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MARRIOTT INTERNATIONAL REPORTS FOURTH QUARTER 2021 RESULTS

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Feb 15, 2022

MARRIOTT INTERNATIONAL REPORTS FOURTH QUARTER 2021 RESULTS

BETHESDA, Md., Feb. 15, 2022 /PRNewswire/ --

  • Fourth quarter 2021 comparable systemwide constant dollar RevPAR increased 124.5 percent worldwide, 143.6 percent in the U.S. & Canada, and 83.3 percent in international markets, compared to the 2020 fourth quarter;
  • Fourth quarter 2021 comparable systemwide constant dollar RevPAR declined 19.0 percent worldwide, 15.3 percent in the U.S. & Canada, and 28.2 percent in international markets, compared to the 2019 fourth quarter;
  • Fourth quarter reported diluted EPS totaled $1.42, compared to reported diluted loss per share of $0.50 in the year-ago quarter. Fourth quarter adjusted diluted EPS totaled $1.30, compared to fourth quarter 2020 adjusted diluted EPS of $0.12;
  • Fourth quarter reported net income totaled $468 million, compared to reported net loss of $164 million in the year-ago quarter. Fourth quarter adjusted net income totaled $430 million, compared to fourth quarter 2020 adjusted net income of $39 million;
  • Adjusted EBITDA totaled $741 million in the 2021 fourth quarter, compared to fourth quarter 2020 adjusted EBITDA of $317 million;
  • The company added more than 86,000 rooms globally during 2021, including approximately 43,000 rooms in international markets and a total of over 18,000 conversion rooms. Net rooms grew 3.9 percent from year-end 2020;
  • At year end, Marriott's worldwide development pipeline totaled 2,831 properties and roughly 485,000 rooms, including approximately 19,000 rooms approved, but not yet subject to signed contracts.  More than 202,000 rooms in the pipeline were under construction as of the end of 2021.

Marriott International, Inc. (NASDAQ: MAR) today reported fourth quarter 2021 results.

Anthony Capuano, Chief Executive Officer, said, "The 2021 fourth quarter capped off a year that showed the incredible resilience of people's desire to travel and the appeal of our broad portfolio of 30 global brands.  We experienced significant progress in global RevPAR1 recovery in 2021 despite the emergence of new variants and ongoing headwinds from the global pandemic.  By the fourth quarter, global RevPAR was 19 percent below 2019 levels, a 40-percentage point improvement from the decline in the first quarter of the year.  Global average daily rate (ADR) nearly recovered to pre-pandemic levels in the 2021 fourth quarter, while occupancy came in at 58 percent, down 12 percentage points versus 2019.  Leisure demand continued to shine in the fourth quarter, with slower, yet continued improvement in business transient and group demand. 

"Each of our regions saw meaningful continued RevPAR recovery in the fourth quarter compared to the third quarter, with the exception of Greater China, where recovery stalled due to their zero COVID policy.  In the U.S. & Canada, RevPAR declined 15 percent compared to fourth quarter 2019 levels versus a 20 percent decline in the third quarter compared to 2019.  Compared to 2019 levels, our international hotels posted a 28-percent RevPAR decline in the fourth quarter, a 12-percentage point improvement from the third quarter.  While Omicron caused a temporary setback in global demand recovery in January, especially for business transient and group travel, new bookings across customer segments have rebounded to pre-Omicron levels.  We are optimistic that the global recovery will progress meaningfully throughout 2022. 

"Our development team had a strong 2021, signing approximately 92,000 rooms, of which more than 50,000 were in international markets and more than 40 percent were in the upper upscale and luxury tiers.  During the year, we added more than 86,000 gross rooms to our distribution, a new annual record, 21 percent of which were conversions.  We were pleased to post 3.9 percent net rooms growth for 2021, exceeding our previous expectations.  With our momentum around conversions and our industry-leading pipeline, we are bullish about our ability to increase our footprint over the next several years.  For 2022, we expect gross rooms growth approaching 5 percent and deletions of 1 to 1.5 percent, resulting in anticipated net rooms growth of 3.5 to 4 percent. 

"While we are keeping an eye on the continued impact from Omicron, we look forward to the day when we reach a new normal where the impact from COVID-19 on travel has essentially disappeared.  In the meantime, we continue to focus on driving revenues, controlling costs, maximizing cash flow, and improving our credit metrics.  Assuming no meaningful setback in the global recovery, we could begin returning cash to shareholders later in 2022.

"As I finish my first year as CEO, I could not be prouder of how our associates have managed through this crisis.  They have worked tirelessly to serve our guests, support our owners and franchisees, and assist each other.  I am incredibly optimistic about Marriott's future and look forward to continued recovery in 2022 and the prospects for meaningful growth in the coming years."

Fourth Quarter 2021 Results

Marriott's reported operating income totaled $635 million in the 2021 fourth quarter, compared to 2020 fourth quarter reported operating loss of $128 million.  Reported net income totaled $468 million in the 2021 fourth quarter, compared to 2020 fourth quarter reported net loss of $164 million.  Reported diluted earnings per share (EPS) totaled $1.42 in the quarter, compared to reported diluted loss per share of $0.50 in the year-ago quarter.

Adjusted operating income in the 2021 fourth quarter totaled $578 million, compared to 2020 fourth quarter adjusted operating income of $148 million.  Adjusted operating income in the 2020 fourth quarter excluded impairment charges of $44 million.

Fourth quarter 2021 adjusted net income totaled $430 million, compared to 2020 fourth quarter adjusted net income of $39 million.  Adjusted diluted EPS in the 2021 fourth quarter totaled $1.30, compared to adjusted diluted EPS of $0.12 in the year-ago quarter.  The 2020 fourth quarter adjusted results excluded income tax benefits of $74 million ($0.23 per share), 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.  These items totaled $38 million of after-tax profits ($0.12 per share) in the 2021 fourth quarter and an after-tax loss of $185 million ($0.57 per share) in the 2020 fourth quarter.  See pages A-3 and A-13 for the calculation of adjusted results and the manner in which the adjusted measures are determined in this press release.

Base management and franchise fees totaled $737 million in the 2021 fourth quarter, compared to base management and franchise fees of $379 million in the year-ago quarter.  The year-over-year increase in these fees is primarily attributable to RevPAR increases due to the ongoing recovery in lodging demand.  Other non-RevPAR related franchise fees in the 2021 fourth quarter totaled $186 million, compared to $133 million in the year-ago quarter, aided by higher credit card and residential branding fees.

Incentive management fees totaled $94 million in the 2021 fourth quarter, compared to $44 million in the 2020 fourth quarter.  The year-over-year increase was split evenly between the International and U. S. & Canada segments.

Contract investment amortization for the 2021 fourth quarter totaled $19 million, compared to $38 million in the year-ago quarter.  The year-over-year change largely reflects impairments of investments in management and franchise contracts recorded in the 2020 fourth quarter.

Owned, leased, and other revenue, net of direct expenses, totaled a profit of $33 million in the 2021 fourth quarter, compared to a $27 million loss in the year-ago quarter, and reflects the ongoing recovery in lodging demand.   

Depreciation, amortization, and other expenses for the 2021 fourth quarter totaled $54 million, compared to $71 million in the year-ago quarter.  Expenses in the 2020 fourth quarter included $22 million of impairment charges.

General, administrative, and other expenses for the 2021 fourth quarter totaled $213 million, compared to $183 million in the year-ago quarter.  The year-over-year increase primarily reflects higher compensation and legal costs.

Interest expense, net, totaled $91 million in the fourth quarter compared to $105 million in the year-ago quarter.  The year-over-year decrease is largely due to lower debt balances.

Equity in losses were $0 million, an improvement of $87 million year over year, largely reflecting impairment charges recorded in the fourth quarter of 2020.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $741 million in the 2021 fourth quarter, compared to fourth quarter 2020 adjusted EBITDA of $317 million.  See page A-12 for the adjusted EBITDA calculation.

Selected Performance Information

The company added 120 properties (20,440 rooms) to its worldwide lodging portfolio during the 2021 fourth quarter, including over 3,500 conversion rooms and approximately 10,000 rooms in international markets.  Twenty-three properties (4,955 rooms) exited the system during the quarter.  At year end, Marriott's global lodging system totaled 7,989 properties, with more than 1,479,000 rooms.

At year end, the company's worldwide development pipeline totaled 2,831 properties with roughly 485,000 rooms, including 1,008 properties with more than 202,000 rooms under construction and 98 properties with approximately 19,000 rooms approved for development, but not yet subject to signed contracts.

In the 2021 fourth quarter, worldwide RevPAR increased 124.5 percent (a 124.9 percent increase using actual dollars) compared to the 2020 fourth quarter.  RevPAR in the U.S. & Canada increased 143.6 percent (a 143.9 percent increase using actual dollars), and RevPAR in international markets increased 83.3 percent (an 84 percent increase using actual dollars).

Balance Sheet and Liquidity

At year-end 2021, Marriott's net debt was $8.7 billion, representing total debt of $10.1 billion less cash and equivalents of $1.4 billion.  At year-end 2020, the company's net debt was $9.5 billion, representing total debt of $10.4 billion less cash and equivalents of $0.9 billion.

Investment Spending

Marriott anticipates that full year 2022 investment spending will total $600 million to $700 million.  Total investment spending includes capital and technology expenditures, loan advances, contract acquisition costs, and other investing activities.

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. 

Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings review for the investment community and news media on Tuesday, February 15, 2022, 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 14, 2023.

The telephone dial-in number for the conference call is US Toll Free: 866-342-8591 or Global: +1 203-518-9713. The conference ID is MAR4Q21.  A telephone replay of the conference call will be available from 1:00 p.m. ET, Tuesday, February 15, 2022, until 8:00 p.m. ET, Tuesday, February 22, 2022.  To access the replay, call US Toll Free: 800-723-1517 or Global: +1 402-220-2659. 

Note on forward-looking statements:  All statements in this press release and the accompanying schedules are made as of February 15, 2022. 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 (COVID-19); recovery in lodging demand; travel and lodging demand and trends; our growth prospects and expectations; future performance of the company's hotels; our development pipeline, signings, rooms growth and conversions; our investment spending expectations; our expectations regarding capital returns to shareholders; 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 the risk factors that we identify in our Securities and Exchange Commission filings, including our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. 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 nearly 8,000 properties under 30 leading brands spanning 139 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, ADR and RevPAR statistics are 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.  Occupancy, ADR and RevPAR comparisons between 2021 and 2020 reflect properties that are comparable in both years. Occupancy, ADR and RevPAR comparisons between 2021 and 2019 reflect properties that are defined as comparable as of December 31, 2021, even if they were not open and operating for the full year 2019 or they did not meet all the other criteria for comparable in 2019.  Unless otherwise stated, all comparisons to pre-pandemic or 2019 are comparing the same time period in each year.

IRPR#1

Tables follow

MARRIOTT INTERNATIONAL, INC.

PRESS RELEASE SCHEDULES

TABLE OF CONTENTS

QUARTER 4, 2021
































































Consolidated Statements of Income - As Reported

A-1
















Non-GAAP Financial Measures 

A-3
















Total Lodging Products

A-4
















Key Lodging Statistics

A-7
















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 2021 AND 2020

(in millions except per share amounts, unaudited)



















As Reported

As Reported

Percent



Three Months Ended

Three Months Ended

Better/(Worse)



December 31, 2021

December 31, 2020

Reported 2021 vs. 2020

REVENUES






Base management fees

$                          217

$                          102

113

Franchise fees 1

520

277

88

Incentive management fees

94

44

114

Gross Fee Revenues

831

423

96

Contract investment amortization 2

(19)

(38)

50

Net Fee Revenues

812

385

111

Owned, leased, and other revenue 3

260

123

111

Cost reimbursement revenue 4

3,374

1,664

103

  Total Revenues

4,446

2,172

105









OPERATING COSTS AND EXPENSES






Owned, leased, and other - direct 5

227

150

(51)

Depreciation, amortization, and other 6

54

71

24

General, administrative, and other 7

213

183

(16)

Restructuring and merger-related charges

-

262

100

Reimbursed expenses 4

3,317

1,634

(103)

  Total Expenses

3,811

2,300

(66)









OPERATING INCOME (LOSS)

635

(128)

596









Gains and other income, net 8

4

6

(33)

Interest expense

(97)

(112)

13

Interest income 

6

7

(14)

Equity in losses 9

-

(87)

100









INCOME (LOSS) BEFORE INCOME TAXES

548

(314)

275









(Provision) benefit for income taxes

(80)

150

(153)









NET INCOME (LOSS)

$                          468

$                         (164)

385









EARNINGS (LOSS) PER SHARE






  Earnings (loss) per share - basic

$                         1.43

$                        (0.50)

386

  Earnings (loss) per share - diluted

$                         1.42

$                        (0.50)

384









Basic Shares

327.6

326.2


Diluted Shares 10

329.8

326.2









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

10

Basic and fully diluted weighted average shares outstanding used to calculate earnings (loss) 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 2021 AND 2020

(in millions except per share amounts, unaudited)



















As Reported

As Reported

Percent



Twelve Months Ended

Twelve Months Ended

Better/(Worse)



December 31, 2021

December 31, 2020

Reported 2021 vs. 2020

REVENUES






Base management fees

$                            669

$                            443

51

Franchise fees 1

1,790

1,153

55

Incentive management fees

235

87

170

Gross Fee Revenues

2,694

1,683

60

Contract investment amortization 2

(75)

(132)

43

Net Fee Revenues

2,619

1,551

69

Owned, leased, and other revenue 3

796

568

40

Cost reimbursement revenue 4

10,442

8,452

24

  Total Revenues

13,857

10,571

31









OPERATING COSTS AND EXPENSES






Owned, leased, and other - direct 5

734

677

(8)

Depreciation, amortization, and other 6

220

346

36

General, administrative, and other 7

823

762

(8)

Restructuring and merger-related charges 

8

267

97

Reimbursed expenses 4

10,322

8,435

(22)

  Total Expenses

12,107

10,487

(15)









OPERATING INCOME

1,750

84

1,983









Gains and other income, net 8

10

9

11

Loss on extinguishment of debt

(164)

-

 * 

Interest expense

(420)

(445)

6

Interest income 

28

27

4

Equity in losses 9

(24)

(141)

83









INCOME (LOSS) BEFORE INCOME TAXES

1,180

(466)

353









(Provision) benefit for income taxes

(81)

199

(141)









NET INCOME (LOSS) 

$                         1,099

$                           (267)

512









EARNINGS (LOSS) PER SHARE






  Earnings (loss) per share - basic

$                           3.36

$                          (0.82)

510

  Earnings (loss) per share - diluted

$                           3.34

$                          (0.82)

507









Basic Shares

327.2

325.8


Diluted Shares 10

329.3

325.8









 * 

Calculated percentage is not meaningful.





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 include our equity in losses of unconsolidated equity method investments.

10

Basic and fully diluted weighted average shares outstanding used to calculate earnings (loss) 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

($ 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/


2021

2020

(Worse)

2021

2020

(Worse)

Total revenues, as reported

$           4,446

$           2,172


$         13,857

$         10,571



Less: Cost reimbursement revenue

(3,374)

(1,664)


(10,442)

(8,452)



Add: Impairments 1

-

22


-

62



Adjusted total revenues **

1,072

530


3,415

2,181

















Operating income (loss), as reported

635

(128)


1,750

84



Less: Cost reimbursement revenue

(3,374)

(1,664)


(10,442)

(8,452)



Add: Reimbursed expenses

3,317

1,634


10,322

8,435



Add: Restructuring and merger-related charges

-

262


8

267



Add: Impairments2

-

44


11

201



Adjusted operating income **

578

148

291%

1,649

535

208%















Operating income (loss) margin

14%

-6%


13%

1%



Adjusted operating income margin **

54%

28%


48%

25%

















Net income (loss), as reported

468

(164)


1,099

(267)



Less: Cost reimbursement revenue

(3,374)

(1,664)


(10,442)

(8,452)



Add: Reimbursed expenses

3,317

1,634


10,322

8,435



Add: Restructuring and merger-related charges

-

262


8

267



Add: Impairments3

-

113


15

278



Add: Loss on extinguishment of debt

-

-


164

-



Add: Loss on asset dispositions4

-

6


-

6



Income tax effect of above adjustments

19

(74)


(17)

(134)



Less: Income tax special items

-

(74)


(98)

(74)



Adjusted net income **

$              430

$               39

1003%

$           1,051

$               59

1681%















Diluted earnings (loss) per share, as reported

$             1.42

$            (0.50)


$             3.34

$            (0.82)



Adjusted diluted earnings per share**

$             1.30

$             0.12

983%

$             3.19

$             0.18

1672%














 ** 

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 Depreciation, amortization, and other of $11 million in the 2021 full year. 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. 















3

Includes impairment charges reported in Depreciation, amortization, and other of $11 million; and Equity in losses of $4 million in the 2021 full year. 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 losses 


of $69 million and $77 million in the 2020 fourth quarter and 2020 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, 2021








US & Canada

Total International

Total Worldwide

Units

Rooms

Units

Rooms

Units

Rooms

Managed

638

218,798

1,305

334,374

1,943

553,172

Marriott Hotels

109

59,027

186

54,397

295

113,424

Marriott Hotels Serviced Apartments

-

-

1

154

1

154

Sheraton

27

23,113

186

63,160

213

86,273

Courtyard

170

27,380

105

22,752

275

50,132

Westin

40

21,865

74

22,527

114

44,392

JW Marriott

21

12,712

62

23,100

83

35,812

Renaissance

24

10,607

58

18,045

82

28,652

The Ritz-Carlton

38

11,410

67

16,927

105

28,337

The Ritz-Carlton Serviced Apartments

-

-

5

715

5

715

Four Points

1

134

79

21,884

80

22,018

Le Méridien

1

100

70

19,869

71

19,969

W Hotels

22

6,262

36

9,784

58

16,046

W Hotels Serviced Apartments

-

-

1

160

1

160

Residence Inn

76

12,199

8

982

84

13,181

The Luxury Collection

6

2,296

50

8,937

56

11,233

St. Regis

10

1,968

38

9,020

48

10,988

St. Regis Serviced Apartments

-

-

1

70

1

70

Gaylord Hotels

6

10,220

-

-

6

10,220

Aloft

2

505

42

9,461

44

9,966

AC Hotels by Marriott

7

1,165

69

8,337

76

9,502

Fairfield by Marriott

7

1,539

52

7,144

59

8,683

Delta Hotels

25

6,770

2

477

27

7,247

Autograph Collection

8

2,494

16

2,447

24

4,941

Marriott Executive Apartments

-

-

33

4,603

33

4,603

SpringHill Suites

26

4,360

-

-

26

4,360

Protea Hotels

-

-

27

3,294

27

3,294

EDITION

4

1,207

9

1,922

13

3,129

Element

2

640

12

2,273

14

2,913

Moxy

-

-

5

887

5

887

TownePlace Suites

6

825

-

-

6

825

Tribute Portfolio

-

-

6

604

6

604

Bulgari

-

-

5

442

5

442

Franchised

4,983

713,781

805

163,955

5,788

877,736

Courtyard

849

113,182

109

20,377

958

133,559

Fairfield by Marriott

1,105

103,791

40

6,797

1,145

110,588

Residence Inn

769

91,776

21

2,818

790

94,594

Marriott Hotels

229

72,456

61

17,980

290

90,436

Sheraton

151

45,711

69

19,428

220

65,139

SpringHill Suites

486

56,257

-

-

486

56,257

TownePlace Suites

469

47,770

-

-

469

47,770

Autograph Collection

128

25,313

95

20,764

223

46,077

Westin

92

31,071

25

7,575

117

38,646

Four Points

159

24,012

61

10,239

220

34,251

Renaissance

60

17,167

28

7,483

88

24,650

Aloft

146

21,002

22

3,561

168

24,563

AC Hotels by Marriott

88

14,527

39

7,136

127

21,663

Moxy

26

4,913

75

14,276

101

19,189

Delta Hotels

57

12,542

10

2,414

67

14,956

The Luxury Collection

11

2,989

52

9,523

63

12,512

Element

71

9,376

2

269

73

9,645

Tribute Portfolio

40

6,554

23

2,944

63

9,498

Le Méridien

23

5,187

16

4,128

39

9,315

JW Marriott

14

6,443

9

2,305

23

8,748

Protea Hotels

-

-

35

2,649

35

2,649

Design Hotels

9

1,313

10

1,062

19

2,375

The Ritz-Carlton

1

429

-

-

1

429

Bulgari

-

-

2

161

2

161

Marriott Executive Apartments

-

-

1

66

1

66

 

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of December 31, 2021








US & Canada

Total International

Total Worldwide

Units

Rooms

Units

Rooms

Units

Rooms

Owned/Leased

26

6,483

38

9,209

64

15,692

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

Westin

1

1,073

-

-

1

1,073

Protea Hotels

-

-

5

912

5

912

Renaissance

1

317

2

505

3

822

Autograph Collection 1

-

-

6

576

6

576

The Ritz-Carlton

-

-

2

550

2

550

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

65

6,925

37

2,953

102

9,878

The Ritz-Carlton Residences

38

4,234

13

1,041

51

5,275

St. Regis Residences

11

1,200

8

613

19

1,813

W Residences

10

1,089

4

359

14

1,448

Bulgari Residences

-

-

5

514

5

514

Westin Residences

3

266

-

-

3

266

Marriott Hotels Residences

-

-

2

246

2

246

The Luxury Collection Residences

1

91

3

115

4

206

Sheraton Residences

-

-

1

50

1

50

EDITION Residences

2

45

-

-

2

45

Le Méridien Residences

-

-

1

15

1

15

Timeshare*

72

18,839

20

3,862

92

22,701

Grand Total

5,784

964,826

2,205

514,353

7,989

1,479,179







*Timeshare property and room counts are included on this table in their geographical locations. For external reporting purposes, these counts are captured within "Unallocated corporate and other."

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.

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, 2021








US & Canada

Total International

Total Worldwide

Total Systemwide

Units

Rooms

Units

Rooms

Units

Rooms

Luxury

191

53,154

380

87,996

571

141,150

JW Marriott

35

19,155

72

25,901

107

45,056

The Ritz-Carlton

39

11,839

69

17,477

108

29,316

The Ritz-Carlton Residences

38

4,234

13

1,041

51

5,275

The Ritz-Carlton Serviced Apartments

-

-

5

715

5

715

The Luxury Collection 1

17

5,285

106

18,877

123

24,162

The Luxury Collection Residences

1

91

3

115

4

206

W Hotels

24

7,041

38

10,449

62

17,490

W Residences

10

1,089

4

359

14

1,448

W Hotels Serviced Apartments

-

-

1

160

1

160

St. Regis

10

1,968

39

9,180

49

11,148

St. Regis Residences

11

1,200

8

613

19

1,813

St. Regis Serviced Apartments

-

-

1

70

1

70

EDITION

4

1,207

9

1,922

13

3,129

EDITION Residences

2

45

-

-

2

45

Bulgari

-

-

7

603

7

603

Bulgari Residences

-

-

5

514

5

514

Full-Service

1,036

354,474

992

275,413

2,028

629,887

Marriott Hotels

340

132,791

253

74,441

593

207,232

Marriott Hotels Residences

-

-

2

246

2

246

Marriott Hotels Serviced Apartments

-

-

1

154

1

154

Sheraton

178

68,824

259

84,418

437

153,242

Sheraton Residences

-

-

1

50

1

50

Westin

133

54,009

99

30,102

232

84,111

Westin Residences

3

266

-

-

3

266

Renaissance

85

28,091

88

26,033

173

54,124

Autograph Collection 2

136

27,807

117

23,787

253

51,594

Le Méridien

24

5,287

86

23,997

110

29,284

Le Méridien Residences

-

-

1

15

1

15

Delta Hotels

82

19,312

12

2,891

94

22,203

Gaylord Hotels

6

10,220

-

-

6

10,220

Tribute Portfolio

40

6,554

29

3,548

69

10,102

Marriott Executive Apartments

-

-

34

4,669

34

4,669

Design Hotels

9

1,313

10

1,062

19

2,375

Limited-Service

4,485

538,359

813

147,082

5,298

685,441

Courtyard

1,038

143,376

218

44,023

1,256

187,399

Fairfield by Marriott

1,112

105,330

92

13,941

1,204

119,271

Residence Inn

846

104,167

30

3,940

876

108,107

SpringHill Suites

512

60,617

-

-

512

60,617

Four Points

160

24,146

140

32,123

300

56,269

TownePlace Suites

475

48,595

-

-

475

48,595

Aloft

148

21,507

64

13,022

212

34,529

AC Hotels by Marriott

95

15,692

108

15,473

203

31,165

Moxy

26

4,913

80

15,163

106

20,076

Element

73

10,016

14

2,542

87

12,558

Protea Hotels

-

-

67

6,855

67

6,855

Timeshare*

72

18,839

20

3,862

92

22,701

Grand Total

5,784

964,826

2,205

514,353

7,989

1,479,179

*Timeshare property and room counts are included on this table in their geographical locations. 
For external reporting purposes, these counts are captured within "Unallocated corporate and other."

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.

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.

 

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $











Comparable Company-Operated US & Canada Properties













Three Months Ended December 31, 2021 and December 31, 2020


REVPAR

Occupancy

Average Daily Rate

Brand

2021

 vs. 2020

2021

 vs. 2020

2021

 vs. 2020

JW Marriott

$164.65

236.0%

58.5%

36.8%

pts.

$281.62

24.7%

The Ritz-Carlton

$303.96

159.4%

58.5%

29.7%

pts.

$519.73

27.5%

W Hotels

$199.25

255.4%

56.7%

33.7%

pts.

$351.67

43.7%

Composite US & Canada Luxury1

$248.83

209.0%

59.2%

35.1%

pts.

$420.40

25.8%

Marriott Hotels

$104.51

323.5%

54.8%

36.4%

pts.

$190.67

42.5%

Sheraton

$103.68

433.6%

52.0%

38.4%

pts.

$199.48

39.8%

Westin

$121.95

295.7%

57.2%

36.5%

pts.

$213.23

43.4%

Composite US & Canada Premium2

$108.11

315.6%

54.2%

36.2%

pts.

$199.57

37.9%

US & Canada Full-Service3

$137.17

267.7%

55.2%

36.0%

pts.

$248.47

28.2%

Courtyard

$77.20

175.5%

58.1%

26.9%

pts.

$132.99

48.0%

Residence Inn

$114.28

92.0%

71.4%

23.2%

pts.

$160.03

29.7%

Composite US & Canada Limited-Service4

$88.24

146.8%

62.3%

27.2%

pts.

$141.66

38.9%

US & Canada - All5

$125.94

240.9%

56.8%

33.9%

pts.

$221.60

37.2%






















Comparable Systemwide US & Canada Properties













Three Months Ended December 31, 2021 and December 31, 2020


REVPAR

Occupancy

Average Daily Rate

Brand

2021

 vs. 2020

2021

 vs. 2020

2021

 vs. 2020

JW Marriott

$166.70

242.5%

61.1%

38.1%

pts.

$272.75

28.8%

The Ritz-Carlton

$300.43

163.9%

58.6%

30.5%

pts.

$512.88

26.4%

W Hotels

$199.25

255.4%

56.7%

33.7%

pts.

$351.67

43.7%

Composite US & Canada Luxury1

$233.97

214.6%

60.1%

35.8%

pts.

$389.06

27.3%

Marriott Hotels

$91.50

232.3%

53.2%

31.0%

pts.

$172.08

38.4%

Sheraton

$79.57

235.9%

50.3%

28.6%

pts.

$158.28

44.5%

Westin

$112.62

253.7%

55.7%

32.9%

pts.

$202.09

44.6%

Composite US & Canada Premium2

$98.31

223.4%

53.7%

30.9%

pts.

$183.11

37.1%

US & Canada Full-Service3

$114.28

221.2%

54.4%

31.5%

pts.

$209.89

35.4%

Courtyard

$80.95

130.2%

60.4%

24.0%

pts.

$134.06

38.8%

Residence Inn

$100.78

63.1%

71.4%

16.1%

pts.

$141.12

26.4%

Fairfield by Marriott

$71.73

95.8%

62.6%

20.6%

pts.

$114.63

31.5%

Composite US & Canada Limited-Service4

$83.05

94.9%

64.1%

20.6%

pts.

$129.50

32.2%

US & Canada - All5

$96.45

143.6%

60.0%

25.3%

pts.

$160.83

40.9%






















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, and Gaylord Hotels.

  Systemwide also includes Le Méridien and Tribute Portfolio.






3 Includes Composite US & Canada Luxury and Composite US & Canada Premium.



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 US & Canada Full-Service and Composite US & Canada Limited-Service.



 

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $











Comparable Company-Operated International Properties













Three Months Ended December 31, 2021 and December 31, 2020


REVPAR

Occupancy

Average Daily Rate

Region

2021

 vs. 2020

2021

 vs. 2020

2021

 vs. 2020

Greater China

$66.06

-10.3%

54.8%

-7.3%

pts.

$120.50

1.7%

Asia Pacific excluding China

$58.18

47.4%

48.7%

15.0%

pts.

$119.58

1.8%

Caribbean & Latin America

$106.33

140.5%

54.4%

23.5%

pts.

$195.57

36.6%

Europe

$95.40

391.3%

48.9%

34.5%

pts.

$195.04

45.1%

Middle East & Africa

$129.78

123.5%

66.0%

26.6%

pts.

$196.71

33.4%











International - All1

$83.38

70.3%

53.8%

14.9%

pts.

$154.91

23.2%











Worldwide2

$102.77

136.3%

55.2%

23.6%

pts.

$186.19

35.5%






















Comparable Systemwide International Properties













Three Months Ended December 31, 2021 and December 31, 2020


REVPAR

Occupancy

Average Daily Rate

Region

2021

 vs. 2020

2021

 vs. 2020

2021

 vs. 2020

Greater China

$63.92

-9.7%

54.1%

-7.0%

pts.

$118.26

2.0%

Asia Pacific excluding China

$60.66

39.5%

49.7%

14.4%

pts.

$122.15

-1.0%

Caribbean & Latin America

$85.85

186.9%

52.0%

26.1%

pts.

$165.11

43.1%

Europe

$80.69

354.0%

46.6%

32.2%

pts.

$173.23

39.9%

Middle East & Africa

$118.93

123.3%

65.2%

26.6%

pts.

$182.41

32.3%











International - All1

$77.92

83.3%

52.3%

17.4%

pts.

$149.10

22.2%











Worldwide2

$90.86

124.5%

57.6%

22.9%

pts.

$157.62

35.2%











1 Includes Greater China, Asia Pacific excluding China, Caribbean & Latin America, Europe, and Middle East & Africa.

2 Includes US & Canada - All and International - All.







 

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $











Comparable Company-Operated US & Canada Properties













Twelve Months Ended December 31, 2021 and December 31, 2020


REVPAR

Occupancy

Average Daily Rate

Brand

2021

 vs. 2020

2021

 vs. 2020

2021

 vs. 2020

JW Marriott

$129.28

92.4%

48.2%

21.6%

pts.

$267.98

6.2%

The Ritz-Carlton

$248.07

96.6%

49.8%

19.5%

pts.

$498.03

19.4%

W Hotels

$144.52

97.6%

45.2%

19.2%

pts.

$319.46

13.8%

Composite US & Canada Luxury1

$190.53

98.8%

48.4%

20.9%

pts.

$393.72

12.9%

Marriott Hotels

$77.07

75.6%

43.6%

19.1%

pts.

$176.56

-1.1%

Sheraton

$72.30

91.7%

39.0%

17.6%

pts.

$185.56

5.2%

Westin

$90.63

93.3%

44.4%

19.2%

pts.

$203.97

9.7%

Composite US & Canada Premium2

$78.55

82.5%

42.4%

18.3%

pts.

$185.46

3.5%

US & Canada Full-Service3

$101.70

88.4%

43.6%

18.9%

pts.

$233.23

6.9%

Courtyard

$65.92

84.7%

55.1%

24.1%

pts.

$119.62

3.8%

Residence Inn

$103.55

51.0%

69.4%

21.4%

pts.

$149.14

4.6%

Composite US & Canada Limited-Service4

$75.98

71.3%

58.8%

23.4%

pts.

$129.26

3.1%

US & Canada - All5

$95.79

85.1%

47.1%

19.9%

pts.

$203.44

6.8%






















Comparable Systemwide US & Canada Properties













Twelve Months Ended December 31, 2021 and December 31, 2020


REVPAR

Occupancy

Average Daily Rate

Brand

2021

 vs. 2020

2021

 vs. 2020

2021

 vs. 2020

JW Marriott

$130.58

94.6%

50.6%

23.6%

pts.

$258.25

3.8%

The Ritz-Carlton

$243.98

98.2%

49.5%

19.8%

pts.

$492.52

19.1%

W Hotels

$144.52

97.6%

45.2%

19.2%

pts.

$319.46

13.8%

Composite US & Canada Luxury1

$178.93

98.9%

49.2%

21.6%

pts.

$363.48

11.6%

Marriott Hotels

$72.81

71.3%

45.0%

17.8%

pts.

$161.95

3.6%

Sheraton

$62.27

70.3%

42.5%

15.2%

pts.

$146.41

9.4%

Westin

$85.34

79.8%

45.7%

17.8%

pts.

$186.94

9.5%

Composite US & Canada Premium2

$76.82

74.9%

45.0%

17.4%

pts.

$170.58

7.5%

US & Canada Full-Service3

$88.85

80.1%

45.5%

17.9%

pts.

$195.14

9.4%

Courtyard

$72.19

72.4%

57.7%

20.7%

pts.

$125.10

10.7%

Residence Inn

$94.83

40.4%

71.0%

16.1%

pts.

$133.47

8.5%

Fairfield by Marriott

$67.17

66.6%

61.3%

19.4%

pts.

$109.53

14.0%

Composite US & Canada Limited-Service4

$76.07

58.2%

62.4%

18.8%

pts.

$121.89

10.4%

US & Canada - All5

$81.55

67.7%

55.2%

18.4%

pts.

$147.84

11.7%

































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, and Gaylord Hotels.

  Systemwide also includes Le Méridien and Tribute Portfolio.







3 Includes Composite US & Canada Luxury and Composite US & Canada Premium.




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 US & Canada Full-Service and Composite US & Canada Limited-Service.




 

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $











Comparable Company-Operated International Properties













Twelve Months Ended December 31, 2021 and December 31, 2020


REVPAR

Occupancy

Average Daily Rate

Region

2021

 vs. 2020

2021

 vs. 2020

2021

 vs. 2020

Greater China

$67.01

28.5%

55.5%

9.7%

pts.

$120.67

6.0%

Asia Pacific excluding China

$40.45

0.7%

36.4%

5.5%

pts.

$111.05

-14.5%

Caribbean & Latin America

$78.07

63.3%

43.6%

15.6%

pts.

$179.04

4.8%

Europe

$64.63

81.5%

33.4%

12.8%

pts.

$193.55

11.8%

Middle East & Africa

$84.18

59.6%

51.5%

15.7%

pts.

$163.51

10.8%











International - All1

$63.17

39.1%

44.5%

10.7%

pts.

$142.01

5.8%











Worldwide2

$78.01

61.5%

45.7%

14.9%

pts.

$170.83

8.9%






















Comparable Systemwide International Properties













Twelve Months Ended December 31, 2021 and December 31, 2020


REVPAR

Occupancy

Average Daily Rate

Region

2021

 vs. 2020

2021

 vs. 2020

2021

 vs. 2020

Greater China

$64.06

26.9%

54.2%

9.0%

pts.

$118.09

5.8%

Asia Pacific excluding China

$43.23

2.2%

37.8%

6.1%

pts.

$114.50

-14.3%

Caribbean & Latin America

$63.98

74.3%

41.8%

16.6%

pts.

$152.94

5.0%

Europe

$56.23

71.3%

32.6%

11.5%

pts.

$172.71

10.7%

Middle East & Africa

$77.69

60.3%

50.6%

15.5%

pts.

$153.52

11.2%











International - All1

$58.75

40.6%

42.4%

10.8%

pts.

$138.71

4.8%











Worldwide2

$74.66

60.4%

51.3%

16.1%

pts.

$145.56

10.0%











1 Includes Greater China, Asia Pacific excluding China, Caribbean & Latin America, Europe, and Middle East & Africa.

2 Includes US & Canada - All and International - All.







 

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS - 2021 vs 2019

In Constant $











Comparable Systemwide Properties1












Three Months Ended December 31, 2021 and December 31, 2019


REVPAR

Occupancy

Average Daily Rate

Region

2021

 vs. 2019

2021

 vs. 2019

2021

 vs. 2019

Greater China

$63.92

-27.4%

54.1%

-14.5%

pts.

$118.26

-7.9%

Asia Pacific excluding China

$60.66

-48.4%

49.7%

-24.9%

pts.

$122.15

-22.6%

Caribbean & Latin America

$85.85

-9.2%

52.0%

-8.2%

pts.

$165.11

5.0%

Europe

$80.69

-34.2%

46.6%

-23.4%

pts.

$173.23

-1.2%

Middle East & Africa

$118.93

8.3%

65.2%

-6.9%

pts.

$182.41

19.7%











International - All2

$77.92

-28.2%

52.3%

-17.7%

pts.

$149.10

-3.9%











US & Canada - All

$96.45

-15.3%

60.0%

-9.4%

pts.

$160.83

-1.9%











Worldwide3

$90.86

-19.0%

57.6%

-11.9%

pts.

$157.62

-2.3%






















Comparable Systemwide Properties1












Twelve Months Ended December 31, 2021 and December 31, 2019


REVPAR

Occupancy

Average Daily Rate

Region

2021

 vs. 2019

2021

 vs. 2019

2021

 vs. 2019

Greater China

$64.06

-26.2%

54.2%

-12.8%

pts.

$118.09

-8.8%

Asia Pacific excluding China

$43.23

-62.2%

37.8%

-34.7%

pts.

$114.50

-27.4%

Caribbean & Latin America

$63.98

-35.9%

41.8%

-19.9%

pts.

$152.94

-5.4%

Europe

$56.23

-58.7%

32.6%

-39.1%

pts.

$172.71

-9.1%

Middle East & Africa

$77.69

-20.3%

50.6%

-16.9%

pts.

$153.52

6.3%











International - All2

$58.75

-46.6%

42.4%

-26.8%

pts.

$138.71

-12.9%











US & Canada - All

$81.55

-32.5%

55.2%

-17.9%

pts.

$147.84

-10.6%











Worldwide3

$74.66

-36.5%

51.3%

-20.6%

pts.

$145.56

-11.0%






















1 The comparisons between 2021 and 2019 reflect properties that are defined as comparable as of December 31, 2021, even if in 2019 they were not open and operating
for the full year or did not meet all the criteria for comparable in 2019.

2 Includes Greater China, Asia Pacific excluding China, Caribbean & Latin America, Europe, and Middle East & Africa.

3 Includes US & Canada - All and International - All.








 

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA

($ in millions)














Fiscal Year 2021




First
Quarter

Second
Quarter

Third
Quarter

Fourth
Quarter

Total

Net (loss) income, as reported

$    (11)

$    422

$    220

$    468

$  1,099

Cost reimbursement revenue

(1,780)

(2,338)

(2,950)

(3,374)

(10,442)

Reimbursed expenses

1,833

2,255

2,917

3,317

10,322

Loss on extinguishment of debt

-

-

164

-

164

Interest expense

107

109

107

97

420

Interest expense from unconsolidated joint ventures 

2

1

2

2

7

(Benefit) provision for income taxes

(16)

(41)

58

80

81

Depreciation and amortization

52

50

64

54

220

Contract investment amortization

17

18

21

19

75

Depreciation and amortization classified in reimbursed expenses

28

27

28

28

111

Depreciation, amortization and impairments from unconsolidated joint ventures 

10

9

5

7

31

Stock-based compensation

53

43

43

43

182

Restructuring and merger-related charges

1

3

4

-

8

Adjusted EBITDA **

$    296

$    558

$    683

$    741

$  2,278













Change from 2020 Adjusted EBITDA **

-33%

815%

109%

134%

99%














Fiscal Year 2020


First
Quarter

Second
Quarter

Third
Quarter

Fourth
Quarter

Total

Net income (loss), as reported

$     31

$   (234)

$    100

$   (164)

$    (267)

Cost reimbursement revenue

(3,797)

(1,202)

(1,789)

(1,664)

(8,452)

Reimbursed expenses

3,877

1,241

1,683

1,634

8,435

Interest expense

93

127

113

112

445

Interest expense from unconsolidated joint ventures 

3

1

12

8

24

(Benefit) provision for income taxes

(12)

(64)

27

(150)

(199)

Depreciation and amortization

150

72

53

71

346

Contract investment amortization

25

21

48

38

132

Depreciation classified in reimbursed expenses

26

27

27

29

109

Depreciation, amortization and impairments from unconsolidated joint ventures 

7

16

3

78

104

Stock-based compensation

41

50

49

57

197

Restructuring and merger-related (recoveries) charges

(2)

6

1

262

267

Loss on asset dispositions 

-

-

-

6

6

Adjusted EBITDA **

$    442

$     61

$    327

$    317

$  1,147

























** 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.









  

MARRIOTT INTERNATIONAL, INC.

EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES

In our press release and schedules, and on the related conference call, we report certain financial measures that are not required by, or presented in accordance with, United States generally accepted accounting principles ("GAAP"). We discuss the manner in which the non-GAAP measures reported in this press release and schedules are determined and management's reasons for reporting these non-GAAP measures below, and the press release schedules reconcile the most directly comparable GAAP measure to each non-GAAP measure that we refer to. Although management evaluates and presents these non-GAAP measures for the reasons described below, please be aware that these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for revenue, operating income/loss, net income/loss, earnings/loss per share or any other comparable operating measure prescribed by GAAP. In addition, we may calculate and/or present these non-GAAP financial measures differently than measures with the same or similar names that other companies report, and as a result, the non-GAAP measures we report may not be comparable to those reported by others.

Adjusted Operating Income and Adjusted Operating Income Margin. Adjusted operating income and Adjusted operating income margin exclude cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges, and certain non-cash impairment charges. Adjusted operating income margin reflects Adjusted operating income divided by Adjusted total revenues. We believe that these are meaningful metrics because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.

Adjusted Net Income and Adjusted Diluted Earnings Per Share. Adjusted net income and Adjusted diluted earnings per share reflect our net income/loss and diluted earnings/loss per share excluding the impact of cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges, certain non-cash impairment charges, loss on extinguishment of debt, losses and gains on asset dispositions, and the income tax effect of these adjustments. We calculate the income tax effect of the adjustments using an estimated tax rate applicable to each adjustment. Adjusted net income and Adjusted diluted earnings per share also exclude the income tax special items primarily related to the income tax benefits arising from the favorable resolution of pre-acquisition Starwood tax audits in 2021 and 2020. We believe that these measures are meaningful indicators of our performance because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.

Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("Adjusted EBITDA"). Adjusted EBITDA reflects net income/loss excluding the impact of the following items: cost reimbursement revenue, reimbursed expenses, loss on extinguishment of debt, interest expense, depreciation and amortization (including depreciation and amortization classified in "Reimbursed expenses," as discussed below), certain non-cash impairment charges related to equity investments, benefit (provision) for income taxes, restructuring and merger-related charges (recoveries), and stock-based compensation expense for all periods presented. When applicable, Adjusted EBITDA also excludes gains and losses on asset dispositions made by us or by our joint venture investees.


In our presentations of Adjusted operating income and Adjusted operating income margin, Adjusted net income and Adjusted diluted earnings per share, and Adjusted EBITDA, as applicable, we exclude charges incurred under our restructuring plans that we initiated beginning in the 2020 second quarter to achieve cost savings in response to the decline in lodging demand caused by COVID-19 and transition costs associated with the Starwood merger, which we record in the "Restructuring and merger-related charges" caption of our Consolidated Statements of Income (our "Income Statements"), as well as the loss related to the debt extinguishment, as applicable, which we record in the "Loss on extinguishment of debt" caption of our Income Statements, to allow for period-over period comparisons of our ongoing operations before the impact of these items. We also exclude non-cash impairment charges (if above a specified threshold) related to our management and franchise contracts (if the impairment is non-routine), leases, equity investments, and other capitalized assets, which we record in the "Contract investment amortization," "Depreciation, amortization, and other," and "Equity in losses" captions of our Income Statements to allow for period-over period comparisons of our ongoing operations before the impact of these items. We exclude cost reimbursement revenue and reimbursed expenses, which relate to property-level and centralized programs and services that we operate for the benefit of our hotel owners. We do not operate these programs and services to generate a profit over the long term, and accordingly, when we recover the costs that we incur for these programs and services from our hotel owners, we do not seek a mark-up. For property-level services, our owners typically reimburse us at the same time that we incur expenses. However, for centralized programs and services, our owners may reimburse us before or after we incur expenses, causing timing differences between the costs we incur and the related reimbursement from hotel owners in our operating and net income. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively. Because we do not retain any such profits or losses over time, we exclude the net impact when evaluating period-over-period changes in our operating results.

We believe that Adjusted EBITDA is a meaningful indicator of our operating performance because it permits period-over-period comparisons of our ongoing operations before these items and facilitates our comparison of results before these items with results from other lodging companies. We use Adjusted EBITDA to evaluate companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. Our Adjusted EBITDA also excludes depreciation and amortization expense, which we report under "Depreciation, amortization, and other" as well as depreciation and amortization classified in "Contract investment amortization," "Reimbursed expenses," and "Equity in losses" of our Income Statements, because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. Depreciation and amortization classified in "Reimbursed expenses" reflects depreciation and amortization of Marriott-owned assets and software, for which we receive cash from owners to reimburse the company for its investments made for the benefit of the system. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We exclude stock-based compensation expense in all periods presented to address the considerable variability among companies in recording compensation expense because companies use stock-based payment awards differently, both in the type and quantity of awards granted.

 

MARRIOTT INTERNATIONAL, INC.

EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES

RevPAR. In addition to the foregoing non-GAAP financial measures, we present Revenue per Available Room ("RevPAR") as a performance measure. We believe RevPAR is a meaningful indicator of our performance because it measures the period-over-period change in room revenues for comparable properties. RevPAR relates to property level revenue and may not be comparable to similarly titled measures, such as revenues, and should not be viewed as necessarily correlating with our fee revenue. We calculate RevPAR by dividing room sales (recorded in local currency) for comparable properties by room nights available for the period. We do not consider interruptions related to COVID-19 when determining which properties to classify as comparable. The comparisons between 2021 and 2019 reflect properties that are defined as comparable as of December 31, 2021, even if in 2019 they were not open and operating for the full year or did not meet all the other criteria for comparable in 2019. We present growth in comparative RevPAR on a constant dollar basis, which we calculate by applying exchange rates for the current period to each period presented. We believe constant dollar analysis provides valuable information regarding our properties' performance as it removes currency fluctuations from the presentation of such results.

 

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/marriott-international-reports-fourth-quarter-2021-results-301482101.html

SOURCE Marriott International, Inc.

Melissa Froehlich Flood, Corporate Relations, (301) 380-4839, newsroom@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

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