Marriott International Reports Second Quarter Results

            Marriott International Reports Second Quarter Results

PR Newswire

BETHESDA, Md., July 29, 2014

BETHESDA, Md., July 29, 2014 /PRNewswire/ --

HIGHLIGHTS

  oSecond quarter adjusted diluted EPS totaled $0.71, a 25 percent increase
    over prior year reported results. Reported diluted EPS totaled $0.64;
  oNorth American comparable systemwide RevPAR rose 6.0 percent in the second
    quarter with average daily rates up 3.7 percent;
  oOn a constant dollar basis, worldwide comparable systemwide RevPAR rose
    5.8 percent in the second quarter, including a 3.5 percent increase in
    average daily rate;
  oMarriott repurchased 5.0 million shares of the company's common stock for
    $300 million during the second quarter. Year-to-date, the company
    repurchased 12.8 million shares for $706 million;
  oComparable company-operated house profit margins increased 110 basis
    points in North America and 80 basis points worldwide in the second
    quarter;
  oThe company's adjusted operating income margin increased to 47 percent
    compared to 43 percent in the year-ago quarter;
  oAt the end of the second quarter, the company's worldwide development
    pipeline increased to nearly 215,000 rooms, including more than 30,000
    rooms approved, but not yet subject to signed contracts;
  oOver 18,700 rooms were added during the second quarter, including over
    10,000 rooms associated with the Protea transaction and nearly 3,200 rooms
    in other international markets;
  oAdjusted earnings before interest, taxes, depreciation and amortization
    (EBITDA) totaled $408 million in the quarter, a 10 percent increase over
    second quarter 2013 adjusted EBITDA.

Marriott International, Inc. (NASDAQ: MAR) today reported second quarter 2014
results.

Second quarter 2014 net income totaled $192 million, a 7 percent increase
compared to second quarter 2013 net income. Diluted earnings per share (EPS)
totaled $0.64, a 12 percent increase from diluted EPS in the year-ago
quarter. Second quarter 2014 results reflect a $15 million pretax ($9 million
after-tax and $0.03 per diluted share) impairment charge, an $11 million
pretax ($7 million after-tax and $0.02 per diluted share) litigation reserve
and a $7 million pretax ($5 million after-tax and $0.02 per diluted share)
unfavorable foreign exchange impact related to Venezuelan currency
devaluation. Excluding these items, second quarter adjusted net income
totaled $213 million and adjusted diluted EPS was $0.71. On April 29, 2014,
the company forecasted second quarter diluted EPS of $0.63 to $0.68, which did
not include the three items discussed above. See page A-11 for the adjusted
EPS calculation.

Arne M. Sorenson, president and chief executive officer of Marriott
International, said, "Results in the quarter exceeded our expectations as
worldwide RevPAR increased nearly 6 percent. In North America, strong
transient demand drove RevPAR higher and room rates rose nearly 4 percent.

"With strong franchisee and owner demand for our brands, we are on pace to
have another record development year in 2014 with contracts for roughly 295
hotels with nearly 46,000 rooms already signed, or nearly a dozen hotels per
week, and well ahead of our 2013 first half signings pace. At the end of the
second quarter, our development pipeline reached a record 215,000 rooms.

"We were pleased to announce a few weeks ago that the 3,400-room Atlantis,
Paradise Island will be joining the Autograph Collection later this year,
further accelerating our growth in the luxury and lifestyle space. The
Autograph Collection is just one brand in our luxury and lifestyle portfolio
(The Ritz-Carlton, Bulgari Hotels & Resorts, EDITION, JW Marriott Hotels,
Autograph Collection, Renaissance Hotels, AC Hotels by Marriott, Protea Fire &
Ice Hotels and Moxy Hotels) catering to next generation travelers, a fast
growing customer segment. Representing nearly 30 percent of our current
development pipeline, we expect to increase our room distribution of these
luxury and lifestyle brands by 50 percent over the next few years.

"We are bullish on the remainder of 2014. The strong RevPAR growth in the
second quarter combined with very strong group bookings for the third quarter
give us the confidence to increase our full year 2014 North American and
worldwide RevPAR growth guidance to 5 to 7 percent. We are also increasing
our expectations for gross room additions to 7 percent, 6 percent net, based
on strong development interest in our brands. Through the first two quarters,
we have returned $766 million to our shareholders through dividends and share
repurchases and are on pace to return $1.35 billion to $1.6 billion to
shareholders for the full year."

For the 2014 second quarter, RevPAR for worldwide comparable systemwide
properties increased 5.8 percent (a 5.9 percent increase using actual
dollars).

In North America, comparable systemwide RevPAR increased 6.0 percent in the
second quarter of 2014, including a 3.7 percent increase in average daily
rate. RevPAR for comparable systemwide North American full-service hotels
(including Marriott Hotels, The Ritz-Carlton, Renaissance Hotels, Gaylord
Hotels and Autograph Collection Hotels) increased 5.3 percent with a 3.5
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 6.8
percent in the second quarter with a 4.1 percent increase in average daily
rate.

Excluding Venezuela, international comparable systemwide RevPAR rose 4.6
percent (a 5.1 percent increase using actual dollars) in the second quarter.

Marriott added 162 new properties (18,729 rooms) to its worldwide lodging
portfolio in the 2014 second quarter, including 113 properties (10,016 rooms)
related to the Protea transaction. Nine properties (1,134 rooms) exited the
system during the quarter. At quarter-end, the company's lodging group
encompassed 4,087 properties and timeshare resorts for a total of nearly
697,000 rooms.

The company's worldwide development pipeline increased to roughly 1,300
properties with nearly 215,000 rooms at quarter-end, including 213 properties
with more than 30,000 rooms approved for development, but not yet subject to
signed contracts.

MARRIOTT REVENUES totaled nearly $3.5 billion in the 2014 second quarter
compared to revenues of approximately $3.3 billion for the second quarter of
2013. Base management and franchise fees totaled $370 million compared to
$343 million in the year-ago quarter, an increase of 8 percent. The
year-over-year increase largely reflects higher RevPAR and new unit growth.

Second quarter worldwide incentive management fees increased 28 percent to $82
million primarily due to strong RevPAR and unit growth, as well as favorable
timing of fee recognition. The company anticipates that incentive management
fee revenue will increase at a high teens rate for full year 2014. In the
second quarter, 40 percent of worldwide company-managed hotels earned
incentive management fees compared to 34 percent in the year-ago quarter.

Worldwide comparable company-operated house profit margins increased 80 basis
points in the second quarter with improvement in both room rates and
productivity. House profit margins for comparable company-operated properties
outside North America increased 30 basis points and North American comparable
company-operated house profit margins increased 110 basis points from the
year-ago quarter.

Owned, leased and other revenue, net of direct expenses, totaled $70 million,
compared to $65 million in the year-ago quarter. Improved results reflected
strong performance at several leased hotels, the addition of a property the
company acquired in the fourth quarter of 2013, the impact of the Protea
portfolio acquired at the beginning of the quarter and higher residential and
credit card branding fees, partially offset by $13 million of lower
termination fees. Results for the second quarter of 2013 included $4 million
of expenses related to international lease terminations.

DEPRECIATION, AMORTIZATION, and OTHER expense totaled $47 million in the 2014
second quarter compared to $33 million in the year-ago quarter. The increase
in expense largely reflects a $15 million impairment charge resulting from the
reallocation of costs between the Miami EDITION hotel and the Miami EDITION
residences. The estimated cost of the total Miami EDITION project, which
includes both the hotel and residences, remains unchanged from last quarter.
Prior year results included a $5 million impairment of deferred contract
acquisition cost.

GENERAL, ADMINISTRATIVE and OTHER expenses for the 2014 second quarter totaled
$159 million, a 1 percent decline compared to the year-ago quarter. Expenses
for the quarter included a $7 million foreign exchange loss associated with
the Venezuelan Bolivar. Expenses in the second quarter of 2013 included a $5
million performance cure payment.

On April 29, the company estimated general and administrative expenses for the
second quarter would total $165 million to $170 million. Actual expenses in
the quarter were below the range largely due to lower than expected spending,
some of which was favorable timing, and lower bad debt expenses, partially
offset by the foreign exchange impact discussed above.

GAINS AND OTHER INCOME totaled $3 million in the quarter compared to $10
million in the year-ago quarter. In the 2013 second quarter, the company
recorded an $8 million gain on the sale of an investment in equity securities.

EQUITY LOSSES increased $6 million in the second quarter to an $8 million
dollar loss largely due to an $11 million litigation reserve.

Adjusted Earnings before Interest Expense, Taxes, Depreciation and
Amortization (EBITDA)
Adjusted EBITDA totaled $408 million in the 2014 second quarter, a 10 percent
increase over 2013 second quarter adjusted EBITDA of $372 million. See page
A-8 for the EBITDA calculation.

BALANCE SHEET
At the end of the second quarter, total debt was $3,404 million and cash
balances totaled $192 million, compared to $3,199 million in debt and $126
million of cash at year-end 2013.

COMMON STOCK
Weighted average fully diluted shares outstanding used to calculate diluted
EPS totaled 298.7 million in the 2014 second quarter, compared to 314.0
million in the year-ago quarter.

The company repurchased 5.0 million shares of common stock in the second
quarter at a cost of $300 million. Year-to-date, Marriott repurchased 12.8
million shares of its stock for $706 million. The remaining share
authorization as of July 29, 2014, totaled 26.5 million shares.

OUTLOOK
For the 2014 third quarter, the company expects comparable systemwide RevPAR
on a constant dollar basis will increase 6 to 8 percent in North America, 4 to
6 percent outside North America and 5.5 to 7.5 percent worldwide.

The company expects full year 2014 comparable systemwide RevPAR on a constant
dollar basis will increase 5 to 7 percent in North America, 4 to 6 percent
outside North America and 5 to 7 percent worldwide. On April 29, 2014, the
company forecasted worldwide and North American RevPAR growth of 4.5 to 6.5
percent for full year 2014.

The company anticipates gross room additions of 7 percent worldwide for the
full year 2014 including the 10,016 rooms associated with the Protea
acquisition. Net of deletions, the company expects its portfolio of rooms
will increase by approximately 6 percent by year-end 2014.

The company assumes full year fee revenue could total $1,685 million to $1,725
million, growth of 9 to 12 percent over 2013 fee revenue of $1,543 million.

For 2014, the company anticipates general, administrative and other expenses
will total $640 million to $650 million, flat to down 1 percent compared to
2013 expenses of $649 million.

Given these assumptions, 2014 diluted EPS could total $2.40 to $2.51, a 20 to
25 percent increase year-over-year. This full year EPS outlook reflects
reported second quarter results, including the $0.07 of unfavorable
adjustments in the quarter.

                                     Third Quarter 2014   Full Year 2014
Total fee revenue                    $425 million to $435 $1,685 million to
                                     million              $1,725 million
Owned, leased and other revenue, net Approx. $50 million  Approx. $235 million
of direct expenses
Depreciation and amortization        Approx. $30 million  Approx. $145 million
General, administrative and other    $160 million to $165 $640 million to $650
expenses                             million              million
Operating income                     $280 million to $295 $1,125 million to
                                     million              $1,175 million
Gains and other income               Approx. $0 million   Approx. $5 million
Net interest expense^1               Approx. $25 million  Approx. $95 million
Equity in earnings (losses)          Approx. $0 million   Approx. $(10)
                                                          million
Earnings per share                   $0.59 to $0.63       $2.40 to $2.51
Tax rate                                                  32.0 percent
^ 1 Net of interest income



The company expects investment spending in 2014 will total approximately $800
million to $1.0 billion, including approximately $150 million for maintenance
capital spending and $193 million associated with the Protea transaction.
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 $1.35 billion to $1.6 billion could be
returned to shareholders through share repurchases and dividends.

Based upon the assumptions above, the company expects full year 2014 adjusted
EBITDA will total $1,465 million to $1,515 million, an 11 to 14 percent
increase over the 2013 full year adjusted EBITDA of $1,325 million. See page
A-9 for the adjusted EBITDA calculation.

Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings
review for the investment community and news media on Wednesday, July 30, 2014
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 July 30, 2015.

The telephone dial-in number for the conference call is 706-679-3455 and the
conference ID is 59383825. A telephone replay of the conference call will be
available from 1 p.m. ET, Wednesday, July 30, 2014 until 8 p.m. ET, Wednesday,
August 6, 2014. To access the replay, call 404-537-3406. The conference ID
for the recording is 59383825.

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 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 July 29, 2014. We undertake no
obligation to publicly update or revise any forward-looking statement, whether
as a result of new information, future events or otherwise.

Marriott International, Inc. (NASDAQ: MAR) is a global leading lodging company
based in Bethesda, Maryland, USA, with more than 4,000 properties in 79
countries and territories. Marriott International reported revenues of nearly
$13 billion in fiscal year 2013. The company operates and franchises hotels
and licenses vacation ownership resorts under 18 brands, including: Marriott
Hotels, The Ritz-Carlton, JW Marriott, Bulgari, EDITION,Renaissance, Gaylord
Hotels, Autograph Collection, AC Hotels by Marriott, Moxy Hotels (expected
opening in 2014), Courtyard, Fairfield Inn & Suites, SpringHill Suites,
Residence Inn, TownePlace Suites, Protea Hotels,Marriott Executive Apartments
and Marriott Vacation Club timeshare brand. Marriott has been consistently
recognized as a top employer and for its superior business ethics. The
company also manages the award-winning guest loyalty program, Marriott
Rewards® and The Ritz-Carlton Rewards® program, which together surpass 45
million members. 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 2, 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
Adjusted Operating Income Margin Excluding Cost Reimbursements and Other  A-10
Charges
Adjusted 2014 EPS Excluding Other Charges, Net of Tax                     A-11
Non-GAAP Financial Measures                                               A-12





MARRIOTT INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
SECOND QUARTER 2014 AND 2013
(in millions except per share amounts, unaudited)
                                                                   Percent
                               Three Months      Three Months      Better/
                               Ended             Ended
                               June 30, 2014     June 30, 2013     (Worse)
REVENUES
Base management fees           $           $           6
                                    176         166
Franchise fees                 194               177               10
Incentive management fees      82                64                28
Owned, leased, and other       269               246               9
revenue ^1
Cost reimbursements ^2         2,763             2,610             6
 Total Revenues              3,484             3,263             7
OPERATING COSTS AND
EXPENSES
Owned, leased, and other -     199               181               (10)
direct ^3
Reimbursed costs               2,763             2,610             (6)
Depreciation,                  47                33                (42)
amortization, and other ^4
General, administrative,       159               160               1
and other ^5
 Total Expenses              3,168             2,984             (6)
OPERATING INCOME               316               279               13
Gains and other income ^6      3                 10                (70)
Interest expense               (30)              (29)              (3)
Interest income               4                 5                 (20)
Equity in losses ^7            (8)               (2)               (300)
INCOME BEFORE INCOME TAXES     285               263               8
Provision for income taxes     (93)              (84)              (11)
NET INCOME                     $           $           7
                                    192         179
EARNINGS PER SHARE - Basic
 Earnings per share          $           $           14
                                    0.66         0.58
EARNINGS PER SHARE -
Diluted
 Earnings per share          $           $           12
                                    0.64         0.57
Basic Shares                   292.5             306.7
Diluted Shares                 298.7             314.0
* 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
acquiremanagement, 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 jointventures and
investments, and income from cost method investments.
^7 – Equity in losses include our equity in earnings or losses of
unconsolidated equity method investments.
A-1





MARRIOTT INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
SECOND QUARTER YEAR-TO-DATE 2014 AND 2013
(in millions except per share amounts, unaudited)
                                                                   Percent
                               Six Months         Six Months       Better/
                               Ended              Ended
                               June 30, 2014      June 30, 2013    (Worse)
REVENUES
                               $            $      
Base management fees                331                 4
                                                  319
Franchise fees                 357                328              9
Incentive management fees      153                130              18
Owned, leased, and other       503                470              7
revenue ^1
Cost reimbursements ^2         5,433              5,158            5
 Total Revenues              6,777              6,405            6
OPERATING COSTS AND
EXPENSES
Owned, leased, and other -     384                360              (7)
direct ^3
Reimbursed costs               5,433              5,158            (5)
Depreciation,                  83                 58               (43)
amortization, and other ^4
General, administrative,       307                324              5
and other ^5
 Total Expenses              6,207              5,900            (5)
OPERATING INCOME               570                505              13
Gains and other income ^6      3                  13               (77)
Interest expense               (60)               (60)             -
Interest income               9                  8                13
Equity in losses ^7            (6)                (2)              (200)
INCOME BEFORE INCOME TAXES     516                464              11
Provision for income taxes     (152)              (149)            (2)
                               $            $      
NET INCOME                          364                 16
                                                  315
EARNINGS PER SHARE - Basic
                               $            $      
 Earnings per share               1.24                 22
                                                  1.02
EARNINGS PER SHARE -
Diluted
                               $            $      
 Earnings per share               1.21                 22
                                                  0.99
Basic Shares                   294.3              309.3
Diluted Shares                 301.2              317.3
* 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
acquiremanagement, 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 jointventures and
investments, and income from cost method investments.
^7 – Equity in losses include our equity in earnings or losses of
unconsolidated equity method investments.
A-2





MARRIOTT INTERNATIONAL, INC.
TOTAL LODGING PRODUCTS
                        Number of Properties      Number of Rooms/Suites
                                  June   vs.                          vs. June
Brand                   June 30,  30,    June     June 30,  June 30,  30,
                        2014      2013   30,      2014      2013      2013
                                         2013
Domestic Full-Service
 Marriott Hotels     346       348    (2)      140,247   140,626   (379)
 Renaissance         77        77     -        27,419    27,820    (401)
Hotels
 Autograph           34        26     8        8,842     6,917     1,925
Collection
 Gaylord Hotels     5         5      -        8,098     8,098     -
 The Ritz-Carlton    38        38     -        11,300    11,356    (56)
 The Ritz-Carlton    30        30     -        3,598     3,598     -
Residential
Domestic
Limited-Service
 Courtyard           845       824    21       119,072   115,733   3,339
 Fairfield Inn &     698       689    9        63,488    62,855    633
Suites
 SpringHill Suites   311       301    10       36,537    35,329    1,208
 Residence Inn       635       612    23       76,912    73,851    3,061
 TownePlace Suites   228       218    10       22,683    21,630    1,053
International
 Marriott Hotels    222       208    14       68,042    63,922    4,120
 Renaissance         82        77     5        25,745    25,090    655
Hotels
 Autograph           27        18     9        3,516     2,041     1,475
Collection ^1
 Protea Hotels       112       -      112      9,995     -         9,995
 Courtyard           122       113    9        24,040    22,119    1,921
 Fairfield Inn &     17        14     3        2,092     1,716     376
Suites
 SpringHill Suites   2         2      -        299       299       -
 Residence Inn       24        23     1        3,349     3,229     120
 TownePlace Suites   3         2      1        426       278       148
 Marriott            28        27     1        4,423     4,295     128
Executive Apartments
 The Ritz-Carlton   47        42     5        13,777    12,655    1,122
 The Ritz-Carlton    10        7      3        630       469       161
Residential
 The Ritz-Carlton    4         4      -        579       579       -
Serviced Apartments
 Bulgari Hotels &    3         3      -        202       202       -
Resorts
 EDITION             2         1      1        251       78        173
 AC Hotels by        73        75     (2)      8,310     8,491     (181)
Marriott ^1
Timeshare ^2            62        63     (1)      13,054    12,856    198
Total                   4,087     3,847  240      696,926   666,132   30,794
^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 June 20, 2014 and June 14, 2013,
the end of Marriott Vacation Worldwide's second quarter for 2014 and 2013,
respectively.
A-3





MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
Constant $
Comparable Company-Operated International Properties^1
                          Three Months Ended June 30, 2014 and June 30, 2013
                          REVPAR              Occupancy          Average Daily
                                                                 Rate
Region                    2014       vs.      2014   vs. 2013    2014    vs.
                                     2013                                2013
Caribbean & Latin         $170.88    12.7%    73.5%  1.8%  pts.  $232.45 10.0%
America^2
Europe                    $160.25    1.3%     77.9%  0.5%  pts.  $205.60 0.6%
Middle East & Africa      $117.57    3.9%     62.8%  1.7%  pts.  $187.10 1.2%
Asia Pacific              $126.19    5.5%     72.8%  2.0%  pts.  $173.24 2.6%
Total                     $143.03    4.5%     73.6%  1.4%  pts.  $194.31 2.5%
International^2,3
Worldwide^2,4             $138.07    5.1%     76.8%  1.6%  pts.  $179.76 2.9%
Comparable Systemwide International Properties^1
                          Three Months Ended June 30, 2014 and June 30, 2013
                          REVPAR              Occupancy          Average Daily
                                                                 Rate
Region                    2014       vs.      2014   vs. 2013    2014    vs.
                                     2013                                2013
Caribbean & Latin         $145.15    10.6%    72.3%  1.7%  pts.  $200.85 8.0%
America^2
Europe                    $148.74    1.6%     75.9%  0.8%  pts.  $195.92 0.6%
Middle East & Africa      $116.06    4.9%     63.4%  2.1%  pts.  $183.10 1.5%
Asia Pacific              $126.51    5.6%     73.3%  2.0%  pts.  $172.56 2.8%
Total                     $137.37    4.6%     73.2%  1.5%  pts.  $187.63 2.5%
International^2,5
Worldwide^2,4             $116.63    5.8%     77.0%  1.7%  pts.  $151.39 3.5%
^1Statistics are in constant dollars. International includes properties
located outside the United States and Canada, except forWorldwide which
includes the United States.
^2 Due to significant inflation in Venezuela, in the 2014 second quarter we
removed our three hotels in that country from our set ofcomparable
properties.
^3 Includes Marriott Hotels, Renaissance, Autograph Collection, The
Ritz-Carlton, Bulgari, Residence Inn, and Courtyard properties.
^4Includes Marriott Hotels, Renaissance, Autograph Collection, Gaylord Hotels,
The Ritz-Carlton, Bulgari, Residence Inn, Courtyard, Fairfield Inn & Suites,
TownePlace Suites, and SpringHill Suites properties.
^5Includes Marriott Hotels, Renaissance, Autograph Collection, The
Ritz-Carlton, Bulgari, Residence Inn, Courtyard, and Fairfield Inn & Suites
properties.
A-4





MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
Constant $
Comparable Company-Operated International Properties^1
                         Six Months Ended June 30, 2014 and June 30, 2013
                         REVPAR                 Occupancy        Average Daily
                                                                 Rate
Region                   2014        vs.        2014  vs. 2013   2014    vs.
                                     2013                                2013
Caribbean & Latin        $196.43     10.8%      76.0% 2.3% pts.  $258.58 7.4%
America^2
Europe                   $137.79     1.8%       70.7% 1.0% pts.  $194.84 0.4%
Middle East & Africa     $121.52     1.8%       62.1% 1.4% pts.  $195.78 -0.6%
Asia Pacific             $128.73     6.0%       72.0% 2.1% pts.  $178.74 2.8%
Total                    $139.46     4.8%       70.9% 1.7% pts.  $196.79 2.3%
International^2,3
Worldwide^2,4            $132.35     5.3%       73.5% 1.8% pts.  $179.96 2.7%
Comparable Systemwide International Properties^1
                         Six Months Ended June 30, 2014 and June 30, 2013
                         REVPAR                 Occupancy        Average Daily
                                                                 Rate
Region                   2014        vs.        2014  vs. 2013   2014    vs.
                                     2013                                2013
Caribbean & Latin        $159.62     9.5%       72.8% 2.2% pts.  $219.37 6.2%
America^2
Europe                   $128.50     2.5%       68.8% 1.2% pts.  $186.72 0.6%
Middle East & Africa     $119.70     2.7%       62.8% 1.8% pts.  $190.70 -0.2%
Asia Pacific             $128.43     6.1%       72.4% 2.1% pts.  $177.27 3.0%
Total                    $132.62     5.0%       70.1% 1.7% pts.  $189.19 2.4%
International^2,5
Worldwide^2,4            $110.27     5.9%       73.1% 1.8% pts.  $150.75 3.3%
^1Statistics are in constant dollars. International includes properties
located outside the United States and Canada, except forWorldwide which
includes the United States.
^2 Due to significant inflation in Venezuela, in the 2014 second quarter we
removed our three hotels in that country from our set ofcomparable
properties. Statistics have been adjusted as if the change had been made at
the beginning of the year.
^3 Includes Marriott Hotels, Renaissance, Autograph Collection, The
Ritz-Carlton, Bulgari, Residence Inn, and Courtyard properties.
^4Includes Marriott Hotels, Renaissance, Autograph Collection, Gaylord Hotels,
The Ritz-Carlton, Bulgari, Residence Inn, Courtyard, Fairfield Inn & Suites,
TownePlace Suites, and SpringHill Suites properties.
^5Includes Marriott Hotels, Renaissance, Autograph Collection, The
Ritz-Carlton, Bulgari, Residence Inn, Courtyard, and Fairfield Inn & Suites
properties.
A-5





MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
Comparable Company-Operated North American Properties^1
                       Three Months Ended June 30, 2014 and June 30, 2013
                       REVPAR               Occupancy            Average Daily
                                                                 Rate
Brand                  2014      vs.        2014    vs. 2013     2014     vs.
                                 2013                                     2013
Marriott Hotels        $149.83   4.3%       79.0%   1.5%   pts.  $189.56  2.3%
Renaissance           $143.65   3.2%       78.7%   0.9%   pts.  $182.54  2.1%
The Ritz-Carlton       $255.78   6.4%       75.9%   1.2%   pts.  $337.09  4.7%
Composite North
American               $158.25   4.4%       78.3%   1.3%   pts.  $202.08  2.6%
Full-Service^2
Courtyard              $99.66    8.2%       76.4%   2.4%   pts.  $130.37  4.8%
SpringHill Suites      $89.27    6.2%       79.7%   2.3%   pts.  $112.00  3.0%
Residence Inn          $110.48   5.0%       81.7%   0.9%   pts.  $135.18  3.8%
TownePlace Suites      $74.95    24.1%      78.9%   9.3%   pts.  $95.01   9.5%
Composite North
American               $100.96   7.6%       78.2%   2.2%   pts.  $129.07  4.5%
Limited-Service^3
Composite - All^4      $135.80   5.3%       78.3%   1.7%   pts.  $173.49  3.1%
Comparable Systemwide North American Properties^1
                       Three Months Ended June 30, 2014 and June 30, 2013
                       REVPAR               Occupancy            Average Daily
                                                                 Rate
Brand                  2014      vs.        2014    vs. 2013     2014     vs.
                                 2013                                     2013
Marriott Hotels        $132.47   5.0%       76.7%   1.3%   pts.  $172.67  3.2%
Renaissance           $127.32   5.2%       77.7%   1.9%   pts.  $163.86  2.6%
Autograph              $185.55   9.1%       79.4%   0.6%   pts.  $233.75  8.3%
Collection
The Ritz-Carlton       $255.78   6.4%       75.9%   1.2%   pts.  $337.09  4.7%
Composite North
American               $140.82   5.3%       76.8%   1.3%   pts.  $183.35  3.5%
Full-Service^5
Courtyard              $100.42   6.7%       77.0%   1.8%   pts.  $130.39  4.2%
Fairfield Inn &        $78.38    7.3%       75.1%   2.0%   pts.  $104.38  4.3%
Suites
SpringHill Suites      $89.88    6.9%       78.9%   2.4%   pts.  $113.96  3.7%
Residence Inn          $109.23   5.7%       83.1%   1.4%   pts.  $131.47  3.9%
TownePlace Suites      $77.20    10.3%      79.3%   3.2%   pts.  $97.36   5.8%
Composite North
American               $95.25    6.8%       78.4%   1.9%   pts.  $121.44  4.1%
Limited-Service^3
Composite - All^6      $112.36   6.0%       77.8%   1.7%   pts.  $144.37  3.7%
^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.
A-6





MARRIOTT INTERNATIONAL, INC.
KEY LODGING STATISTICS
Comparable Company-Operated North American Properties^1
                       Six Months Ended June 30, 2014 and June 30, 2013
                       REVPAR               Occupancy            Average Daily
                                                                 Rate
Brand                  2014      vs.        2014   vs. 2013      2014     vs.
                                 2013                                     2013
Marriott Hotels        $142.99   4.8%       76.1%  1.6%  pts.    $187.95  2.6%
Renaissance           $133.20   3.5%       74.9%  1.2%  pts.    $177.78  1.8%
The Ritz-Carlton       $254.19   5.8%       74.2%  1.1%  pts.    $342.66  4.2%
Composite North
American               $151.60   4.8%       75.4%  1.5%  pts.    $200.94  2.7%
Full-Service^2
Courtyard              $92.30    8.4%       71.5%  2.7%  pts.    $129.09  4.3%
SpringHill Suites      $84.18    4.9%       74.7%  1.9%  pts.    $112.69  2.3%
Residence Inn          $104.24   5.5%       78.5%  1.9%  pts.    $132.80  3.0%
TownePlace Suites      $70.11    20.1%      73.9%  8.2%  pts.    $94.84   6.8%
Composite North
American               $94.18    7.6%       73.7%  2.6%  pts.    $127.73  3.9%
Limited-Service^3
Composite - All^4      $129.10   5.6%       74.8%  1.9%  pts.    $172.65  2.9%
Comparable Systemwide North American Properties^1
                       Six Months Ended June 30, 2014 and June 30, 2013
                       REVPAR               Occupancy            Average Daily
                                                                 Rate
Brand                  2014      vs.        2014   vs. 2013      2014     vs.
                                 2013                                     2013
Marriott Hotels        $126.67   5.6%       73.6%  1.6%  pts.    $172.02  3.3%
Renaissance           $118.89   5.5%       73.8%  2.0%  pts.    $161.07  2.6%
Autograph              $183.24   10.4%      77.8%  1.1%  pts.    $235.50  8.9%
Collection
The Ritz-Carlton       $254.19   5.8%       74.2%  1.1%  pts.    $342.66  4.2%
Composite North
American               $135.05   5.8%       73.8%  1.6%  pts.    $183.01  3.5%
Full-Service^5
Courtyard              $92.64    6.6%       72.1%  1.8%  pts.    $128.46  4.0%
Fairfield Inn &        $70.72    6.4%       69.5%  1.8%  pts.    $101.77  3.7%
Suites
SpringHill Suites      $83.48    7.0%       74.6%  2.6%  pts.    $111.88  3.3%
Residence Inn          $102.20   5.7%       79.3%  1.8%  pts.    $128.95  3.4%
TownePlace Suites      $72.00    9.3%       74.9%  3.5%  pts.    $96.13   4.3%
Composite North
American               $88.01    6.5%       73.8%  2.0%  pts.    $119.32  3.7%
Limited-Service^3
Composite - All^6      $105.67   6.2%       73.8%  1.8%  pts.    $143.23  3.5%
^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.
A-7





MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
EBITDA AND ADJUSTED EBITDA
($ in millions)
                         Fiscal Year 2014
                         First        Second
                         Quarter      Quarter
Net Income               $        $    
                          172        192
Interest expense        30           30
Tax provision            59           93
Depreciation and         26           32
amortization
Depreciation classified  12           13
in Reimbursed costs
Interest expense from
unconsolidated joint     1            1
ventures
Depreciation and
amortization from        4            3
unconsolidated joint
ventures
EBITDA **                304          364
EDITION impairment       10           15
charge
Share-based compensation
(including share-based   25           29
compensation reimbursed
by third-party owners)
Adjusted EBITDA **       $        $    
                          339        408
Increase over 2013
Quarterly Adjusted       12%          10%
EBITDA**
                         Fiscal Year 2013
                         First        Second     Third      Fourth     Total
                         Quarter      Quarter    Quarter    Quarter
Net Income               $        $      $      $      $   
                          136        179       160       151        626
Interest expense        31           29         28         32         120
Tax provision            65           84         63         59         271
Depreciation and         25           33         34         35         127
amortization
Depreciation classified  12           12         12         12         48
in Reimbursed costs
Interest expense from
unconsolidated joint     1            1          1          1          4
ventures
Depreciation and
amortization from        3            3          3          4          13
unconsolidated joint
ventures
EBITDA **                273          341        301        294        1,209
Share-based compensation
(including share-based   30           31         28         27         116
compensation reimbursed
by third-party owners)
Adjusted EBITDA **       $        $      $      $      $   
                          303        372       329       321       1,325
** Denotes non-GAAP financial measures. Please see pages A-12 and A-13 for
information about our reasons for providing these alternativefinancial
measures and the limitations on their use.
A-8





MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
FULL YEAR EBITDA AND ADJUSTED EBITDA
FORECASTED 2014
($ in millions)
                                    Range
                                    Estimated EBITDA            As Reported
                                    Full Year 2014              Full Year 2013
Net Income                          $         $       $      
                                       712         747      626
Interest expense                   120            120          120
Tax provision                       313            328          271
Depreciation and amortization       120            120          127
Depreciation classified in          50             50           48
Reimbursed costs
Interest expense from               5              5            4
unconsolidated joint ventures
Depreciation and amortization from  15             15           13
unconsolidated joint ventures
EBITDA **                           1,335          1,385        1,209
EDITION impairment charge           25             25           -
Share-based compensation (including
share-based compensation reimbursed 105            105          116
by third-party owners)
Adjusted EBITDA **                  $         $       $      
                                     1,465        1,515     1,325
Increase over 2013 Adjusted         11%            14%
EBITDA**
** Denotes non-GAAP financial measures. See pages A-12 and A-13 for
informationabout our reasons for providing these alternative financial
measures and the limitations on their use.
A-9





MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
ADJUSTED OPERATING INCOME MARGIN EXCLUDING COST REIMBURSEMENTS AND OTHER
CHARGES
SECOND QUARTER 2014 AND 2013
($ in millions)
                                       Second                Second
OPERATING INCOME MARGIN                Quarter               Quarter
                                       2014                  2013
Operating Income                       $            $        
                                          316                279
Total revenues as reported             $            $        
                                         3,484                3,263
Less: cost reimbursements              (2,763)               (2,610)
Total revenues excluding cost          $            $        
reimbursements **                         721                653
Operating income margin, excluding     44%                   43%
cost reimbursements **
                                       Second                Second
ADJUSTED OPERATING INCOME MARGIN       Quarter               Quarter
                                       2014                  2013
Operating Income                       $            $        
                                          316                279
Add: EDITION impairment charge         15                    -
Add: Venezuela currency loss           7                     -
Operating income, as adjusted **       $            $        
                                          338                279
Adjusted operating income increase     21%
over prior year **
Adjusted operating income margin,
excluding cost reimbursements and      47%
other charges **
** Denotes non-GAAP financial measures. Please see pages A-12 and A-13 for
information about our reasons for providing these alternative financial
measures and the limitations on their use.
A-10





MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
ADJUSTED 2014 EPS EXCLUDING OTHER CHARGES, NET OF TAX
(in millions, except per share amounts)
                                     Second                 Second
                                     Quarter                Quarter
                                     2014                   2013
Net income, as reported              $              $        
                                     192                    179
Add: EDITION impairment charge,      9
net of tax
Add: Venezuela currency loss, net    5
of tax
Add: Litigation reserve, net of      7
tax
Net income, as adjusted **           $        
                                     213
Diluted EPS, as reported             $               $       
                                     0.64                  0.57
Add: EDITION impairment charge,      0.03
net of tax
Add: Venezuela currency loss, net    0.02
of tax
Add: Litigation reserve, net of      0.02
tax
Diluted EPS, as adjusted **          $       
                                     0.71
Diluted Shares                       298.7                  314.0
Increase over 2013 Diluted EPS       12%
Adjusted increase over 2013          25%
Diluted EPS **
** Denotes non-GAAP financial measures. See page A-12 and A-13 for
informationabout our reasons for providing these alternative financial
measures and the limitations on their use.
A-11





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 required by, or presented in
accordance with 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 Exclude 2014 Second Quarter Charges. We recorded
charges of $33 million pre‐tax ($21 million after‐tax) in the second quarter
of 2014, none of which were allocated to any of our business segments,
consisting of: (1) a $15 million impairment charge recorded in the
"Depreciation, amortization, and other" caption of our Income Statement
following an evaluation of our EDITION hotels for recovery and determination
that our cost estimates exceeded our total fixed sales price; (2) an $11
million charge recorded in "Equity in losses" caption of our Income Statement
for a litigation reserve; and (3) a $7 million charge recorded in the
"General, administrative, and other" caption of our Income Statement for
foreign currency exchange losses from the devaluation of assets denominated in
Venezuelan Bolivars. We believe that measures that exclude these 2014 second
quarter charges are a meaningful measure of our performance because these
measures permit period-over-period comparisons of our ongoing core operations
before these items and facilitate our comparison of results before these items
with results from other lodging companies.

Earnings Before Interest Expense, Taxes, Depreciation and Amortization
("EBITDA") and Adjusted EBITDA. EBITDA, a financial measure that is not
required by, or presented in accordance with GAAP, reflects net income
excluding the impact of interest expense, provision for income taxes,
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 also excludes depreciation and
amortization expense which we report under "Depreciation, amortization, and
other" as well as depreciation included under "Reimbursed costs" in our
Consolidated Statements of Income, 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
adjustments to exclude pre-tax impairment charges of $10 million in the 2014
first quarter and $15 million in the 2014 second quarter, both which relate to
the impairment charge described more fully above, and share-based compensation
expense for all periods presented. Because companies use share-based payment
awards differently, both in the type and quantity of awards granted, we
excluded share-based compensation expense to address considerable variability
among companies in recording compensation expense. 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 these items and facilitates our comparison of results
before these 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 the usefulness of EBITDA and Adjusted EBITDA
as comparative measures.

Adjusted 2014 EPS Excluding 2014 Other Charges, Net of Tax. Our EPS excludes
charges of $33 million pre‐tax ($21 million after‐tax) that we recorded in the
second quarter of 2014, each of which we describe more fully above. We believe
that EPS excluding these items is a meaningful measure of our performance
because it permits period-over-period comparisons of our ongoing core
operations before these items and facilitates our comparison of results before
these items with results from other lodging companies.

A-12



MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES

Adjusted Operating Income Margin Excluding Cost Reimbursements and Other
Charges. 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 operating income and therefore, operating
income margin, as adjusted for the $15 million pre-tax impairment charge and
the $7 million pre-tax foreign currency exchange losses from the devaluation
of assets denominated in Venezuelan Bolivars, meaningful for the reasons noted
above. In calculating adjusted operating income margin we consider total
revenues as adjusted to exclude cost reimbursements and adjusted operating
income margin to further exclude 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-13



SOURCE Marriott International, Inc.

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