-
Full year EPS was $1.92, excluding $0.03 one-time charge in first quarter
2000
-
Domestic comparable REVPAR growth surged 6.7 percent in 2000 across all
lodging brands, 7.2 percent in the fourth quarter alone
-
The company opened 238 lodging properties (39,995 rooms) in 2000, reaching
nearly 2,100 properties in its worldwide system
WASHINGTON DC - Feb 6, 2001 - Marriott International today reported record
full year earnings of $1.89 per share, up 25 percent from $1.51 for the
full year 1999. Net income for the year increased to $479 million
in 2000, up 20 percent from 1999. Sales increased 15 percent to $10
billion in 2000.
Adjusted for non-recurring charges related to the settlement of litigation
in 1999 and the Marriott Distribution Services business in 2000, EPS increased
20 percent to $1.92 in 2000, up from $1.60 in 1999. Strength in U.S.
lodging operations was the primary driver of profit growth in 2000.
The company reported earnings per share of $0.59 for its fourth quarter
ended December 29, 2000, up 74 percent from $0.34 in the fourth quarter
of 1999. Net income increased to $149 million in the 2000 fourth
quarter, up from $90 million in 1999. Sales totaled $3.2 billion in the
2000 fourth quarter, up 12 percent from $2.8 billion a year ago.
J.W. Marriott, Jr., chairman and chief executive officer of Marriott
International, said that he was very pleased with the company�s fourth
quarter operating results. �The fourth quarter put the finishing
touches on an outstanding year for our company. Our earnings growth
reflected our focus on increasing distribution of our products in both
the U.S. and around the world, as well as success in translating that growth
to the bottom line. Comparable Revenue per Available Room (REVPAR)
growth in our domestic lodging brands overall was up a strong 6.7 percent
for the full year in 2000. Our Marriott Hotels, Resorts & Suites,
Renaissance and Residence Inn brands in the U.S. each showed one
full percentage point improvement in house profit margin in the fourth
quarter.
He noted, �We added a record number of new rooms to our system during
the year. Importantly, nearly 30 percent of these room openings represented
conversions to our brands, demonstrating owners� and franchisees� preferences
to be part of our worldwide lodging family. At year-end, even after
opening 17,000 rooms in the fourth quarter, our lodging pipeline was slightly
over 70,000 rooms. We continue to gain market share worldwide.
�We are optimistic about our prospects,� Mr. Marriott continued.
�Although we expect domestic REVPAR growth to moderate this year in light
of a slowing U.S. economy, we continue to expect REVPAR growth to be healthy,
at around three to four percent.
�We expect to perform well in 2001,� said William J. Shaw, president
and chief operating officer. �We have the brands preferred by travelers
and hotel owners, as well as a talented, enthusiastic work force dedicated
to customer service. Our worldwide reservations system, frequent
guest program (Marriott Rewards), and Internet site (Marriott.com) are
among the best in the hotel industry, and our abundant cash flow enables
us to invest significant capital in expanding our businesses and building
our brands.�
MARRIOTT LODGING reported a 13 percent
increase in operating profit on 11 percent higher sales in 2000.
Results reflected higher room rates for U.S. hotels, contributions
from new properties worldwide, and strong interval sales in resort timesharing.
In the fourth quarter of 2000, lodging operating profits increased 14 percent
after adjusting for lower year-over-year sales of Marriott Vacation Club
International (MVCI) notes ($6 million pretax) and a charge ($6 million
pretax) related to an investment in a hotel management contract.
While the company continues to manage this hotel, the charge resulted from
the bankruptcy of the hotel owner�s parent company, which puts our contract
at risk.
Across the Marriott lodging brands, REVPAR for comparable company operated
U.S. properties grew by approximately 6.7 percent in 2000.
Occupancy for full service and limited service hotels both remained
well above the industry average at approximately 78 percent. In the
fourth quarter of 2000, both full service and limited service brands achieved
REVPAR growth of approximately 7.2 percent over the prior year, largely
driven by higher average daily rates.
International lodging profits increased 12 percent in 2000, reflecting
solid demand in Asia and Europe, but were offset by the impact of political
unrest in the Middle East and the lower value of the Euro.
Marriott Vacation Club International achieved 34 percent and 40 percent
increases in contract sales in 2000 and the fourth quarter, respectively.
We had substantial profit growth at timesharing resorts in Florida, South
Carolina, Hawaii, Utah, and the Caribbean. During 2000, the company
began sales at four new resort properties and had particularly strong sales
of its newest luxury brand, The Ritz-Carlton Club.
The company added 238 hotels and timesharing resorts (39,995 rooms)
across its lodging brands during 2000, while 19 properties (5,409 rooms)
exited the system. Fifty-four of the properties opened in 2000 are
located outside the United States, of which 22 are Ramada International
franchised hotels (3,831 rooms). At year-end, the Marriott lodging
group encompassed 2,099 hotels and timesharing resorts (390,469 rooms),
and approximately 7,000 furnished corporate apartments managed by the company�s
ExecuStay by Marriott division.
Marriott Lodging plans to add 175,000 rooms to its global portfolio
over a five-year period (1999-2003). At year-end, the company had
more than 400 lodging properties (just over 70,000 rooms) under construction
or approved for development. Over 80 percent of the rooms associated
with the company�s five year goal are open or under development.
MARRIOTT DISTRIBUTION SERVICES posted
a 32 percent increase in sales for 2000 and a 24 percent increase in the
fourth quarter, reflecting the commencement of service to three large restaurant
chains early in the year. Operating profit reflected start-up inefficiencies
associated with the new business and a $15 million pretax write-off of
an investment in a contract with Boston Chicken, Inc. in the first quarter.
The division continues to serve approximately 700 Boston Chicken stores.
MARRIOTT SENIOR LIVING SERVICES
posted a 20 percent increase in sales in 2000, reflecting the net addition
of nine properties during the year and a four percentage point increase
in occupancy for comparable communities. Losses totaled $18 million
in 2000 and $12 million in the fourth quarter. The division was impacted
by preopening expense associated with new unit openings ($6 million in
2000 and $2 million in the fourth quarter), write-offs associated with
the cancellation of development projects ($9 million in 2000 and $7 million
in the fourth quarter), and continued start-up inefficiencies for new properties.
At year-end, Marriott operated 153 senior living communities totaling 25,918
residential units.
CORPORATE EXPENSES in full year
2000 declined primarily due to nonrecurring charges in 1999, including
$39 million associated with the settlement of litigation related to certain
limited partnerships and $22 million of system-related costs associated
with Year 2000. In the fourth quarter of 2000, corporate expenses
included a $3 million pretax charge due to a change in the company�s vacation
accrual policy.
Interest expense increased in 2000 as a result of borrowings to finance
growth outlays and share repurchases, but was flat in the fourth quarter
due to asset dispositions and improvements in working capital.
Interest income increased in the fourth quarter and 2000, reflecting
the repayment and collection of interest associated with a refinanced loan
($14 million) and increased fundings associated with loans made during
2000, including the loan (approximately $200 million) related to the newly
formed Courtyard joint venture.
Our effective income tax rate decreased to approximately 36.8 percent
in 2000 from 37.3 percent in 1999, primarily due to increased income in
countries with lower effective tax rates.
Long-term debt at year-end 2000 was $2.0 billion, up from $1.7 billion
a year ago. Marriott International acquired 10.8 million shares of
its common stock during 2000 for $335 million and has 19.6 million
shares remaining in its stock buyback authorization.
The company sold 38 hotels and senior living communities in 2000 for
a total of $817 million. Thus far in 2001, the company already has
sold three hotels for a total of $168 million. In each case, the
company continues to operate the properties under long term contracts.
Additional asset sales are expected in 2001. The company expects
lodging unit expansion to remain strong in 2001 and 2002 with at least
35,000 rooms (gross) opening in each year.
The company anticipates REVPAR in 2001 to increase approximately three
to four percent, assuming two to three percent GDP growth. The company
has not changed its expectation to earn $2.17 per share in 2001.
The company expects investment spending in 2001 will include approximately
$50 million for maintenance spending and approximately $500 million for
new company-developed hotels. Timeshare spending is anticipated to
total approximately $200 to $300 million. Also, roughly $500 million
may be invested in equity slivers, mezzanine financing and mortgage loans
for hotels developed by our partners.
Hotel Operating Statistics
Fiscal Year 2000
Brand
|
RevPAR vs 1999
|
Occupancy 2000
|
Occupancy vs 1999
|
Average Daily Rate 2000
|
Average Daily Rate vs 1999
|
Marriott Hotels,
Resorts and Suites |
+6.8% |
78.2% |
+0.4% pts. |
$149.50 |
+6.2% |
Ritz-Carlton |
+9.4% |
77.5% |
+0.1% pts. |
$242.26 |
+9.2% |
Renaissance
Hotels,
Resorts and
Suites |
+7.5% |
73.3% |
+2.0% pts. |
$142.27 |
+4.5% |
Residence Inn |
+6.1% |
83.5% |
+0.7% pts |
$104.88 |
+5.1% |
Courtyard |
+5.7% |
78.9% |
-- |
$97.68 |
+5.7% |
Fairfield Inn |
+2.4% |
69.7% |
-1.0% |
$61.32 |
+3.8% |
Note: Statistics above are based on comparable
company-operated U.S. properties, except for Fairfield Inn, which data
also includes franchised units.
Brand
|
Number of Properties
|
Number of Rooms / Suites
|
|
Dec 200
|
vs. Dec 199
|
Dec 2000
|
vs Dec 1999
|
Marriott Hotels, Resorts and Suites |
393 |
+25 |
149,200 |
+8,500 |
Ritz-Carlton |
38 |
+2 |
13,000 |
+1,100 |
Renaissance Hotels,
Resorts and Suites |
107 |
+11 |
40,100 |
+2,800 |
Residence Inn |
354 |
+30 |
41,400 |
+2,600 |
Courtyard |
520 |
+49 |
73,900 |
+6,900 |
Fairfield Inn |
439 |
+25 |
41,400 |
+2,400 |
TownePlace Suites |
84 |
+23 |
8,500 |
+2,400 |
SpringHill Suites |
61 |
+27 |
6,500 |
+3,100 |
Marriott Vacation Club International |
47 |
+4 |
5,600 |
+1,000 |
Ramada International |
47 |
+21 |
9,200 |
+3,600 |
International Serviced Apartments |
9 |
+2 |
1,700 |
+200 |
Total |
2,099 |
+219 |
390,500 |
34,600 |
MARRIOTT INTERNATIONAL, INC. (NYSE: MAR) is a leading worldwide hospitality
company with over 2,200 operating units in the United States and 59 other
countries and territories.
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. |