-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TxEpqPIcWF728pxSnw6OQ0J3lzwum/9WzTqZB0AgMNtJc0nILeZYUZ4HoJrkSpK7 q2zYFoCuOuOs6pGUiXxoQg== 0000928385-98-000370.txt : 19980304 0000928385-98-000370.hdr.sgml : 19980304 ACCESSION NUMBER: 0000928385-98-000370 CONFORMED SUBMISSION TYPE: DEFA14A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19980303 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MARRIOTT INTERNATIONAL INC CENTRAL INDEX KEY: 0000905036 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-EATING PLACES [5812] IRS NUMBER: 520936594 STATE OF INCORPORATION: DE FISCAL YEAR END: 0101 FILING VALUES: FORM TYPE: DEFA14A SEC ACT: SEC FILE NUMBER: 001-12188 FILM NUMBER: 98556296 BUSINESS ADDRESS: STREET 1: 10400 FERNWOOD RD CITY: BETHESDA STATE: MD ZIP: 20817 BUSINESS PHONE: 3013803000 MAIL ADDRESS: STREET 1: 10400 FERNWOOD RD CITY: BETHESDA STATE: MD ZIP: 20817 DEFA14A 1 ADDITIONAL MATERIALS (SLIDE PRESENTATION) [MARRIOTT LOGO APPEARS HERE] MARRIOTT INTERNATIONAL, INC. March 1998 NEW MARRIOTT INTERNATIONAL 1997 SALES $9.0 BILLION [GRAPHIC: pie chart showing following sections: Lodging 77%; Contract Services 23%] OPERATING PROFIT $609 MILLION [GRAPHIC: pie chart showing following sections: Lodging 93%; Contract Services 7%] -1- NEW MARRIOTT INTERNATIONAL OPERATING RESULTS ($ MILLIONS EXCEPT EPS) 1997 1996 % CHANGE ------- -------- -------- SALES LODGING $ 7,008 $ 5,854 20% CONTRACT SERVICES 2,038 1,413 44% ------- -------- $ 9,046 $ 7,267 24% OPERATING PROFIT LODGING $ 569 $ 452 26% CONTRACT SERVICES 40 56 (29)% ------- -------- $ 609 $ 508 20% NET INCOME $ 324 $ 270 20% DILUTED EPS* $ 1.19 $ 0.99 20%
*Proforma -2- LODGING STATISTICS* 1997 ROOM RATE REVPAR --------- ------ MARRIOTT HOTELS, RESORTS & SUITES + 9% + 9% RITZ-CARLTON + 5% + 10% RENAISSANCE HOTELS + 7% + 6% COURTYARD + 8% + 8% RESIDENCE INN + 8% + 6% FAIRFIELD INNS AND SUITES + 2% -- * Comparable company-operated U.S. properties -3- LODGING UNIT GROWTH HOTELS [GRAPHIC: bar graph showing 1995: 1,006; 1996: 1,152; 1997: 1,478] ROOMS [GRAPHIC: bar graph showing 1995: 208,400; 1996: 226,600; 1997: 297,100] -4- MARRIOTT LODGING WORLDWIDE HOTELS - 1997 [GRAPHIC: Map of World] REGION HOTELS ROOMS - ------ ------ ------- UNITED STATES 1,243 232,800 OTHER AMERICAS* 36 12,400 ASIA/PACIFIC 65 21,900 EUROPE, MIDDLE EAST, AND AFRICA 134 30,000 ------ ------- TOTAL 1,478 297,100 * Includes Canada, Mexico, Caribbean, and South America -5- REVENUE PER AVAILABLE ROOM PREMIUM [GRAPHIC: BAR GRAPH SHOWING REVPAR PREMIUM (BY PERCENTAGE) FOR MARRIOTT LODGING BRANDS AS FOLLOWS: BRAND REVPAR PREMIUM ----- -------------- RENAISSANCE 94% MARRIOTT HOTELS (U.S.) 112% FAIRFIELD INN 112% COURTYARD 113% RITZ-CARLTON 121% RESIDENCE INN 124% MARRIOTT HOTELS (INT'L) 120-125%] SOURCE: SMITH TRAVEL RESEARCH, MARRIOTT, 1997 -6- LODGING 1997 OPERATING PROFIT [GRAPHIC: pie chart showing following sections: Base Fees 33%; Profit Participations 35%; Franchise Fees 17%; Vacation Club 11%; Land Rent 4%; and total, $569 million] -7- NEW MARRIOTT INTERNATIONAL 1997 DISCRETIONARY INVESTMENT OUTLAYS [GRAPHIC: Pie chart showing following sections: Renaissance Acquisition $1,000M; Timeshare, net $130M; Managed and Franchised Lodging $140M; Owned Lodging $200M; Senior Living Services $290M; Other $70M; Total $1.8 Billion] -8- NEW MARRIOTT INTERNATIONAL 1997 ASSET SALES* ($ MILLIONS) SENIOR LIVING SERVICES $ 740 COURTYARD & RESIDENCE INNS 278 MARRIOTT MANAGEMENT SERVICES U.K. 50 LOANS 86 -------- $1,154 ======== *INCLUDES SALES CLOSING IN 1998 -9- NEW MARRIOTT INTERNATIONAL BALANCE SHEET ($ MILLIONS) 1997 1996 -------- -------- CURRENT ASSETS $1,367 $ 984 PROPERTY & EQUIPMENT 1,537 1,824 INTANGIBLES 1,448 333 INVESTMENTS IN AFFILIATES 530 491 OTHER 675 566 -------- -------- $5,557 $4,198 ======== ======== CURRENT LIABILITIES $1,639 $1,404 LONG-TERM DEBT 422 681 OTHER 910 669 SHAREHOLDERS EQUITY 2,586 1,444 -------- -------- $5,557 $4,198 ======== ======== -10- NEW MARRIOTT INTERNATIONAL DILUTED EARNINGS PER SHARE* [GRAPHIC: Bar graph showing 1994: $0.61; 1995: $0.83; 1996: $0.99; 1997: $1.19] *PROFORMA -11- THIS PRESENTATION CONTAINS "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF FEDERAL SECURITIES LAW, INCLUDING STATEMENTS CONCERNING THE NUMBER OF LODGING AND SENIOR LIVING COMMUNITIES EXPECTED TO BE ADDED IN FUTURE YEARS, PLANNED TRANSACTIONS AND THEIR INTENDED RESULTS, AND SIMILAR STATEMENTS CONCERNING ANTICIPATED FUTURE EVENTS AND EXPECTATIONS THAT ARE NOT HISTORICAL FACTS. THE FORWARD-LOOKING STATEMENTS IN THIS PRESENTATION ARE SUBJECT TO NUMEROUS RISKS AND UNCERTAINTIES, INCLUDING THE EFFECTS OF ECONOMIC CONDITIONS; SUPPLY AND DEMAND CHANGES FOR HOTEL ROOMS, VACATION TIMESHARING INTERVALS AND SENIOR LIVING ACCOMMODATIONS; COMPETITIVE CONDITIONS IN THE LODGING AND CONTRACT SERVICES INDUSTRIES; RELATIONSHIPS WITH CLIENTS AND PROPERTY OWNERS; THE IMPACT OF GOVERNMENT REGULATIONS; AND THE AVAILABILITY OF CAPITAL TO FINANCE GROWTH, WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED IN OR IMPLIED BY THE STATEMENTS HEREIN. -12- -----END PRIVACY-ENHANCED MESSAGE-----