Marriott International Reports First Quarter 2012 Results
Marriott International Reports First Quarter 2012 Results
BETHESDA, Md., April 18, 2012 -
FIRST QUARTER HIGHLIGHTS
— Diluted earnings per share (EPS) totaled $0.30, a 30 percent increase
over prior year adjusted results;
— Worldwide comparable systemwide REVPAR rose 6.8 percent using constant
dollars. Average daily rate rose 3.5 percent using constant dollars;
— At the end of the first quarter, the company’s worldwide pipeline of
hotels under construction, awaiting conversion or approved for
development increased to approximately 115,000 rooms, including over
51,000 rooms outside North America;
— Over 3,200 rooms opened during the quarter, including nearly 950 rooms
converted from competitor brands and nearly 1,200 rooms in international
markets;
— Marriott repurchased 4.2 million shares of the company’s common stock
for $150 million during the quarter. Year-to-date through April 17,
2012, the company repurchased 6.7 million shares for $245 million;
— For comparable Marriott Hotels & Resorts properties in North America,
room revenue from negotiated special corporate business rose over 9
percent in the first quarter. Group room revenue at comparable hotels
increased approximately 6 percent;
— At quarter-end, group room revenue bookings for North American
comparable Marriott Hotels & Resorts properties for the remainder of
2012 are over 11 percent higher than for such bookings at the end of the
2011 first quarter;
— For full year 2012, Marriott expects comparable systemwide REVPAR on a
constant dollar basis to increase 6 to 8 percent in North America,
outside North America and worldwide.
Marriott International, Inc. (NYSE: MAR) today reported first quarter 2012 results.
(Logo: http://photos.prnewswire.com/prnh/20090217/MARRIOTTINTLLOGO )
FIRST QUARTER 2012 RESULTS
First quarter 2012 net income totaled $104 million, an 18 percent increase compared to first quarter 2011 adjusted net income. Diluted EPS totaled $0..30, a 30 percent increase from adjusted diluted EPS in the year-ago quarter. On February 15, 2012, the company forecasted first quarter diluted EPS of $0.26 to $0.30.
Reported net income totaled $104 million in the first quarter of 2012 compared to $101 million in the year-ago quarter. Reported diluted EPS was $0.30 in the first quarter of 2012 compared to $0.26 in the first quarter of 2011.
Adjusted net income and adjusted diluted EPS for the first quarter of 2011 exclude $21 million ($13 million after-tax and $0.03 per diluted share) of timeshare spin-off adjustments. Timeshare spin-off adjustments include items such as the removal of timeshare business operating results and spin-off transaction costs, as well as the addition of license fees and other related items as if the spin-off had occurred on the first day of fiscal 2011. See page A-1 for first quarter 2011 reported results, the timeshare spin-off adjustments and adjusted results.
Arne M. Sorenson, president and chief executive officer of Marriott International, said, “Results were terrific in the first quarter of 2012. There is tremendous strength in global travel today; travelers are on the road, attending meetings, making sales calls and taking family vacations.
“Group business strengthened in the first quarter with increasing occupancy, room rates and greater group spend on food, beverage and other services. Transient business was also strong. Revenue from special corporate guests increased over 9 percent in the quarter with increasing room rates. Our largest customers tell us they expect to travel more in 2012.
“Industry supply growth continues to be a great story, especially in the U.S. where the dearth of construction starts signals favorable market conditions for the next few years. At the same time, our worldwide development pipeline increased to 115,000 rooms in the first quarter as we continue to increase our global market share.
“Our balance sheet continues to be in great shape. With strong cash flow, we are investing in our business while returning significant cash to our shareholders through dividends and share repurchases.”
For the 2012 first quarter, REVPAR for worldwide comparable systemwide properties increased 6.8 percent (a 6.7 percent increase using actual dollars).
International comparable systemwide REVPAR rose 5.9 percent (a 5.3 percent increase using actual dollars), including a 2.7 percent increase in average daily rate (a 2.1 percent increase using actual dollars) in the first quarter of 2012.
In North America, comparable systemwide REVPAR increased 6.9 percent in the first quarter of 2012, including a 3.6 percent increase in average daily rate. REVPAR for comparable systemwide North American full-service and luxury hotels (including Marriott Hotels & Resorts, The Ritz-Carlton and Renaissance Hotels) increased 7.1 percent with a 3.5 percent increase in average daily rate. REVPAR for comparable systemwide North American limited-service hotels (including Courtyard, Residence Inn, SpringHill Suites, TownePlaceSuites and Fairfield Inn & Suites) increased 6.7 percent in the first quarter with a 3.6 percent increase in average daily rate.
Marriott added 24 new properties (3,234 rooms) to its worldwide lodging portfolio in the 2012 first quarter, including three Autograph Collection hotels in the United States, two Courtyards in France and the Residence Inn Manama Juffair in Bahrain. Ten properties (2,487 rooms) exited the system during the quarter. At quarter-end, the company’s lodging group encompassed 3,732 properties and timeshare resorts for a total of nearly 644,000 rooms. The company expects to add 25,000 to 30,000 rooms and expects 7,000 to 8,000 rooms to exit the system in 2012.
The company’s worldwide pipeline of hotels under construction, awaiting conversion or approved for development totaled 700 properties with approximately 115,000 rooms at quarter-end.
MARRIOTT REVENUES totaled over $2.5 billion in the 2012 first quarter compared to adjusted revenues of over $2.4 billion for the first quarter of 2011.. Base management fees rose 3 percent to $124 million over prior year adjusted levels reflecting higher REVPAR and the unfavorable impact of $3 million of fee reversals at two hotels due to contract revisions. Franchise fees rose 8 percent to $126 million over prior year adjusted levels reflecting higher REVPAR and fees from new hotels. In the first quarter, 29 percent of worldwide company-managed hotels earned incentive management fees compared to 25 percent in the year-ago quarter.
Worldwide comparable company-operated house profit margins increased 120 basis points in the first quarter. House profit margins for comparable company-operated properties outside North America increased 70 basis points and North American comparable company-operated house profit margins increased 130 basis points from the year-ago quarter.
Owned, leased, corporate housing and other revenue, net of direct expenses, increased 10 percent in the 2012 first quarter, to $22 million, largely due to improved operating results at leased hotels, partially offset by lower termination fees.
GENERAL, ADMINISTRATIVE and OTHER expenses for the 2012 first quarter increased 4 percent to $147 million, compared to adjusted expenses of $141 million in the year-ago quarter.
INTEREST INCOME totaled $4 million in the first quarter compared to adjusted interest income of $7 million in the year-ago quarter. The decline in interest income was primarily due to repayments of notes receivable.
EQUITY IN EARNINGS (LOSSES) totaled a $1 million loss in the quarter compared to a $4 million loss in the year-ago quarter. The decline in equity losses largely reflected the improved performance of hotels in two joint ventures.
Earnings before Interest Expense, Taxes, Depreciation and Amortization (EBITDA)
EBITDA totaled $215 million in the 2012 first quarter, a 9 percent increase over 2011 first quarter adjusted EBITDA of $197 million. See page A-6 for the EBITDA and adjusted EBITDA calculations.
BALANCE SHEET
At the end of the first quarter 2012, total debt was $2,527 million and cash balances totaled $290 million, compared to $2,171 million in debt and $102 million of cash at year-end 2011.
During the first quarter, the company issued $600 million of Series K bonds due in 2019 with a 3 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 344.6 million in the 2012 first quarter compared to 381.8 million in the year-ago quarter.
The company repurchased 4.2 million shares of common stock in the first quarter at a cost of $150 million. Year-to-date through April 17, 2012, Marriott repurchased 6.7 million shares of its stock for $245 million. The remaining share repurchase authorization, as of April 17, 2012, totaled 33.8 million shares.
SECOND QUARTER 2012 OUTLOOK
For the second quarter, the company expects comparable systemwide REVPAR on a constant dollar basis will increase 6 to 8 percent in North America, outside North America and worldwide.
2012 OUTLOOK
The company expects full year 2012 comparable systemwide REVPAR on a constant dollar basis will increase 6 to 8 percent in North America, outside North America and worldwide.
The company expects to open 25,000 to 30,000 rooms in 2012 as most hotels expected to open are already under construction or undergoing conversion from other brands.
For 2012, assuming a strong U.S. dollar and modest fee revenue growth in hotels in Washington, DC, the company expects full year fee revenue could total $1,425 million to $1,465 million, growth of 9 to 12 percent over 2011 adjusted total fee revenue of $1,307 million. The company expects owned, leased, corporate housing and other revenue, net of direct expense, could total $140 million to $145 million in 2012.
For 2012, the company expects general, administrative and other expenses to total $660 million to $670 million, an increase of 3 to 4 percent over 2011 adjusted expenses of $643 million.
Given these assumptions, 2012 diluted EPS could total $1.58 to $1.69.
Second Quarter 2012 Full Year 2012
——-
Total
fee
revenue $345 million to $355 million $1,425 million to $1,465 million
Owned,
leased,
corporate
housing
and
other
revenue,
net of
direct
expenses $35 million to $40 million $140 million to $145 million
General,
administrative
and
other
expenses Approx $150 million $660 million to $670 million
Operating
income $230 million to $245 million $895 million to $950 million
Gains
and
other
income Approx $0 million Approx $10 million
Net
interest
expense
(1) Approx $30 million Approx $110 million
Equity
in
earnings
(losses) Approx $0 million Approx $(5) million
Earnings
per
share $0.39 to $0.43 $1.58 to $1.69
Tax
rate 33.0 percent
(1) Net
of
interest
income
The company expects investment spending in 2012 will total approximately $600 million to $800 million, including approximately $100 million for maintenance capital spending. Investment spending will also include 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, roughly $1 billion could be returned to shareholders through share repurchases and dividends.
Based upon the assumptions above, full year 2012 EBITDA is expected to total $1,105 million to $1,160 million, an 11 to 17 percent increase over the prior year’s adjusted EBITDA. Adjusted EBITDA for full year 2011 totaled $992 million and is shown on page A-7.
Marriott International, Inc. (NYSE: MAR) will conduct its quarterly earnings review for the investment community and news media on Thursday, April 19, 2012 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 April 19, 2013.
The telephone dial-in number for the conference call is 706-679-3455 and the conference ID is 62456951. A telephone replay of the conference call will be available from 1 p.m. ET, Thursday, April 19, 2012 until 8 p.m. ET, Thursday, April 26, 2012. To access the replay, call 404-537-3406. The reservation number for the recording is 62456951.
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 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 annual report on Form 10-K or 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 April 19, 2012. 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. (NYSE: MAR) is a leading lodging company based in Bethesda, Maryland, USA with more than 3,700 properties in 73 countries and territories and reported revenues of over $12 billion in fiscal year 2011. The company operates and franchises hotels and licenses vacation ownership resorts under 18 brands, including Marriott Hotels & Resorts,The Ritz-Carlton, JW Marriott, Bulgari, EDITION, Renaissance, Autograph Collection, AC Hotels by Marriott, Courtyard, Fairfield Inn & Suites, SpringHill Suites, Residence Inn, TownePlace Suites, ExecuStay, Marriott Executive Apartments,Marriott Vacation Club, Grand Residences by Marriott, and The Ritz-Carlton Destination Club. There are approximately 300,000 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 http://www.marriott.com, and for the latest company news, visit http://www.marriottnewscenter.com.
IRPR#1
Tables follow
MARRIOTT INTERNATIONAL, INC.
PRESS RELEASE SCHEDULES
QUARTER 1, 2012
TABLE OF CONTENTS
Consolidated Statements of Income A-1
Total Lodging Products A-3
Key Lodging Statistics A-4
EBITDA and Adjusted EBITDA A-6
EBITDA and Adjusted EBITDA Forecast A-7
Adjusted Pretax Margin and EBITDA
Margin Excluding Adjusted
Reimbursed Costs A-8
Adjusted 2011 EPS Including Timeshare Spin-off
Adjustments, Other Charges
and Certain Tax Items A-9
Adjusted Fee Revenue and Adjusted
General, Administrative and Other
Expenses A-10
Non-GAAP Financial Measures A-11
MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
ADJUSTED CONSOLIDATED STATEMENTS OF INCOME
FIRST QUARTER 2012 AND 2011
(in millions, except per share amounts)
As Reported As Reported Timeshare As Adjusted Percent
12 Weeks Ended 12 Weeks Ended Spin-off 12 Weeks Ended Better (Worse)
March 23, 2012 March 25, 2011 Adjustments (9) March 25, 2011** 2012 vs. Adjusted
2011
——
REVENUES
Base management fees $124 $134 $(14) $120 3
Franchise fees 126 103 14 117 8
Incentive management fees 50 42 - 42 19
Owned, leased, corporate housing and other revenue (1) 217 224 - 224 (3)
Timeshare sales and services (2) - 276 (276) - -
Cost reimbursement (3) 2,035 1,999 (62) 1,937 5
——- ——- —- ——-
Total Revenues 2,552 2,778 (338) 2,440 5
OPERATING COSTS AND EXPENSES
Owned, leased and corporate housing - direct (4) 195 204 - 204 4
Timeshare - direct - 225 (225) - -
Reimbursed costs 2,035 1,999 (62) 1,937 (5)
General, administrative and other (5) 147 159 (18) 141 (4)
Total Expenses 2,377 2,587 (305) 2,282 (4)
——- ——- —— ——-
OPERATING INCOME (LOSS) 175 191 (33) 158 11
Gains and other income (6) 2 2 - 2 -
Interest expense (33) (41) 9 (32) (3)
Interest income 4 4 3 7 (43)
Equity in losses (7) (1) (4) - (4) 75
—- —- —- —-
INCOME (LOSS) BEFORE INCOME TAXES 147 152 (21) 131 12
(Provision) benefit for income taxes (43) (51) 8 (43) -
—- —- —- —-
NET INCOME (LOSS) $104 $101 $(13) $88 18
==== ==== ==== ===
EARNINGS (LOSSES) PER SHARE - Basic
Earnings (losses) per share (8) $0.31 $0.27 $(0.04) $0.24 29
===== ===== ====== =====
EARNINGS (LOSSES) PER SHARE - Diluted
Earnings (losses) per share (8) $0.30 $0.26 $(0.03) $0.23 30
===== ===== ====== =====
Basic Shares 333.7 367.1 367.1 367.1
Diluted Shares 344.6 381.8 381.8 381.8
See page A-2 for footnote references.
A-1
MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
ADJUSTED CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share amounts)
** Denotes non-GAAP financial measures.
Please see pages A-11 and A-12 for
additional information about our reasons
for providing these alternative financial
measures and limitations on their use.
(1) - Owned, leased, corporate housing and
other revenue includes revenue from the
properties we own or lease, revenue from
our corporate housing business, termination
fees, branding fees and other revenue.
(2) - Timeshare sales and services
includes total timeshare revenue except
for base management fees and cost
reimbursements.
(3) - Cost reimbursements include
reimbursements from properties for
Marriott-funded operating expenses.
(4) - Owned, leased and corporate housing
- direct expenses include operating
expenses related to our owned or leased
hotels, including lease payments, pre-
opening expenses and depreciation, plus
expenses related to our corporate housing
business.
(5) - General, administrative and other
expenses include the overhead costs
allocated to our segments, and our
corporate overhead costs and general
expenses.
(6) - Gains and other income includes
gains and losses on: the sale of real
estate, note sales or repayments (except
timeshare note securitizations), the sale
or other-than-temporary impairment of
joint ventures and investments, debt
extinguishments, and income from cost
method joint ventures.
(7) - Equity in losses includes our
equity in losses of unconsolidated equity
method joint ventures.
(8) - Earnings per share plus adjustment
items may not equal earnings per share as
adjusted due to rounding.
(9) - The adjusted consolidated
statements of income are presented as if
the Timeshare spin-off had occurred on
January 1, 2011.
A-2
MARRIOTT INTERNATIONAL, INC.
TOTAL LODGING PRODUCTS (1)
Number of Properties Number of Rooms/Suites
——— -
Brand March 23, March 25, vs. March 25, March 23, March 25, vs. March 25,
2012 2011 2011 2012 2011 2011
—- —— —— —— —— —— ——
Domestic Full-Service
Marriott Hotels & Resorts 351 356 (5) 142,078 143,876 (1,798)
Renaissance Hotels 80 80 - 29,229 28,892 337
Autograph Collection 20 14 6 5,815 3,954 1,861
Domestic Limited-Service
—-
Courtyard 807 798 9 113,692 112,041 1,651
Fairfield Inn & Suites 670 648 22 60,680 58,542 2,138
SpringHill Suites 288 273 15 33,821 31,961 1,860
Residence Inn 597 597 - 72,078 72,030 48
TownePlace Suites 202 193 9 20,248 19,409 839
International
———
Marriott Hotels & Resorts 202 199 3 61,968 61,338 630
Renaissance Hotels 74 71 3 23,730 23,297 433
Autograph Collection 5 - 5 548 - 548
Courtyard 111 102 9 21,777 20,258 1,519
Fairfield Inn & Suites 13 10 3 1,568 1,235 333
SpringHill Suites 2 1 1 299 124 175
Residence Inn 22 18 4 3,028 2,559 469
TownePlace Suites 1 1 - 105 105 -
Marriott Executive Apartments 24 23 1 3,826 3,775 51
Luxury
———
The Ritz-Carlton - Domestic 39 39 - 11,587 11,587 -
The Ritz-Carlton - International 39 36 3 11,996 10,941 1,055
Bulgari Hotels & Resorts 2 2 - 117 117 -
Edition 1 2 (1) 78 431 (353)
The Ritz-Carlton Residential 34 29 5 3,838 3,309 529
The Ritz-Carlton Serviced
Apartments 4 4 - 579 579 -
Unconsolidated Joint Ventures
-
AC Hotels by Marriott 75 68 7 7,976 7,143 833
Autograph Collection 5 4 1 350 278 72
Timeshare (2) 64 71 (7) 12,932 13,045 (113)
—- —- —- ——— ——— ——
Total 3,732 3,639 93 643,943 630,826 13,117
===== ===== === ======= ======= ======
(1) Total Lodging Products excludes the 2,095 and 1,984 corporate housing rental units as of March 23, 2012 and March 25, 2011, respectively.
(2) Reported 2012 Timeshare properties and rooms/suites are not comparable to 2011 data due to a change in reporting methodology as a result of the Timeshare spin-off.
A-3
MARRIOTT INTERNATIONAL, INC.KEY LODGING STATISTICSConstant $
Comparable Company-Operated International Properties(1)
——-
Two Months Ended February 29, 2012 and February 28, 2011
REVPAR Occupancy Average Daily
Rate
——— —
Region 2012 vs. 2011 2012 vs. 2011 2012 vs. 2011
——— —— - —— - —— -
Caribbean & Latin America $157.17 9.4% 75.9% 1.9% pts. $207.03 6.6%
Europe $98.07 2.9% 60.8% 0.2% pts. $161.31 2.5%
Middle East & Africa $83.76 -6.1% 57.5% 1.3% pts. $145.75 -8.2%
Asia Pacific $89.27 16.1% 67.8% 6.6% pts. $131.58 4.7%
Regional Composite(2) $101.32 7.4% 65.0% 2.9% pts. $155.80 2.6%
International Luxury(3) $210.51 2.2% 59.9% -2.0% pts. $351.58 5.6%
Total International(4) $114.28 6.2% 64.4% 2.3% pts. $177.39 2.4%
Worldwide(5) $106.39 6.2% 67.1% 2.0% pts. $158.61 3.1%
Comparable Systemwide International Properties(1)
———
Two Months Ended February 29, 2012 and February 28, 2011
REVPAR Occupancy Average Daily
Rate
——— —
Region 2012 vs. 2011 2012 vs. 2011 2012 vs. 2011
——— —— - —— - —— -
Caribbean & Latin America $128.99 7.6% 69.0% 1.1% pts. $186.90 6.0%
Europe $92.41 3.5% 59.1% 0.3% pts. $156.40 2.8%
Middle East & Africa $81.37 -5.7% 57.7% 1.4% pts. $140.96 -7.9%
Asia Pacific $93.72 14.0% 67.3% 5.9% pts. $139.16 4.0%
Regional Composite(2) $98.47 6.8% 63.4% 2.3% pts. $155.37 2.9%
International Luxury(3) $210.51 2.2% 59.9% -2.0% pts. $351.58 5.6%
Total International(4) $109.01 5.9% 63.0% 1.9% pts. $172.92 2.7%
Worldwide(5) $88.49 6.8% 66.1% 2.0% pts. $133.78 3.5%
(1) We report financial results on a period basis and international statistics on a monthly basis. Statistics are in
constant dollars for January through February. International includes properties located outside the United States
and Canada, except for Worldwide which includes the United States.
(2) Regional information includes the Marriott Hotels & Resorts, Renaissance Hotels and Courtyard brands.
(3) International Luxury includes The Ritz-Carlton properties outside of the United States and Canada and
Bulgari Hotels & Resorts.
(4) Includes Regional Composite and International Luxury.
(5) Includes international statistics for the two calendar months ended February 29, 2012 and February 28, 2011,
and the United States statistics for the twelve weeks ended March 23, 2012 and March 25, 2011. Includes the
Marriott Hotels & Resorts, Renaissance Hotels, Autograph Collection, The Ritz-Carlton, Bulgari Hotels & Resorts,
Residence Inn, Courtyard, Fairfield Inn & Suites, TownePlace Suites, and SpringHill Suites brands.
A-4
MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
Comparable Company-Operated North American Properties(1)
———
Twelve Weeks Ended March 23, 2012 and March 25, 2011
—-
REVPAR Occupancy Average Daily
Rate
——— —
Brand 2012 vs. 2011 2012 vs. 2011 2012 vs. 2011
——- —— - —— - —— -
Marriott Hotels & Resorts $117.58 6.7% 69.5% 2.7% pts. $169.26 2..5%
Renaissance Hotels $120.39 7.9% 72.1% 3.4% pts. $167.06 2..8%
Composite North American Full-Service(2) $118.00 6.9% 69.9% 2.8% pts. $168.92 2..6%
The Ritz-Carlton(3) $229.73 7.1% 68.4% 0.8% pts. $336.03 5..8%
Composite North American Full-Service &
Luxury(4) $126.39 7.0% 69.7% 2.7% pts. $181.22 2..9%
Residence Inn $84.67 1.9% 70.3% -0.3% pts. $120.39 2..4%
Courtyard $73.05 5.4% 63.5% 1.1% pts. $115.11 3..6%
TownePlace Suites $52.05 12.5% 65.7% 3.1% pts. $79.27 7..2%
SpringHill Suites $66.54 2.9% 62.5% 0.8% pts. $106.52 1..7%
Composite North American Limited-
Service(5) $74.71 4.5% 65.4% 0.8% pts. $114.18 3..2%
Composite - All(6) $104.00 6.2% 67.9% 1.9% pts. $153.23 3..3%
Comparable Systemwide North American Properties(1)
Twelve Weeks Ended March 23, 2012 and March 25, 2011
—-
REVPAR Occupancy Average Daily
Rate
——— —
Brand 2012 vs. 2011 2012 vs. 2011 2012 vs. 2011
——- —— - —— - —— -
Marriott Hotels & Resorts $105.10 7.1% 66.9% 2.3% pts. $157.12 3..4%
Renaissance Hotels $103.69 6.4% 68.7% 2.0% pts. $151.00 3..2%
Autograph Collection Hotels(3) $117.72 9.2% 70.6% 6.3% pts. $166.86 -0..6%
Composite North American Full-Service(2) $104.96 7.0% 67.2% 2.3% pts. $156.19 3..3%
The Ritz-Carlton(3) $229.73 7.1% 68.4% 0.8% pts. $336.03 5..8%
Composite North American Full-Service &
Luxury(4) $110.38 7.1% 67.2% 2.3% pts. $164.13 3..5%
Residence Inn $84.95 4.3% 72.5% 0.7% pts. $117.13 3..3%
Courtyard $74.84 6.8% 64.5% 1.8% pts. $116.04 3..8%
Fairfield Inn & Suites $55.71 10.0% 61.3% 3.0% pts. $90.94 4..6%
TownePlace Suites $59.45 8.7% 68.1% 2.3% pts. $87.30 4..9%
SpringHill Suites $67.08 7.4% 65.8% 2.7% pts. $101.91 2..9%
Composite North American Limited-
Service(5) $71.66 6.7% 66.2% 1.9% pts. $108.26 3..6%
Composite - All(6) $85.61 6.9% 66.6% 2.0% pts. $128.59 3..6%
(1) Statistics include only properties located in the United States.
(2) Includes the Marriott Hotels & Resorts, Renaissance Hotels, and Autograph Collection brands.
(3) Statistics for Autograph Collection and The Ritz-Carlton are for January through February.
(4) Includes the Marriott Hotels & Resorts, Renaissance Hotels, Autograph Collection and The Ritz-Carlton brands.
(5) Includes the Residence Inn, Courtyard, Fairfield Inn & Suites, TownePlace Suites and SpringHill Suites brands.
(6) Includes the Marriott Hotels & Resorts, Renaissance Hotels, Autograph Collections, The Ritz-Carlton, Residence Inn,
Courtyard, Fairfield Inn & Suites, TownePlace Suites, and SpringHill Suites brands.
A-5
MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
EBITDA AND ADJUSTED EBITDA
($ in millions)
Fiscal Year 2012
—
First
Quarter
Net Income $104
Interest expense 33
Tax provision 43
Depreciation and amortization 29
Less: Depreciation reimbursed by third-party owners (4)
Interest expense from unconsolidated joint ventures 4
Depreciation and amortization from unconsolidated joint ventures 6
—-
EBITDA ** $215
====
Increase over 2011 Adjusted EBITDA 9%
Fiscal Year 2011
—
First Second Quarter Third Quarter Fourth Quarter Total
Quarter
Net Income (loss) $101 $135 $(179) $141 $198
Interest expense 41 37 39 47 164
Tax provision (benefit) 51 66 (20) 61 158
Depreciation and amortization 35 41 40 52 168
Less: Depreciation reimbursed by third-party owners (4) (3) (4) (4) (15)
Interest expense from unconsolidated joint ventures 4 4 5 5 18
Depreciation and amortization from unconsolidated joint ventures 6 7 7 10 30
—- —- —- —- —-
EBITDA ** 234 287 (112) 312 721
Timeshare Spin-off Adjustments
Net Income (13) (9) 264 18 260
Interest expense (9) (8) (7) (5) (29)
Tax provision (benefit) (8) (5) 57 (4) 40
Depreciation and amortization (7) (9) (7) (5) (28)
—- —- —- —- —-
Total Timeshare Spin-off Adjustments (37) (31) 307 4 243
Other charges - - 28 - 28
—- —- —- —- —-
Total other charges - - 28 - 28
—- —- —- —- —-
Adjusted EBITDA ** $197 $256 $223 $316 $992
==== ==== ==== ==== ====
** Denotes non-GAAP financial measures. Please see pages A-11 and A-12 for additional information about our reasons for providing these alternative
financial measures and the limitations on their use.
A-6
MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
EBITDA AND ADJUSTED EBITDA
FORECASTED 2012
($ in millions)
Range
——-
Estimated EBITDA As Adjusted
Full Year 2012 52 Weeks Ended
December 30, 2011 **
Net Income $534 $571 $475
Interest expense 135 135 135
Tax provision 256 274 209
Depreciation and
amortization 145 145 140
Less: Depreciation
reimbursed by third-
party owners (15) (15) (15)
Interest expense from
unconsolidated joint
ventures 20 20 18
Depreciation and
amortization from
unconsolidated joint
ventures 30 30 30
—- —- —-
EBITDA ** $1,105 $1,160 $992
====== ====== ====
Increase over 2011
Adjusted EBITDA 11% 17%
** Denotes non-GAAP financial measures. Please see pages A-11 and A-12 for additional information
about our reasons for providing these alternative financial measures and the limitations on their use.
A-7
MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
ADJUSTED PRETAX AND EBITDA MARGIN EXCLUDING ADJUSTED REIMBURSED COSTS
FIRST QUARTER 2012 AND 2011
($ in millions)
ADJUSTED PRETAX MARGIN First First
Quarter Quarter
2012 2011
—— ——
Income before income taxes as
reported $147 $152
Timeshare spin-off adjustments - (21)
—- —-
Income before income taxes, as
adjusted ** $147 $131
==== ====
Total revenues as reported $2,552 $2,778
Timeshare spin-off adjustments - (338)
—- ——
Total revenues, as adjusted ** 2,552 2,440
Less: adjusted cost
reimbursements ** (2,035) (1,937)
——— ———
Total revenues as adjusted and
excluding cost reimbursements
** $517 $503
==== ====
Adjusted pretax margin,
excluding cost reimbursements
** 28.4% 26.0%
EBITDA ** $215
====
EBITDA Margin **