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) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Financial Results for the Quarter Ended September 30, 2014 Marriott International, Inc. ("Marriott") today issued a press release reporting financial results for the quarter ended on September 30, 2014. 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 exhibits are furnished with this report: |
Exhibit 99 - | Press release issued on October 28, 2014, reporting financial results for the quarter ended September 30, 2014. |
MARRIOTT INTERNATIONAL, INC. | ||||||||
Date: October 28, 2014 | By: | /s/ Bao Giang Val Bauduin | ||||||
Bao Giang Val Bauduin | ||||||||
Controller and Chief Accounting Officer |
Exhibit No. | Description | |
99 | Press release issued on October 28, 2014, reporting financial results for the quarter ended September 30, 2014. |
![]() | ![]() |
• | Third quarter diluted EPS totaled $0.65, a 25 percent increase over prior year results; |
• | North American comparable systemwide RevPAR rose 8.7 percent in the third quarter with average daily rates up 5.0 percent; |
• | On a constant dollar basis, worldwide comparable systemwide RevPAR rose 8.1 percent in the third quarter, including a 4.5 percent increase in average daily rate; |
• | Marriott repurchased 4.5 million shares of the company’s common stock for $300 million during the third quarter. To date in October, the company repurchased 3.9 million shares for $254 million. Year-to-date, the company repurchased 20.4 million shares for $1.2 billion; |
• | Comparable company-operated house profit margins increased 240 basis points in North America and 200 basis points worldwide in the third quarter; |
• | Adjusted for cost reimbursements, the company’s operating income margin increased to 43 percent compared to 41 percent in the year-ago quarter; |
• | At the end of the third quarter, the company’s worldwide development pipeline increased to nearly 225,000 rooms, including approximately 37,000 rooms approved, but not yet subject to signed contracts; |
• | Nearly 6,900 rooms were added during the third quarter, including over 2,200 rooms in international markets. At quarter-end, Marriott operated or franchised over 700,000 rooms worldwide; |
• | Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $393 million in the quarter, a 19 percent increase over third quarter 2013 adjusted EBITDA. |
Fourth Quarter 2014 | Full Year 2014 | |
Total fee revenue | $425 million to $435 million | $1,714 million to $1,724 million |
Owned, leased and other revenue, net of direct expenses | Approx. $65 million | Approx. $239 million |
Depreciation, amortization, and other expenses | Approx. $30 million | Approx. $146 million |
General, administrative, and other expenses | $175 million to $180 million | $654 million to $659 million |
Operating income | $280 million to $295 million | $1,148 million to $1,163 million |
Gains and other income | Approx. $3 million | Approx. $7 million |
Net interest expense1 | Approx. $20 million | Approx. $92 million |
Equity in earnings (losses) | Approx. $(2) million | Approx. $4 million |
Earnings per share | $0.62 to $0.66 | $2.48 to $2.52 |
Tax rate | 32.5 percent |
MARRIOTT INTERNATIONAL, INC. | |
PRESS RELEASE SCHEDULES | |
QUARTER 3, 2014 | |
TABLE OF CONTENTS | |
Condensed Consolidated Statements of Income | A-1 |
Total Lodging Products | A-3 |
Key Lodging Statistics | A-4 |
EBITDA and Adjusted EBITDA | A-8 |
EBITDA and Adjusted EBITDA Full Year Forecast | A-9 |
Operating Income Margin Excluding Cost Reimbursements | A-10 |
Non-GAAP Financial Measures | A-11 |
Three Months Ended | Three Months Ended | Percent | ||||||||
September 30, 2014 | September 30, 2013 | Better/(Worse) | ||||||||
REVENUES | ||||||||||
Base management fees | $ | 178 | $ | 150 | 19 | |||||
Franchise fees | 203 | 175 | 16 | |||||||
Incentive management fees | 67 | 53 | 26 | |||||||
Owned, leased, and other revenue 1 | 244 | 220 | 11 | |||||||
Cost reimbursements 2 | 2,768 | 2,562 | 8 | |||||||
Total Revenues | 3,460 | 3,160 | 9 | |||||||
OPERATING COSTS AND EXPENSES | ||||||||||
Owned, leased, and other - direct 3 | 189 | 172 | (10 | ) | ||||||
Reimbursed costs | 2,768 | 2,562 | (8 | ) | ||||||
Depreciation, amortization, and other 4 | 33 | 34 | 3 | |||||||
General, administrative, and other 5 | 172 | 147 | (17 | ) | ||||||
Total Expenses | 3,162 | 2,915 | (8 | ) | ||||||
OPERATING INCOME | 298 | 245 | 22 | |||||||
Gains and other income 6 | 1 | 1 | — | |||||||
Interest expense | (29 | ) | (28 | ) | (4 | ) | ||||
Interest income | 8 | 5 | 60 | |||||||
Equity in earnings 7 | 12 | — | * | |||||||
INCOME BEFORE INCOME TAXES | 290 | 223 | 30 | |||||||
Provision for income taxes | (98 | ) | (63 | ) | (56 | ) | ||||
NET INCOME | $ | 192 | $ | 160 | 20 | |||||
EARNINGS PER SHARE - Basic | ||||||||||
Earnings per share | $ | 0.66 | $ | 0.53 | 25 | |||||
EARNINGS PER SHARE - Diluted | ||||||||||
Earnings per share | $ | 0.65 | $ | 0.52 | 25 | |||||
Basic Shares | 288.9 | 301.9 | ||||||||
Diluted Shares | 295.4 | 309.5 |
* | Percent cannot be calculated. |
1 | Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, branding fees, and other revenue. |
2 | Cost reimbursements include reimbursements from properties for Marriott-funded operating expenses. |
3 | Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses. |
4 | 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. |
5 | General, administrative, and other expenses include the overhead costs allocated to our segments, and our corporate overhead costs and general expenses. |
6 | Gains and other income includes gains and losses on: the sale of real estate, the sale or other-than-temporary impairment of joint ventures and investments, and income from cost method investments. |
7 | Equity in earnings include our equity in earnings or losses of unconsolidated equity method investments. |
Nine Months Ended | Nine Months Ended | Percent | ||||||||
September 30, 2014 | September 30, 2013 | Better/(Worse) | ||||||||
REVENUES | ||||||||||
Base management fees | $ | 509 | $ | 469 | 9 | |||||
Franchise fees | 560 | 503 | 11 | |||||||
Incentive management fees | 220 | 183 | 20 | |||||||
Owned, leased, and other revenue 1 | 747 | 690 | 8 | |||||||
Cost reimbursements 2 | 8,201 | 7,720 | 6 | |||||||
Total Revenues | 10,237 | 9,565 | 7 | |||||||
OPERATING COSTS AND EXPENSES | ||||||||||
Owned, leased, and other - direct 3 | 573 | 532 | (8 | ) | ||||||
Reimbursed costs | 8,201 | 7,720 | (6 | ) | ||||||
Depreciation, amortization, and other 4 | 116 | 92 | (26 | ) | ||||||
General, administrative, and other 5 | 479 | 471 | (2 | ) | ||||||
Total Expenses | 9,369 | 8,815 | (6 | ) | ||||||
OPERATING INCOME | 868 | 750 | 16 | |||||||
Gains and other income 6 | 4 | 14 | (71 | ) | ||||||
Interest expense | (89 | ) | (88 | ) | (1 | ) | ||||
Interest income | 17 | 13 | 31 | |||||||
Equity in earnings (losses) 7 | 6 | (2 | ) | 400 | ||||||
INCOME BEFORE INCOME TAXES | 806 | 687 | 17 | |||||||
Provision for income taxes | (250 | ) | (212 | ) | (18 | ) | ||||
NET INCOME | $ | 556 | $ | 475 | 17 | |||||
EARNINGS PER SHARE - Basic | ||||||||||
Earnings per share | $ | 1.90 | $ | 1.55 | 23 | |||||
EARNINGS PER SHARE - Diluted | ||||||||||
Earnings per share | $ | 1.86 | $ | 1.51 | 23 | |||||
Basic Shares | 292.5 | 306.8 | ||||||||
Diluted Shares | 299.4 | 314.8 |
* | Percent cannot be calculated. |
1 | Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, branding fees, and other revenue. |
2 | Cost reimbursements include reimbursements from properties for Marriott-funded operating expenses. |
3 | Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses. |
4 | 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. |
5 | General, administrative, and other expenses include the overhead costs allocated to our segments, and our corporate overhead costs and general expenses. |
6 | Gains and other income includes gains and losses on: the sale of real estate, the sale or other-than-temporary impairment of joint ventures and investments, and income from cost method investments. |
7 | Equity in earnings (losses) include our equity in earnings or losses of unconsolidated equity method investments. |
Number of Properties | Number of Rooms/Suites | ||||||||||||
Brand | September 30, 2014 | September 30, 2013 | vs. September 30, 2013 | September 30, 2014 | September 30, 2013 | vs. September 30, 2013 | |||||||
Domestic Full-Service | |||||||||||||
Marriott Hotels | 347 | 347 | — | 140,575 | 139,926 | 649 | |||||||
Renaissance Hotels | 78 | 76 | 2 | 27,744 | 27,189 | 555 | |||||||
Autograph Collection | 35 | 30 | 5 | 8,998 | 8,059 | 939 | |||||||
Gaylord Hotels | 5 | 5 | — | 8,098 | 8,098 | — | |||||||
The Ritz-Carlton | 38 | 37 | 1 | 11,300 | 11,048 | 252 | |||||||
The Ritz-Carlton Residential | 30 | 30 | — | 3,598 | 3,598 | — | |||||||
Domestic Limited-Service | |||||||||||||
Courtyard | 858 | 830 | 28 | 120,589 | 116,549 | 4,040 | |||||||
Fairfield Inn & Suites | 707 | 694 | 13 | 64,413 | 63,285 | 1,128 | |||||||
SpringHill Suites | 311 | 303 | 8 | 36,588 | 35,553 | 1,035 | |||||||
Residence Inn | 641 | 622 | 19 | 77,577 | 75,099 | 2,478 | |||||||
TownePlace Suites | 232 | 218 | 14 | 23,130 | 21,630 | 1,500 | |||||||
International | |||||||||||||
Marriott Hotels | 224 | 211 | 13 | 68,648 | 64,653 | 3,995 | |||||||
Renaissance Hotels | 81 | 78 | 3 | 25,368 | 25,203 | 165 | |||||||
Autograph Collection 1 | 27 | 20 | 7 | 3,521 | 2,385 | 1,136 | |||||||
Protea Hotels | 112 | — | 112 | 10,107 | — | 10,107 | |||||||
Moxy Hotels | 1 | — | 1 | 162 | — | 162 | |||||||
Courtyard | 123 | 116 | 7 | 24,236 | 22,727 | 1,509 | |||||||
Fairfield Inn & Suites | 17 | 16 | 1 | 2,089 | 1,896 | 193 | |||||||
SpringHill Suites | 2 | 2 | — | 299 | 299 | — | |||||||
Residence Inn | 24 | 23 | 1 | 3,349 | 3,229 | 120 | |||||||
TownePlace Suites | 4 | 2 | 2 | 518 | 278 | 240 | |||||||
Marriott Executive Apartments | 27 | 27 | — | 4,285 | 4,295 | (10 | ) | ||||||
The Ritz-Carlton | 47 | 42 | 5 | 13,777 | 12,660 | 1,117 | |||||||
The Ritz-Carlton Residential | 10 | 7 | 3 | 630 | 469 | 161 | |||||||
The Ritz-Carlton Serviced Apartments | 4 | 4 | — | 579 | 579 | — | |||||||
Bulgari Hotels & Resorts | 3 | 3 | — | 202 | 202 | — | |||||||
EDITION | 2 | 2 | — | 251 | 251 | — | |||||||
AC Hotels by Marriott 1 | 75 | 75 | — | 8,499 | 8,491 | 8 | |||||||
Timeshare 2 | 62 | 63 | (1 | ) | 13,124 | 12,856 | 268 | ||||||
Total | 4,127 | 3,883 | 244 | 702,254 | 670,507 | 31,747 |
1 | All AC Hotels by Marriott properties and five Autograph Collection properties included in this table are operated by unconsolidated joint ventures that hold management agreements and also provide services to franchised properties. |
2 | Timeshare unit and room counts are as of September 12, 2014 and September 6, 2013, the end of Marriott Vacation Worldwide's third quarter for 2014 and 2013, respectively. |
Comparable Company-Operated International Properties1 | |||||||||||||||||
Three Months Ended September 30, 2014 and September 30, 2013 | |||||||||||||||||
REVPAR | Occupancy | Average Daily Rate | |||||||||||||||
Region | 2014 | vs. 2013 | 2014 | vs. 2013 | 2014 | vs. 2013 | |||||||||||
Caribbean & Latin America | $ | 143.40 | 13.6 | % | 71.0 | % | 3.4 | % | pts. | $ | 201.84 | 8.2 | % | ||||
Europe | $ | 161.27 | 4.7 | % | 81.0 | % | 1.4 | % | pts. | $ | 199.06 | 2.9 | % | ||||
Middle East & Africa | $ | 90.47 | 16.1 | % | 54.2 | % | 11.0 | % | pts. | $ | 166.85 | (7.4 | )% | ||||
Asia Pacific | $ | 125.85 | 5.0 | % | 74.8 | % | 2.0 | % | pts. | $ | 168.18 | 2.1 | % | ||||
Total International2 | $ | 136.98 | 6.6 | % | 74.3 | % | 3.0 | % | pts. | $ | 184.29 | 2.4 | % | ||||
Worldwide3 | $ | 132.05 | 8.5 | % | 76.2 | % | 3.0 | % | pts. | $ | 173.30 | 4.2 | % |
Comparable Systemwide International Properties1 | |||||||||||||||||
Three Months Ended September 30, 2014 and September 30, 2013 | |||||||||||||||||
REVPAR | Occupancy | Average Daily Rate | |||||||||||||||
Region | 2014 | vs. 2013 | 2014 | vs. 2013 | 2014 | vs. 2013 | |||||||||||
Caribbean & Latin America | $ | 124.90 | 10.9 | % | 69.7 | % | 2.1 | % | pts. | $ | 179.18 | 7.6 | % | ||||
Europe | $ | 147.99 | 3.2 | % | 78.8 | % | 0.9 | % | pts. | $ | 187.86 | 2.0 | % | ||||
Middle East & Africa | $ | 88.59 | 15.0 | % | 54.0 | % | 9.6 | % | pts. | $ | 164.13 | (5.5 | )% | ||||
Asia Pacific | $ | 129.83 | 4.9 | % | 75.1 | % | 1.7 | % | pts. | $ | 172.81 | 2.4 | % | ||||
Total International4 | $ | 132.47 | 5.6 | % | 73.7 | % | 2.2 | % | pts. | $ | 179.63 | 2.4 | % | ||||
Worldwide3 | $ | 114.29 | 8.1 | % | 76.9 | % | 2.6 | % | pts. | $ | 148.55 | 4.5 | % |
1 | Statistics are in constant dollars. International includes properties located outside the United States and Canada, except for Worldwide which includes the United States. |
2 | Includes Marriott Hotels, Renaissance, Autograph Collection, The Ritz-Carlton, Bulgari, Residence Inn, and Courtyard properties. |
3 | Includes Marriott Hotels, Renaissance, Autograph Collection, Gaylord Hotels, The Ritz-Carlton, Bulgari, Residence Inn, Courtyard, Fairfield Inn & Suites, TownePlace Suites, and SpringHill Suites properties. |
4 | Includes Marriott Hotels, Renaissance, Autograph Collection, The Ritz-Carlton, Bulgari, Residence Inn, Courtyard, and Fairfield Inn & Suites properties. |
Comparable Company-Operated International Properties1 | |||||||||||||||||
Nine Months Ended September 30, 2014 and September 30, 2013 | |||||||||||||||||
REVPAR | Occupancy | Average Daily Rate | |||||||||||||||
Region | 2014 | vs. 2013 | 2014 | vs. 2013 | 2014 | vs. 2013 | |||||||||||
Caribbean & Latin America | $ | 178.56 | 11.5 | % | 74.3 | % | 2.7 | % | pts. | $ | 240.30 | 7.5 | % | ||||
Europe | $ | 146.28 | 2.9 | % | 74.4 | % | 1.2 | % | pts. | $ | 196.74 | 1.3 | % | ||||
Middle East & Africa | $ | 109.50 | 5.0 | % | 58.4 | % | 4.4 | % | pts. | $ | 187.35 | (2.8 | )% | ||||
Asia Pacific | $ | 127.76 | 5.6 | % | 73.0 | % | 2.1 | % | pts. | $ | 175.09 | 2.6 | % | ||||
Total International2 | $ | 138.76 | 5.4 | % | 72.0 | % | 2.1 | % | pts. | $ | 192.64 | 2.4 | % | ||||
Worldwide3 | $ | 132.48 | 6.4 | % | 74.4 | % | 2.2 | % | pts. | $ | 177.95 | 3.2 | % |
Comparable Systemwide International Properties1 | |||||||||||||||||
Nine Months Ended September 30, 2014 and September 30, 2013 | |||||||||||||||||
REVPAR | Occupancy | Average Daily Rate | |||||||||||||||
Region | 2014 | vs. 2013 | 2014 | vs. 2013 | 2014 | vs. 2013 | |||||||||||
Caribbean & Latin America2 | $ | 149.39 | 9.9 | % | 71.9 | % | 2.2 | % | pts. | $ | 207.84 | 6.5 | % | ||||
Europe | $ | 135.42 | 2.8 | % | 72.3 | % | 1.1 | % | pts. | $ | 187.36 | 1.1 | % | ||||
Middle East & Africa | $ | 107.67 | 5.6 | % | 58.9 | % | 4.2 | % | pts. | $ | 182.77 | (1.9 | )% | ||||
Asia Pacific | $ | 128.90 | 5.7 | % | 73.4 | % | 2.0 | % | pts. | $ | 175.73 | 2.8 | % | ||||
Total International4 | $ | 132.81 | 5.2 | % | 71.3 | % | 1.9 | % | pts. | $ | 186.17 | 2.4 | % | ||||
Worldwide3 | $ | 111.64 | 6.7 | % | 74.4 | % | 2.1 | % | pts. | $ | 150.00 | 3.7 | % |
1 | Statistics are in constant dollars. International includes properties located outside the United States and Canada, except for Worldwide which includes the United States. |
2 | Includes Marriott Hotels, Renaissance, Autograph Collection, The Ritz-Carlton, Bulgari, Residence Inn, and Courtyard properties. |
3 | Includes Marriott Hotels, Renaissance, Autograph Collection, Gaylord Hotels, The Ritz-Carlton, Bulgari, Residence Inn, Courtyard, Fairfield Inn & Suites, TownePlace Suites, and SpringHill Suites properties. |
4 | Includes Marriott Hotels, Renaissance, Autograph Collection, The Ritz-Carlton, Bulgari, Residence Inn, Courtyard, and Fairfield Inn & Suites properties. |
Comparable Company-Operated North American Properties1 | |||||||||||||||||
Three Months Ended September 30, 2014 and September 30, 2013 | |||||||||||||||||
REVPAR | Occupancy | Average Daily Rate | |||||||||||||||
Brand | 2014 | vs. 2013 | 2014 | vs. 2013 | 2014 | vs. 2013 | |||||||||||
Marriott Hotels | $ | 142.11 | 8.7 | % | 77.6 | % | 3.0 | % | pts. | $ | 183.21 | 4.5 | % | ||||
Renaissance | $ | 130.26 | 9.9 | % | 75.7 | % | 2.3 | % | pts. | $ | 171.99 | 6.6 | % | ||||
The Ritz-Carlton | $ | 233.45 | 7.6 | % | 73.5 | % | 2.8 | % | pts. | $ | 317.67 | 3.6 | % | ||||
Composite North American Full-Service2 | $ | 148.14 | 8.8 | % | 76.7 | % | 2.9 | % | pts. | $ | 193.25 | 4.7 | % | ||||
Courtyard | $ | 99.24 | 11.7 | % | 75.9 | % | 3.7 | % | pts. | $ | 130.78 | 6.2 | % | ||||
SpringHill Suites | $ | 83.82 | 10.3 | % | 76.5 | % | 2.0 | % | pts. | $ | 109.51 | 7.3 | % | ||||
Residence Inn | $ | 113.37 | 8.6 | % | 82.2 | % | 2.3 | % | pts. | $ | 137.96 | 5.6 | % | ||||
TownePlace Suites | $ | 79.19 | 17.1 | % | 80.9 | % | 5.1 | % | pts. | $ | 97.87 | 9.8 | % | ||||
Composite North American Limited-Service3 | $ | 100.76 | 10.8 | % | 77.7 | % | 3.2 | % | pts. | $ | 129.70 | 6.1 | % | ||||
Composite - All4 | $ | 129.79 | 9.4 | % | 77.1 | % | 3.0 | % | pts. | $ | 168.44 | 5.1 | % |
Comparable Systemwide North American Properties1 | |||||||||||||||||
Three Months Ended September 30, 2014 and September 30, 2013 | |||||||||||||||||
REVPAR | Occupancy | Average Daily Rate | |||||||||||||||
Brand | 2014 | vs. 2013 | 2014 | vs. 2013 | 2014 | vs. 2013 | |||||||||||
Marriott Hotels | $ | 126.68 | 8.5 | % | 75.5 | % | 2.6 | % | pts. | $ | 167.78 | 4.8 | % | ||||
Renaissance | $ | 119.59 | 10.2 | % | 75.5 | % | 2.7 | % | pts. | $ | 158.42 | 6.2 | % | ||||
Autograph Collection | $ | 164.96 | 9.9 | % | 76.3 | % | (0.8 | )% | pts. | $ | 216.30 | 11.0 | % | ||||
The Ritz-Carlton | $ | 233.45 | 7.6 | % | 73.5 | % | 2.8 | % | pts. | $ | 317.67 | 3.6 | % | ||||
Composite North American Full-Service5 | $ | 133.02 | 8.8 | % | 75.4 | % | 2.5 | % | pts. | $ | 176.52 | 5.1 | % | ||||
Courtyard | $ | 101.44 | 9.4 | % | 77.3 | % | 3.1 | % | pts. | $ | 131.25 | 5.0 | % | ||||
Fairfield Inn & Suites | $ | 80.46 | 7.9 | % | 75.9 | % | 2.7 | % | pts. | $ | 106.04 | 4.1 | % | ||||
SpringHill Suites | $ | 89.95 | 8.3 | % | 78.6 | % | 2.8 | % | pts. | $ | 114.39 | 4.4 | % | ||||
Residence Inn | $ | 113.19 | 7.6 | % | 84.1 | % | 2.0 | % | pts. | $ | 134.62 | 5.0 | % | ||||
TownePlace Suites | $ | 79.34 | 10.7 | % | 80.1 | % | 2.7 | % | pts. | $ | 99.11 | 6.9 | % | ||||
Composite North American Limited-Service3 | $ | 97.07 | 8.6 | % | 78.9 | % | 2.7 | % | pts. | $ | 122.98 | 4.9 | % | ||||
Composite - All6 | $ | 110.58 | 8.7 | % | 77.6 | % | 2.7 | % | pts. | $ | 142.52 | 5.0 | % |
1 | Statistics include properties located in the United States. |
2 | Includes the Marriott Hotels, Renaissance Hotels, Gaylord Hotels, and The Ritz-Carlton properties. |
3 | Includes the Residence Inn, Courtyard, Fairfield Inn & Suites, TownePlace Suites, and SpringHill Suites properties. |
4 | Includes the Marriott Hotels, Renaissance Hotels, Gaylord Hotels, The Ritz-Carlton, Residence Inn, Courtyard, Fairfield Inn & Suites, TownePlace Suites, and SpringHill Suites properties. |
5 | Includes the Marriott Hotels, Renaissance Hotels, Gaylord Hotels, Autograph, and The Ritz-Carlton properties. |
6 | Includes the Marriott Hotels, Renaissance Hotels, Gaylord Hotels, Autograph, The Ritz-Carlton, Residence Inn, Courtyard, Fairfield Inn & Suites, TownePlace Suites, and SpringHill Suites properties. |
Comparable Company-Operated North American Properties1 | |||||||||||||||||
Nine Months Ended September 30, 2014 and September 30, 2013 | |||||||||||||||||
REVPAR | Occupancy | Average Daily Rate | |||||||||||||||
Brand | 2014 | vs. 2013 | 2014 | vs. 2013 | 2014 | vs. 2013 | |||||||||||
Marriott Hotels | $ | 142.64 | 6.1 | % | 76.6 | % | 2.1 | % | pts. | $ | 186.16 | 3.2 | % | ||||
Renaissance | $ | 132.21 | 5.5 | % | 75.2 | % | 1.6 | % | pts. | $ | 175.82 | 3.3 | % | ||||
The Ritz-Carlton | $ | 247.20 | 6.4 | % | 73.9 | % | 1.7 | % | pts. | $ | 334.29 | 4.0 | % | ||||
Composite North American Full-Service2 | $ | 150.44 | 6.1 | % | 75.9 | % | 2.0 | % | pts. | $ | 198.26 | 3.4 | % | ||||
Courtyard | $ | 94.76 | 9.5 | % | 73.0 | % | 3.0 | % | pts. | $ | 129.78 | 5.0 | % | ||||
SpringHill Suites | $ | 84.06 | 6.6 | % | 75.3 | % | 1.9 | % | pts. | $ | 111.60 | 3.9 | % | ||||
Residence Inn | $ | 108.46 | 6.5 | % | 79.8 | % | 2.1 | % | pts. | $ | 135.90 | 3.8 | % | ||||
TownePlace Suites | $ | 73.25 | 19.2 | % | 76.3 | % | 7.1 | % | pts. | $ | 96.06 | 8.0 | % | ||||
Composite North American Limited-Service3 | $ | 96.62 | 8.7 | % | 75.0 | % | 2.8 | % | pts. | $ | 128.76 | 4.6 | % | ||||
Composite - All4 | $ | 129.59 | 6.9 | % | 75.6 | % | 2.3 | % | pts. | $ | 171.53 | 3.6 | % |
Comparable Systemwide North American Properties1 | |||||||||||||||||
Nine Months Ended September 30, 2014 and September 30, 2013 | |||||||||||||||||
REVPAR | Occupancy | Average Daily Rate | |||||||||||||||
Brand | 2014 | vs. 2013 | 2014 | vs. 2013 | 2014 | vs. 2013 | |||||||||||
Marriott Hotels | $ | 126.58 | 6.6 | % | 74.3 | % | 1.9 | % | pts. | $ | 170.41 | 3.8 | % | ||||
Renaissance | $ | 119.13 | 7.1 | % | 74.4 | % | 2.3 | % | pts. | $ | 160.16 | 3.8 | % | ||||
Autograph Collection | $ | 175.56 | 10.3 | % | 77.0 | % | 0.4 | % | pts. | $ | 227.90 | 9.7 | % | ||||
The Ritz-Carlton | $ | 247.20 | 6.4 | % | 73.9 | % | 1.7 | % | pts. | $ | 334.29 | 4.0 | % | ||||
Composite North American Full-Service5 | $ | 134.24 | 6.8 | % | 74.3 | % | 1.9 | % | pts. | $ | 180.62 | 4.0 | % | ||||
Courtyard | $ | 95.65 | 7.6 | % | 73.9 | % | 2.2 | % | pts. | $ | 129.48 | 4.4 | % | ||||
Fairfield Inn & Suites | $ | 74.02 | 7.0 | % | 71.6 | % | 2.1 | % | pts. | $ | 103.32 | 3.9 | % | ||||
SpringHill Suites | $ | 85.71 | 7.4 | % | 76.0 | % | 2.6 | % | pts. | $ | 112.81 | 3.7 | % | ||||
Residence Inn | $ | 106.14 | 6.4 | % | 80.9 | % | 1.9 | % | pts. | $ | 131.19 | 3.9 | % | ||||
TownePlace Suites | $ | 74.49 | 9.8 | % | 76.6 | % | 3.2 | % | pts. | $ | 97.20 | 5.2 | % | ||||
Composite North American Limited-Service3 | $ | 91.10 | 7.3 | % | 75.5 | % | 2.2 | % | pts. | $ | 120.67 | 4.1 | % | ||||
Composite - All6 | $ | 107.31 | 7.0 | % | 75.1 | % | 2.1 | % | pts. | $ | 142.98 | 4.0 | % |
1 | Statistics include properties located in the United States. |
2 | Includes the Marriott Hotels, Renaissance Hotels, Gaylord Hotels, and The Ritz-Carlton properties. |
3 | Includes the Residence Inn, Courtyard, Fairfield Inn & Suites, TownePlace Suites, and SpringHill Suites properties. |
4 | Includes the Marriott Hotels, Renaissance Hotels, Gaylord Hotels, The Ritz-Carlton, Residence Inn, Courtyard, Fairfield Inn & Suites, TownePlace Suites, and SpringHill Suites properties. |
5 | Includes the Marriott Hotels, Renaissance Hotels, Gaylord Hotels, Autograph, and The Ritz-Carlton properties. |
6 | Includes the Marriott Hotels, Renaissance Hotels, Gaylord Hotels, Autograph, The Ritz-Carlton, Residence Inn, Courtyard, Fairfield Inn & Suites, TownePlace Suites, and SpringHill Suites properties. |
Fiscal Year 2014 | |||||||||||||||
First Quarter | Second Quarter | Third Quarter | Total | ||||||||||||
Net income | $ | 172 | $ | 192 | $ | 192 | $ | 556 | |||||||
Interest expense | 30 | 30 | 29 | 89 | |||||||||||
Tax provision | 59 | 93 | 98 | 250 | |||||||||||
Depreciation and amortization | 26 | 32 | 33 | 91 | |||||||||||
Depreciation classified in Reimbursed costs | 12 | 13 | 13 | 38 | |||||||||||
Interest expense from unconsolidated joint ventures | 1 | 1 | — | 2 | |||||||||||
Depreciation and amortization from unconsolidated joint ventures | 4 | 3 | 1 | 8 | |||||||||||
EBITDA ** | 304 | 364 | 366 | 1,034 | |||||||||||
EDITION impairment charge | 10 | 15 | — | 25 | |||||||||||
Share-based compensation (including share-based compensation reimbursed by third-party owners) | 25 | 29 | 27 | 81 | |||||||||||
Adjusted EBITDA ** | $ | 339 | $ | 408 | $ | 393 | $ | 1,140 | |||||||
Increase over 2013 Quarterly Adjusted EBITDA ** | 12 | % | 10 | % | 19 | % | 14 | % |
Fiscal Year 2013 | |||||||||||||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | |||||||||||||||
Net income | $ | 136 | $ | 179 | $ | 160 | $ | 151 | $ | 626 | |||||||||
Interest expense | 31 | 29 | 28 | 32 | 120 | ||||||||||||||
Tax provision | 65 | 84 | 63 | 59 | 271 | ||||||||||||||
Depreciation and amortization | 25 | 33 | 34 | 35 | 127 | ||||||||||||||
Depreciation classified in reimbursed costs | 12 | 12 | 12 | 12 | 48 | ||||||||||||||
Interest expense from unconsolidated joint ventures | 1 | 1 | 1 | 1 | 4 | ||||||||||||||
Depreciation and amortization from unconsolidated joint ventures | 3 | 3 | 3 | 4 | 13 | ||||||||||||||
EBITDA ** | 273 | 341 | 301 | 294 | 1,209 | ||||||||||||||
Share-based compensation (including share-based compensation reimbursed by third-party owners) | 30 | 31 | 28 | 27 | 116 | ||||||||||||||
Adjusted EBITDA ** | $ | 303 | $ | 372 | $ | 329 | $ | 321 | $ | 1,325 |
** | Denotes non-GAAP financial measures. See page A-11 for information about our reasons for providing these alternative financial measures and the limitations on their use. |
Range | |||||||||||
Estimated EBITDA Full Year 2014 | As Reported Full Year 2013 | ||||||||||
Net income | $ | 736 | $ | 747 | $ | 626 | |||||
Interest expense | 120 | 120 | 120 | ||||||||
Tax provision | 331 | 335 | 271 | ||||||||
Depreciation and amortization | 120 | 120 | 127 | ||||||||
Depreciation classified in Reimbursed costs | 50 | 50 | 48 | ||||||||
Interest expense from unconsolidated joint ventures | 5 | 5 | 4 | ||||||||
Depreciation and amortization from unconsolidated joint ventures | 10 | 10 | 13 | ||||||||
EBITDA ** | 1,372 | 1,387 | 1,209 | ||||||||
EDITION impairment charge | 25 | 25 | — | ||||||||
Share-based compensation (including share-based compensation reimbursed by third-party owners) | 110 | 110 | 116 | ||||||||
Adjusted EBITDA ** | $ | 1,507 | $ | 1,522 | $ | 1,325 | |||||
Increase over 2013 Adjusted EBITDA** | 14 | % | 15 | % |
** | Denotes non-GAAP financial measures. See page A-11 for information about our reasons for providing these alternative financial measures and the limitations on their use. |
OPERATING INCOME MARGIN | Third Quarter 2014 | Third Quarter 2013 | |||||
Operating income | $ | 298 | $ | 245 | |||
Total revenues as reported | $ | 3,460 | $ | 3,160 | |||
Less: cost reimbursements | (2,768 | ) | (2,562 | ) | |||
Total revenues excluding cost reimbursements ** | $ | 692 | $ | 598 | |||
Operating income margin, excluding cost reimbursements ** | 43 | % | 41 | % |
** | Denotes non-GAAP financial measures. See page A-11for information about our reasons for providing these alternative financial measures and the limitations on their use. |
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