Document
false0001048286MARRIOTT INTERNATIONAL INC /MD/ 0001048286 2020-02-26 2020-02-26 0001048286 exch:XNGS 2020-02-26 2020-02-26 0001048286 exch:XCHI 2020-02-26 2020-02-26
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________ 
FORM 8-K
_______________________________________  
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 26, 2020
 _______________________________________ 
MARRIOTT INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
 _______________________________________ 
Delaware
 
1-13881
 
52-2055918
(State or other jurisdiction
of incorporation)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
 
 
 
 
 
 
 
10400 Fernwood Road,
Bethesda,
Maryland
 
 
 
20817
(Address of principal executive offices)
 
 
 
(Zip Code)
Registrant’s telephone number, including area code: (301380-3000
 _______________________________________ 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
 
Trading Symbol(s)
 
Name of Each Exchange on Which Registered
Class A Common Stock, $0.01 par value
 
MAR
 
Nasdaq Global Select Market
Class A Common Stock, $0.01 par value
 
MAR
 
Chicago Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 




Item 2.02.
Results of Operations and Financial Condition.
Financial Results for the Quarter and Year Ended December 31, 2019
Marriott International, Inc. (Marriott) issued a press release reporting financial results for the quarter and year ended December 31, 2019.
A copy of Marriott’s press release is attached as Exhibit 99 and incorporated by reference.

Item 9.01.
Financial Statements and Exhibits.

(d) Exhibits. The following exhibit is furnished with this report:
Exhibit 99
 
 
104
The cover page to this Current Report on Form 8-K, formatted in inline XBRL.


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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MARRIOTT INTERNATIONAL, INC.
 
 
 
 
 
Date: February 26, 2020
 
 
 
 
 
By: 
 
/s/ Bao Giang Val Bauduin
 
 
 
 
 
 
 
 
Bao Giang Val Bauduin
 
 
 
 
 
 
 
 
Controller and Chief Accounting Officer


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Exhibit
Exhibit 99


https://cdn.kscope.io/993152585463fd76cb1552bbadbf1710-marq42018pr_image1a01.jpg    https://cdn.kscope.io/993152585463fd76cb1552bbadbf1710-marq42018pr_image2a01.jpg
 
NEWS

CONTACT: Brendan McManus
(301) 380-4495
brendan.mcmanus@marriott.com


MARRIOTT INTERNATIONAL REPORTS FOURTH QUARTER 2019 RESULTS

HIGHLIGHTS

Fourth quarter reported diluted EPS totaled $0.85, compared to $0.92 in the year-ago quarter. Fourth quarter adjusted diluted EPS totaled $1.57, compared to fourth quarter 2018 adjusted diluted EPS of $1.44. Reported and adjusted diluted EPS for the 2019 fourth quarter included the benefit of $0.32 of asset sale gains, partially offset by $0.26 of asset impairments. Reported and adjusted diluted EPS for the 2018 fourth quarter included the benefit of $0.02 of asset sale gains;

Fourth quarter 2019 comparable systemwide constant dollar RevPAR rose 1.1 percent worldwide, with 1.5 percent growth outside North America and 0.9 percent growth in North America;

Worldwide comparable systemwide RevPAR index grew 240 basis points in the fourth quarter;

Fourth quarter reported net income totaled $279 million, a 12 percent decrease from prior year results. Fourth quarter adjusted net income totaled $517 million, a 4 percent increase from prior year adjusted results;

Adjusted EBITDA totaled $901 million in the 2019 fourth quarter, a 4 percent increase compared to fourth quarter 2018 adjusted EBITDA;

Full year 2019 reported diluted EPS totaled $3.80, compared to $5.38 in the prior year. Full year 2019 adjusted diluted EPS totaled $6.00, compared to $6.21 in the prior year. Reported and adjusted diluted EPS for 2019 included the benefit of $0.33 of asset sale gains partially offset by $0.25 of asset impairments. Reported and adjusted diluted EPS for 2018 included the benefit of $0.66 and $0.65 of asset sale gains, respectively;

Full year 2019 comparable systemwide constant dollar RevPAR rose 1.3 percent worldwide, with 2.2 percent growth outside North America and 1.0 percent growth in North America;

The company added more than 78,000 rooms globally during 2019, including roughly 14,300 rooms converted from competitor brands and approximately 34,000 rooms in international markets;


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At year-end 2019, Marriott’s worldwide development pipeline totaled nearly 3,050 hotels and approximately 515,000 rooms, including roughly 23,000 rooms approved, but not yet subject to signed contracts. Over 220,000 rooms in the pipeline were under construction at the end of 2019;

For full year 2019, Marriott repurchased 17.3 million shares of the company’s common stock for $2.3 billion, including 3.1 million shares for $432 million in the fourth quarter.

BETHESDA, MD - February 26, 2020 - Marriott International, Inc. (NASDAQ: MAR) today reported solid fourth quarter 2019 results.

Arne M. Sorenson, president and chief executive officer of Marriott International, said, “We are pleased with our performance in 2019.   We grew rooms nearly 5 percent, achieved record RevPAR index gains, drove higher guest satisfaction scores, and maintained global hotel profit margins in a low RevPAR growth environment.  Our fee-driven, asset light business model and successful asset recycling continued to generate significant excess cash, allowing us to return a total of $2.9 billion to shareholders during the year.

“Marriott Bonvoy is driving market share at our hotels by leveraging our industry-leading distribution and powerful brand portfolio.  Loyalty members accounted for 52 percent of occupied rooms in 2019, a 250-basis point increase year over year.  Our worldwide systemwide RevPAR index for comparable hotels increased 200 basis points in 2019 and rose 240 basis points in the fourth quarter alone.  We are increasing our market share of rooms as well, with record signings in 2019 taking our development pipeline to approximately 515,000 rooms at year-end. 

“Our thoughts are with everyone impacted by the Coronavirus situation. I am particularly proud of our Asia Pacific team as they assist affected customers and fellow associates. To date, the crisis has primarily affected our Asia Pacific region.

“Given the fluid nature of the situation, we have not reflected the impact from the outbreak in our base case outlook for this year. For full year 2020, our base case outlook assumes comparable systemwide RevPAR on a constant dollar basis will be flat to up 2 percent, with RevPAR growth in North America around the middle of that range. We assume net rooms additions of 5 to 5.25 percent in 2020.

“Given those assumptions, our base case assumes gross fee revenues in 2020 could total $4 billion, a 5 percent increase compared to 2019. However, assuming the current low occupancy rates in the Asia

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Pacific region continue, with no meaningful impact outside the region, we estimate the company could earn roughly $25 million in lower fee revenue per month, compared to our 2020 base case outlook.”

Fourth Quarter 2019 Results
Marriott’s reported operating income totaled $274 million in the 2019 fourth quarter, compared to 2018 fourth quarter reported operating income of $422 million. Reported net income totaled $279 million in the 2019 fourth quarter, compared to 2018 fourth quarter reported net income of $317 million. Reported diluted earnings per share (EPS) totaled $0.85 in the quarter, compared to reported diluted EPS of $0.92 in the year-ago quarter.

Adjusted operating income in the 2019 fourth quarter totaled $603 million, compared to 2018 fourth quarter adjusted operating income of $680 million. Adjusted operating income in the 2019 fourth quarter includes impairment charges of $114 million in depreciation, amortization, and other expenses.

Fourth quarter 2019 adjusted net income totaled $517 million, compared to 2018 fourth quarter adjusted net income of $497 million.  Adjusted diluted EPS in the fourth quarter totaled $1.57, compared to adjusted diluted EPS of $1.44 in the year-ago quarter.  Results for the 2019 fourth quarter include the benefit of $134 million pretax ($0.32 per share) of asset sale gains in gains and other income, net, partially offset by $114 million pretax ($0.26 per share) of impairment charges in depreciation, amortization, and other expenses. Results for the 2018 fourth quarter include a $6 million pretax ($0.02 per share) asset sale gain in gains and other income, net. Adjusted results exclude merger-related costs and charges, cost reimbursement revenue, and reimbursed expenses. See page A-3 for the 2019 adjusted diluted EPS calculation.

Base management and franchise fees totaled $799 million in the 2019 fourth quarter, an 8 percent increase over base management and franchise fees of $743 million in the year-ago quarter. The year-over-year increase in these fees is primarily attributable to rooms growth, RevPAR growth, and higher credit card branding fees.

Fourth quarter 2019 incentive management fees totaled $175 million, a 5 percent increase compared to incentive management fees of $167 million in the year-ago quarter. The year-over-year increase largely reflects new units and higher net house profits at managed hotels in North America and Europe, partially offset by lower net house profits in Hong Kong.


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Depreciation, amortization, and other expenses for the 2019 fourth quarter totaled $179 million, compared to $62 million in the year-ago quarter. The year-over-year change largely reflects a $99 million impairment charge associated with a leased hotel in North America and a $15 million impairment charge related to the sale of a hotel in North America.

General, administrative, and other expenses for the 2019 fourth quarter totaled $267 million, compared to $242 million in the year-ago quarter. The year-over-year change largely reflects an increase in development and legal costs, higher bad debt expense, and unfavorable foreign exchange.

In the 2019 fourth quarter, the company incurred $14 million of expenses and recognized $7 million of insurance recoveries related to the data security incident it disclosed on November 30, 2018. The expenses and insurance recoveries are reflected in either the reimbursed expenses or merger-related costs and charges lines of the Income Statement, both of which have been excluded from adjusted net income, adjusted EPS and adjusted EBITDA.

Based on the ongoing proceeding involving the U.K. Information Commissioner’s Office (ICO), in the fourth quarter the company also reduced to $65 million the non-tax deductible accrual recorded in the second quarter of 2019 for the fine proposed by ICO in July 2019 in relation to the data security incident. The reduction of the accrual is reflected in the merger-related costs and charges line of the Income Statement, which has been excluded from adjusted net income, adjusted EPS and adjusted EBITDA.

Gains and other income, net, totaled $138 million, compared to $3 million in the year-ago quarter. Gains and other income, net, in the 2019 fourth quarter primarily reflects $134 million of gains associated with the sales of two hotels in North America.

Fourth Quarter 2019 Results Compared to November 5, 2019 Guidance
On November 5, 2019, the company estimated gross fee revenues would total $960 million to $970 million in the fourth quarter. Actual gross fee revenues totaled $974 million in the quarter, largely reflecting higher than expected incentive management fees in North America.

The company estimated owned, leased, and other revenue, net of direct expenses, for the fourth quarter would total approximately $85 million. Actual results of $92 million in the quarter were higher than estimated, largely due to higher termination fees.


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The company estimated depreciation, amortization, and other expenses for the fourth quarter would total approximately $55 million. Actual expenses of $179 million in the quarter were higher than estimated, largely due to asset impairments of $114 million and contract write-offs related to terminated hotels.

The company estimated general, administrative, and other expenses for the fourth quarter would total $250 million to $255 million. Actual expenses of $267 million in the quarter were higher than estimated, largely due to legal costs, bad debt expenses, and foreign exchange.

Selected Performance Information
The company added 173 new properties (25,399 rooms) to its worldwide lodging portfolio during the 2019 fourth quarter, including W Ibiza in Spain, JW Marriott Maldives, and North Island, a Luxury Collection Resort, Seychelles. Twenty-nine properties (6,400 rooms) exited the system during the quarter. At year-end, Marriott’s global lodging system totaled more than 7,300 properties and timeshare resorts, with roughly 1,380,000 rooms.

At year-end, the company’s worldwide development pipeline totaled 3,039 properties with approximately 515,000 rooms, including 1,207 properties with over 220,000 rooms under construction and 133 properties with roughly 23,000 rooms approved for development, but not yet subject to signed contracts.

In the 2019 fourth quarter, worldwide comparable systemwide constant dollar RevPAR increased 1.1 percent (a 0.8 percent increase using actual dollars). North American comparable systemwide constant dollar RevPAR increased 0.9 percent (a 0.9 percent increase using actual dollars), and international comparable systemwide constant dollar RevPAR increased 1.5 percent (a 0.6 percent increase using actual dollars) for the same period.

Worldwide comparable company-operated house profit margins increased 20 basis points in the fourth quarter, reflecting the impact of solid cost controls and synergies from the Starwood acquisition, partially offset by modest RevPAR growth and higher wages. House profit margins for international comparable company-operated properties increased 30 basis points and North American comparable company-operated house profit margins increased 10 basis points in the fourth quarter.

For full year 2019, worldwide comparable systemwide constant dollar RevPAR increased 1.3 percent (a 0.4 percent increase using actual dollars). North American comparable systemwide constant dollar RevPAR increased 1.0 percent (a 0.9 percent increase using actual dollars), and international comparable

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systemwide constant dollar RevPAR increased 2.2 percent (a 1.0 percent decrease using actual dollars) for the same period.

Worldwide comparable company-operated house profit margins were flat for full year 2019, largely due to solid cost controls and synergies from the Starwood acquisition, offset by modest RevPAR growth and higher wages. House profit margins for comparable company-operated properties outside North America rose 20 basis points and North American comparable company-operated house profit margins decreased 20 basis points year over year.

Balance Sheet
At year-end, Marriott’s total debt was $10.94 billion and cash balances totaled $225 million, compared to $9.347 billion in debt and $316 million of cash at year-end 2018.

Marriott Common Stock
Weighted average fully diluted shares outstanding used to calculate both reported and adjusted diluted EPS totaled 330.4 million in the 2019 fourth quarter, compared to 345.7 million shares in the year-ago quarter.

The company repurchased 3.1 million shares of common stock in the 2019 fourth quarter for $432 million at an average price of $140.00 per share. For full year 2019, Marriott repurchased 17.3 million shares for $2.3 billion at an average price of $130.79 per share. Year to date through February 25, the company has repurchased 1.0 million shares for $150 million at an average price of $145.42 per share.

Coronavirus
Due to the uncertainty regarding the duration and extent of the Coronavirus outbreak, Marriott cannot fully estimate the financial impact from the virus, which could be material to first quarter and full year 2020 results. As such, the company is providing a base case outlook for the first quarter and full year 2020, which does not reflect any impact from the outbreak.

Assuming the current low occupancy rates in the Asia Pacific region continue, with no meaningful impact outside the region, Marriott estimates the company could earn roughly $25 million in lower fee revenue per month, compared to its 2020 base case outlook. Room additions for the current year could also be delayed as a result of the Coronavirus outbreak.


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2020 Base Case Outlook, Not Including Impact from the Coronavirus
The following base case outlook for first quarter and full year 2020 does not reflect any impact from the Coronavirus outbreak, merger-related costs and charges, cost reimbursement revenue, or reimbursed expenses, each of which the company cannot forecast with sufficient accuracy, and which may be significant. The base case outlook for first quarter and full year 2020 does not reflect any additional asset sales that may occur during the year.

For the 2020 first quarter, Marriott assumes comparable systemwide RevPAR on a constant dollar basis will increase 1 to 2 percent worldwide and in North America.

The company assumes first quarter 2020 gross fee revenues will total $940 million to $950 million, a 5 to 6 percent increase over first quarter 2019 gross fee revenues of $895 million. The company anticipates first quarter 2020 incentive management fees will decrease slightly compared to first quarter 2019 incentive management fees of $163 million.

The company assumes first quarter 2020 general, administrative, and other expenses could total $230 million to $234 million.

Marriott assumes first quarter 2020 adjusted EBITDA could total $853 million to $867 million, a 4 to 6 percent increase over first quarter 2019 adjusted EBITDA of $821 million. See page A-12 for the adjusted EBITDA calculation.

For the full year 2020, Marriott assumes comparable systemwide RevPAR growth on a constant dollar basis will be flat to up 2 percent worldwide, with RevPAR growth in North America around the middle of that range.

Marriott assumes global room growth of 5.0 to 5.25 percent, net of 1 to 1.5 percent deletions for full year 2020.

The company assumes full year 2020 gross fee revenues will total $3,960 million to $4,040 million, a 4 to 6 percent increase over 2019 gross fee revenues of $3,823 million, including roughly $10 million of unfavorable foreign exchange. Full year 2020 estimated gross fee revenues include $630 million to $640 million of other franchise fees, a roughly 10 percent increase over other franchise fees for full year 2019.

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Other franchise fees include application fees, relicensing fees, timeshare licensing fees, credit card branding fees, and residential and other branding fees.

Marriott anticipates full year 2020 owned, leased, and other revenue, net of direct expenses, could total $295 million to $305 million.

The company assumes full year 2020 general, administrative, and other expenses could total $950 million to $960 million, a 1 to 2 percent increase from full year 2019 expenses of $938 million.

The company anticipates full year 2020 diluted EPS could total $6.30 to $6.53. Full year 2019 adjusted diluted EPS totaled $6.00. Full year adjusted 2019 results include the benefit of $143 million pre-tax ($0.33 per share) of asset sale gains in gains and other income, net, partially offset by asset impairments of $114 million pre-tax ($0.25 per share) in depreciation, amortization, and other expenses. See page A-3 for the 2019 adjusted diluted EPS calculation.

Marriott assumes full year 2020 adjusted EBITDA could total $3,700 million to $3,800 million, a 3 to 6 percent increase over 2019 adjusted EBITDA of $3,575 million. See page A-13 for the adjusted EBITDA calculation.
        
 
First Quarter 20201
Full Year 20201
Gross fee revenues
$940 million to $950 million
$3,960 million to $4,040 million
Contract investment amortization
Approx. $18 million
Approx. $75 million
Owned, leased and other revenue, net of direct expenses
Approx. $50 million
$295 million to $305 million
Depreciation, amortization, and other expenses
Approx. $53 million
Approx. $225 million
General, administrative, and other expenses
$230 million to $234 million
$950 million to $960 million
Operating income
$685 million to $699 million
$2,995 million to $3,095 million
Gains and other income
Approx. $2 million
Approx. $10 million
Net interest expense
Approx. $85 million
Approx. $360 million
Equity in earnings (losses)
Approx. $5 million
Approx. $15 million
Earnings per share - diluted
$1.47 to $1.50
$6.30 to $6.53
Effective tax rate
20.8 percent
 23.3 percent
1 The base case outlook provided in this table does not reflect any impact from the Coronavirus outbreak, merger-related costs and charges, cost reimbursement revenue, or reimbursed expenses, each of which the company cannot forecast with sufficient accuracy, and which may be significant. It also does not reflect any additional asset sales that may occur during the year.


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The company assumes investment spending in 2020 will total approximately $700 million to $800 million, including approximately $200 million for maintenance capital. Investment spending also includes other capital expenditures (including property acquisitions), new mezzanine financing and mortgage notes, contract acquisition costs, and equity and other investments. The company estimates nearly 40 percent of its 2020 investment spending will be reimbursed or recycled over time.

In the first quarter, the company sold a hotel in North America for $268 million subject to a long-term management agreement. Assuming the level of investment spending noted above, no additional asset sales, and no impact from the Coronavirus, cash returned to shareholders through share repurchases and dividends could total more than $2.4 billion for full year 2020.

Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings review for the investment community and news media on Thursday, February 27, 2020 at 10:00 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 27, 2021.

The telephone dial-in number for the conference call is 706-679-3455 and the conference ID is 1548644. A telephone replay of the conference call will be available from 2:00 p.m. ET, Thursday, February 27, 2020 until 8:00 p.m. ET, Thursday, March 5, 2020. To access the replay, call 404-537-3406. The conference ID for the recording is 1548644.

Note on forward-looking statements: This press release and accompanying schedules contain “forward-looking statements” within the meaning of federal securities laws, including our RevPAR, profit margin and earnings outlook and assumptions; the number of lodging properties we expect to add to or remove from our system in the future; our expectations about investment spending and tax rate; estimates about impact to fee revenue from the Coronavirus outbreak as compared to our 2020 base case outlook; 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 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 changes in market conditions; changes in global and regional economies; supply and demand changes for hotel rooms; the impact of the Coronavirus outbreak, whether in Greater China, elsewhere in our Asia Pacific region or globally; competitive conditions in the lodging industry; relationships with clients and property owners; the availability of capital to finance hotel growth and refurbishment; the extent to which we experience adverse effects from the data security incident; changes in tax laws in countries in which we earn significant income; and changes to our estimates of the impact of new accounting standards. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release. We

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make these forward-looking statements as of February 26, 2020. 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. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of more than 7,300 properties under 30 leading brands spanning 134 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.

CONTACT:    Brendan McManus
Corporate Relations
(301) 380-4495
brendan.mcmanus@marriott.com

Jackie Burka McConagha
Investor Relations
(301) 380-5126
jackie.burka@marriott.com

Betsy Dahm
Investor Relations
(301) 380-3372
betsy.dahm@marriott.com

IRPR#1

Tables follow

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MARRIOTT INTERNATIONAL, INC.
PRESS RELEASE SCHEDULES
TABLE OF CONTENTS
QUARTER 4, 2019
 
 
Consolidated Statements of Income - As Reported
Non-GAAP Financial Measures
Total Lodging Products
Key Lodging Statistics
Adjusted EBITDA
Adjusted EBITDA Forecast - First Quarter 2020
Adjusted EBITDA Forecast - Full Year 2020
Explanation of Non-GAAP Financial and Performance Measures




MARRIOTT INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED
FOURTH QUARTER 2019 AND 2018
(in millions except per share amounts, unaudited)
 
As Reported
 
As Reported
 
Percent
 
Three Months Ended
 
Three Months Ended
 
Better/(Worse)
 
December 31, 2019
 
December 31, 2018
 
Reported 2019 vs. 2018
REVENUES
 
 
 
 
 
Base management fees
$
298

 
$
288

 
3

Franchise fees 1
501

 
455

 
10

Incentive management fees
175

 
167

 
5

   Gross Fee Revenues
974

 
910

 
7

Contract investment amortization 2
(17
)
 
(14
)
 
(21
)
   Net Fee Revenues
957

 
896

 
7

Owned, leased, and other revenue 3
426

 
409

 
4

Cost reimbursement revenue 4
3,988

 
3,984

 

   Total Revenues
5,371

 
5,289

 
2

 
 
 
 
 
 
OPERATING COSTS AND EXPENSES
 
 
 
 
 
Owned, leased, and other - direct 5
334

 
321

 
(4
)
Depreciation, amortization, and other 6
179

 
62

 
(189
)
General, administrative, and other 7
267

 
242

 
(10
)
Merger-related costs and charges (credits)
(53
)
 
91

 
158

Reimbursed expenses 4
4,370

 
4,151

 
(5
)
   Total Expenses
5,097

 
4,867

 
(5
)
 
 
 
 
 
 
OPERATING INCOME
274

 
422

 
(35
)
 
 
 
 
 
 
Gains and other income, net 8
138

 
3

 
4,500

Interest expense
(95
)
 
(94
)
 
(1
)
Interest income
6

 
6

 

Equity in earnings 9
3

 
8

 
(63
)
INCOME BEFORE INCOME TAXES
326

 
345

 
(6
)
Provision for income taxes
(47
)
 
(28
)
 
(68
)
NET INCOME
$
279

 
$
317

 
(12
)
 
 
 
 
 
 
EARNINGS PER SHARE
 
 
 
 
 
   Earnings per share - basic
$
0.85

 
$
0.93

 
(9
)
   Earnings per share - diluted
$
0.85

 
$
0.92

 
(8
)
 
 
 
 
 
 
Basic Shares
327.7

 
341.9

 
 
Diluted Shares
330.4

 
345.7

 
 

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


A-1


MARRIOTT INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED
FOURTH QUARTER YEAR-TO-DATE 2019 AND 2018
(in millions except per share amounts, unaudited)
 
As Reported
 
As Reported 10
 
Percent
 
Twelve Months Ended
 
Twelve Months Ended
 
Better/(Worse)
 
December 31, 2019
 
December 31, 2018
 
Reported 2019 vs. 2018
REVENUES
 
 
 
 
 
Base management fees
$
1,180

 
$
1,140

 
4

Franchise fees 1
2,006

 
1,849

 
8

Incentive management fees
637

 
649

 
(2
)
   Gross Fee Revenues
3,823

 
3,638

 
5

Contract investment amortization 2
(62
)
 
(58
)
 
(7
)
   Net Fee Revenues
3,761

 
3,580

 
5

Owned, leased, and other revenue 3
1,612

 
1,635

 
(1
)
Cost reimbursement revenue 4
15,599

 
15,543

 

   Total Revenues
20,972

 
20,758

 
1

 
 
 
 
 
 
OPERATING COSTS AND EXPENSES
 
 
 
 
Owned, leased, and other - direct 5
1,316

 
1,306

 
(1
)
Depreciation, amortization, and other 6
341

 
226

 
(51
)
General, administrative, and other 7
938

 
927

 
(1
)
Merger-related costs and charges
138

 
155

 
11

Reimbursed expenses 4
16,439

 
15,778

 
(4
)
   Total Expenses
19,172

 
18,392

 
(4
)
 
 
 
 
 
 
OPERATING INCOME
1,800

 
2,366

 
(24
)
 
 
 
 
 
 
Gains and other income, net 8
154

 
194

 
(21
)
Interest expense
(394
)
 
(340
)
 
(16
)
Interest income
26

 
22

 
18

Equity in earnings 9
13

 
103

 
(87
)
INCOME BEFORE INCOME TAXES
1,599

 
2,345

 
(32
)
Provision for income taxes
(326
)
 
(438
)
 
26

NET INCOME
$
1,273

 
$
1,907

 
(33
)
 
 
 
 
 
 
EARNINGS PER SHARE
 
 
 
 
 
   Earnings per share - basic
$
3.83

 
$
5.45

 
(30
)
   Earnings per share - diluted
$
3.80

 
$
5.38

 
(29
)
 
 
 
 
 
 
Basic Shares
332.7

 
350.1

 
 
Diluted Shares
335.5

 
354.2

 
 

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 earnings include our equity in earnings or losses of unconsolidated equity method investments.
10 
Reflects revised information for our 2018 first, second and third quarters as presented in our 2018 Annual Report on Form 10-K.

A-2


MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
($ in millions except per share amounts)


The following table presents our reconciliations of Adjusted operating income, Adjusted operating income margin, Adjusted net income, Adjusted diluted EPS, and Adjusted net income and Adjusted diluted EPS excluding Asset impairments, Gain on asset dispositions, Gain on investee’s property sales, and the income tax effect of these adjustments, 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
 
December 31, 2019
 
December 31, 2018
 
Percent Better/(Worse)
 
December 31, 2019
 
December 31, 2018 1
 
Percent Better/(Worse)
Total revenues, as reported
$
5,371

 
$
5,289

 
 
 
$
20,972

 
$
20,758

 
 
Less: Cost reimbursement revenue
(3,988
)
 
(3,984
)
 
 
 
(15,599
)
 
(15,543
)
 
 
Adjusted total revenues**
1,383

 
1,305

 
 
 
5,373

 
5,215

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income, as reported
274

 
422

 
 
 
1,800

 
2,366

 
 
Less: Cost reimbursement revenue
(3,988
)
 
(3,984
)
 
 
 
(15,599
)
 
(15,543
)
 
 
Add: Reimbursed expenses
4,370

 
4,151

 
 
 
16,439

 
15,778

 
 
Add: Merger-related costs and charges (credits)
(53
)
 
91

 
 
 
138

 
155

 
 
Adjusted operating income **
603

 
680

 
-11
 %
 
2,778

 
2,756

 
1
 %
 
 
 
 
 
 
 
 
 
 
 
 
Operating income margin
5
%
 
8
%
 
 
 
9
%
 
11
%
 
 
Adjusted operating income margin **
44
%
 
52
%
 
 
 
52
%
 
53
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, as reported
279

 
317

 
 
 
1,273

 
1,907

 
 
Less: Cost reimbursement revenue
(3,988
)
 
(3,984
)
 
 
 
(15,599
)
 
(15,543
)
 
 
Add: Reimbursed expenses
4,370

 
4,151

 
 
 
16,439

 
15,778

 
 
Add: Merger-related costs and charges (credits)
(53
)
 
91

 
 
 
138

 
155

 
 
Less: Gain on sale of Avendra

 

 
 
 

 
(6
)
 
 
Income tax effect of above adjustments
(91
)
 
(83
)
 
 
 
(239
)
 
(117
)
 
 
Add: U.S. Tax Cuts and Jobs Act of 2017

 
5

 
 
 

 
27

 
 
Adjusted net income **
517

 
497

 
4
 %
 
2,012

 
2,201

 
-9
 %
 
 
 
 
 
 
 
 
 
 
 
 
Add: Asset impairments
114

 

 
 
 
114

 

 
 
Less: Gain on asset dispositions
(134
)
 
(6
)
 
 
 
(143
)
 
(183
)
 
 
Less: Gain on investee’s property sales

 

 
 
 

 
(65
)
 
 
Income tax effect of above adjustments
1

 
(2
)
 
 
 
3

 
15

 
 
Adjusted net income, excluding Asset impairments, Gain on asset dispositions, Gain on investee's property sales, and the income tax effect of these adjustments **
$
498

 
$
489

 
2
 %
 
$
1,986

 
$
1,968

 
1
 %
 
 
 
 
 
 
 
 
 
 
 
 
Diluted EPS, as reported
$
0.85

 
$
0.92

 
 
 
$
3.80

 
$
5.38

 
 
Adjusted Diluted EPS**
$
1.57

 
$
1.44

 
9
 %
 
$
6.00

 
$
6.21

 
-3
 %
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted Diluted EPS, excluding Asset impairments, Gain on asset dispositions, Gain on investee's property sales, and the income tax effect of these adjustments **
$
1.51

 
$
1.42

 
6
 %
 
$
5.92

 
$
5.56

 
6
 %

**
Denotes non-GAAP financial measures. Please see pages A-14 and A-15 for information about our reasons for providing these alternative financial measures and the limitations on their use.
1 
Reflects revised information for our 2018 first, second, and third quarters as presented in our 2018 Annual Report on Form 10-K.

A-3


MARRIOTT INTERNATIONAL, INC.
TOTAL LODGING PRODUCTS
As of December 31, 2019

 
North America
Total International
Total Worldwide
 
Units
Rooms
Units
Rooms
Units
Rooms
Managed
759

239,705

1,231

318,946

1,990

558,651

Marriott Hotels
119

64,295

173

50,854

292

115,149

Marriott Hotels Serviced Apartments


1

154

1

154

Sheraton
27

22,807

190

64,641

217

87,448

Courtyard
233

37,020

101

21,765

334

58,785

Westin
43

23,638

71

21,779

114

45,417

JW Marriott
18

11,210

59

22,089

77

33,299

Renaissance
28

12,018

59

18,168

87

30,186

The Ritz-Carlton
38

10,981

60

15,640

98

26,621

The Ritz-Carlton Serviced Apartments


5

697

5

697

Le Méridien
3

570

74

20,664

77

21,234

Four Points
1

134

78

20,129

79

20,263

Residence Inn
108

16,498

5

565

113

17,063

W Hotels
24

6,893

30

7,470

54

14,363

The Luxury Collection
5

2,234

52

9,426

57

11,660

Gaylord Hotels
6

9,918



6

9,918

St. Regis
10

1,968

33

7,458

43

9,426

St. Regis Serviced Apartments


1

70

1

70

Aloft
1

330

38

8,936

39

9,266

AC Hotels by Marriott
4

679

57

6,918

61

7,597

Delta Hotels
25

6,770

1

360

26

7,130

Fairfield by Marriott
7

1,539

34

5,435

41

6,974

SpringHill Suites
30

4,896



30

4,896

Marriott Executive Apartments


31

4,523

31

4,523

Autograph Collection
7

1,970

15

2,406

22

4,376

Protea Hotels


35

4,270

35

4,270

EDITION
4

1,209

6

1,287

10

2,496

TownePlace Suites
17

1,948



17

1,948

Element
1

180

7

1,421

8

1,601

Tribute Portfolio


6

784

6

784

Moxy


4

599

4

599

Bulgari


5

438

5

438

 Franchised
4,477

645,704

628

127,174

5,105

772,878

Courtyard
801

106,768

83

15,368

884

122,136

Fairfield by Marriott
994

92,524

22

3,651

1,016

96,175

Residence Inn
724

86,348

11

1,322

735

87,670

Marriott Hotels
218

68,453

56

16,108

274

84,561

Sheraton
161

48,232

64

18,053

225

66,285

SpringHill Suites
426

49,137



426

49,137

TownePlace Suites
401

40,430



401

40,430

Westin
86

28,386

24

7,596

110

35,982

Autograph Collection
101

20,493

62

12,075

163

32,568

Four Points
158

23,713

52

8,267

210

31,980

Renaissance
57

16,262

28

7,691

85

23,953

Aloft
118

17,317

19

3,119

137

20,436

AC Hotels by Marriott
59

10,041

39

5,823

98

15,864

Delta Hotels
47

10,606

6

1,068

53

11,674

Moxy
21

4,149

37

7,461

58

11,610

The Luxury Collection
11

2,565

46

8,601

57

11,166

Le Méridien
18

3,910

15

4,057

33

7,967

JW Marriott
12

5,643

6

1,624

18

7,267

Element
41

5,605

2

293

43

5,898

Tribute Portfolio
21

4,445

13

1,383

34

5,828

Protea Hotels


38

2,921

38

2,921

Design Hotels
1

248

3

542

4

790

The Ritz-Carlton
1

429



1

429

Bulgari


1

85

1

85

Marriott Executive Apartments


1

66

1

66


A-4


MARRIOTT INTERNATIONAL, INC.
TOTAL LODGING PRODUCTS
As of December 31, 2019

 
North America
Total International
Total Worldwide
 
Units
Rooms
Units
Rooms
Units
Rooms
Owned/Leased
28

7,839

40

9,164

68

17,003

Courtyard
19

2,814

4

894

23

3,708

Marriott Hotels
3

1,664

5

1,631

8

3,295

Sheraton
1

1,000

4

1,830

5

2,830

W Hotels
2

779

2

665

4

1,444

Protea Hotels


7

1,168

7

1,168

Westin
1

1,073



1

1,073

Renaissance
1

317

2

505

3

822

Autograph Collection 1


7

705

7

705

The Ritz-Carlton


2

553

2

553

JW Marriott


1

496

1

496

The Luxury Collection 2


4

417

4

417

Residence Inn
1

192

1

140

2

332

St. Regis


1

160

1

160

 Residences
60

6,557

35

3,311

95

9,868

The Ritz-Carlton Residences
36

4,421

11

938

47

5,359

W Residences
10

1,089

5

519

15

1,608

St. Regis Residences
7

585

7

598

14

1,183

Westin Residences
3

266

1

264

4

530

Bulgari Residences


4

448

4

448

The Luxury Collection Residences
2

151

3

112

5

263

Sheraton Residences


2

262

2

262

Marriott Hotels Residences


1

108

1

108

Autograph Collection Residences


1

62

1

62

EDITION Residences
2

45



2

45

Timeshare*
72

18,668

19

3,853

91

22,521

Grand Total
5,396

918,473

1,953

462,448

7,349

1,380,921


* 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.
1Includes 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.
2Includes 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.


A-5


MARRIOTT INTERNATIONAL, INC.
TOTAL LODGING PRODUCTS
As of December 31, 2019
 
North America
Total International
Total Worldwide
Total Systemwide
Units
Rooms
Units
Rooms
Units
Rooms
Luxury
182

50,202

344

79,791

526

129,993

JW Marriott
30

16,853

66

24,209

96

41,062

The Ritz-Carlton
39

11,410

62

16,193

101

27,603

The Ritz-Carlton Residences
36

4,421

11

938

47

5,359

The Ritz-Carlton Serviced Apartments


5

697

5

697

The Luxury Collection 1
16

4,799

102

18,444

118

23,243

The Luxury Collection Residences
2

151

3

112

5

263

W Hotels
26

7,672

32

8,135

58

15,807

W Residences
10

1,089

5

519

15

1,608

St. Regis
10

1,968

34

7,618

44

9,586

St. Regis Residences
7

585

7

598

14

1,183

St. Regis Serviced Apartments


1

70

1

70

EDITION
4

1,209

6

1,287

10

2,496

EDITION Residences
2

45



2

45

Bulgari


6

523

6

523

Bulgari Residences


4

448

4

448

Full-Service
977

347,341

916

258,339

1,893

605,680

Marriott Hotels
340

134,412

234

68,593

574

203,005

Marriott Hotels Residences


1

108

1

108

Marriott Hotels Serviced Apartments


1

154

1

154

Sheraton
189

72,039

258

84,524

447

156,563

Sheraton Residences


2

262

2

262

Westin
130

53,097

95

29,375

225

82,472

Westin Residences
3

266

1

264

4

530

Renaissance
86

28,597

89

26,364

175

54,961

Autograph Collection 2
108

22,463

84

15,186

192

37,649

Autograph Collection Residences


1

62

1

62

Le Méridien
21

4,480

89

24,721

110

29,201

Delta Hotels
72

17,376

7

1,428

79

18,804

Gaylord Hotels
6

9,918



6

9,918

Tribute Portfolio
21

4,445

19

2,167

40

6,612

Marriott Executive Apartments


32

4,589

32

4,589

Design Hotels
1

248

3

542

4

790

Limited-Service
4,165

502,262

674

120,465

4,839

622,727

Courtyard
1,053

146,602

188

38,027

1,241

184,629

Residence Inn
833

103,038

17

2,027

850

105,065

Fairfield by Marriott
1,001

94,063

56

9,086

1,057

103,149

SpringHill Suites
456

54,033



456

54,033

Four Points
159

23,847

130

28,396

289

52,243

TownePlace Suites
418

42,378



418

42,378

Aloft
119

17,647

57

12,055

176

29,702

AC Hotels by Marriott
63

10,720

96

12,741

159

23,461

Moxy
21

4,149

41

8,060

62

12,209

Protea Hotels


80

8,359

80

8,359

Element
42

5,785

9

1,714

51

7,499

Timeshare*
72

18,668

19

3,853

91

22,521

Grand Total
5,396

918,473

1,953

462,448

7,349

1,380,921

* 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.
1Includes 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.
2Includes 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.


A-6


MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
In Constant $

Comparable Company-Operated North American Properties
 
 
Three Months Ended December 31, 2019 and December 31, 2018
 
 
REVPAR
 
Occupancy
 
Average Daily Rate
Brand
 
2019
 
vs. 2018
 
2019
 
vs. 2018
 
2019
 
vs. 2018
JW Marriott
 
$
205.28

 
1.8
 %
 
74.4
%
 
0.1
 %
pts.
 
$
276.03

 
1.6
 %
The Ritz-Carlton
 
$
288.59

 
5.8
 %
 
72.9
%
 
2.0
 %
pts.
 
$
395.84

 
2.9
 %
W Hotels
 
$
257.32

 
1.9
 %
 
78.3
%
 
1.1
 %
pts.
 
$
328.62

 
0.5
 %
Composite North American Luxury 1
 
$
274.02

 
3.0
 %
 
75.3
%
 
1.9
 %
pts.
 
$
364.00

 
0.4
 %
Marriott Hotels
 
$
150.01

 
2.3
 %
 
72.9
%
 
1.0
 %
pts.
 
$
205.72

 
0.9
 %
Sheraton
 
$
151.32

 
1.8
 %
 
74.5
%
 
2.0
 %
pts.
 
$
203.20

 
-0.9
 %
Westin
 
$
153.53

 
1.8
 %
 
73.3
%
 
1.2
 %
pts.
 
$
209.50

 
0.1
 %
Composite North American Upper Upscale 2
 
$
149.20

 
2.3
 %
 
73.4
%
 
1.1
 %
pts.
 
$
203.26

 
0.7
 %
North American Full-Service 3
 
$
171.23

 
2.5
 %
 
73.7
%
 
1.3
 %
pts.
 
$
232.23

 
0.7
 %
Courtyard
 
$
94.99

 
-1.0
 %
 
67.8
%
 
-0.6
 %
pts.
 
$
140.19

 
-0.1
 %
Residence Inn
 
$
117.41

 
0.1
 %
 
75.2
%
 
-0.4
 %
pts.
 
$
156.19

 
0.6
 %
Composite North American Limited-Service 4
 
$
101.51

 
-0.3
 %
 
70.4
%
 
-0.5
 %
pts.
 
$
144.21

 
0.3
 %
North American - All 5
 
$
148.72

 
1.9
 %
 
72.7
%
 
0.7
 %
pts.
 
$
204.69

 
0.9
 %

Comparable Systemwide North American Properties
 
 
Three Months Ended December 31, 2019 and December 31, 2018
 
 
REVPAR
 
Occupancy
 
Average Daily Rate
Brand
 
2019
 
vs. 2018
 
2019
 
vs. 2018
 
2019
 
vs. 2018
JW Marriott
 
$
190.67

 
-0.1
 %
 
72.8
%
 
-1.2
 %
pts.
 
$
261.73

 
1.6
 %
The Ritz-Carlton
 
$
287.32

 
5.3
 %
 
73.0
%
 
1.8
 %
pts.
 
$
393.59

 
2.8
 %
W Hotels
 
$
257.32

 
1.9
 %
 
78.3
%
 
1.1
 %
pts.
 
$
328.62

 
0.5
 %
Composite North American Luxury 1
 
$
255.86

 
2.2
 %
 
74.7
%
 
1.1
 %
pts.
 
$
342.64

 
0.6
 %
Marriott Hotels
 
$
124.63

 
1.9
 %
 
69.2
%
 
0.8
 %
pts.
 
$
180.06

 
0.7
 %
Sheraton
 
$
108.68

 
1.5
 %
 
68.8
%
 
1.7
 %
pts.
 
$
158.00

 
-0.9
 %
Westin
 
$
142.54

 
2.5
 %
 
72.4
%
 
1.9
 %
pts.
 
$
196.91

 
-0.3
 %
Composite North American Upper Upscale 2
 
$
128.70

 
2.4
 %
 
70.5
%
 
1.2
 %
pts.
 
$
182.53

 
0.7
 %
North American Full-Service 3
 
$
141.60

 
2.4
 %
 
70.9
%
 
1.2
 %
pts.
 
$
199.63

 
0.7
 %
Courtyard
 
$
93.61

 
-1.1
 %
 
67.9
%
 
-0.4
 %
pts.
 
$
137.83

 
-0.5
 %
Residence Inn
 
$
108.30

 
-0.9
 %
 
74.7
%
 
-0.6
 %
pts.
 
$
145.07

 
-0.1
 %
Fairfield by Marriott
 
$
74.76

 
-1.0
 %
 
66.5
%
 
-0.3
 %
pts.
 
$
112.41

 
-0.6
 %
Composite North American Limited-Service 4
 
$
91.64

 
-0.7
 %
 
69.7
%
 
-0.1
 %
pts.
 
$
131.50

 
-0.5
 %
North American - All 5
 
$
112.46

 
0.9
 %
 
70.2
%
 
0.4
 %
pts.
 
$
160.19

 
0.3
 %
1 
Includes JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, and EDITION.
2 
Includes Marriott Hotels, Sheraton, Westin, Renaissance, Autograph Collection, Delta Hotels, Gaylord Hotels, and Le Méridien. Systemwide also includes Tribute Portfolio.
3 
Includes Composite North American Luxury and Composite North American Upper Upscale.
4 
Includes Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four Points, Aloft, Element, and AC Hotels by Marriott. Systemwide also includes Moxy.
5 
Includes North American Full-Service and Composite North American Limited-Service.

A-7


MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
In Constant $

Comparable Company-Operated International Properties
 
 
Three Months Ended December 31, 2019 and December 31, 2018
 
 
REVPAR
 
Occupancy
 
Average Daily Rate
Region
 
2019
 
vs. 2018
 
2019
 
vs. 2018
 
2019
 
vs. 2018
Greater China
 
$
82.89

 
-5.4
 %
 
71.0
%
 
1.3
 %
pts. 
 
$
116.81

 
-7.2
 %
Rest of Asia Pacific
 
$
134.46

 
3.9
 %
 
78.5
%
 
3.0
 %
pts. 
 
$
171.24

 
-0.1
 %
Asia Pacific
 
$
105.07

 
-0.5
 %
 
74.2
%
 
2.1
 %
pts. 
 
$
141.58

 
-3.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Caribbean & Latin America
 
$
130.13

 
0.4
 %
 
64.3
%
 
-0.1
 %
pts. 
 
$
202.27

 
0.5
 %
Europe
 
$
137.12

 
3.0
 %
 
73.2
%
 
1.1
 %
pts. 
 
$
187.20

 
1.5
 %
Middle East & Africa
 
$
120.93

 
2.9
 %
 
73.3
%
 
3.3
 %
pts. 
 
$
164.97

 
-1.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
International - All 1
 
$
116.88

 
1.1
 %
 
73.1
%
 
1.9
 %
pts.