WASHINGTON, Feb. 7, 2000 - Marriott International,
Inc. (NYSE: MAR) today reported diluted earnings per share of $1.60 for
its fiscal year ended December 31, 1999, compared to $1.46 in 1998. Net
income increased to $424 million in 1999 from $390 million in the preceding
year, and sales totaled $8.7 billion, up 10 percent from $8.0 billion a
year ago.
Systemwide sales, which also include sales of managed and franchised
properties, grew 11 percent to $17.7 billion in 1999.
Profit growth for 1999 was curtailed by preopening expenses and previously
announced charges related to its senior living services business. Excluding
the impact of these items, diluted earnings per share increased 16 percent
in 1999, and net income was up 15 percent compared to 1998. J.W.
Marriott, Jr., chairman and chief executive officer of Marriott International,
said he is very pleased with the company�s performance in 1999.
�We achieved solid financial results, developed and opened a record
number of new properties, and introduced several exciting new brands during
the year,� Mr. Marriott said. �We also made major investments in the infrastructure
which supports our worldwide operations.
�Marriott International is in excellent position to achieve its long-term
goals, including annual earnings growth in the mid-teens,� Mr. Marriott
added. �We have the brands most 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.
�The company�s prospects are very bright,� Mr. Marriott continued. �We
expect another strong performance in 2000 from Marriott Lodging, which
will open its 2,000th hotel during the year. Our senior living and distribution
services businesses also are poised to contribute to profit growth.�
For the 1999 fourth quarter, Marriott International reported net income
of $114 million and diluted earnings per share of 44 cents. Excluding the
impact of the noncomparable items cited above, net income and diluted earnings
per share rose 15 percent and 14 percent, respectively, in the quarter.
Sales totaled $2.8 billion in the 1999 fourth quarter, a gain of 11 percent
compared to the 1998 quarter. Revenue per available room (REVPAR) for comparable
company-operated U.S. hotels increased 4.6 percent in the quarter.
MARRIOTT LODGING reported a 17 percent
increase in operating profit and 12 percent higher sales in 1999.
Results reflected higher room rates for U.S. hotels, contributions from
new properties worldwide, and strong interval sales in resort timesharing.
Across the Marriott lodging brands, REVPAR and average room rates for
comparable company-operated U.S. properties both grew by approximately
3.5 percent in 1999.
Occupancy for these hotels remained at 78 percent. International
hotel operations posted improved results in 1999, reflecting profit growth
for properties in continental Europe, the Middle East, Latin America and
the Caribbean region. Marriott Vacation Club International achieved
a 22 percent increase in contract sales in 1999, as well as higher income
from resort management. Strong sales gains were generated at timesharing
resorts in Florida, South Carolina, California, Utah and Spain. During
1999, the company began sales at six new resort properties, and launched
two new vacation ownership brands. Horizons by Marriott Vacation Club will
target the moderate price tier of the market (average weekly interval price
of $12,000), while The Ritz-Carlton Club (three to four week fractional
ownership intervals from $85,000) will provide an attractive alternative
to owning a second home. The company added 243 hotels and timesharing
resorts (36,500 rooms) across its lodging brands during 1999, while 49
properties (8,900 rooms) exited the system. Thirty-one of the properties
opened in 1999 are located outside the United States, including the company�s
first hotels in Armenia, Ecuador, El Salvador, the Netherlands Antilles,
Portugal and Spain. At year-end, the Marriott lodging group encompassed
1,880 hotels and timesharing resorts (355,900 rooms), and approximately
5,200 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 (over 70,000 rooms) under construction or approved
for development.
MARRIOTT DISTRIBUTION SERVICES reported
a 24 percent increase in operating profit in 1999 on a modest decline in
sales. The division benefited from realization of cost economies in transportation
and warehouse operations, as well as higher gross margins per case.
MARRIOTT SENIOR LIVING SERVICES
reported an operating loss in 1999, primarily as a result of preopening
expenses for new communities, costs associated with the company�s decision
to slow new construction until market conditions improve, and other one-time
charges. The division opened 33 senior living communities during the year,
including 24 Brighton Gardens, its popular assisted living brand serving
the quality tier. Occupancy for comparable communities increased slightly
to 90 percent in 1999. At year-end, Marriott operated 144 senior living
communities totaling 24,800 residential units.
CORPORATE EXPENSES increased $15
million in 1999 primarily due to incremental systems-related costs, including
the company�s Year 2000 readiness program. Interest expense was up $31
million as a result of borrowings to finance growth outlays and share repurchases.
Marriott International acquired 10.8 million shares of its common stock
in 1999, and its Board of Directors recently authorized repurchase of an
additional 25 million shares.
The company�s effective income tax rate decreased to approximately
37.3 percent in 1999 from 38.3 percent in the prior year.
MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
Fiscal Year 1999
Brand
|
REVPAR vs. 1998
|
Occupancy 1999
|
Occupancy vs 1998
|
Average Daily Rate 1999
|
Average Daily Rate vs 1998
|
Marriott Hotels,Resorts and Suites |
+ 3.9% |
77.5% |
- 0.1% pts. |
$140.86 |
+ 3.9% |
Ritz-Carlton |
+10.3% |
77.8% |
+ 3.4% pts. |
$219.37 |
+ 5.5% |
Renaissance Hotels and Resorts |
+ 2.9% |
70.8% |
+ 0.5% pts. |
$132.09 |
+ 2.1% |
Residence Inn |
+ 0.8% |
83.0% |
- 0.1% pts. |
$99.03 |
+ 0.9% |
Courtyard |
+ 2.7% |
79.3% |
- 0.1% pts. |
$91.48 |
+ 2.8% |
Fairfield Inn |
+ 0.1% |
71.0% |
- 2.2% pts. |
$58.87 |
+ 3.3% |
Note: Statistics above are based on comparable company-operated
U.S. properties,
except for Fairfield Inn, which data also include franchised units.
|
Number of Properties
|
Number of Rooms/Suites
|
Brand |
Dec. 1999 |
Dec. 1999 vs. Dec. 1998 |
Dec. 1999 |
Dec. 1999 vs. Dec. 1998 |
Marriott Hotels, Resorts and Suites |
368 |
+ 17 |
140,700 |
+ 6,100 |
Ritz-Carlton |
36 |
+ 1 |
11,900 |
+ 100 |
Renaissance Hotels and Resorts |
96 |
+ 13 |
37,300 |
+ 4,500 |
Residence Inn |
324 |
+ 30 |
38,800 |
+ 3,800 |
Courtyard |
471 |
+ 56 |
67,000 |
+ 9,100 |
Fairfield Inn |
414 |
+ 38 |
39,000 |
+ 3,300 |
TownePlace Suites |
61 |
+ 44 |
6,100 |
+ 4,400 |
SpringHill Suites |
34 |
+ 17 |
3,400 |
+ 1,700 |
Marriott Vacation Club International |
43 |
+ 6 |
4,600 |
+ 700 |
Other* |
33 |
- 28 |
7,100 |
- 6,100
|
Total
|
1,880
|
+ 194
|
355,900
|
+27,600
|
*Includes Ramada International, New World and Marriott Executive
Apartments.
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 future years,
business strategies and their intended results, and similar statements
concerning anticipated future events and expectations that are not historical
facts. |