Company Press Release: Marriott International, Inc.
November 17, 1999
NEW YORK, NY-- J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, Inc. (NYSE:
MAR), said yesterday that his company plans to accelerate its worldwide presence by adding 1,000 hotels and 175,000
new rooms across its global portfolio of brands by 2003.
``We expect to manage or franchise a hotel in every gateway city in the world and in 70 countries within the next
five years,'' said Mr. Marriott, ``bringing our systemwide total to 2,600 hotels and 480,000 rooms by 2003.'' He
noted that hotel owners and franchisees currently have nearly 400 hotels to be flagged under Marriott brands under
development worldwide.
At a meeting in New York for security analysts, Mr. Marriott spoke of his company's brand leadership and growth.
``Marriott's 14 powerful lodging brands, each with tremendous growth and profit potential, work together to make
the company stronger, benefiting from economies of scale and customer preference,'' said Mr. Marriott. The company's
management and franchise strategy protect it from the cyclical fluctuations of the economy and the industry, he
said.
Mr. Marriott noted that frequent ``quality-tier'' business travelers prefer Marriott by a 3-to-1 margin over other
lodging brands, according to Business Development Research Consultants. He also pointed to research from Lodging
Econometrics showing that nearly one quarter of all hotel rooms under construction in the U.S. is committed to
Marriott brands.
Asserting that such strong growth would enable the company to capture a larger market share while driving the new
systemwide revenue growth to the bottom line, Mr. Marriott said, ``We have the brands, systems, and people to increase
significantly shareholder value into the next century. Although we are a large company, we expect to grow earnings
per share in the mid-teens over the next five years.''
Mr. Marriott also urged investors to compare the company to other global brands. ``Marriott has the customer preference,
growing distribution, and the predictable income to be viewed by investors like McDonalds, Coke, and Pepsi,'' he
contended. He noted that of Marriott's more than 1,800 hotels worldwide, the company owns only 15, and that the
company realizes 75 percent of its profits through fee income from stable, long-term management and franchise contracts.
Mr. Marriott predicted that the global lodging industry would continue to consolidate into a handful of companies
over the next 10 years. ``Marriott will maintain its leadership position in this changing competitive environment
by leveraging its 14 powerful lodging brands' collective strengths and advantages,'' he said. ``Marriott's share
of the 14 million hotel rooms available around the world is just about 2 percent -- so the growth opportunities
for us are enormous,'' he concluded.
MARRIOTT INTERNATIONAL, INC. is a leading worldwide hospitality company with over 1,900 operating units in the
United States and 57 other countries and territories. Marriott Lodging operates and franchises hotels under the
Marriott, Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites
and Ramada International brand names; develops and operates vacation ownership (timeshare) resorts under the Marriott,
Ritz-Carlton and Horizons brands; operates executive apartments and conference centers, and provides furnished
corporate housing through its ExecuStay by Marriott division. Other Marriott businesses include senior living communities
and services, wholesale food distribution, and procurement services. The company is headquartered in Washington,
D.C. and has approximately 140,000 employees.
Note: This press release contains ``forward-looking statements'' within the meaning of federal securities law,
including statements concerning the number of hotels and other properties expected to be added in future years,
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, vacation timesharing intervals, corporate housing and senior living accommodations; 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.