Marriott International Reports Fourth Quarter 2020 Results

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Feb 18, 2021

Marriott International Reports Fourth Quarter 2020 Results

BETHESDA, Md., Feb. 18, 2021 /PRNewswire/ --

  • Fourth quarter 2020 comparable systemwide constant dollar RevPAR declined 64.1 percent worldwide, 64.6 percent in the U.S. & Canada, and 62.7 percent in international markets, compared to the 2019 fourth quarter;
  • Fourth quarter reported diluted loss per share totaled $0.50, compared to reported diluted EPS of $0.85 in the year-ago quarter. Fourth quarter adjusted diluted EPS totaled $0.12, compared to fourth quarter 2019 adjusted diluted EPS of $1.51;
  • Fourth quarter reported net loss totaled $164 million, compared to reported net income of $279 million in the year-ago quarter. Fourth quarter adjusted net income totaled $39 million, compared to fourth quarter 2019 adjusted net income of $498 million;
  • Adjusted EBITDA totaled $317 million in the 2020 fourth quarter, compared to fourth quarter 2019 adjusted EBITDA of $901 million;
  • The company added nearly 63,000 rooms globally during 2020, including more than 28,000 rooms in international markets and a total of roughly 8,100 conversion rooms. Net rooms grew 3.1 percent from year-end 2019;
  • At year end, Marriott's worldwide development pipeline totaled nearly 2,900 properties and more than 498,000 rooms, including roughly 20,000 rooms approved, but not yet subject to signed contracts.  Over 229,000 rooms in the pipeline were under construction as of the end of 2020;
  • As of year-end 2020, the company's net liquidity totaled approximately $4.4 billion, representing roughly $0.8 billion in available cash balances and $3.6 billion of unused borrowing capacity under its revolving credit facility.

Marriott International, Inc. (NASDAQ: MAR) today reported fourth quarter 2020 results, which were materially impacted by the COVID-19 global pandemic and efforts to contain it (COVID-19).

Leeny Oberg, Executive Vice President and Chief Financial Officer, said, "We are all deeply saddened by Arne Sorenson's unexpected passing.  We are grateful to have been able to work with such an inspiring and talented leader and will always treasure our memories of working with him.  Our leadership team is committed to honoring him by building on his incredible legacy as we move the company forward."

Stephanie Linnartz, Group President, Consumer Operations, Technology and Emerging Businesses, and Tony Capuano, Group President, Global Development, Design and Operations Services, who together are sharing responsibility for overseeing the company's day-to-day operations until Marriott's Board of Directors appoints a new President and Chief Executive Officer, commented on the company's quarterly results.

Ms. Linnartz said, "With the global pandemic, 2020 was the most challenging year in our 93-year history.  In April, we experienced the sharpest worldwide RevPAR1 decline on record, down 90 percent year over year with just 12 percent occupancy.  Demand around the world improved from this trough at varying rates, with China leading the way.  RevPAR in mainland China saw a meaningful rebound through the year and was down less than 10 percent year over year in December.   

"While China has shown that demand can be quite resilient when the virus is perceived to be contained, we have also seen that progress can be slowed by significant spikes in virus cases, such as we saw in the U.S and Europe towards the end of 2020.  Global occupancy remained at 35 percent in the fourth quarter, in line with the third quarter, and still substantially above the trough in April.  While no one can know how long this pandemic will last, we are seeing some small, early signs that the acceleration of vaccine rollouts around the world will help drive a significant rebound in travel and lodging demand."

Mr. Capuano said, "We are gratified that we continue to see strong demand for our industry leading brands from owners and franchisees despite the unprecedented challenges resulting from the pandemic.  Our pipeline grew during the quarter to more than 498,000 rooms as of the end of 2020, with 46 percent of those rooms under construction.  We are seeing strong interest in conversions, as demonstrated by our recent announcement of the planned conversion of 19 all-inclusive hotels with nearly 7,000 rooms to our system in the Caribbean and Latin America region during 2021.  Looking ahead, we expect gross rooms growth could accelerate to approximately 6 percent in 2021.

"In the face of the unprecedented environment resulting from the pandemic, our associates and leadership team rose to the challenge.  We worked closely with our owners and franchisees to help them weather the crisis by implementing cost savings, both temporary and permanent.  And operationally we implemented heightened cleanliness standards across our portfolio to enhance the safety and wellbeing of our associates and guests, while also introducing additional protocols to help enable meeting and group business to safely take place."

Ms. Oberg added, "In 2020, we moved swiftly to right-size our business in response to the precipitous decline in revenue by reducing costs, strengthening our balance sheet, and lowering capital spending.  While the current environment remains challenging, we believe our financial condition is strong and we look ahead to the rest of 2021 with optimism."

Fourth Quarter 2020 Results
Marriott's reported operating loss totaled $128 million in the 2020 fourth quarter, compared to 2019 fourth quarter reported operating income of $274 million.  Reported net loss totaled $164 million in the 2020 fourth quarter, compared to 2019 fourth quarter reported net income of $279 million.  Reported diluted loss per share totaled $0.50 in the quarter, compared to reported diluted earnings per share (EPS) of $0.85 in the year-ago quarter.

Adjusted operating income in the 2020 fourth quarter totaled $148 million, compared to 2019 fourth quarter adjusted operating income of $717 million.  Adjusted operating income in the 2020 fourth quarter and the 2019 fourth quarter excluded impairment charges of $44 million and $114 million, respectively.

Fourth quarter 2020 adjusted net income totaled $39 million, compared to 2019 fourth quarter adjusted net income of $498 million.  Adjusted diluted EPS in the 2020 fourth quarter totaled $0.12, compared to adjusted diluted EPS of $1.51 in the year-ago quarter.  These 2020 fourth quarter adjusted results excluded $74 million ($0.23 per share) of income tax benefits due to the closure of prior years' audits.  The adjusted 2020 results also excluded impairment charges of $88 million after-tax ($0.27 per share) and loss on asset sales of $4 million after-tax ($0.01 per share).  

Adjusted results also excluded restructuring and merger-related charges, cost reimbursement revenue, and reimbursed expenses.  See pages A-3, A-4 and A-13 for the calculation of adjusted results and the manner in which the adjusted measures are determined in this press release.

Restructuring and merger-related charges totaled $262 million in the fourth quarter.  Charges in the fourth quarter of 2020 largely reflect a $243 million increase to the liability for the Sheraton Grand Chicago put option.

Base management and franchise fees totaled $379 million in the 2020 fourth quarter, compared to base management and franchise fees of $799 million in the year-ago quarter.  The year-over-year decline in these fees is primarily attributable to RevPAR declines related to COVID-19.  Other non-RevPAR related franchise fees in the 2020 fourth quarter of $133 million declined $24 million, or 15 percent, from the year-ago quarter, largely due to lower credit card branding fees.

Incentive management fees totaled $44 million in the 2020 fourth quarter, compared to incentive management fees of $175 million in the year-ago quarter.  The year-over-year decline in these fees is primarily attributable to lower net house profits at many hotels related to COVID-19.  More than 60 percent of the incentive management fees recognized in the quarter were earned at hotels in the Asia Pacific region, of which three-quarters were earned in Greater China.    

Contract investment amortization for the 2020 fourth quarter totaled $38 million, compared to $17 million in the year-ago quarter.  The year-over-year change largely reflects impairments of investments in management and franchise contracts.

Owned, leased, and other revenue, net of direct expenses, totaled a $27 million loss in the 2020 fourth quarter, compared to $92 million of profit in the year-ago quarter as a result of RevPAR declines related to COVID-19.

Depreciation, amortization, and other expenses for the 2020 fourth quarter totaled $71 million, compared to $179 million in the year-ago quarter.  The year-over-year change largely reflects $114 million of impairment charges recorded in the 2019 fourth quarter, partially offset by an $11 million impairment charge associated with a leased hotel in the U.S. recorded in the 2020 fourth quarter.

General, administrative, and other expenses for the 2020 fourth quarter totaled $183 million, compared to $267 million in the year-ago quarter.  The lower expenses in the 2020 fourth quarter largely reflect the company's COVID-19-related cost reduction efforts. 

Gains and other income, net, totaled $6 million, compared to $138 million in the year-ago quarter.  Gains and other income, net, in the 2019 fourth quarter primarily reflected $134 million of gains associated with the sales of two hotels in the U.S. and Canada.

Interest expense, net, totaled $105 million in the fourth quarter compared to $89 million in the year-ago quarter.  The increase is largely due to higher interest expense associated with new debt issuances.

Equity in losses for the fourth quarter totaled $87 million, largely reflecting impairment charges and the decline in results at joint venture properties due to COVID-19.

In the 2020 fourth quarter, the benefit for income taxes totaled $150 million, compared to the provision for income taxes of $47 million in the 2019 fourth quarter.  The 2020 fourth quarter benefit included $100 million related to the closure of pre-acquisition Starwood audits.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $317 million in the 2020 fourth quarter, compared to fourth quarter 2019 adjusted EBITDA of $901 million.  See page A-12 for the adjusted EBITDA calculation.

Selected Performance Information
The company added 109 new properties (17,780 rooms) to its worldwide lodging portfolio during the 2020 fourth quarter, including roughly 2,600 rooms converted from competitor brands and approximately 9,000 rooms in international markets.  Forty-six properties (8,011 rooms) exited the system during the quarter.  At year end, Marriott's global lodging system totaled more than 7,600 properties and timeshare resorts, with over 1,423,000 rooms.

At year end, the company's worldwide development pipeline totaled 2,881 properties with more than 498,000 rooms, including 1,187 properties with over 229,000 rooms under construction and 119 properties with roughly 20,000 rooms approved for development, but not yet subject to signed contracts.

In the 2020 fourth quarter, worldwide RevPAR declined 64.1 percent (a 63.9 percent decline using actual dollars).  RevPAR in the U.S. & Canada declined 64.6 percent (a 64.6 percent decline using actual dollars), and RevPAR in international markets declined 62.7 percent (a 62.2 percent decline using actual dollars).

Balance Sheet and Liquidity
At year-end 2020, Marriott's net debt was $9.5 billion, representing total debt of $10.4 billion less cash and cash equivalents of $0.9 billion.  At year-end 2019, the company's net debt was $10.7 billion, representing total debt of $10.9 billion less cash and cash equivalents of $0.2 billion.

The company's net liquidity was approximately $4.4 billion at year end, representing roughly $0.8 billion in available cash balances and $3.6 billion of unused borrowing capacity under its revolving credit facility.  During the fourth quarter, the company reduced its debt by more than $600 million.

The company halted share repurchases in February of 2020 and suspended its quarterly dividend beginning in the second quarter of 2020.

COVID-19
Due to the numerous uncertainties associated with COVID-19, Marriott cannot presently estimate the impact of this unprecedented situation on its future results, which is highly dependent on the severity and duration of the pandemic and its impacts, but expects that COVID-19 will continue to be material to the company's results. 

The company expects to provide additional information about the current impact of COVID-19 on its business on its call later this morning.

Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings review for the investment community and news media on Thursday, February 18, 2021 at 8:30 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 on "Events & Presentations" and click on the quarterly conference call link.  A replay will be available at that same website until February 17, 2022.

The telephone dial-in number for the conference call is 706-679-3455 and the conference ID is 2083356.  A telephone replay of the conference call will be available from 2:00 p.m. ET, Thursday, February 18, 2021 until 8:00 p.m. ET, Thursday, February 25, 2021.  To access the replay, call 404-537-3406.  The conference ID for the recording is 2083356.

Note on forward-looking statements:  All statements in this press release and the accompanying schedules are made as of February 18, 2021. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. This press release and the accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including statements related to the possible effects on our business of the COVID-19 pandemic and efforts to contain it (COVID-19); travel and lodging demand; future performance of the company's hotels; cost savings; demand for our brands; our development pipeline, rooms growth and conversions; leadership changes; 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 evolving risks and uncertainties that we may not be able to accurately predict or assess, including those we identify below and other risk factors that we identify in our Securities and Exchange Commission filings, including our most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K. Risks that could affect forward-looking statements in this press release include the duration and scope of COVID-19, including the availability and distribution of effective vaccines or treatments; its short and longer-term impact on the demand for travel, transient and group business, and levels of consumer confidence; actions governments, businesses and individuals have taken or may take in response to the pandemic, including limiting or banning travel and/or in-person gatherings or imposing occupancy or other restrictions on lodging or other facilities; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies, travel, and economic activity, including the duration and magnitude of its impact on unemployment rates and consumer discretionary spending; the ability of our owners and franchisees to successfully navigate the impacts of COVID-19; the pace of recovery when the pandemic subsides or effective treatments or vaccines become widely available; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the effects of steps we and our property owners and franchisees have taken and may continue to take to reduce operating costs and/or enhance certain health and cleanliness protocols at our hotels; the impacts of our employee furloughs and reduced work week schedules, our voluntary transition program and our other restructuring activities; competitive conditions in the lodging industry; relationships with customers and property owners; the availability of capital to finance hotel growth and refurbishment; the extent to which we experience adverse effects from data security incidents; and changes in tax laws in countries in which we earn significant income. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release.

Marriott International, Inc. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of more than 7,600 properties under 30 leading brands spanning 133 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company offers Marriott Bonvoy™, its highly-awarded travel program.  For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com.  In addition, connect with us on Facebook and @MarriottIntl on Twitter and Instagram.

Marriott may post updates about COVID-19 and other matters on its investor relations website at www.marriott.com/investor or Marriott's news center website at www.marriottnewscenter.com. Marriott encourages investors, the media, and others interested in the company to review and subscribe to the information Marriott posts on these websites, which may be material. The contents of these websites are not incorporated by reference into this press release or any report or document Marriott files with the SEC, and any references to the websites are intended to be inactive textual references only.

1 All occupancy and RevPAR statistics are comparable systemwide constant dollar and include hotels that have been temporarily closed due to COVID-19.  Unless otherwise stated, all changes refer to year-over-year changes for the comparable period. 

IRPR#1
Tables follow

MARRIOTT INTERNATIONAL, INC.

PRESS RELEASE SCHEDULES

TABLE OF CONTENTS

QUARTER 4, 2020









Consolidated Statements of Income - As Reported

A-1



Non-GAAP Financial Measures - Fourth Quarter and Full Year 2020 and 2019

A-3



Non-GAAP Financial Measures - 2020 Quarterly

A-4



Total Lodging Products

A-5



Key Lodging Statistics

A-8



Adjusted EBITDA

A-12



Explanation of Non-GAAP Financial and Performance Measures

A-13

 


MARRIOTT INTERNATIONAL, INC.


CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED


FOURTH QUARTER 2020 AND 2019


(in millions except per share amounts, unaudited)




















As Reported


As Reported


Percent




Three Months Ended


Three Months Ended


Better/(Worse)




December 31, 2020


December 31, 2019


Reported 2020 vs. 2019


REVENUES








Base management fees


$                                           102


$                                           298


(66)


Franchise fees 1


277


501


(45)


Incentive management fees


44


175


(75)


Gross Fee Revenues


423


974


(57)


Contract investment amortization 2


(38)


(17)


(124)


Net Fee Revenues


385


957


(60)


Owned, leased, and other revenue 3


123


426


(71)


Cost reimbursement revenue 4


1,664


3,988


(58)


  Total Revenues


2,172


5,371


(60)










OPERATING COSTS AND EXPENSES








Owned, leased, and other - direct 5


150


334


55


Depreciation, amortization, and other 6


71


179


60


General, administrative, and other 7


183


267


31


Restructuring and merger-related charges (recoveries)


262


(53)


(594)


Reimbursed expenses 4


1,634


4,370


63


  Total Expenses


2,300


5,097


55










OPERATING (LOSS) INCOME


(128)


274


(147)










Gains and other income, net 8


6


138


(96)


Interest expense


(112)


(95)


(18)


Interest income 


7


6


17


Equity in (losses) earnings 9


(87)


3


(3,000)










(LOSS) INCOME BEFORE INCOME TAXES


(314)


326


(196)










Benefit (provision) for income taxes


150


(47)


419










NET (LOSS) INCOME


$                                          (164)


$                                           279


(159)










(LOSS) EARNINGS PER SHARE








  (Loss) Earnings per share - basic


$                                         (0.50)


$                                          0.85


(159)


  (Loss) Earnings per share - diluted


$                                         (0.50)


$                                          0.85


(159)










Basic Shares


326.2


327.7




Diluted Shares 10


326.2


330.4











1

Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, and 


residential branding fees.

2

Contract investment amortization includes amortization of capitalized costs to obtain contracts with our owner and franchisee customers, and any related


impairments, accelerations, or write-offs.

3

Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue.

4

Cost reimbursement revenue includes reimbursements from properties for property-level and centralized programs and services that we operate for the benefit of 


our hotel owners. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services.

5

Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses.

6

Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of capitalized costs incurred to acquire management, franchise,


and license agreements, and any related impairments, accelerations, or write-offs.

7

General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses.

8

Gains and other income, net includes gains and losses on the sale of real estate, the sale of joint venture interests and other investments, and adjustments from 


other equity investments.

9

Equity in (losses) earnings include our equity in earnings or losses of unconsolidated equity method investments.

10

Basic and fully diluted weighted average shares outstanding used to calculate (loss) earnings per share for the period in which we had a loss are the same because 


inclusion of additional equivalents would be anti-dilutive.

 


MARRIOTT INTERNATIONAL, INC.


CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED


FOURTH QUARTER YEAR-TO-DATE 2020 AND 2019


(in millions except per share amounts, unaudited)




















As Reported


As Reported


Percent




Twelve Months Ended


Twelve Months Ended


Better/(Worse)




December 31, 2020


December 31, 2019


Reported 2020 vs. 2019


REVENUES








Base management fees


$                                           443


$                                        1,180


(62)


Franchise fees 1


1,153


2,006


(43)


Incentive management fees


87


637


(86)


Gross Fee Revenues


1,683


3,823


(56)


Contract investment amortization 2


(132)


(62)


(113)


Net Fee Revenues


1,551


3,761


(59)


Owned, leased, and other revenue 3


568


1,612


(65)


Cost reimbursement revenue 4


8,452


15,599


(46)


  Total Revenues


10,571


20,972


(50)










OPERATING COSTS AND EXPENSES








Owned, leased, and other - direct 5


677


1,316


49


Depreciation, amortization, and other 6


346


341


(1)


General, administrative, and other 7


762


938


19


Restructuring and merger-related charges 


267


138


(93)


Reimbursed expenses 4


8,435


16,439


49


  Total Expenses


10,487


19,172


45










OPERATING INCOME


84


1,800


(95)










Gains and other income, net 8


9


154


(94)


Interest expense


(445)


(394)


(13)


Interest income 


27


26


4


Equity in (losses) earnings 9


(141)


13


(1,185)










(LOSS) INCOME BEFORE INCOME TAXES


(466)


1,599


(129)










Benefit (provision) for income taxes


199


(326)


161










NET (LOSS) INCOME


$                                          (267)


$                                        1,273


(121)










(LOSS) EARNINGS PER SHARE








  (Loss) Earnings per share - basic


$                                         (0.82)


$                                          3.83


(121)


  (Loss) Earnings per share - diluted


$                                         (0.82)


$                                          3.80


(122)










Basic Shares


325.8


332.7




Diluted Shares 10


325.8


335.5











1

Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, and 


residential branding fees.

2

Contract investment amortization includes amortization of capitalized costs to obtain contracts with our owner and franchisee customers, and any related


impairments, accelerations, or write-offs.

3

Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue.

4

Cost reimbursement revenue includes reimbursements from properties for property-level and centralized programs and services that we operate for the benefit of 


our hotel owners. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services.

5

Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses.

6

Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of capitalized costs incurred to acquire management, franchise,


and license agreements, and any related impairments, accelerations, or write-offs.

7

General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses.

8

Gains and other income, net includes gains and losses on the sale of real estate, the sale of joint venture interests and other investments, and adjustments from 


other equity investments.

9

Equity in (losses) earnings include our equity in earnings or losses of unconsolidated equity method investments.

10

Basic and fully diluted weighted average shares outstanding used to calculate (loss) earnings per share for the period in which we had a loss are the same because 


inclusion of additional equivalents would be anti-dilutive.

 


MARRIOTT INTERNATIONAL, INC.


NON-GAAP FINANCIAL MEASURES - FOURTH QUARTER AND FULL YEAR 2020 AND 2019


($ in millions except per share amounts)















The following table presents our reconciliations of Adjusted operating income, Adjusted operating income margin, Adjusted net income, and Adjusted diluted earnings per share,


to the most directly comparable GAAP measure. Adjusted total revenues is used in the determination of Adjusted operating income margin.





























Three Months Ended 


Twelve Months Ended







Percent






Percent



December 31,


December 31,


Better/


December 31,


December 31,


Better/



2020


2019


(Worse)


2020


2019


(Worse)


Total revenues, as reported

$           2,172


$           5,371




$         10,571


$         20,972




Less: Cost reimbursement revenue

(1,664)


(3,988)




(8,452)


(15,599)




Add: Impairments 1

22


-




62


-




Adjusted total revenues**

530


1,383




2,181


5,373

















Operating (loss) income, as reported

(128)


274




84


1,800




Less: Cost reimbursement revenue

(1,664)


(3,988)




(8,452)


(15,599)




Add: Reimbursed expenses

1,634


4,370




8,435


16,439




Add (Less): Restructuring and merger-related charges (recoveries)

262


(53)




267


138




Add: Impairments2

44


114




201


114




Adjusted operating income **

148


717


-79%


535


2,892


-82%















Operating (loss) income margin

-6%


5%




1%


9%




Adjusted operating income margin **

28%


52%




25%


54%

















Net (loss) income, as reported

(164)


279




(267)


1,273




Less: Cost reimbursement revenue

(1,664)


(3,988)




(8,452)


(15,599)




Add: Reimbursed expenses

1,634


4,370




8,435


16,439




Add (Less): Restructuring and merger-related charges (recoveries)

262


(53)




267


138




Add: Impairments 3

113


114




278


114




Add (Less): Loss (gain) on asset dispositions 4

6


(134)




6


(143)




Income tax effect of above adjustments

(74)


(90)




(134)


(236)




Less: Income tax benefit due to audit closures

(74)


-




(74)


-




Adjusted net income **

$               39


$             498


-92%


$               59


$           1,986


-97%















Diluted (loss) earnings per share, as reported

$           (0.50)


$            0.85




$           (0.82)


$            3.80




Adjusted diluted earnings per share**

$            0.12


$            1.51


-92%


$            0.18


$            5.92


-97%














**

Denotes non-GAAP financial measures. Please see pages A-13 and A-14 for information about our reasons for providing these alternative financial measures and the


limitations on their use. 














1

Includes impairment charges reported in Contract investment amortization of $22 million and $62 million in the 2020 fourth quarter and 2020 full year, respectively.














2

Includes impairment charges reported in Contract investment amortization of $22 million and $62 million; and Depreciation, amortization, and other of $22 million and $139 million


in the 2020 fourth quarter and 2020 full year, respectively. Includes impairment charges reported in Depreciation, amortization, and other of $114 million in both the 2019


fourth quarter and 2019 full year.














3

Includes impairment charges reported in Contract investment amortization of $22 million and $62 million; Depreciation, amortization, and other of $22 million and $139 million;


Equity in earnings (losses) of $69 million and $77 million in the 2020 fourth quarter and 2020 full year, respectively. Includes impairment charges reported in Depreciation, amortization, 


and other of $114 million in both the 2019 fourth quarter and 2019 full year.














4

Loss (gain) on asset dispositions reported in Gains and other income, net.

 


MARRIOTT INTERNATIONAL, INC.


NON-GAAP FINANCIAL MEASURES - 2020 QUARTERLY


($ in millions except per share amounts)














The following table presents our reconciliations of Adjusted operating income (loss), Adjusted operating income (loss) margin, Adjusted net income (loss), and


Adjusted diluted earnings (loss) per share, to the most directly comparable GAAP measure. Adjusted total revenues is used in the determination of Adjusted


operating income (loss) margin.



























Fiscal Year 2020




First
Quarter


Second
Quarter


Third
Quarter


Fourth
Quarter


Total



Total revenues, as reported

$         4,681


$         1,464


$         2,254


$         2,172


$       10,571



Less: Cost reimbursement revenue

(3,797)


(1,202)


(1,789)


(1,664)


(8,452)



Add: Impairments 1

7


3


30


22


62



Adjusted total revenues**

891


265


495


530


2,181















Operating income (loss), as reported

114


(154)


252


(128)


84



Less: Cost reimbursement revenue

(3,797)


(1,202)


(1,789)


(1,664)


(8,452)



Add: Reimbursed expenses

3,877


1,241


1,683


1,634


8,435



(Less) Add: Restructuring and merger-related (recoveries) charges

(2)


6


1


262


267



Add: Impairments2

101


24


32


44


201



Adjusted operating income (loss) **

293


(85)


179


148


535















Operating income (loss) margin

2%


-11%


11%


-6%


1%



Adjusted operating income (loss) margin **

33%


-32%


36%


28%


25%















Net income (loss), as reported

31


(234)


100


(164)


(267)



Less: Cost reimbursement revenue

(3,797)


(1,202)


(1,789)


(1,664)


(8,452)



Add: Reimbursed expenses

3,877


1,241


1,683


1,634


8,435



(Less) Add: Restructuring and merger-related (recoveries) charges

(2)


6


1


262


267



Add: Impairments 3

101


32


32


113


278



Add: Loss on asset dispositions4

-


-


-


6


6



Income tax effect of above adjustments

(50)


(27)


17


(74)


(134)



Less: Income tax benefit due to audit closures

-


-


-


(74)


(74)



Adjusted net income (loss) **

$            160


$           (184)  


$             44


$             39


$             59















Diluted earnings (loss) per share, as reported

$           0.09


$          (0.72)


$           0.31


$          (0.50)


$          (0.82)



Adjusted diluted earnings (loss) per share**

$           0.49


$          (0.57)


$           0.13


$           0.12


$           0.18














**

Denotes non-GAAP financial measures. Please see pages A-13 and A-14 for information about our reasons for providing these alternative financial measures 


and the limitations on their use. 













1

Includes impairment charges reported in Contract investment amortization of $7 million, $3 million, $30 million, $22 million and $62 million in the first quarter,


second quarter, third quarter, fourth quarter and full year, respectively.













2

Includes impairment charges reported in Contract investment amortization of $7 million, $3 million, $30 million, $22 million and $62 million; and Depreciation, 


amortization, and other of $94 million, $21 million, $2 million, $22 million and $139 million in the first quarter, second quarter, third quarter, fourth quarter


and full year, respectively.













3

Includes impairment charges reported in Contract investment amortization of $7 million, $3 million, $30 million, $22 million and $62 million; Depreciation,


amortization, and other of $94 million, $21 million, $2 million, $22 million and $139 million; and Equity in earnings (losses) of $0 million, $8 million, $0 million,


$69 million and $77 million in the first quarter, second quarter, third quarter, fourth quarter and full year, respectively.













4

Loss on asset dispositions reported in Gains and other income, net.

 

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of December 31, 2020









US & Canada

Total International

Total Worldwide


Units

Rooms

Units

Rooms

Units

Rooms

Managed

733

234,576

1,266

326,159

1,999

560,735

Marriott Hotels

115

62,212

178

51,890

293

114,102

Marriott Hotels Serviced Apartments

-

-

1

154

1

154

Sheraton

28

23,609

189

63,573

217

87,182

Courtyard

220

34,988

105

22,812

325

57,800

Westin

41

22,349

72

21,924

113

44,273

JW Marriott

21

12,711

61

22,581

82

35,292

Renaissance

24

10,607

59

18,402

83

29,009

The Ritz-Carlton

38

11,404

63

16,175

101

27,579

The Ritz-Carlton Serviced Apartments

-

-

5

713

5

713

Le Méridien

2

160

71

20,314

73

20,474

Four Points

1

134

80

21,892

81

22,026

Residence Inn

108

16,344

6

701

114

17,045

W Hotels

22

6,403

32

8,445

54

14,848

W Hotels Serviced Apartments

-

-

1

160

1

160

The Luxury Collection

6

2,296

50

9,084

56

11,380

Gaylord Hotels

6

9,918

-

-

6

9,918

St. Regis

10

1,968

34

7,819

44

9,787

Aloft

1

330

39

8,957

40

9,287

St. Regis Serviced Apartments

-

-

1

70

1

70

AC Hotels by Marriott

5

901

67

8,180

72

9,081

Delta Hotels

25

6,770

1

360

26

7,130

Fairfield by Marriott

7

1,539

42

6,074

49

7,613

SpringHill Suites

30

4,896

-

-

30

4,896

Marriott Executive Apartments

-

-

33

4,812

33

4,812

Autograph Collection

8

2,335

14

2,200

22

4,535

Protea Hotels

-

-

32

3,911

32

3,911

EDITION

4

1,209

7

1,488

11

2,697

TownePlace Suites

10

1,313

-

-

10

1,313

Element

1

180

8

1,690

9

1,870

Moxy

-

-

5

887

5

887

Tribute Portfolio

-

-

5

453

5

453

Bulgari

-

-

5

438

5

438

Franchised

4,716

676,773

676

137,726

5,392

814,499

Courtyard

819

109,111

91

16,700

910

125,811

Fairfield by Marriott

1,054

98,362

29

5,089

1,083

103,451

Residence Inn

745

88,737

13

1,566

758

90,303

Marriott Hotels

223

70,452

60

17,745

283

88,197

Sheraton

155

46,636

66

18,808

221

65,444

SpringHill Suites

458

52,694

-

-

458

52,694

TownePlace Suites

436

44,007

-

-

436

44,007

Westin

88

29,283

23

7,171

111

36,454

Autograph Collection

115

23,114

65

12,199

180

35,313

Four Points

157

23,702

57

9,215

214

32,917

Renaissance

62

17,956

28

7,691

90

25,647

Aloft

133

19,289

19

3,074

152

22,363

AC Hotels by Marriott

68

11,436

36

6,412

104

17,848

Moxy

21

4,149

48

9,499

69

13,648

Delta Hotels

52

11,456

7

1,706

59

13,162

The Luxury Collection

11

2,794

48

8,863

59

11,657

Le Méridien

20

4,588

16

4,225

36

8,813

JW Marriott

13

5,947

6

1,624

19

7,571

Element

54

7,207

2

293

56

7,500

Tribute Portfolio

26

4,571

17

1,947

43

6,518

Protea Hotels

-

-

36

2,949

36

2,949

Design Hotels

5

853

7

799

12

1,652

The Ritz-Carlton

1

429

-

-

1

429

Bulgari

-

-

1

85

1

85

Marriott Executive Apartments

-

-

1

66

1

66

 

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of December 31, 2020









US & Canada

Total International

Total Worldwide


Units

Rooms

Units

Rooms

Units

Rooms

Owned/Leased

26

6,483

40

9,417

66

15,900

Courtyard

19

2,814

4

894

23

3,708

Marriott Hotels

2

1,308

6

2,064

8

3,372

Sheraton

-

-

4

1,830

4

1,830

W Hotels

2

779

2

665

4

1,444

Protea Hotels

-

-

6

991

6

991

Westin

1

1,073

-

-

1

1,073

Renaissance

1

317

2

505

3

822

Autograph Collection1

-

-

7

705

7

705

The Ritz-Carlton

-

-

2

550

2

550

JW Marriott

-

-

1

496

1

496

The Luxury Collection2

-

-

4

417

4

417

Residence Inn

1

192

1

140

2

332

St. Regis

-

-

1

160

1

160

Residences

59

6,258

35

2,897

94

9,155

The Ritz-Carlton Residences

35

4,064

11

938

46

5,002

W Residences

10

1,089

4

359

14

1,448

St. Regis Residences

8

703

7

598

15

1,301

Bulgari Residences

-

-

5

514

5

514

Westin Residences

3

266

-

-

3

266

The Luxury Collection Residences

1

91

3

115

4

206

Marriott Hotels Residences

-

-

2

246

2

246

Autograph Collection Residences

-

-

1

62

1

62

Sheraton Residences

-

-

1

50

1

50

EDITION Residences

2

45

-

-

2

45

Le Méridien Residences

-

-

1

15

1

15

Timeshare*

72

18,905

19

3,850

91

22,755

Grand Total

5,606

942,995

2,036

480,049

7,642

1,423,044








*Timeshare property and room counts are included on this table in their geographical locations.  For external reporting purposes,
these counts are captured in the Corporate segment.

1 Includes five properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-
brand under the Autograph Collection brand following the completion of planned renovations.

2 Includes two properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-
brand under The Luxury Collection brand following the completion of planned renovations.

 

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of December 31, 2020









US & Canada

Total International

Total Worldwide

Total Systemwide

Units

Rooms

Units

Rooms

Units

Rooms

Luxury

184

51,932

354

82,357

538

134,289

JW Marriott

34

18,658

68

24,701

102

43,359

The Ritz-Carlton

39

11,833

65

16,725

104

28,558

The Ritz-Carlton Residences

35

4,064

11

938

46

5,002

The Ritz-Carlton Serviced Apartments

-

-

5

713

5

713

The Luxury Collection1

17

5,090

102

18,364

119

23,454

The Luxury Collection Residences

1

91

3

115

4

206

W Hotels

24

7,182

34

9,110

58

16,292

W Residences

10

1,089

4

359

14

1,448

W Hotels Serviced Apartments

-

-

1

160

1

160

St. Regis

10

1,968

35

7,979

45

9,947

St. Regis Residences

8

703

7

598

15

1,301

St. Regis Serviced Apartments

-

-

1

70

1

70

EDITION

4

1,209

7

1,488

11

2,697

EDITION Residences

2

45

-

-

2

45

Bulgari

-

-

6

523

6

523

Bulgari Residences

-

-

5

514

5

514

Full-Service

1,002

349,833

937

261,916

1,939

611,749

Marriott Hotels

340

133,972

244

71,699

584

205,671

Marriott Hotels Residences

-

-

2

246

2

246

Marriott Hotels Serviced Apartments

-

-

1

154

1

154

Sheraton

183

70,245

259

84,211

442

154,456

Sheraton Residences

-

-

1

50

1

50

Westin

130

52,705

95

29,095

225

81,800

Westin Residences

3

266

-

-

3

266

Renaissance

87

28,880

89

26,598

176

55,478

Autograph Collection2

123

25,449

86

15,104

209

40,553

Autograph Collection Residences

-

-

1

62

1

62

Le Méridien

22

4,748

87

24,539

109

29,287

Le Méridien Residences

-

-

1

15

1

15

Delta Hotels

77

18,226

8

2,066

85

20,292

Gaylord Hotels

6

9,918

-

-

6

9,918

Tribute Portfolio

26

4,571

22

2,400

48

6,971

Marriott Executive Apartments

-

-

34

4,878

34

4,878

Design Hotels

5

853

7

799

12

1,652

Limited-Service

4,348

522,325

726

131,926

5,074

654,251

Courtyard

1,058

146,913

200

40,406

1,258

187,319

Fairfield by Marriott

1,061

99,901

71

11,163

1,132

111,064

Residence Inn

854

105,273

20

2,407

874

107,680

SpringHill Suites

488

57,590

-

-

488

57,590

Four Points

158

23,836

137

31,107

295

54,943

TownePlace Suites

446

45,320

-

-

446

45,320

Aloft

134

19,619

58

12,031

192

31,650

AC Hotels by Marriott

73

12,337

103

14,592

176

26,929

Moxy

21

4,149

53

10,386

74

14,535

Element

55

7,387

10

1,983

65

9,370

Protea Hotels

-

-

74

7,851

74

7,851

Timeshare*

72

18,905

19

3,850

91

22,755

Grand Total

5,606

942,995

2,036

480,049

7,642

1,423,044


*Timeshare property and room counts are included on this table in their geographical locations.  For external reporting purposes,
these counts are captured in the Corporate segment.

1 Includes two properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-
brand under The Luxury Collection brand following the completion of planned renovations.

2 Includes five properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-
brand under the Autograph Collection brand following the completion of planned renovations.

   

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $












Comparable Company-Operated US & Canada Properties














Three Months Ended December 31, 2020 and December 31, 2019



REVPAR


Occupancy


Average Daily Rate

Brand


2020

 vs. 2019


2020

 vs. 2019


2020

 vs. 2019

JW Marriott


$52.85

-74.7%


21.2%

-54.0%

pts.


$249.73

-10.0%

The Ritz-Carlton


$119.92

-61.6%


29.0%

-43.5%

pts.


$413.27

-3.9%

W Hotels


$47.52

-78.1%


23.6%

-52.0%

pts.


$201.02

-30.0%

Composite US & Canada Luxury1


$85.79

-68.4%


25.1%

-49.7%

pts.


$342.01

-5.8%

Marriott Hotels


$24.28

-83.1%


18.6%

-54.4%

pts.


$130.44

-33.9%

Sheraton


$23.41

-85.5%


16.1%

-59.2%

pts.


$145.49

-32.4%

Westin


$32.23

-80.5%


22.5%

-53.1%

pts.


$143.53

-34.4%

Composite US & Canada Premium2


$26.53

-82.2%


18.6%

-55.1%

pts.


$142.73

-29.3%

US & Canada Full-Service3


$38.27

-77.9%


19.9%

-54.1%

pts.


$192.53

-17.8%

Courtyard


$27.87

-70.2%


31.2%

-36.4%

pts.


$89.43

-35.5%

Residence Inn


$58.26

-50.7%


49.0%

-26.4%

pts.


$118.99

-24.0%

Composite US & Canada Limited-Service4


$35.79

-64.8%


35.6%

-35.0%

pts.


$100.42

-30.3%

US & Canada - All5


$37.47

-75.0%


24.9%

-47.9%

pts.


$150.24

-27.1%























Comparable Systemwide US & Canada Properties