-
Third Quarter EPS of $0.43, Up 19% from $0.36 a Year Ago
-
Full-Service Domestic REVPAR Growth a Very Strong 9.8%
WASHINGTON DC - September 27, 2000 - Marriott today reported diluted
earnings per share of $0.43 for the third quarter ended September 8, 2000,
up 19 percent from $0.36 in 1999. Net income increased 15 percent
over the prior year�s third quarter to $110 million. Reported sales
totaled $2.3 billion, up 15 percent compared to the 1999 third quarter.
J.W. Marriott, Jr., chairman and chief executive officer of Marriott
International, said the company�s third quarter operating results were
outstanding. �Revenues per available room growth for the quarter
were the strongest we�ve seen in 3 years. The number of business
and leisure travelers staying at Marriott brands reached record levels
this summer, reflecting a continued strong economy in the U.S. and improving
economic conditions in Asia.
�Equally impressive, our year-to-date growth rate in room openings is
nearly triple the U.S. industry average, according to the latest Smith
Travel Research data. In total, we expect to open 37,000 to 39,000
rooms in 2000,� he continued.
MARRIOTT LODGING reported a 20 percent increase in operating
profit on 12 percent sales growth in the 2000 third quarter. Results
reflect gains in both room rates and occupancy, as well as stronger house
profit margins. Lodging profit also benefited from contributions
from new properties worldwide and higher interval sales for vacation ownership
resorts. International lodging profits also increased, reflecting
strong demand in the Middle East, Asia, and Europe, offset by the lower
value of the Euro.
Across all of Marriott�s lodging brands, REVPAR for comparable company
- operated U.S. properties increased 8.5 percent in the 2000 third quarter,
reflecting strength in both transient and group demand. Results in
New York, Boston, Chicago and California were particularly strong.
Among the company�s full-service lodging brands (Marriott, Renaissance
and Ritz-Carlton), domestic REVPAR increased 9.8 percent. Average
room rates for these hotels rose by 8.0 percent, while occupancy increased
more than one full percentage point to 79.7 percent. REVPAR
for select service and extended stay properties was up 5.9 percent, driven
by an increase in average room rates of 4.9 percent and occupancy nearly
one percentage point higher than last year.
Marriott Vacation Club International�s contract sales surged 55 percent
in the third quarter, benefiting from new brands and locations, as well
as higher tour flow and prices at existing locations. Marriott Vacation
Club resorts in Maui, Aruba, Newport Coast, and Ritz-Carlton Club�s new
resort in Aspen, reported particularly strong results. At the end
of the quarter, 20 resorts were in active sales, 25 resorts were sold-out,
and an additional 4 resorts were under development.
Marriott International added 221 hotels and timeshare resorts
(34,442 rooms) to its worldwide lodging portfolio over the past 12 months,
while 23 properties (5,889 rooms) exited the system. A net total of 48
hotels and resorts (6,307 rooms) were added in the 2000 third quarter.
Conversions from other brands represented over 20 percent of the gross
room additions during the quarter, including nine former Swallow hotels
converted to the Marriott brand in the U.K.
Last week, Marriott announced that, at the end of its third quarter,
the company had more than 70,000 rooms under construction or approved for
development. Approximately 20 percent of these rooms are outside
the United States. Marriott plans to open at least 175,000
rooms across its lodging brands over a five-year period (1999-2003).
At quarter-end, about 75% of the planned rooms had opened or were in the
70,000 rooms pipeline.
MARRIOTT DISTRIBUTION SERVICES reported a 36 percent increase
in sales in the 2000 third quarter, benefiting from the addition of three
large restaurant chains to its customer base since the beginning of the
year. Profits were flat compared to the prior year, however, reflecting
start-up inefficiencies of a new distribution facility and the added business.
MARRIOTT SENIOR LIVING SERVICES posted 20 percent sales growth
and an operating loss of $5 million in the 2000 third quarter. Occupancy
for comparable communities was 88 percent in the quarter. Marriott
Senior Living Services opened two communities during the third quarter
and now operates 151 facilities totaling 25,544 residential units.
CORPORATE EXPENSES decreased three percent in the 2000 third
quarter due to 1999�s higher systems development expenses to support Y2K
efforts. Interest expense was up $10 million to $22 million as a
result of borrowings to finance growth and share repurchases, as well as
higher interest rates. Marriott International acquired 10.4 million
shares of its common stock year-to-date and 700,000 shares during the 2000
third quarter. The company is authorized to repurchase an additional 20.1
million shares.
In 2000, the company expects total asset sales of roughly twice 1999
levels, or approximately $870 million (29 hotels and 15 senior living communities),
of which $650 million (19 hotels and 15 senior living communities) have
been completed through September 27, 2000. In each instance, the
company has retained rights to manage the properties under long-term agreements.
The company�s effective income tax rate decreased to approximately 37.0
percent in the third quarter of 2000, compared to 37.5 percent in the 1999
third quarter.
MARRIOTT INTERNATIONAL,
INC.
KEY LODGING STATISTICS
Third Quarter Year-to-Date 2000
Brand
|
REVPAR
vs. 1999
|
Occupancy 2000
|
Occupancy vs. 1999
|
Average Daily Rate 2000
|
Averate Daily Rate vs. 1999
|
Marriott Hotels, Resorts and Suites |
+ 6.6% |
79.6% |
+ 0.5 pts |
$146.88 |
+ 6.0% |
Ritz-Carlton |
+10.0 % |
80.4% |
+ 0.6 pts |
$240.87 |
+ 9.2% |
Renaissance Hotels and Resorts |
+ 7.9% |
75.1% |
+ 2.3 pts |
$140.09 |
+ 4.5% |
Residence Inn |
+ 5.4% |
84.8% |
+ 0.7 pts |
$104.52 |
+ 4.6% |
Courtyard |
+ 4.9% |
80.3% |
- 0.1 pts |
$97.04 |
+ 5.0% |
Fairfield Inn |
+ 2.3% |
72.1% |
- 1.0 pts |
$61.45 |
+ 3.8% |
Note: Statistics for above tables are based
on comparable company-
operated U.S. properties, except for Fairfield Inn, which
also includes franchised units.
MARRIOTT INTERNATIONAL, INC. (NYSE: MAR) is a leading worldwide hospitality
company with over 2,000 operating units in the United States and 58 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 future years, asset
sales during the remainder of the year, business strategies and their intended
results, and similar statements concerning anticipated future events and
expectations that are not historical facts. |