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WASHINGTON, Sept. 30, 1999 - Marriott International, Inc.
(NYSE: MAR) today reported diluted earnings per share of 36 cents for its
1999 third quarter ended September 10, an increase of 13 percent over 32
cents in the corresponding 1998 quarter.
Net income for the 1999 third quarter was $96 million, up 12 percent from $86 million in the preceding year. Sales were $2.0 billion, an increase of 11 percent versus the 1998 third quarter. Third quarter profit comparisons are affected by costs of the company�s Year 2000 readiness efforts, and preopening expenses associated with new senior living communities. Excluding the impact of these items, diluted earnings per share increased 15 percent in the 1999 third quarter. J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, said that the company�s solid third quarter performance represented a combination of increased profitability for established hotels, and contributions from new properties. �Our flagship brand�Marriott Hotels, Resorts and Suites�continues to generate better-than-average sales growth, and is achieving higher house profit margins through tight cost controls and improved productivity,� Mr. Marriott said. �Ritz-Carlton, our luxury brand, had an especially strong summer, and our moderate price Courtyard hotel brand posted its best results of the year. �We also are getting a major boost from new lodging properties worldwide,� Mr. Marriott added. �This year, the company will open nearly 250 new hotels representing well over 30,000 rooms, and we are continuing to replenish our pipeline of projects under development. Our brands are taking advantage of current industry conditions to gain market share, and we are well-positioned for further growth in 2000 and beyond.� For the first three quarters of 1999, Marriott International reported net income of $310 million and diluted earnings per share of $1.16, up 12 percent and 14 percent, respectively, versus the 1998 period. Sales totaled $5.9 billion, a nine percent increase over the first three quarters of 1998. MARRIOTT LODGING reported a 15 percent
increase in operating profit and 12 percent sales growth in the 1999 third
quarter. Results reflected higher room rates at U.S. hotels, profit growth
for international lodging operations, and strong interval sales in resort
timesharing.
International hotel operations posted improved results in the 1999 third quarter, reflecting higher sales and profits for properties in Germany, Egypt, Latin America and the Caribbean region. Marriott Vacation Club International generated a 17 percent increase in contract sales in the 1999 third quarter, as well as higher income from resort management. During the quarter, the company�s Ritz-Carlton luxury hotel brand announced plans to launch an innovative new fractional ownership program providing �five-star� accommodations and amenities for members. The company plans to develop more than a dozen Ritz-Carlton Club projects over the next several years, including destination resorts in Aspen, Colo. and St. Thomas, V.I., both scheduled to open in 2001. The company has added 227 hotels and timesharing resorts (33,900 rooms) across its lodging brands over the past 12 months, while 48 properties (8,100 rooms) exited the system. The 59 hotels (8,700 rooms) opened during the 1999 third quarter included full-service Marriott hotels in Quito, Ecuador and Shenyang, China, as well as the company�s 400th Fairfield Inn (Charlotte, N.C.). At quarter-end, the Marriott lodging group encompassed 1,774 hotels (340,600 rooms), 38 timeshare resorts (4,400 villas), and approximately 6,300 furnished corporate apartments managed by the company�s ExecuStay by Marriott division. In addition, the company has more than 400 lodging properties (over 70,000 rooms) currently under construction or approved for development. MARRIOTT DISTRIBUTION SERVICES reported a 25 percent increase in operating profit on a modest decline in sales in the 1999 third quarter. 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 posted a 14 percent increase in sales in the 1999 third quarter. Operating profit was slightly lower in the quarter, primarily due to preopening and start-up costs associated with new properties. Marriott opened seven new senior living facilities during the 1999 third quarter, including five Brighton Gardens assisted living communities, and an independent full-service community in Stamford, Conn. The company now operates 131 senior living communities totaling 23,200 residential units. CORPORATE EXPENSES increased $5
million in the 1999 third quarter, primarily due to incremental systems-related
costs, including the company�s Year 2000 readiness program, as well as
noncash items related to investments generating significant income tax
benefits. Interest expense was up $6 million as a result of borrowings
to finance growth outlays and share repurchases. The company�s effective
income tax rate decreased to approximately 37.5 percent in 1999, compared
to 38.5 percent in the first three quarters of 1998.
MARRIOTT INTERNATIONAL, INC. is a leading worldwide hospitality company with over 1,900 operating units in the United States and 56 other countries and territories. 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. |
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