain strong in 2001 with at least 35,000 (gross) rooms opening.
The company repurchased 10.8 million shares in 2000 for $335 million and expects to complete additional repurchases
in 2001 on an opportunistic basis.
MARRIOTT INTERNATIONAL, INC. (NYSE: MAR) is a leading worldwide hospitality company with over 2,000 operating units
in the United States and 58 other countries and territories. Marriott Lodging operates and franchises hotels under
the Marriott, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Ramada
International brand names; develops and operates vacation ownership resorts under the Marriott, Ritz- Carlton and
Horizons brands; operates Marriott Executive Apartments; provides furnished corporate housing through its ExecuStay
by Marriott division; and operates conference centers. Other Marriott businesses include senior living communities
and services, wholesale food distribution, procurement services and The Ritz-Carlton Hotel Company LLC. The company
is headquartered in Washington, D.C., and has approximately 151,000 employees. In fiscal year 1999, Marriott International
reported systemwide sales of $17.7 billion. For more information or reservations, please visit the web site at
http://www.marriott.com .
Note: This press release contains ``forward-looking statements'' within the meaning of federal securities law,
including statements concerning the number of lodging properties expected to be added in 2001 and business strategies
and their intended results and similar statements concerning anticipated future events and expectations that are
not historical facts. The forward-looking statements in this press release are subject to numerous risks and uncertainties,
including the effects of economic conditions, supply and demand changes for hotel rooms, competitive conditions
in the lodging, senior living and food service distribution industries, relationships with clients and property
owners, the impact of government regulations, and the availability of capital to finance growth, which could cause
actual results to differ materially from those expressed in or implied by the statements herein.
SOURCE: Marriott International, Inc.