Marriott International Reports On Fourth Quarter And Full Year 2012

     Marriott International Reports On Fourth Quarter And Full Year 2012

PR Newswire

BETHESDA, Md., Feb. 19, 2013

BETHESDA, Md., Feb. 19, 2013 /PRNewswire/ --Marriott International, Inc.
(NYSE: MAR) today reported its fourth quarter and full year 2012 results,
including the following highlights:

  oFourth quarter diluted EPS totaled $0.56, a 22 percent increase over prior
    year adjusted results. Full year 2012 diluted EPS increased 31 percent
    over 2011 adjusted results to $1.72;

  oNorth American comparable systemwide REVPAR rose 5.9 percent in the fourth
    quarter and 6.4 percent for full year 2012;

  oOn a constant dollar basis, worldwide comparable systemwide REVPAR rose
    5.2 percent in the fourth quarter and 6.1 percent for full year 2012;

  oWorldwide comparable company-operated house profit margins increased 90
    basis points in the fourth quarter and 120 basis points for the full year;

  oAt year-end, the company's worldwide pipeline of hotels under
    construction, awaiting conversion or approved for development increased to
    nearly 130,000 rooms, including almost 59,000 rooms outside North America;

  oOver 27,000 rooms were added to the system in 2012. In the fourth quarter
    alone, nearly 14,000 rooms were added, including 8,100 Gaylord-branded
    rooms and 2,800 rooms in international markets. The company signed a
    record 57,000 rooms in 2012;

  oEBITDA for full year 2012 totaled $1,146 million, a 16 percent increase
    over 2011 adjusted EBITDA;

  oFor full year 2012, Marriott repurchased 31.2 million shares of the
    company's common stock for $1.2 billion including 6.9 million shares for
    $257 million in the fourth quarter;

  oFor full year 2013, Marriott expects North American and worldwide
    systemwide constant dollar REVPAR to increase 4 to 7 percent.

(Logo: http://photos.prnewswire.com/prnh/20090217/MARRIOTTINTLLOGO)

Fourth quarter 2012 net income totaled $181 million, a 14 percent increase
compared to fourth quarter 2011 adjusted net income. Diluted earnings per
share (EPS) totaled $0.56, a 22 percent increase from adjusted diluted EPS in
the year-ago quarter. On October 3, 2012, the company forecasted fourth
quarter diluted EPS of $0.52 to $0.56.

For the fourth quarter of 2011, reported net income totaled $141 million and
reported diluted EPS was $0.41. Adjusted net income and adjusted diluted EPS
for the year-ago quarter excluded $14 million pretax ($18 million after-tax
and $0.05 per diluted share) of timeshare spin-off adjustments. Timeshare
spin-off adjustments included items such as the removal of timeshare business
operating results and spin-off transaction costs, as well as the addition of
license fees and other related items as if the spin-off had occurred on the
first day of fiscal 2011. See page A-1 for fourth quarter 2011 reported
results, the timeshare spin-off adjustments and adjusted results.

Arne M. Sorenson, president and chief executive officer of Marriott
International, said, "We were delighted with our 2012 results. Full year
earnings per share grew 31 percent over 2011 adjusted levels to $1.72 and
EBITDA increased 16 percent to over $1.1 billion. We also returned over $1.3
billion to shareholders through dividends and share repurchases.

"Worldwide international travel increased to record levels in 2012 while hotel
supply growth was low in most markets around the world, especially in the U.S.
Despite low levels of new construction in the industry and modest economic
growth in some regions of the world, we added over 27,000 rooms to our
worldwide system in 2012, increased our worldwide systemwide REVPAR by 6
percent and increased room rates by 4 percent. Our development team had a
record year, signing more than 57,000 new rooms and increasing our global
development pipeline to nearly 130,000 rooms at year-end. To date in 2013,
we've already signed over 9,000 rooms with nearly 90 percent of those in Asia.

"Twenty percent of our room additions in 2012 were conversions from other
brands and 30 percent came from the acquisition of the Gaylord brand. Thirty
percent of all new rooms were located in international markets. We are
excited about our new brand platforms such as the Autograph Collection and
EDITION. Now on four continents, the Autograph Collection has grown to nearly
40 hotels in less than three years. We'll soon open our London EDITION hotel
and we have six more EDITIONs in our development pipeline. Today, our luxury
brands, Ritz-Carlton, Ritz-Carlton Reserve, Bulgari, and JW Marriott, together
with our luxury lifestyle brand, EDITION, have broad distribution with nearly
150 hotels and over 50,000 rooms.

"Our unit growth is built on our strong brand portfolio fueled by outstanding
marketing and service engines. In 2012, our award-winning Marriott Rewards
program topped 40 million members and marriott.com booked over $8 billion in
property-level revenue, making it one of the largest retail websites in the
world.

"In January 2013, North American comparable company-operated REVPAR rose 8
percent. While this year is off to a strong start, we are providing a
somewhat broader and more conservative range for 2013 REVPAR growth due to the
potential effect on the travel industry of the impending federal budget
sequestration."

For the 2012 fourth quarter, revenue per available room (REVPAR) for worldwide
comparable systemwide properties increased 5.2 percent (a 4.7 percent increase
using actual dollars).

In North America, comparable systemwide REVPAR increased 5.9 percent in the
fourth quarter of 2012, including a 4.0 percent increase in average daily
rate. REVPAR for comparable systemwide North American full-service and luxury
hotels (including Marriott Hotels & Resorts, The Ritz-Carlton, Renaissance
Hotels and Autograph Collection Hotels) increased 5.7 percent with a 3.4
percent increase in average daily rate. REVPAR for comparable systemwide
North American limited-service hotels (including Courtyard, Residence Inn,
SpringHill Suites, TownePlace Suites and Fairfield Inn & Suites) increased 6.0
percent in the fourth quarter with a 4.4 percent increase in average daily
rate.

International comparable systemwide REVPAR rose 3.2 percent (a 0.7 percent
increase using actual dollars), including a 0.5 percent increase in average
daily rate (a 1.9 percent decline using actual dollars) in the fourth quarter
of 2012.

Marriott added 37 new properties (13,982 rooms) to its worldwide lodging
portfolio in the 2012 fourth quarter, including five Gaylord properties (8,098
rooms) from the acquisition of the brand and hotel management business. The JW
Marriott Marquis Hotel Dubai, the tallest dedicated hotel building in the
world, and Dorado Beach, a Ritz-Carlton Reserve, in Puerto Rico were also
added in the quarter while the Brown Palace Hotel in Denver joined the
Autograph Collection. Six properties (1,398 rooms) exited the system during
the quarter. At quarter-end, the company's lodging group encompassed 3,801
properties and timeshare resorts for a total of over 660,000 rooms.

The company's worldwide pipeline of hotels under construction, awaiting
conversion or approved for development increased to approximately 800
properties with nearly 130,000 rooms at year-end.

MARRIOTT REVENUES totaled over $3.7 billion in the 2012 fourth quarter
compared to adjusted revenues of $3.4 billion for the fourth quarter of 2011.
Base management and franchise fees rose 7 percent over prior year adjusted
levels to $369 million, reflecting higher REVPAR at existing hotels and fees
from new hotels. Fourth quarter worldwide incentive management fees increased
22 percent to $90 million including a $3 million favorable impact of the
recognition of previously deferred fees. In the fourth quarter, 30 percent of
worldwide company-managed hotels earned incentive management fees compared to
27 percent in the year-ago quarter. For full year 2012, 33 percent of
worldwide company-managed hotels earned incentive management fees compared to
29 percent in 2011.

Worldwide comparable company-operated house profit margins increased 90 basis
points in the fourth quarter. North American comparable company-operated
house profit margins increased 120 basis points and house profit margins for
comparable company-operated properties outside North America increased 30
basis points from the year-ago quarter. For full year 2012, comparable
company-operated house profit margins increased 140 basis points in North
America, 90 basis points outside North America and 120 basis points worldwide.

Owned, leased, corporate housing and other revenue, net of direct expenses,
totaled $56 million, unchanged compared to the year-ago quarter. Improved
results at owned and leased hotels and higher credit card branding fees were
largely offset by lower termination and residential branding fees
year-over-year.

GENERAL, ADMINISTRATIVE and OTHER expenses for the 2012 fourth quarter
declined 6 percent to $206 million compared to adjusted expenses of $219
million in the 2011 fourth quarter. Fourth quarter 2012 expenses reflected
routine increases in compensation and other expenses, as well as unfavorable
foreign exchange. These were largely offset by a $6 million reversal of
guarantee reserves for two hotels, as well as lower legal and bad debt
expenses. Expenses in the prior year quarter included a $6 million write-off
of deferred contract acquisition costs, a $5 million guarantee reserve for one
hotel and a $2 million loan reserve.

EQUITY IN EARNINGS (LOSSES) totaled a $3 million loss in the quarter compared
to a $7 million loss in the year-ago quarter. The decline in equity losses
largely reflected the sale of the Courtyard joint venture, which had losses in
the fourth quarter of 2011 and was sold in the third quarter of 2012.

EBITDA totaled $358 million in the 2012 fourth quarter, a 13 percent increase
over 2011 fourth quarter adjusted EBITDA of $316 million. For full year 2012,
EBITDA totaled $1,146 million, a 16 percent increase over 2011 adjusted EBITDA
of $992 million. See page A-9 for the EBITDA and adjusted EBITDA
calculations.

BALANCE SHEET
At year-end 2012, total debt was $2,935 million and cash balances totaled $88
million, compared to $2,171 million in debt and $102 million of cash at
year-end 2011.

COMMON STOCK
Weighted average fully diluted shares outstanding used to calculate diluted
EPS totaled 322.2 million in the 2012 fourth quarter, compared to 346.4
million in the year-ago quarter.

The company repurchased 6.9 million shares of common stock in the fourth
quarter at a cost of $257 million. For the full year 2012, Marriott
repurchased 31.2 million shares of its stock for $1.2 billion. On February
15, 2013, the board of directors increased the company's authorization to
repurchase shares by 25 million shares to yield a total share authorization of
34.2 million shares.

2013 OUTLOOK
The company will report its 2013 results on a calendar basis, with fiscal
quarters ending on March 31, June 30, September 30 and December 31. The first
quarter of 2013 will include 93 days compared to 84 days in the 2012 first
quarter in part due to the fact that fiscal 2012 ended on December 28, 2012.
Prior year results will not be restated or reported on a pro forma basis for
the change in calendar, although REVPAR statistics will be adjusted to
calendar quarters for purposes of comparability.

For the first quarter, the company expects comparable systemwide calendar
REVPAR on a constant dollar basis will increase 4 to 7 percent in North
America, 2 to 4 percent outside North America and 3 to 6 percent worldwide.

The company expects first quarter 2013 operating profit could total $205
million to $230 million, a $30 million to $55 million increase over the prior
year quarter. The company estimates that approximately $15 million to $20
million of the year-over-year operating profit increase in the first quarter
is attributable to the change in the fiscal calendar.

The company expects full year 2013 comparable systemwide REVPAR on a constant
dollar basis will increase 4 to 7 percent in North America, 3 to 5 percent
outside North America and 4 to 7 percent worldwide.

The company anticipates adding approximately 30,000 to 35,000 rooms worldwide
for the full year 2013. The company also expects approximately 10,000 rooms
will leave the system during the year.

The company assumes full year fee revenue could total $1,525 million to $1,575
million, growth of 7 to 11 percent over 2012 fee revenue of $1,420 million.

The company expects owned, leased, corporate housing and other revenue, net of
expenses could total $135 million to $145 million in 2013, a 12 to 18 percent
decline year-over-year. 2013 expected results reflect tougher year-over-year
comparisons due to the London Olympics, renovations at some international
leased hotels in 2013, higher pre-opening expenses, and lower termination and
residential branding fees.

For 2013, the company anticipates general, administrative and other expenses
will total $665 million to $675 million, an increase of 3 to 5 percent over
2012 expenses of $645 million.

Given these assumptions, 2013 diluted EPS could total $1.90 to $2.05, a 10 to
19 percent increase year-over-year. In 2012, the company recorded a $41
million pretax ($25 million after-tax and $0.08 per diluted share) gain on the
sale of the equity interest in the Courtyard joint venture. Excluding that
gain from 2012 diluted EPS, the company estimates 2013 diluted EPS could
increase 16 to 25 percent year-over-year as shown on page A-12.

                                     First Quarter 2013   Full Year 2013
Total fee revenue                    $355 million to $370 $1,525 million to
                                     million              $1,575 million
Owned, leased, corporate housing and $25 million to $30   $135 million to $145
other revenue,                       million              million
 net of direct expenses
                                                         
General, administrative and other    $170 million to $175 $665 million to $675
expenses                             million              million
Operating income                     $205 million to $230 $985 million to
                                     million              $1,055 million
Gains and other income               Approx $2 million    Approx $10 million
Net interest expense^1               Approx $30 million   Approx $105 million
Equity in earnings (losses)          Approx $0 million    Approx $0 million
Earnings per share                   $0.37 to $0.42       $1.90 to $2.05
Tax rate                                                  33.0 percent
^1 Net of interest income

The company expects investment spending in 2013 will total approximately $600
million to $800 million, including approximately $100 million for maintenance
capital spending. Investment spending also includes other capital
expenditures (including property acquisitions), new mezzanine financing and
mortgage notes, contract acquisition costs, and equity and other investments.
Assuming this level of investment spending, approximately $800 million to $1
billion could be returned to shareholders through share repurchases and
dividends.

Based upon the assumptions above, the company expects full year 2013 EBITDA
will total $1,185 million to $1,255 million, a 3 to 10 percent increase over
prior year's EBITDA. Excluding the $41 million Courtyard joint venture gain
from 2012 EBITDA, 2013 EBITDA is expected to increase 7 to 14 percent
year-over-year as shown on page A-10.

Marriott International, Inc. (NYSE: MAR) will conduct its quarterly earnings
review for the investment community and news media on Wednesday, February 20,
2013 at 10 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 the "Recent and Upcoming Events" tab
and click on the quarterly conference call link. A replay will be available
at that same website until February 20, 2014.

The telephone dial-in number for the conference call is 706-679-3455 and the
conference ID is 78370841. A telephone replay of the conference call will be
available from 1 p.m. ET, Wednesday, February 20, 2013 until 8 p.m. ET,
Wednesday, February 27, 2013. To access the replay, call 404-537-3406. The
conference ID for the recording is 78370841.

Note on forward-looking statements: This press release and accompanying
schedules contain "forward-looking statements" within the meaning of federal
securities laws, including REVPAR, profit margin and earnings trends,
estimates and assumptions; the number of lodging properties we expect to add
to or remove from our system in the future; our expectations about investment
spending; and similar statements concerning anticipated future events and
expectations that are not historical facts. We caution you that these
statements are not guarantees of future performance and are subject to
numerous risks and uncertainties, including those we identify below and other
risk factors that we identify in our most recent annual report on Form 10-K or
quarterly report on Form 10-Q. Risks that could affect forward-looking
statements in this press release include changes in market conditions; the
continuation and pace of the economic recovery; supply and demand changes for
hotel rooms; competitive conditions in the lodging industry; relationships
with clients and property owners; and the availability of capital to finance
hotel growth and refurbishment. Any of these factors could cause actual
results to differ materially from the expectations we express or imply in this
press release. We make these forward-looking statements as of February 19,
2013. We undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
events or otherwise.

Marriott International, Inc. (NYSE: MAR) is a leading lodging company based in
Bethesda, Maryland, USA with over 3,800 properties in 74 countries and
territories and reported revenues of nearly $12 billion in fiscal year 2012.
The company operates and franchises hotels and licenses vacation ownership
resorts under 18 brands, including Marriott Hotels & Resorts, The
Ritz-Carlton, JW Marriott, Bulgari, EDITION,Renaissance, Gaylord Hotels,
Autograph Collection, AC Hotels by Marriott, Courtyard, Fairfield Inn &
Suites, SpringHill Suites, Residence Inn, TownePlace Suites, Marriott
Executive Apartments, Marriott Vacation Club, Grand Residences by Marriott,
and The Ritz-Carlton Destination Club. There are approximately 325,000
employees at headquarters, managed and franchised properties. Marriott is
consistently recognized as a top employer and for its superior business
operations, which it conducts based on five core values: put people first,
pursue excellence, embrace change, act with integrity, and serve our world.
For more information or reservations, please visit our website at
www.marriott.com, and for the latest company news, visit
www.marriottnewscenter.com.

 IRPR#1

Tables follow

MARRIOTT INTERNATIONAL, INC.
PRESS RELEASE SCHEDULES
QUARTER 4, 2012
TABLE OF CONTENTS
Consolidated Statements of Income                                       A-1
Total Lodging Products                                                  A-4
Key Lodging Statistics                                                  A-5
EBITDA and Adjusted EBITDA                                              A-9
EBITDA Full Year Forecast                                               A-10
Adjusted Operating Income Margin Excluding Adjusted Cost Reimbursements A-11
Adjusted 2012 EPS Excluding Gain on Courtyard JV Sale, Net of Tax       A-12
Non-GAAP Financial Measures                                             A-13





MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
CONSOLIDATED AND ADJUSTED CONSOLIDATED STATEMENTS OF INCOME
FOURTH QUARTER 2012 AND 2011
(in millions, except per share amounts)
               As Reported        As Reported       Timeshare   As Adjusted          Percent
               16 Weeks Ended     16 Weeks Ended    Spin-off    16 Weeks Ended       Better(Worse)
               December28,2012  December30,2011 Adjustments December30,2011**  2012 vs.
                                                    ^10                              Adjusted2011
REVENUES
Base           $          $         $      $         
management        182            183                   171           6
fees                                                (12)
Franchise fees 187                159               16          175                  7
Incentive
management     90                 74                -           74                   22
fees
Owned, leased,
corporate
housing and    308                356               -           356                  (13)
other revenue
^1
Timeshare
sales and      -                  238               (238)       -                    -
services ^2
Cost
reimbursements 2,990              2,683             (58)        2,625                14
^3
 Total       3,757              3,693             (292)       3,401                10
Revenues
OPERATING
COSTS AND
EXPENSES
Owned, leased
and corporate  252                300               -           300                  16
housing -
direct ^4
Timeshare -    -                  209               (209)       -                    -
direct
Reimbursed     2,990              2,683             (58)        2,625                (14)
costs
General,
administrative 206                254               (35)        219                  6
and other ^6
 Total       3,448              3,446             (302)       3,144                (10)
Expenses
OPERATING      309                247               10          257                  20
INCOME
(Losses) gains
and other      (1)                4                 (3)         1                    (200)
income ^7
Interest       (41)               (47)              5           (42)                 2
expense
Interest       7                  5                 2           7                    -
income
Equity in      (3)                (7)               -           (7)                  57
losses ^8
INCOME BEFORE  271                202               14          216                  25
INCOME TAXES
(Provision)
benefit for    (90)               (61)              4           (57)                 (58)
income taxes
               $          $         $      $         
NET INCOME        181            141                   159           14
                                                    18
EARNINGS PER
SHARE - Basic
 Earnings    $          $         $      $         
per share ^9      0.58           0.42                    0.47           23
                                                    0.05
EARNINGS PER
SHARE -
Diluted
 Earnings    $          $         $      $         
per share ^9      0.56           0.41                    0.46           22
                                                    0.05
Basic Shares   312.7              335.6             335.6       335.6
Diluted Shares 322.2              346.4             346.4       346.4
See page A-3 for footnote references.
A-1





MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
CONSOLIDATED AND ADJUSTED CONSOLIDATED STATEMENTS OF INCOME
FULL YEAR 2012 AND 2011
(in millions, except per share amounts)
               As Reported        As Reported       Timeshare                    As Adjusted          Percent
               52 Weeks Ended     52 Weeks Ended    Spin-off       OtherCharges 52 Weeks Ended       Better(Worse)
               December28,2012  December30,2011 Adjustments^10               December30,2011**  2012 vs.
                                                                                                      Adjusted2011
REVENUES
Base           $          $         $        $       $         
management      581               602             (56)         -        546            6
fees
Franchise fees 607                506               60             -             566                  7
Incentive
management     232                195               -              -             195                  19
fees
Owned, leased,
corporate
housing and    989                1,083             -              -             1,083                (9)
other revenue
^1
Timeshare
sales and      -                  1,088             (1,088)        -             -                    -
services ^2
Cost
reimbursements 9,405              8,843             (268)          -             8,575                10
^3
 Total       11,814             12,317            (1,352)        -             10,965               8
Revenues
OPERATING
COSTS AND
EXPENSES
Owned, leased
and corporate  824                943               -              -             943                  13
housing -
direct ^4
Timeshare -    -                  929               (929)          -             -                    -
direct
Timeshare
strategy -     -                  324               (324)          -             -                    -
impairment
charges ^5
Reimbursed     9,405              8,843             (268)          -             8,575                (10)
costs
General,
administrative 645                752               (99)           (10)          643                  -
and other ^6
 Total       10,874             11,791            (1,620)        (10)          10,161               (7)
Expenses
OPERATING      940                526               268            10            804                  17
INCOME
Gains (losses)
and other      42                 (7)               (3)            18            8                    425
income ^7
Interest       (137)              (164)             29             -             (135)                (1)
expense
Interest       17                 14                10             -             24                   (29)
income
Equity in      (13)               (13)              (4)            -             (17)                 24
losses ^8
INCOME BEFORE  849                356               300            28            684                  24
INCOME TAXES
Provision for  (278)              (158)             (40)           (11)          (209)                (33)
income taxes
NET INCOME     $          $         $        $       $           20
                571               198            260           17       475
EARNINGS PER
SHARE - Basic
 Earnings    $          $         $        $       $           30
per share ^9    1.77               0.56            0.74         0.05       1.36
EARNINGS PER
SHARE -
Diluted
 Earnings    $          $         $        $       $           31
per share ^9    1.72               0.55            0.72         0.05       1.31
Basic Shares   322.6              350.1             350.1          350.1         350.1
Diluted Shares 332.9              362.3             362.3          362.3         362.3
See page A-3 for footnote references.
A-2





MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
CONSOLIDATED AND ADJUSTED CONSOLIDATED STATEMENTS OF INCOME
** 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 limitations on their use.
^1 – Owned, leased, corporate housing and other revenueincludes revenue from
the properties we own or lease, termination fees, branding fees, other revenue
and revenue from our corporate housing business through our sale of that
business on April 30, 2012.
^2 – Timeshare sales and servicesincludes total timeshare revenue except for
base management fees and cost reimbursements.
^3 – Cost reimbursementsinclude reimbursements from properties for
Marriott-funded operating expenses.
^4 – Owned, leased and corporate housing - directexpenses include operating
expenses related to our owned or leased hotels, including lease payments,
pre-opening expenses and depreciation, plus expenses related to our former
corporate housing business through our sale of that business on April 30,
2012.
^5 – Reflects the following 2011 third quarter impairments: inventory $256
million, land $62 million, and other impairments $6 million, all of which we
allocated to the Timeshare segment.
^6 – General, administrative and other expenses include the overhead costs
we allocated to our segments, and our corporate overhead costs and general
expenses.
^7 – Gains (losses) and other incomeincludes gains and losses on the sale
of real estate, note sales or repayments (except timeshare note
securitizations), the sale or other-than-temporaryimpairment of joint
ventures and investments, debt extinguishments, and income from cost method
joint ventures.
^8 – Equity in lossesincludes our equity in earnings or losses of
unconsolidated equity method joint ventures.
^9 – Earnings per share plus adjustment items may not equal earnings per
share as adjusted due to rounding.
^10 – We present our adjusted consolidated statements of income as if our
Timeshare spin-off had occurred on January 1, 2011.
A-3





MARRIOTT INTERNATIONAL, INC.
TOTAL LODGING PRODUCTS ^1
                 Number of Properties                    Number of Rooms/Suites
                 December28, December30, vs.           December28, December30, vs.
Brand            2012         2011         December30,  2012         2011         December30,
                                           2011                                    2011
Domestic
Full-Service
 Marriott
Hotels &         352          353          (1)           141,677      142,881      (1,204)
Resorts
 Renaissance  79           80           (1)           28,597       29,229       (632)
Hotels
 Autograph    24           17           7             6,609        5,207        1,402
Collection
 Gaylord      5            -            5             8,098        -            8,098
Hotels
Domestic
Limited-Service
 Courtyard    817          805          12            114,948      113,413      1,535
 Fairfield    678          667          11            61,477       60,392       1,085
Inn & Suites
 SpringHill   297          285          12            34,844       33,466       1,378
Suites
 Residence    602          597          5             72,642       72,076       566
Inn
 TownePlace   208          200          8             20,803       20,048       755
Suites
International
 Marriott
Hotels &         206          202          4             63,240       62,714       526
Resorts
 Renaissance  76           74           2             24,692       23,737       955
Hotels
 Autograph    8            5            3             1,056        548          508
Collection
 Courtyard    112          108          4             21,605       21,306       299
 Fairfield    13           13           -             1,568        1,568        -
Inn & Suites
 SpringHill   2            2            -             299          299          -
Suites
 Residence    23           20           3             3,229        2,791        438
Inn
 TownePlace   2            1            1             278          105          173
Suites
 Marriott
Executive        25           23           2             4,066        3,700        366
Apartments
Luxury
 The
Ritz-Carlton -   38           39           (1)           11,357       11,587       (230)
Domestic
 The
Ritz-Carlton -   42           39           3             12,410       11,996       414
International
 Bulgari
Hotels &         3            2            1             202          117          85
Resorts
 EDITION      1            1            -             78           78           -
 The
Ritz-Carlton     35           32           3             3,927        3,838        89
Residential
 The
Ritz-Carlton     4            4            -             579          579          -
Serviced
Apartments
Unconsolidated
Joint Ventures
 AC Hotels    79           80           (1)           8,736        8,371        365
by Marriott
 Autograph    5            5            -             348          350          (2)
Collection
Timeshare       65           64           1             13,029       12,800       229
Total            3,801        3,718        83            660,394      643,196      17,198
^1 Total Lodging Products as of December 30, 2011 does not include 2,166 ExecuStay corporate
housing rental units. Because we completed the sale of our corporate housing business in the
second quarter of 2012, we had no ExecuStay units at the end of that year.
A-4





MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
Constant $
Comparable Company-Operated International Properties^1
                     Four Months Ended December 31, 2012 and December 31, 2011
                     REVPAR               Occupancy            Average Daily
                                                               Rate
Region               2012      vs.        2012         vs.     2012     vs.
                               2011                    2011             2011
Caribbean & Latin    $127.93   3.5%       68.6%  0.6%  pts.    $186.44  2.6%
America
Europe               $127.65   2.0%       74.1%  1.3%  pts.    $172.20  0.2%
Middle East &        $89.77    8.7%       66.4%  5.8%  pts.    $135.28  -0.8%
Africa
Asia Pacific         $101.86   4.2%       75.0%  2.2%  pts.    $135.82  1.1%
Regional             $115.17   3.3%       73.1%  1.9%  pts.    $157.57  0.6%
Composite^2
International        $218.15   4.2%       64.3%  2.2%  pts.    $339.54  0.6%
Luxury^3
Total                $126.65   3.5%       72.1%  2.0%  pts.    $175.64  0.7%
International^4
Worldwide^5          $115.75   4.6%       69.9%  1.1%  pts.    $165.55  2.9%
Comparable Systemwide International Properties^1
                     Four Months Ended December 31, 2012 and December 31, 2011
                     REVPAR               Occupancy            Average Daily
                                                               Rate
Region               2012      vs.        2012         vs.     2012     vs.
                               2011                    2011             2011
Caribbean & Latin    $111.50   3.4%       68.0%  1.3%  pts.    $163.87  1.4%
America
Europe               $123.81   1.8%       73.9%  1.0%  pts.    $167.58  0.5%
Middle East &        $87.24    10.1%      65.7%  6.0%  pts.    $132.77  0.0%
Africa
Asia Pacific         $109.72   3.4%       75.3%  2.3%  pts.    $145.69  0.2%
Regional             $114.51   3.0%       72.8%  1.8%  pts.    $157.39  0.4%
Composite^2
International        $218.15   4.2%       64.3%  2.2%  pts.    $339.54  0.6%
Luxury^3
Total                $123.78   3.2%       72.0%  1.9%  pts.    $171.94  0.5%
International^4
Worldwide^6          $95.95    5.2%       68.8%  1.3%  pts.    $139.56  3.3%
^1 We report financial results on a period basis and international statistics
on a monthly basis. Statistics are in constant dollars for September through
December. International includes properties located outside the United States
and Canada, except for Worldwide which includes the United States.
^2 Regional information includes the Marriott Hotels & Resorts, Renaissance
Hotels and Courtyard brands.
^3 International Luxury includes The Ritz-Carlton properties outside of the
United States and Canada and Bulgari Hotels & Resorts.
^4 Includes Regional Composite and International Luxury.
^5 Includes international statistics for the four calendar months ended
December 31, 2012 and December 31, 2011, and the United States statistics for
the sixteen weeks ended December 28, 2012 and December 30, 2011. Includes the
Marriott Hotels & Resorts, Renaissance Hotels, The Ritz-Carlton, Bulgari
Hotels & Resorts, Residence Inn, Courtyard, Fairfield Inn & Suites, TownePlace
Suites, and SpringHill Suites brands.
^6 In addition to the brands listed in Note 5, also includes the Autograph
Collection brand.
A-5





MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
Constant $
Comparable Company-Operated International Properties^1
                     Twelve Months Ended December 31, 2012 and December 31,
                     2011
                     REVPAR               Occupancy            Average Daily
                                                               Rate
                                vs.                    vs.              vs.
Region               2012                 2012         2011    2012
                                2011                                    2011
Caribbean & Latin    $137.93    6.9%      72.3%  1.2%  pts.    $190.75  5.1%
America
Europe               $124.20    3.0%      72.7%  0.2%  pts.    $170.72  2.8%
Middle East &        $82.25     8.3%      61.8%  5.3%  pts.    $133.14  -1.0%
Africa
Asia Pacific         $97.04     8.4%      73.0%  3.7%  pts.    $133.01  3.0%
Regional             $112.66    5.6%      71.9%  2.0%  pts.    $156.74  2.7%
Composite^2
International        $216.34    5.9%      63.4%  1.3%  pts.    $341.32  3.6%
Luxury^3
Total                $124.22    5.6%      70.9%  1.9%  pts.    $175.14  2.8%
International^4
Worldwide^5          $115.91    5.9%      71.4%  1.4%  pts.    $162.39  3.8%
Comparable Systemwide International Properties^1
                     Twelve Months Ended December 31, 2012 and December 31,
                     2011
                     REVPAR               Occupancy            Average Daily
                                                               Rate
                                vs.                    vs.              vs.
Region               2012                 2012         2011    2012
                                2011                                    2011
Caribbean & Latin    $120.27    5.3%      70.2%  1.3%  pts.    $171.32  3.4%
America
Europe               $119.40    2.8%      71.9%  0.2%  pts.    $166.02  2.6%
Middle East &        $80.37     9.2%      61.8%  5.6%  pts.    $130.10  -0.6%
Africa
Asia Pacific         $102.90    7.6%      72.9%  3.6%  pts.    $141.17  2.2%
Regional             $111.45    5.0%      71.2%  1.9%  pts.    $156.47  2.2%
Composite^2
International        $216.34    5.9%      63.4%  1.3%  pts.    $341.32  3.6%
Luxury^3
Total                $120.85    5.1%      70.5%  1.8%  pts.    $171.36  2.4%
International^4
Worldwide^6          $97.34     6.1%      70.8%  1.5%  pts.    $137.49  3.9%
^1 We report financial results on a period basis and international statistics
on a monthly basis. Statistics are in constant dollars for January through
December. International includes properties located outside the United States
and Canada, except for Worldwide which includes the United States.
^2 Regional information includes the Marriott Hotels & Resorts, Renaissance
Hotels and Courtyard brands.
^3 International Luxury includes The Ritz-Carlton properties outside of the
United States and Canada and Bulgari Hotels & Resorts.
^4 Includes Regional Composite and International Luxury.
^5 Includes international statistics for the twelve calendar months ended
December 31, 2012 and December 31, 2011, and the United States statistics for
the fifty-two weeks ended December 28, 2012 and December 30, 2011. Includes
the Marriott Hotels & Resorts, Renaissance Hotels, The Ritz-Carlton, Bulgari
Hotels & Resorts, Residence Inn, Courtyard, Fairfield Inn & Suites, TownePlace
Suites, and SpringHill Suites brands.
^6 In addition to the brands listed in Note 5, also includes the Autograph
Collection brand.
A-6



MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
Comparable Company-Operated North American Properties^1
                        Sixteen Weeks Ended December 28, 2012 and December 30,
                        2011
                        REVPAR               Occupancy           Average Daily
                                                                 Rate
Brand                   2012     vs. 2011    2012         vs.    2012     vs.
                                                          2011           2011
Marriott Hotels &       $123.86  5.1%        70.1%  1.0%  pts.   $176.61  3.5%
Resorts
Renaissance Hotels      $121.25  5.1%        70.3%  0.4%  pts.   $172.51  4.5%
Composite North         $123.48  5.1%        70.2%  1.0%  pts.   $176.02  3.7%
American Full-Service
The Ritz-Carlton^2      $213.79  4.5%        66.5%  0.7%  pts.   $321.59  3.4%
Composite North
American Full-Service   $133.38  5.0%        69.7%  0.9%  pts.   $191.24  3.6%
& Luxury
Residence Inn           $89.66   4.9%        73.1%  0.8%  pts.   $122.63  3.9%
Courtyard               $77.52   5.8%        65.2%  0.4%  pts.   $118.88  5.2%
TownePlace Suites       $54.90   -0.1%       65.9%  -3.8% pts.   $83.35   5.6%
SpringHill Suites       $69.06   7.2%        68.5%  2.9%  pts.   $100.89  2.6%
Composite North
American                $79.33   5.6%        67.8%  0.5%  pts.   $117.06  4.8%
Limited-Service
Composite - All         $110.80  5.2%        68.9%  0.8%  pts.   $160.76  4.0%
Comparable Systemwide North American Properties^1
                        Sixteen Weeks Ended December 28, 2012 and December 30,
                        2011
                        REVPAR               Occupancy           Average Daily
                                                                 Rate
Brand                   2012     vs. 2011    2012         vs.    2012     vs.
                                                          2011           2011
Marriott Hotels &       $107.84  5.8%        67.6%  1.6%  pts.   $159.56  3.3%
Resorts
Renaissance Hotels      $105.51  5.8%        68.7%  1.0%  pts.   $153.50  4.3%
Autograph Collection    $139.84  7.9%        76.1%  4.1%  pts.   $183.73  2.2%
Hotels^2
Composite North         $107.78  5.8%        67.8%  1.5%  pts.   $158.86  3.5%
American Full-Service
The Ritz-Carlton^2      $213.79  4.5%        66.5%  0.7%  pts.   $321.59  3.4%
Composite North
American Full-Service   $114.61  5.7%        67.8%  1.5%  pts.   $169.15  3.4%
& Luxury
Residence Inn           $90.09   5.4%        74.8%  0.9%  pts.   $120.50  4.1%
Courtyard               $79.31   6.3%        66.4%  0.9%  pts.   $119.42  4.8%
Fairfield Inn & Suites  $60.62   6.0%        63.9%  0.9%  pts.   $94.92   4.6%
TownePlace Suites       $60.54   3.8%        68.3%  -0.3% pts.   $88.62   4.2%
SpringHill Suites       $69.99   7.7%        68.3%  2.6%  pts.   $102.54  3.6%
Composite North
American                $76.01   6.0%        68.3%  1.0%  pts.   $111.35  4.4%
Limited-Service
Composite - All         $90.14   5.9%        68.1%  1.2%  pts.   $132.40  4.0%
^1 Statistics include only properties located in the United States.
^2 Statistics for The Ritz-Carlton and Autograph Collection are for September
through December.
A-7





MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
Comparable Company-Operated North American Properties^1
                          Fifty-two Weeks Ended December 28, 2012 and December
                          30, 2011
                          REVPAR             Occupancy           Average Daily
                                                                 Rate
Brand                     2012      vs.      2012        vs.     2012     vs.
                                    2011                 2011            2011
Marriott Hotels &         $124.72   6.1%     72.7% 1.8%  pts.    $171.48  3.5%
Resorts
Renaissance Hotels        $123.38   7.5%     73.6% 2.1%  pts.    $167.67  4.5%
Composite North American  $124.52   6.3%     72.9% 1.8%  pts.    $170.92  3.6%
Full-Service
The Ritz-Carlton^2        $223.51   6.1%     69.9% 0.8%  pts.    $319.57  4.9%
Composite North American  $134.64   6.3%     72.6% 1.7%  pts.    $185.57  3.8%
Full-Service & Luxury
Residence Inn             $93.14    4.7%     75.4% 0.3%  pts.    $123.55  4.3%
Courtyard                 $79.32    5.6%     67.7% 0.5%  pts.    $117.11  4.9%
TownePlace Suites         $58.76    5.1%     70.8% -0.4% pts.    $83.04   5.6%
SpringHill Suites         $72.63    7.0%     70.5% 2.8%  pts.    $103.04  2.7%
Composite North American  $81.76    5.5%     70.2% 0.6%  pts.    $116.43  4.6%
Limited-Service
Composite - All           $112.40   6.0%     71.6% 1.2%  pts.    $157.05  4.2%
Comparable Systemwide North American Properties^1
                          Fifty-two Weeks Ended December 28, 2012 and December
                          30, 2011
                          REVPAR             Occupancy           Average Daily
                                                                 Rate
Brand                     2012      vs.      2012        vs.     2012     vs.
                                    2011                 2011            2011
Marriott Hotels &         $110.19   6.4%     70.1% 1.8%  pts.    $157.17  3.6%
Resorts
Renaissance Hotels        $107.18   6.8%     71.2% 1.4%  pts.    $150.53  4.7%
Autograph Collection      $134.36   6.6%     76.1% 3.6%  pts.    $176.61  1.6%
Hotels^2
Composite North American  $109.93   6.4%     70.3% 1.8%  pts.    $156.30  3.8%
Full-Service
The Ritz-Carlton^2        $223.51   6.1%     69.9% 0.8%  pts.    $319.57  4.9%
Composite North American  $116.72   6.4%     70.3% 1.7%  pts.    $166.02  3.8%
Full-Service & Luxury
Residence Inn             $93.10    5.0%     77.2% 0.6%  pts.    $120.66  4.2%
Courtyard                 $82.15    6.5%     69.2% 1.2%  pts.    $118.68  4.6%
Fairfield Inn & Suites    $63.56    7.5%     67.3% 1.7%  pts.    $94.49   4.8%
TownePlace Suites         $64.39    5.9%     72.3% 0.6%  pts.    $89.07   5.0%
SpringHill Suites         $73.74    7.8%     71.0% 2.6%  pts.    $103.81  3.8%
Composite North American  $79.07    6.3%     71.2% 1.3%  pts.    $111.12  4.4%
Limited-Service
Composite - All           $92.79    6.4%     70.8% 1.4%  pts.    $130.97  4.2%
^1 Statistics include only properties located in the United States.
^2 Statistics for The Ritz-Carlton and Autograph Collection are for January
through December.
A-8





MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
EBITDA AND ADJUSTED EBITDA
($ in millions)
                        Fiscal Year 2012
                        First        Second     Third      Fourth     Total
                        Quarter      Quarter    Quarter    Quarter
Net Income              $        $       $       $       $   
                         104        143       143       181       571
Interest expense       33           34         29         41         137
Tax provision           43           66         79         90         278
Depreciation and        29           38         33         45         145
amortization
Less: Depreciation
reimbursed by           (4)          (4)        (3)        (5)        (16)
third-party owners
Interest expense from
unconsolidated joint    4            4          1          2          11
ventures
Depreciation and
amortization from       6            8          2          4          20
unconsolidated joint
ventures
EBITDA **               $        $       $       $       $  
                         215        289       284       358       1,146
Increase over 2011      9%           13%        27%        13%        16%
Adjusted EBITDA
                        Fiscal Year 2011
                        First        Second     Third      Fourth     Total
                        Quarter      Quarter    Quarter    Quarter
Net Income (loss)       $        $       $       $       $   
                         101        135       (179)      141       198
Interest expense       41           37         39         47         164
Tax provision (benefit) 51           66         (20)       61         158
Depreciation and        35           41         40         52         168
amortization
Less: Depreciation
reimbursed by           (4)          (3)        (4)        (4)        (15)
third-party owners
Interest expense from
unconsolidated joint    4            4          5          5          18
ventures
Depreciation and
amortization from       6            7          7          10         30
unconsolidated joint
ventures
EBITDA **               234          287        (112)      312        721
Timeshare Spin-off
Adjustments
Net Income              (13)         (9)        264        18         260
Interest expense       (9)          (8)        (7)        (5)        (29)
Tax provision (benefit) (8)          (5)        57         (4)        40
Depreciation and        (7)          (9)        (7)        (5)        (28)
amortization
Total Timeshare         (37)         (31)       307        4          243
Spin-off Adjustments
Add Back: Other charges -            -          28         -          28
Adjusted EBITDA **      $        $       $       $       $   
                         197        256       223       316       992
** 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.
A-9





MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
FULL YEAR EBITDA
FORECASTED 2013
($ in millions)
                              Range
                              Estimated EBITDA               As Reported
                              Full Year 2013                 Full Year 2012
Net Income                    $    596      $         $       
                                               645                571
Interest expense             125              125           137
Tax provision                 294              315           278
Depreciation and amortization 160              160           145
Less: Depreciation reimbursed (20)             (20)          (16)
by third-party owners
Interest expense from
unconsolidated joint          10               10            11
ventures
Depreciation and amortization
from unconsolidated joint     20               20            20
ventures
EBITDA **                     $  1,185       $           1,146
                                               1,255
Increase over 2012 EBITDA**   3%               10%
Less: Gain on Courtyard JV                                   (41)
sale, pretax
Adjusted EBITDA **                                           $       
                                                                1,105
Increase over 2012 Adjusted   7%               14%
EBITDA**
** Denotes non-GAAP financial measures. Please see pages A-13 and A-14 for
informationabout our reasons for providing these alternative financial
measures and the limitations on their use.
A-10





MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
ADJUSTED OPERATING INCOME MARGIN EXCLUDING ADJUSTED COST REIMBURSEMENTS
FOURTH QUARTER 2012 AND 2011
($ in millions)
                                             Fourth            Fourth
ADJUSTED OPERATING INCOME MARGIN             Quarter           Quarter
                                             2012              2011
Operating Income                             $      309   $      247
Timeshare spin-off adjustments, operating    -                 10
income impact
Operating Income, as adjusted **             $      309   $      257
Total revenues as reported                   $     3,757   $     3,693
Timeshare spin-off adjustments               -                 (292)
Total revenues, as adjusted **               3,757             3,401
Less: adjusted cost reimbursements **        (2,990)           (2,625)
Total revenues as adjusted and excluding     $      767   $      776
cost reimbursements **
Adjusted operating income margin, excluding  40%               33%
cost reimbursements **
**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.
A-11





MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
ADJUSTED 2012 EPS EXCLUDING GAIN ON COURTYARD JV SALE, NET OF TAX
(in millions, except per share amounts)
                                     Range
                                     Estimated Full Year           Full Year
                                     2013                          2012
Net income, as reported                                            $    
                                                                   571
Less: Gain on Courtyard JV sale, net                               (25)
of tax
Net income, as adjusted **                                         $    
                                                                   546
DILUTED EPS AS REPORTED                                            $   
                                                                   1.72
DILUTED PER SHARE GAIN ON COURTYARD                                (0.08)
JV SALE
DILUTED EPS AS ADJUSTED^**                                         $   
                                                                   1.64
DILUTED EPS GUIDANCE                 $            $   
                                     1.90           2.05
INCREASE OVER 2012 DILUTED EPS      10%             19%
INCREASE OVER 2012 ADJUSTED DILUTED  16%             25%
EPS **
Diluted Shares                                                     332.9
** Denotes non-GAAP financial measures. Please see pages A-13 and A-14 for
informationabout our reasons for providing these alternative financial
measures and the limitations on their use.
A-12





MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
In our press release and schedules, and on the related conference call, we
report certain financial measures that are not prescribed or authorized by
United States generally accepted accounting principles ("GAAP"). We discuss
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 (identified by a double asterisk on the
preceding pages). 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, income from continuing operations,
net income, earnings 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 Measures that Reflect the Timeshare Spin-off as if it had Occurred on
the First Day of 2011. ("Timeshare Spin-off Adjustments"). On November 21,
2011 we completed a spin-off of our timeshare operations and timeshare
development business through a special tax-free dividend to our shareholders
of all of the issued and outstanding common stock of our wholly owned
subsidiary Marriott Vacations Worldwide Corporation ("MVW").

Because of our significant continuing involvement in MVW's ongoing operations
after the spin-off (by virtue of license and other agreements between us and
MVW), we continue to include our former Timeshare segment's historical
financial results for periods before the spin-off date in our historical
financial results as a component of continuing operations. Under the license
agreements we receive license fees consisting of a fixed annual fee of $50
million (subject to a periodic inflation adjustment), plus two percent of the
gross sales price paid to MVW for initial developer sales of interests in
vacation ownership units and residential real estate units and one percent of
the gross sales price paid to MVW for resale of interests in vacation
ownership units and residential real estate units, in each case that are
identified with or use the Marriott or Ritz-Carlton marks.

In order to perform year-over-year comparisons on a comparable basis,
management evaluates non-GAAP measures that, for certain periods before the
spin-off, assume the spin-off had occurred on the first day of 2011. The
Timeshare Spin-off Adjustments remove the results of our former Timeshare
segment, assume payment by MVW of estimated license fees ($14 million, $15
million, $15 million, and $16 million for the 2011 first through fourth
quarters, respectively) and remove the unallocated spin-off transaction costs
($1 million, $3 million, $8 million, and $22 million for the 2011 first
through fourth quarters, respectively). We have also included certain
corporate items not previously allocated to our former Timeshare segment in
the Timeshare Spin-off Adjustments. Timeshare Spin-off Adjustments totaled
($21) million pre-tax (($13) million after-tax), ($14) million pre-tax (($9)
million after-tax), $321 million pre-tax ($264 million after-tax), and $14
million pre-tax ($18 million after-tax) for the 2011 first through fourth
quarters, respectively.

We provide adjusted measures that reflect Timeshare Spin-off Adjustments for
illustrative and informational purposes only. These adjusted measures are not
necessarily indicative of, and we do not purport that they represent, what our
operating results would have been had the spin-off actually occurred on the
first day of 2011. This information also does not reflect certain financial
and operating benefits we expect to realize as a result of the 2011 Timeshare
spin-off.

Adjusted Measures that Exclude 2011 Other Charges and a 2012 Gain. Management
evaluates non-GAAP measures that exclude certain 2011 charges and a 2012 gain
on sale because those non-GAAP measures allow for period-over-period
comparisons of our on-going core operations before the impact of certain
significant items. These non-GAAP measures also facilitate management's
comparison of results from our on-going operations before the impact of
certain significant items with results from other lodging companies.

2011 Other Charges. We recorded charges of $28 million pre-tax ($17 million
after-tax) in the 2011 third quarter, which consisted of: (1) an $18 million
other-than-temporary impairment of an investment in marketable securities (not
allocated to any of our segments) recorded in the "Gains (losses) and other
income" caption of our Income Statement; and (2) a $10 million charge recorded
in the "General, administrative, and other" caption of our Income Statement
for the impairment of deferred contract acquisition costs and an accounts
receivable reserve, both of which were for a Luxury segment property whose
owner filed for bankruptcy.



2012 Gain on Sale of Equity Interest in a Joint Venture. We recorded a $41
million pre-tax ($25 million after-tax) gain on the sale of an equity interest
in a North American Limited-Service joint venture in the "Gains (losses) and
other income" caption of our Income Statement, which consisted of: (1) a $21
million gain on the sale of this interest; and (2) recognition of the $20
million remaining gain we deferred in 2005 due to contingencies in the
original transaction documents for the sale of land to the joint venture which
expired with the 2012 sale.
A-13





MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES (cont.)
Earnings Before Interest Expense, Taxes, Depreciation and Amortization
("EBITDA") is a financial measure that is not prescribed or authorized by
United States generally accepted accounting principles ("GAAP"), which
reflects earnings excluding the impact of interest expense, provision for
income taxes, and depreciation and amortization. We believe that EBITDA is a
meaningful indicator of operating performance because we use it to measure our
ability to service debt, fund capital expenditures, and expand our business.
We also use EBITDA, as do analysts, lenders, investors and others, 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 provision for income taxes
can vary considerably among companies. EBITDA further excludes depreciation
and amortization because companies utilize productive assets of different ages
and use different methods of both acquiring and depreciating productive
assets. These differences can result in considerable variability in the
relative costs of productive assets and the depreciation and amortization
expense among companies.



We also believe that Adjusted EBITDA, another non-GAAP financial measure, is a
meaningful indicator of operating performance. Our Adjusted EBITDA reflects
the following items, each of which we describe more fully above: (1) Timeshare
Spin‐off Adjustments; (2) an adjustment for $28 million of other charges for
2011; and (3) an adjustment for a $41 million gain on the 2012 sale of an
equity interest in a joint venture. We believe that Adjusted EBITDA that
excludes these items is a meaningful measure of our operating performance
because it permits period-over-period comparisons of our ongoing core
operations before certain significant items and facilitates our comparison of
results from our ongoing operations before certain significant items with
results from other lodging companies.



EBITDA and Adjusted EBITDA have limitations and should not be considered in
isolation or as substitutes for performance measures calculated under GAAP.
Both of these non-GAAP measures exclude certain cash expenses that we are
obligated to make. In addition, other companies in our industry may calculate
EBITDA and in particular Adjusted EBITDA differently than we do or may not
calculate them at all, limiting EBITDA's and Adjusted EBITDA's usefulness as
comparative measures. We provide Adjusted EBITDA for illustrative and
informational purposes only and Adjusted EBITDA for 2011 is not necessarily
indicative of, and we do not purport that it represents, what our operating
results would have been had the Timeshare spin-off occurred on the first day
of 2011. Adjusted EBITDA for 2011 also does not reflect certain financial and
operating benefits we expect to realize as a result of the 2011 Timeshare
spin-off.



Adjusted Operating Income Margin Excluding Adjusted Cost Reimbursements. Cost
reimbursements revenue represents reimbursements we receive for costs we incur
on behalf of managed and franchised properties and relates, predominantly, to
payroll costs at managed properties where we are the employer, but also
includes reimbursements for other costs, such as those associated with our
Marriott Rewards and The Ritz-Carlton Rewards programs. As we record cost
reimbursements based on the costs we incur with no added markup, this revenue
and related expense has no impact on either our operating income or net income
because cost reimbursements revenue net of reimbursed costs expense is zero.
We consider total revenues as adjusted for Timeshare Spin-off Adjustments and
operating income as adjusted for the operating income impact of Timeshare
Spin-off Adjustments meaningful for the reasons noted above. In calculating
adjusted operating income margin we consider total revenues as adjusted to
further exclude cost reimbursements and therefore, adjusted operating income
margin excluding cost reimbursements to be meaningful metrics as they
represent that portion of revenue and operating income margin that impacts
operating income and net income.
A-14



SOURCE Marriott International, Inc.

Website: http://www.marriott.com
Contact: Tom Marder, +1-301-380-2553, thomas.marder@marriott.com
 
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