Marriott International Reports Fourth Quarter 2020 Results
Marriott reported a 64.1% decline in fourth quarter 2020 RevPAR globally, a stark contrast to pre-pandemic results. The company posted a net loss of $164 million, a significant downturn from a $279 million profit the previous year. Adjusted diluted EPS stood at $0.12, down from $1.51 in 2019. Despite challenges, Marriott added nearly 63,000 rooms in 2020 and maintains a robust development pipeline of 498,000 rooms. Its net liquidity reached approximately $4.4 billion, reflecting ongoing efforts to manage costs during the pandemic.
- Added nearly 63,000 rooms globally in 2020, showing growth potential.
- Development pipeline includes approximately 498,000 rooms, indicating future expansion.
- Net liquidity of about $4.4 billion enhances financial stability.
- Reported diluted loss per share of $0.50 versus a profit of $0.85 in Q4 2019.
- Net loss of $164 million compared to a net income of $279 million in the same quarter last year.
- 64.1% decline in worldwide RevPAR, severely impacting revenue.
BETHESDA, Md., Feb. 18, 2021 /PRNewswire/ --
- Fourth quarter 2020 comparable systemwide constant dollar RevPAR declined 64.1 percent worldwide, 64.6 percent in the U.S. & Canada, and 62.7 percent in international markets, compared to the 2019 fourth quarter;
- Fourth quarter reported diluted loss per share totaled
$0.50 , compared to reported diluted EPS of$0.85 in the year-ago quarter. Fourth quarter adjusted diluted EPS totaled$0.12 , compared to fourth quarter 2019 adjusted diluted EPS of$1.51 ; - Fourth quarter reported net loss totaled
$164 million , compared to reported net income of$279 million in the year-ago quarter. Fourth quarter adjusted net income totaled$39 million , compared to fourth quarter 2019 adjusted net income of$498 million ; - Adjusted EBITDA totaled
$317 million in the 2020 fourth quarter, compared to fourth quarter 2019 adjusted EBITDA of$901 million ; - The company added nearly 63,000 rooms globally during 2020, including more than 28,000 rooms in international markets and a total of roughly 8,100 conversion rooms. Net rooms grew 3.1 percent from year-end 2019;
- At year end, Marriott's worldwide development pipeline totaled nearly 2,900 properties and more than 498,000 rooms, including roughly 20,000 rooms approved, but not yet subject to signed contracts. Over 229,000 rooms in the pipeline were under construction as of the end of 2020;
- As of year-end 2020, the company's net liquidity totaled approximately
$4.4 billion , representing roughly$0.8 billion in available cash balances and$3.6 billion of unused borrowing capacity under its revolving credit facility.
Marriott International, Inc. (NASDAQ: MAR) today reported fourth quarter 2020 results, which were materially impacted by the COVID-19 global pandemic and efforts to contain it (COVID-19).
Leeny Oberg, Executive Vice President and Chief Financial Officer, said, "We are all deeply saddened by Arne Sorenson's unexpected passing. We are grateful to have been able to work with such an inspiring and talented leader and will always treasure our memories of working with him. Our leadership team is committed to honoring him by building on his incredible legacy as we move the company forward."
Stephanie Linnartz, Group President, Consumer Operations, Technology and Emerging Businesses, and Tony Capuano, Group President, Global Development, Design and Operations Services, who together are sharing responsibility for overseeing the company's day-to-day operations until Marriott's Board of Directors appoints a new President and Chief Executive Officer, commented on the company's quarterly results.
Ms. Linnartz said, "With the global pandemic, 2020 was the most challenging year in our 93-year history. In April, we experienced the sharpest worldwide RevPAR1 decline on record, down 90 percent year over year with just 12 percent occupancy. Demand around the world improved from this trough at varying rates, with China leading the way. RevPAR in mainland China saw a meaningful rebound through the year and was down less than 10 percent year over year in December.
"While China has shown that demand can be quite resilient when the virus is perceived to be contained, we have also seen that progress can be slowed by significant spikes in virus cases, such as we saw in the U.S and Europe towards the end of 2020. Global occupancy remained at 35 percent in the fourth quarter, in line with the third quarter, and still substantially above the trough in April. While no one can know how long this pandemic will last, we are seeing some small, early signs that the acceleration of vaccine rollouts around the world will help drive a significant rebound in travel and lodging demand."
Mr. Capuano said, "We are gratified that we continue to see strong demand for our industry leading brands from owners and franchisees despite the unprecedented challenges resulting from the pandemic. Our pipeline grew during the quarter to more than 498,000 rooms as of the end of 2020, with 46 percent of those rooms under construction. We are seeing strong interest in conversions, as demonstrated by our recent announcement of the planned conversion of 19 all-inclusive hotels with nearly 7,000 rooms to our system in the Caribbean and Latin America region during 2021. Looking ahead, we expect gross rooms growth could accelerate to approximately 6 percent in 2021.
"In the face of the unprecedented environment resulting from the pandemic, our associates and leadership team rose to the challenge. We worked closely with our owners and franchisees to help them weather the crisis by implementing cost savings, both temporary and permanent. And operationally we implemented heightened cleanliness standards across our portfolio to enhance the safety and wellbeing of our associates and guests, while also introducing additional protocols to help enable meeting and group business to safely take place."
Ms. Oberg added, "In 2020, we moved swiftly to right-size our business in response to the precipitous decline in revenue by reducing costs, strengthening our balance sheet, and lowering capital spending. While the current environment remains challenging, we believe our financial condition is strong and we look ahead to the rest of 2021 with optimism."
Fourth Quarter 2020 Results
Marriott's reported operating loss totaled
Adjusted operating income in the 2020 fourth quarter totaled
Fourth quarter 2020 adjusted net income totaled
Adjusted results also excluded restructuring and merger-related charges, cost reimbursement revenue, and reimbursed expenses. See pages A-3, A-4 and A-13 for the calculation of adjusted results and the manner in which the adjusted measures are determined in this press release.
Restructuring and merger-related charges totaled
Base management and franchise fees totaled
Incentive management fees totaled
Contract investment amortization for the 2020 fourth quarter totaled
Owned, leased, and other revenue, net of direct expenses, totaled a
Depreciation, amortization, and other expenses for the 2020 fourth quarter totaled
General, administrative, and other expenses for the 2020 fourth quarter totaled
Gains and other income, net, totaled
Interest expense, net, totaled
Equity in losses for the fourth quarter totaled
In the 2020 fourth quarter, the benefit for income taxes totaled
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled
Selected Performance Information
The company added 109 new properties (17,780 rooms) to its worldwide lodging portfolio during the 2020 fourth quarter, including roughly 2,600 rooms converted from competitor brands and approximately 9,000 rooms in international markets. Forty-six properties (8,011 rooms) exited the system during the quarter. At year end, Marriott's global lodging system totaled more than 7,600 properties and timeshare resorts, with over 1,423,000 rooms.
At year end, the company's worldwide development pipeline totaled 2,881 properties with more than 498,000 rooms, including 1,187 properties with over 229,000 rooms under construction and 119 properties with roughly 20,000 rooms approved for development, but not yet subject to signed contracts.
In the 2020 fourth quarter, worldwide RevPAR declined 64.1 percent (a 63.9 percent decline using actual dollars). RevPAR in the U.S. & Canada declined 64.6 percent (a 64.6 percent decline using actual dollars), and RevPAR in international markets declined 62.7 percent (a 62.2 percent decline using actual dollars).
Balance Sheet and Liquidity
At year-end 2020, Marriott's net debt was
The company's net liquidity was approximately
The company halted share repurchases in February of 2020 and suspended its quarterly dividend beginning in the second quarter of 2020.
COVID-19
Due to the numerous uncertainties associated with COVID-19, Marriott cannot presently estimate the impact of this unprecedented situation on its future results, which is highly dependent on the severity and duration of the pandemic and its impacts, but expects that COVID-19 will continue to be material to the company's results.
The company expects to provide additional information about the current impact of COVID-19 on its business on its call later this morning.
Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings review for the investment community and news media on Thursday, February 18, 2021 at 8:30 a.m. Eastern Time (ET). The conference call will be webcast simultaneously via Marriott's investor relations website at http://www.marriott.com/investor, click on "Events & Presentations" and click on the quarterly conference call link. A replay will be available at that same website until February 17, 2022.
The telephone dial-in number for the conference call is 706-679-3455 and the conference ID is 2083356. A telephone replay of the conference call will be available from 2:00 p.m. ET, Thursday, February 18, 2021 until 8:00 p.m. ET, Thursday, February 25, 2021. To access the replay, call 404-537-3406. The conference ID for the recording is 2083356.
Note on forward-looking statements: All statements in this press release and the accompanying schedules are made as of February 18, 2021. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. This press release and the accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including statements related to the possible effects on our business of the COVID-19 pandemic and efforts to contain it (COVID-19); travel and lodging demand; future performance of the company's hotels; cost savings; demand for our brands; our development pipeline, rooms growth and conversions; leadership changes; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including those we identify below and other risk factors that we identify in our Securities and Exchange Commission filings, including our most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K. Risks that could affect forward-looking statements in this press release include the duration and scope of COVID-19, including the availability and distribution of effective vaccines or treatments; its short and longer-term impact on the demand for travel, transient and group business, and levels of consumer confidence; actions governments, businesses and individuals have taken or may take in response to the pandemic, including limiting or banning travel and/or in-person gatherings or imposing occupancy or other restrictions on lodging or other facilities; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies, travel, and economic activity, including the duration and magnitude of its impact on unemployment rates and consumer discretionary spending; the ability of our owners and franchisees to successfully navigate the impacts of COVID-19; the pace of recovery when the pandemic subsides or effective treatments or vaccines become widely available; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the effects of steps we and our property owners and franchisees have taken and may continue to take to reduce operating costs and/or enhance certain health and cleanliness protocols at our hotels; the impacts of our employee furloughs and reduced work week schedules, our voluntary transition program and our other restructuring activities; competitive conditions in the lodging industry; relationships with customers and property owners; the availability of capital to finance hotel growth and refurbishment; the extent to which we experience adverse effects from data security incidents; and changes in tax laws in countries in which we earn significant income. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release.
Marriott International, Inc. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of more than 7,600 properties under 30 leading brands spanning 133 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company offers Marriott Bonvoy™, its highly-awarded travel program. For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com. In addition, connect with us on Facebook and @MarriottIntl on Twitter and Instagram.
Marriott may post updates about COVID-19 and other matters on its investor relations website at www.marriott.com/investor or Marriott's news center website at www.marriottnewscenter.com. Marriott encourages investors, the media, and others interested in the company to review and subscribe to the information Marriott posts on these websites, which may be material. The contents of these websites are not incorporated by reference into this press release or any report or document Marriott files with the SEC, and any references to the websites are intended to be inactive textual references only.
1 All occupancy and RevPAR statistics are comparable systemwide constant dollar and include hotels that have been temporarily closed due to COVID-19. Unless otherwise stated, all changes refer to year-over-year changes for the comparable period.
IRPR#1
Tables follow
MARRIOTT INTERNATIONAL, INC. | |
PRESS RELEASE SCHEDULES | |
TABLE OF CONTENTS | |
QUARTER 4, 2020 | |
Consolidated Statements of Income - As Reported | A-1 |
Non-GAAP Financial Measures - Fourth Quarter and Full Year 2020 and 2019 | A-3 |
Non-GAAP Financial Measures - 2020 Quarterly | A-4 |
Total Lodging Products | A-5 |
Key Lodging Statistics | A-8 |
Adjusted EBITDA | A-12 |
Explanation of Non-GAAP Financial and Performance Measures | A-13 |
MARRIOTT INTERNATIONAL, INC. | |||||||
CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED | |||||||
FOURTH QUARTER 2020 AND 2019 | |||||||
(in millions except per share amounts, unaudited) | |||||||
As Reported | As Reported | Percent | |||||
Three Months Ended | Three Months Ended | Better/(Worse) | |||||
December 31, 2020 | December 31, 2019 | Reported 2020 vs. 2019 | |||||
REVENUES | |||||||
Base management fees | $ 102 | $ 298 | (66) | ||||
Franchise fees 1 | 277 | 501 | (45) | ||||
Incentive management fees | 44 | 175 | (75) | ||||
Gross Fee Revenues | 423 | 974 | (57) | ||||
Contract investment amortization 2 | (38) | (17) | (124) | ||||
Net Fee Revenues | 385 | 957 | (60) | ||||
Owned, leased, and other revenue 3 | 123 | 426 | (71) | ||||
Cost reimbursement revenue 4 | 1,664 | 3,988 | (58) | ||||
Total Revenues | 2,172 | 5,371 | (60) | ||||
OPERATING COSTS AND EXPENSES | |||||||
Owned, leased, and other - direct 5 | 150 | 334 | 55 | ||||
Depreciation, amortization, and other 6 | 71 | 179 | 60 | ||||
General, administrative, and other 7 | 183 | 267 | 31 | ||||
Restructuring and merger-related charges (recoveries) | 262 | (53) | (594) | ||||
Reimbursed expenses 4 | 1,634 | 4,370 | 63 | ||||
Total Expenses | 2,300 | 5,097 | 55 | ||||
OPERATING (LOSS) INCOME | (128) | 274 | (147) | ||||
Gains and other income, net 8 | 6 | 138 | (96) | ||||
Interest expense | (112) | (95) | (18) | ||||
Interest income | 7 | 6 | 17 | ||||
Equity in (losses) earnings 9 | (87) | 3 | (3,000) | ||||
(LOSS) INCOME BEFORE INCOME TAXES | (314) | 326 | (196) | ||||
Benefit (provision) for income taxes | 150 | (47) | 419 | ||||
NET (LOSS) INCOME | $ (164) | $ 279 | (159) | ||||
(LOSS) EARNINGS PER SHARE | |||||||
(Loss) Earnings per share - basic | $ (0.50) | $ 0.85 | (159) | ||||
(Loss) Earnings per share - diluted | $ (0.50) | $ 0.85 | (159) | ||||
Basic Shares | 326.2 | 327.7 | |||||
Diluted Shares 10 | 326.2 | 330.4 | |||||
1 | Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, and | ||||||
residential branding fees. | |||||||
2 | Contract investment amortization includes amortization of capitalized costs to obtain contracts with our owner and franchisee customers, and any related | ||||||
impairments, accelerations, or write-offs. | |||||||
3 | Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue. | ||||||
4 | Cost reimbursement revenue includes reimbursements from properties for property-level and centralized programs and services that we operate for the benefit of | ||||||
our hotel owners. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services. | |||||||
5 | Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses. | ||||||
6 | Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of capitalized costs incurred to acquire management, franchise, | ||||||
and license agreements, and any related impairments, accelerations, or write-offs. | |||||||
7 | General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses. | ||||||
8 | Gains and other income, net includes gains and losses on the sale of real estate, the sale of joint venture interests and other investments, and adjustments from | ||||||
other equity investments. | |||||||
9 | Equity in (losses) earnings include our equity in earnings or losses of unconsolidated equity method investments. | ||||||
10 | Basic and fully diluted weighted average shares outstanding used to calculate (loss) earnings per share for the period in which we had a loss are the same because | ||||||
inclusion of additional equivalents would be anti-dilutive. |
MARRIOTT INTERNATIONAL, INC. | |||||||
CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED | |||||||
FOURTH QUARTER YEAR-TO-DATE 2020 AND 2019 | |||||||
(in millions except per share amounts, unaudited) | |||||||
As Reported | As Reported | Percent | |||||
Twelve Months Ended | Twelve Months Ended | Better/(Worse) | |||||
December 31, 2020 | December 31, 2019 | Reported 2020 vs. 2019 | |||||
REVENUES | |||||||
Base management fees | $ 443 | $ 1,180 | (62) | ||||
Franchise fees 1 | 1,153 | 2,006 | (43) | ||||
Incentive management fees | 87 | 637 | (86) | ||||
Gross Fee Revenues | 1,683 | 3,823 | (56) | ||||
Contract investment amortization 2 | (132) | (62) | (113) | ||||
Net Fee Revenues | 1,551 | 3,761 | (59) | ||||
Owned, leased, and other revenue 3 | 568 | 1,612 | (65) | ||||
Cost reimbursement revenue 4 | 8,452 | 15,599 | (46) | ||||
Total Revenues | 10,571 | 20,972 | (50) | ||||
OPERATING COSTS AND EXPENSES | |||||||
Owned, leased, and other - direct 5 | 677 | 1,316 | 49 | ||||
Depreciation, amortization, and other 6 | 346 | 341 | (1) | ||||
General, administrative, and other 7 | 762 | 938 | 19 | ||||
Restructuring and merger-related charges | 267 | 138 | (93) | ||||
Reimbursed expenses 4 | 8,435 | 16,439 | 49 | ||||
Total Expenses | 10,487 | 19,172 | 45 | ||||
OPERATING INCOME | 84 | 1,800 | (95) | ||||
Gains and other income, net 8 | 9 | 154 | (94) | ||||
Interest expense | (445) | (394) | (13) | ||||
Interest income | 27 | 26 | 4 | ||||
Equity in (losses) earnings 9 | (141) | 13 | (1,185) | ||||
(LOSS) INCOME BEFORE INCOME TAXES | (466) | 1,599 | (129) | ||||
Benefit (provision) for income taxes | 199 | (326) | 161 | ||||
NET (LOSS) INCOME | $ (267) | $ 1,273 | (121) | ||||
(LOSS) EARNINGS PER SHARE | |||||||
(Loss) Earnings per share - basic | $ (0.82) | $ 3.83 | (121) | ||||
(Loss) Earnings per share - diluted | $ (0.82) | $ 3.80 | (122) | ||||
Basic Shares | 325.8 | 332.7 | |||||
Diluted Shares 10 | 325.8 | 335.5 | |||||
1 | Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, and | ||||||
residential branding fees. | |||||||
2 | Contract investment amortization includes amortization of capitalized costs to obtain contracts with our owner and franchisee customers, and any related | ||||||
impairments, accelerations, or write-offs. | |||||||
3 | Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue. | ||||||
4 | Cost reimbursement revenue includes reimbursements from properties for property-level and centralized programs and services that we operate for the benefit of | ||||||
our hotel owners. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services. | |||||||
5 | Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses. | ||||||
6 | Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of capitalized costs incurred to acquire management, franchise, | ||||||
and license agreements, and any related impairments, accelerations, or write-offs. | |||||||
7 | General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses. | ||||||
8 | Gains and other income, net includes gains and losses on the sale of real estate, the sale of joint venture interests and other investments, and adjustments from | ||||||
other equity investments. | |||||||
9 | Equity in (losses) earnings include our equity in earnings or losses of unconsolidated equity method investments. | ||||||
10 | Basic and fully diluted weighted average shares outstanding used to calculate (loss) earnings per share for the period in which we had a loss are the same because | ||||||
inclusion of additional equivalents would be anti-dilutive. |
MARRIOTT INTERNATIONAL, INC. | ||||||||||||
NON-GAAP FINANCIAL MEASURES - FOURTH QUARTER AND FULL YEAR 2020 AND 2019 | ||||||||||||
($ in millions except per share amounts) | ||||||||||||
The following table presents our reconciliations of Adjusted operating income, Adjusted operating income margin, Adjusted net income, and Adjusted diluted earnings per share, | ||||||||||||
to the most directly comparable GAAP measure. Adjusted total revenues is used in the determination of Adjusted operating income margin. | ||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||
Percent | Percent | |||||||||||
December 31, | December 31, | Better/ | December 31, | December 31, | Better/ | |||||||
2020 | 2019 | (Worse) | 2020 | 2019 | (Worse) | |||||||
Total revenues, as reported | $ 2,172 | $ 5,371 | $ 10,571 | $ 20,972 | ||||||||
Less: Cost reimbursement revenue | (1,664) | (3,988) | (8,452) | (15,599) | ||||||||
Add: Impairments 1 | 22 | - | 62 | - | ||||||||
Adjusted total revenues** | 530 | 1,383 | 2,181 | 5,373 | ||||||||
Operating (loss) income, as reported | (128) | 274 | 84 | 1,800 | ||||||||
Less: Cost reimbursement revenue | (1,664) | (3,988) | (8,452) | (15,599) | ||||||||
Add: Reimbursed expenses | 1,634 | 4,370 | 8,435 | 16,439 | ||||||||
Add (Less): Restructuring and merger-related charges (recoveries) | 262 | (53) | 267 | 138 | ||||||||
Add: Impairments2 | 44 | 114 | 201 | 114 | ||||||||
Adjusted operating income ** | 148 | 717 | - | 535 | 2,892 | - | ||||||
Operating (loss) income margin | - | |||||||||||
Adjusted operating income margin ** | ||||||||||||
Net (loss) income, as reported | (164) | 279 | (267) | 1,273 | ||||||||
Less: Cost reimbursement revenue | (1,664) | (3,988) | (8,452) | (15,599) | ||||||||
Add: Reimbursed expenses | 1,634 | 4,370 | 8,435 | 16,439 | ||||||||
Add (Less): Restructuring and merger-related charges (recoveries) | 262 | (53) | 267 | 138 | ||||||||
Add: Impairments 3 | 113 | 114 | 278 | 114 | ||||||||
Add (Less): Loss (gain) on asset dispositions 4 | 6 | (134) | 6 | (143) | ||||||||
Income tax effect of above adjustments | (74) | (90) | (134) | (236) | ||||||||
Less: Income tax benefit due to audit closures | (74) | - | (74) | - | ||||||||
Adjusted net income ** | $ 39 | $ 498 | - | $ 59 | $ 1,986 | - | ||||||
Diluted (loss) earnings per share, as reported | $ (0.50) | $ 0.85 | $ (0.82) | $ 3.80 | ||||||||
Adjusted diluted earnings per share** | $ 0.12 | $ 1.51 | - | $ 0.18 | $ 5.92 | - | ||||||
** | Denotes non-GAAP financial measures. Please see pages A-13 and A-14 for information about our reasons for providing these alternative financial measures and the | |||||||||||
limitations on their use. | ||||||||||||
1 | Includes impairment charges reported in Contract investment amortization of | |||||||||||
2 | Includes impairment charges reported in Contract investment amortization of | |||||||||||
in the 2020 fourth quarter and 2020 full year, respectively. Includes impairment charges reported in Depreciation, amortization, and other of | ||||||||||||
fourth quarter and 2019 full year. | ||||||||||||
3 | Includes impairment charges reported in Contract investment amortization of | |||||||||||
Equity in earnings (losses) of | ||||||||||||
and other of | ||||||||||||
4 | Loss (gain) on asset dispositions reported in Gains and other income, net. |
MARRIOTT INTERNATIONAL, INC. | |||||||||||
NON-GAAP FINANCIAL MEASURES - 2020 QUARTERLY | |||||||||||
($ in millions except per share amounts) | |||||||||||
The following table presents our reconciliations of Adjusted operating income (loss), Adjusted operating income (loss) margin, Adjusted net income (loss), and | |||||||||||
Adjusted diluted earnings (loss) per share, to the most directly comparable GAAP measure. Adjusted total revenues is used in the determination of Adjusted | |||||||||||
operating income (loss) margin. | |||||||||||
Fiscal Year 2020 | |||||||||||
First | Second | Third | Fourth | Total | |||||||
Total revenues, as reported | $ 4,681 | $ 1,464 | $ 2,254 | $ 2,172 | $ 10,571 | ||||||
Less: Cost reimbursement revenue | (3,797) | (1,202) | (1,789) | (1,664) | (8,452) | ||||||
Add: Impairments 1 | 7 | 3 | 30 | 22 | 62 | ||||||
Adjusted total revenues** | 891 | 265 | 495 | 530 | 2,181 | ||||||
Operating income (loss), as reported | 114 | (154) | 252 | (128) | 84 | ||||||
Less: Cost reimbursement revenue | (3,797) | (1,202) | (1,789) | (1,664) | (8,452) | ||||||
Add: Reimbursed expenses | 3,877 | 1,241 | 1,683 | 1,634 | 8,435 | ||||||
(Less) Add: Restructuring and merger-related (recoveries) charges | (2) | 6 | 1 | 262 | 267 | ||||||
Add: Impairments2 | 101 | 24 | 32 | 44 | 201 | ||||||
Adjusted operating income (loss) ** | 293 | (85) | 179 | 148 | 535 | ||||||
Operating income (loss) margin | - | - | |||||||||
Adjusted operating income (loss) margin ** | - | ||||||||||
Net income (loss), as reported | 31 | (234) | 100 | (164) | (267) | ||||||
Less: Cost reimbursement revenue | (3,797) | (1,202) | (1,789) | (1,664) | (8,452) | ||||||
Add: Reimbursed expenses | 3,877 | 1,241 | 1,683 | 1,634 | 8,435 | ||||||
(Less) Add: Restructuring and merger-related (recoveries) charges | (2) | 6 | 1 | 262 | 267 | ||||||
Add: Impairments 3 | 101 | 32 | 32 | 113 | 278 | ||||||
Add: Loss on asset dispositions4 | - | - | - | 6 | 6 | ||||||
Income tax effect of above adjustments | (50) | (27) | 17 | (74) | (134) | ||||||
Less: Income tax benefit due to audit closures | - | - | - | (74) | (74) | ||||||
Adjusted net income (loss) ** | $ 160 | $ (184) | $ 44 | $ 39 | $ 59 | ||||||
Diluted earnings (loss) per share, as reported | $ 0.09 | $ (0.72) | $ 0.31 | $ (0.50) | $ (0.82) | ||||||
Adjusted diluted earnings (loss) per share** | $ 0.49 | $ (0.57) | $ 0.13 | $ 0.12 | $ 0.18 | ||||||
** | Denotes non-GAAP financial measures. Please see pages A-13 and A-14 for information about our reasons for providing these alternative financial measures | ||||||||||
and the limitations on their use. | |||||||||||
1 | Includes impairment charges reported in Contract investment amortization of | ||||||||||
second quarter, third quarter, fourth quarter and full year, respectively. | |||||||||||
2 | Includes impairment charges reported in Contract investment amortization of | ||||||||||
amortization, and other of | |||||||||||
and full year, respectively. | |||||||||||
3 | Includes impairment charges reported in Contract investment amortization of | ||||||||||
amortization, and other of | |||||||||||
4 | Loss on asset dispositions reported in Gains and other income, net. |
MARRIOTT INTERNATIONAL, INC. | ||||||
TOTAL LODGING PRODUCTS | ||||||
As of December 31, 2020 | ||||||
US & Canada | Total International | Total Worldwide | ||||
Units | Rooms | Units | Rooms | Units | Rooms | |
Managed | 733 | 234,576 | 1,266 | 326,159 | 1,999 | 560,735 |
Marriott Hotels | 115 | 62,212 | 178 | 51,890 | 293 | 114,102 |
Marriott Hotels Serviced Apartments | - | - | 1 | 154 | 1 | 154 |
Sheraton | 28 | 23,609 | 189 | 63,573 | 217 | 87,182 |
Courtyard | 220 | 34,988 | 105 | 22,812 | 325 | 57,800 |
Westin | 41 | 22,349 | 72 | 21,924 | 113 | 44,273 |
JW Marriott | 21 | 12,711 | 61 | 22,581 | 82 | 35,292 |
Renaissance | 24 | 10,607 | 59 | 18,402 | 83 | 29,009 |
The Ritz-Carlton | 38 | 11,404 | 63 | 16,175 | 101 | 27,579 |
The Ritz-Carlton Serviced Apartments | - | - | 5 | 713 | 5 | 713 |
Le Méridien | 2 | 160 | 71 | 20,314 | 73 | 20,474 |
Four Points | 1 | 134 | 80 | 21,892 | 81 | 22,026 |
Residence Inn | 108 | 16,344 | 6 | 701 | 114 | 17,045 |
W Hotels | 22 | 6,403 | 32 | 8,445 | 54 | 14,848 |
W Hotels Serviced Apartments | - | - | 1 | 160 | 1 | 160 |
The Luxury Collection | 6 | 2,296 | 50 | 9,084 | 56 | 11,380 |
Gaylord Hotels | 6 | 9,918 | - | - | 6 | 9,918 |
St. Regis | 10 | 1,968 | 34 | 7,819 | 44 | 9,787 |
Aloft | 1 | 330 | 39 | 8,957 | 40 | 9,287 |
St. Regis Serviced Apartments | - | - | 1 | 70 | 1 | 70 |
AC Hotels by Marriott | 5 | 901 | 67 | 8,180 | 72 | 9,081 |
Delta Hotels | 25 | 6,770 | 1 | 360 | 26 | 7,130 |
Fairfield by Marriott | 7 | 1,539 | 42 | 6,074 | 49 | 7,613 |
SpringHill Suites | 30 | 4,896 | - | - | 30 | 4,896 |
Marriott Executive Apartments | - | - | 33 | 4,812 | 33 | 4,812 |
Autograph Collection | 8 | 2,335 | 14 | 2,200 | 22 | 4,535 |
Protea Hotels | - | - | 32 | 3,911 | 32 | 3,911 |
EDITION | 4 | 1,209 | 7 | 1,488 | 11 | 2,697 |
TownePlace Suites | 10 | 1,313 | - | - | 10 | 1,313 |
Element | 1 | 180 | 8 | 1,690 | 9 | 1,870 |
Moxy | - | - | 5 | 887 | 5 | 887 |
Tribute Portfolio | - | - | 5 | 453 | 5 | 453 |
Bulgari | - | - | 5 | 438 | 5 | 438 |
Franchised | 4,716 | 676,773 | 676 | 137,726 | 5,392 | 814,499 |
Courtyard | 819 | 109,111 | 91 | 16,700 | 910 | 125,811 |
Fairfield by Marriott | 1,054 | 98,362 | 29 | 5,089 | 1,083 | 103,451 |
Residence Inn | 745 | 88,737 | 13 | 1,566 | 758 | 90,303 |
Marriott Hotels | 223 | 70,452 | 60 | 17,745 | 283 | 88,197 |
Sheraton | 155 | 46,636 | 66 | 18,808 | 221 | 65,444 |
SpringHill Suites | 458 | 52,694 | - | - | 458 | 52,694 |
TownePlace Suites | 436 | 44,007 | - | - | 436 | 44,007 |
Westin | 88 | 29,283 | 23 | 7,171 | 111 | 36,454 |
Autograph Collection | 115 | 23,114 | 65 | 12,199 | 180 | 35,313 |
Four Points | 157 | 23,702 | 57 | 9,215 | 214 | 32,917 |
Renaissance | 62 | 17,956 | 28 | 7,691 | 90 | 25,647 |
Aloft | 133 | 19,289 | 19 | 3,074 | 152 | 22,363 |
AC Hotels by Marriott | 68 | 11,436 | 36 | 6,412 | 104 | 17,848 |
Moxy | 21 | 4,149 | 48 | 9,499 | 69 | 13,648 |
Delta Hotels | 52 | 11,456 | 7 | 1,706 | 59 | 13,162 |
The Luxury Collection | 11 | 2,794 | 48 | 8,863 | 59 | 11,657 |
Le Méridien | 20 | 4,588 | 16 | 4,225 | 36 | 8,813 |
JW Marriott | 13 | 5,947 | 6 | 1,624 | 19 | 7,571 |
Element | 54 | 7,207 | 2 | 293 | 56 | 7,500 |
Tribute Portfolio | 26 | 4,571 | 17 | 1,947 | 43 | 6,518 |
Protea Hotels | - | - | 36 | 2,949 | 36 | 2,949 |
Design Hotels | 5 | 853 | 7 | 799 | 12 | 1,652 |
The Ritz-Carlton | 1 | 429 | - | - | 1 | 429 |
Bulgari | - | - | 1 | 85 | 1 | 85 |
Marriott Executive Apartments | - | - | 1 | 66 | 1 | 66 |
MARRIOTT INTERNATIONAL, INC. | ||||||
TOTAL LODGING PRODUCTS | ||||||
As of December 31, 2020 | ||||||
US & Canada | Total International | Total Worldwide | ||||
Units | Rooms | Units | Rooms | Units | Rooms | |
Owned/Leased | 26 | 6,483 | 40 | 9,417 | 66 | 15,900 |
Courtyard | 19 | 2,814 | 4 | 894 | 23 | 3,708 |
Marriott Hotels | 2 | 1,308 | 6 | 2,064 | 8 | 3,372 |
Sheraton | - | - | 4 | 1,830 | 4 | 1,830 |
W Hotels | 2 | 779 | 2 | 665 | 4 | 1,444 |
Protea Hotels | - | - | 6 | 991 | 6 | 991 |
Westin | 1 | 1,073 | - | - | 1 | 1,073 |
Renaissance | 1 | 317 | 2 | 505 | 3 | 822 |
Autograph Collection1 | - | - | 7 | 705 | 7 | 705 |
The Ritz-Carlton | - | - | 2 | 550 | 2 | 550 |
JW Marriott | - | - | 1 | 496 | 1 | 496 |
The Luxury Collection2 | - | - | 4 | 417 | 4 | 417 |
Residence Inn | 1 | 192 | 1 | 140 | 2 | 332 |
St. Regis | - | - | 1 | 160 | 1 | 160 |
Residences | 59 | 6,258 | 35 | 2,897 | 94 | 9,155 |
The Ritz-Carlton Residences | 35 | 4,064 | 11 | 938 | 46 | 5,002 |
W Residences | 10 | 1,089 | 4 | 359 | 14 | 1,448 |
St. Regis Residences | 8 | 703 | 7 | 598 | 15 | 1,301 |
Bulgari Residences | - | - | 5 | 514 | 5 | 514 |
Westin Residences | 3 | 266 | - | - | 3 | 266 |
The Luxury Collection Residences | 1 | 91 | 3 | 115 | 4 | 206 |
Marriott Hotels Residences | - | - | 2 | 246 | 2 | 246 |
Autograph Collection Residences | - | - | 1 | 62 | 1 | 62 |
Sheraton Residences | - | - | 1 | 50 | 1 | 50 |
EDITION Residences | 2 | 45 | - | - | 2 | 45 |
Le Méridien Residences | - | - | 1 | 15 | 1 | 15 |
Timeshare* | 72 | 18,905 | 19 | 3,850 | 91 | 22,755 |
Grand Total | 5,606 | 942,995 | 2,036 | 480,049 | 7,642 | 1,423,044 |
*Timeshare property and room counts are included on this table in their geographical locations. For external reporting purposes, | ||||||
1 Includes five properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re- | ||||||
2 Includes two properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re- |
MARRIOTT INTERNATIONAL, INC. | ||||||
TOTAL LODGING PRODUCTS | ||||||
As of December 31, 2020 | ||||||
US & Canada | Total International | Total Worldwide | ||||
Total Systemwide | Units | Rooms | Units | Rooms | Units | Rooms |
Luxury | 184 | 51,932 | 354 | 82,357 | 538 | 134,289 |
JW Marriott | 34 | 18,658 | 68 | 24,701 | 102 | 43,359 |
The Ritz-Carlton | 39 | 11,833 | 65 | 16,725 | 104 | 28,558 |
The Ritz-Carlton Residences | 35 | 4,064 | 11 | 938 | 46 | 5,002 |
The Ritz-Carlton Serviced Apartments | - | - | 5 | 713 | 5 | 713 |
The Luxury Collection1 | 17 | 5,090 | 102 | 18,364 | 119 | 23,454 |
The Luxury Collection Residences | 1 | 91 | 3 | 115 | 4 | 206 |
W Hotels | 24 | 7,182 | 34 | 9,110 | 58 | 16,292 |
W Residences | 10 | 1,089 | 4 | 359 | 14 | 1,448 |
W Hotels Serviced Apartments | - | - | 1 | 160 | 1 | 160 |
St. Regis | 10 | 1,968 | 35 | 7,979 | 45 | 9,947 |
St. Regis Residences | 8 | 703 | 7 | 598 | 15 | 1,301 |
St. Regis Serviced Apartments | - | - | 1 | 70 | 1 | 70 |
EDITION | 4 | 1,209 | 7 | 1,488 | 11 | 2,697 |
EDITION Residences | 2 | 45 | - | - | 2 | 45 |
Bulgari | - | - | 6 | 523 | 6 | 523 |
Bulgari Residences | - | - | 5 | 514 | 5 | 514 |
Full-Service | 1,002 | 349,833 | 937 | 261,916 | 1,939 | 611,749 |
Marriott Hotels | 340 | 133,972 | 244 | 71,699 | 584 | 205,671 |
Marriott Hotels Residences | - | - | 2 | 246 | 2 | 246 |
Marriott Hotels Serviced Apartments | - | - | 1 | 154 | 1 | 154 |
Sheraton | 183 | 70,245 | 259 | 84,211 | 442 | 154,456 |
Sheraton Residences | - | - | 1 | 50 | 1 | 50 |
Westin | 130 | 52,705 | 95 | 29,095 | 225 | 81,800 |
Westin Residences | 3 | 266 | - | - | 3 | 266 |
Renaissance | 87 | 28,880 | 89 | 26,598 | 176 | 55,478 |
Autograph Collection2 | 123 | 25,449 | 86 | 15,104 | 209 | 40,553 |
Autograph Collection Residences | - | - | 1 | 62 | 1 | 62 |
Le Méridien | 22 | 4,748 | 87 | 24,539 | 109 | 29,287 |
Le Méridien Residences | - | - | 1 | 15 | 1 | 15 |
Delta Hotels | 77 | 18,226 | 8 | 2,066 | 85 | 20,292 |
Gaylord Hotels | 6 | 9,918 | - | - | 6 | 9,918 |
Tribute Portfolio | 26 | 4,571 | 22 | 2,400 | 48 | 6,971 |
Marriott Executive Apartments | - | - | 34 | 4,878 | 34 | 4,878 |
Design Hotels | 5 | 853 | 7 | 799 | 12 | 1,652 |
Limited-Service | 4,348 | 522,325 | 726 | 131,926 | 5,074 | 654,251 |
Courtyard | 1,058 | 146,913 | 200 | 40,406 | 1,258 | 187,319 |
Fairfield by Marriott | 1,061 | 99,901 | 71 | 11,163 | 1,132 | 111,064 |
Residence Inn | 854 | 105,273 | 20 | 2,407 | 874 | 107,680 |
SpringHill Suites | 488 | 57,590 | - | - | 488 | 57,590 |
Four Points | 158 | 23,836 | 137 | 31,107 | 295 | 54,943 |
TownePlace Suites | 446 | 45,320 | - | - | 446 | 45,320 |
Aloft | 134 | 19,619 | 58 | 12,031 | 192 | 31,650 |
AC Hotels by Marriott | 73 | 12,337 | 103 | 14,592 | 176 | 26,929 |
Moxy | 21 | 4,149 | 53 | 10,386 | 74 | 14,535 |
Element | 55 | 7,387 | 10 | 1,983 | 65 | 9,370 |
Protea Hotels | - | - | 74 | 7,851 | 74 | 7,851 |
Timeshare* | 72 | 18,905 | 19 | 3,850 | 91 | 22,755 |
Grand Total | 5,606 | 942,995 | 2,036 | 480,049 | 7,642 | 1,423,044 |
*Timeshare property and room counts are included on this table in their geographical locations. For external reporting purposes, | ||||||
1 Includes two properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re- | ||||||
2 Includes five properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re- |
MARRIOTT INTERNATIONAL, INC. | ||||||||||
KEY LODGING STATISTICS | ||||||||||
In Constant $ | ||||||||||
Comparable Company-Operated US & Canada Properties | ||||||||||
Three Months Ended December 31, 2020 and December 31, 2019 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Brand | 2020 | vs. 2019 | 2020 | vs. 2019 | 2020 | vs. 2019 | ||||
JW Marriott | - | - | pts. | - | ||||||
The Ritz-Carlton | - | - | pts. | - | ||||||
W Hotels | - | - | pts. | - | ||||||
Composite US & Canada Luxury1 | - | - | pts. | - | ||||||
Marriott Hotels | - | - | pts. | - | ||||||
Sheraton | - | - | pts. | - | ||||||
Westin | - | - | pts. | - | ||||||
Composite US & Canada Premium2 | - | - | pts. | - | ||||||
US & Canada Full-Service3 | - | - | pts. | - | ||||||
Courtyard | - | - | pts. | - | ||||||
Residence Inn | - | - | pts. | - | ||||||
Composite US & Canada Limited-Service4 | - | - | pts. | - | ||||||
US & Canada - All5 | - | - | pts. | - | ||||||
Comparable Systemwide US & Canada Properties | ||||||||||
Three Months Ended December 31, 2020 and December 31, 2019 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Brand | 2020 | vs. 2019 | 2020 | vs. 2019 | 2020 | vs. 2019 | ||||
JW Marriott | - | - | pts. | - | ||||||
The Ritz-Carlton | - | - | pts. | - | ||||||
W Hotels | - | - | pts. | - | ||||||
Composite US & Canada Luxury1 | - | - | pts. | - | ||||||
Marriott Hotels | - | - | pts. | - | ||||||
Sheraton | - | - | pts. | - | ||||||
Westin | - | - | pts. | - | ||||||
Composite US & Canada Premium2 | - | - | pts. | - | ||||||
US & Canada Full-Service3 | - | - | pts. | - | ||||||
Courtyard | - | - | pts. | - | ||||||
Residence Inn | - | - | pts. | - | ||||||
Fairfield by Marriott | - | - | pts. | - | ||||||
Composite US & Canada Limited-Service4 | - | - | pts. | - | ||||||
US & Canada - All5 | - | - | pts. | - | ||||||
1 Includes JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, and EDITION. | ||||||||||
2 Includes Marriott Hotels, Sheraton, Westin, Renaissance, Autograph Collection, Delta Hotels, Gaylord Hotels, | ||||||||||
and Le Méridien. Systemwide also includes Tribute Portfolio. | ||||||||||
3 Includes Composite US & Canada Luxury and Composite US & Canada Premium. | ||||||||||
4 Includes Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four Points, Aloft, Element, | ||||||||||
and AC Hotels by Marriott. Systemwide also includes Moxy. | ||||||||||
5 Includes US & Canada Full-Service and Composite US & Canada Limited-Service. |
MARRIOTT INTERNATIONAL, INC. | ||||||||||
KEY LODGING STATISTICS | ||||||||||
In Constant $ | ||||||||||
Comparable Company-Operated International Properties | ||||||||||
Three Months Ended December 31, 2020 and December 31, 2019 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2020 | vs. 2019 | 2020 | vs. 2019 | 2020 | vs. 2019 | ||||
Greater China | - | - | pts. | - | ||||||
Rest of Asia Pacific | - | - | pts. | - | ||||||
Asia Pacific | - | - | pts. | - | ||||||
Caribbean & Latin America | - | - | pts. | - | ||||||
Europe | - | - | pts. | - | ||||||
Middle East & Africa | - | - | pts. | - | ||||||
International - All1 | - | - | pts. | - | ||||||
Worldwide2 | - | - | pts. | - | ||||||
Comparable Systemwide International Properties | ||||||||||
Three Months Ended December 31, 2020 and December 31, 2019 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2020 | vs. 2019 | 2020 | vs. 2019 | 2020 | vs. 2019 | ||||
Greater China | - | - | pts. | - | ||||||
Rest of Asia Pacific | - | - | pts. | - | ||||||
Asia Pacific | - | - | pts. | - | ||||||
Caribbean & Latin America | - | - | pts. | - | ||||||
Europe | - | - | pts. | - | ||||||
Middle East & Africa | - | - | pts. | - | ||||||
International - All1 | - | - | pts. | - | ||||||
Worldwide2 | - | - | pts. | - | ||||||
1 Includes Asia Pacific, Caribbean & Latin America, Europe, and Middle East & Africa. | ||||||||||
2 Includes US & Canada - All and International - All. |
MARRIOTT INTERNATIONAL, INC. | ||||||||||
KEY LODGING STATISTICS | ||||||||||
In Constant $ | ||||||||||
Comparable Company-Operated US & Canada Properties | ||||||||||
Twelve Months Ended December 31, 2020 and December 31, 2019 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Brand | 2020 | vs. 2019 | 2020 | vs. 2019 | 2020 | vs. 2019 | ||||
JW Marriott | - | - | pts. | - | ||||||
The Ritz-Carlton | - | - | pts. | |||||||
W Hotels | - | - | pts. | - | ||||||
Composite US & Canada Luxury1 | - | - | pts. | |||||||
Marriott Hotels | - | - | pts. | - | ||||||
Sheraton | - | - | pts. | - | ||||||
Westin | - | - | pts. | - | ||||||
Composite US & Canada Premium2 | - | - | pts. | - | ||||||
US & Canada Full-Service3 | - | - | pts. | - | ||||||
Courtyard | - | - | pts. | - | ||||||
Residence Inn | - | - | pts. | - | ||||||
Composite US & Canada Limited-Service4 | - | - | pts. | - | ||||||
US & Canada - All5 | - | - | pts. | - | ||||||
Comparable Systemwide US & Canada Properties | ||||||||||
Twelve Months Ended December 31, 2020 and December 31, 2019 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Brand | 2020 | vs. 2019 | 2020 | vs. 2019 | 2020 | vs. 2019 | ||||
JW Marriott | - | - | pts. | - | ||||||
The Ritz-Carlton | - | - | pts. | |||||||
W Hotels | - | - | pts. | - | ||||||
Composite US & Canada Luxury1 | - | - | pts. | - | ||||||
Marriott Hotels | - | - | pts. | - | ||||||
Sheraton | - | - | pts. | - | ||||||
Westin | - | - | pts. | - | ||||||
Composite US & Canada Premium2 | - | - | pts. | - | ||||||
US & Canada Full-Service3 | - | - | pts. | - | ||||||
Courtyard | - | - | pts. | - | ||||||
Residence Inn | - | - | pts. | - | ||||||
Fairfield by Marriott | - | - | pts. | - | ||||||
Composite US & Canada Limited-Service4 | - | - | pts. | - | ||||||
US & Canada - All5 | - | - | pts. | - | ||||||
1 Includes JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, and EDITION. | ||||||||||
2 Includes Marriott Hotels, Sheraton, Westin, Renaissance, Autograph Collection, Delta Hotels, Gaylord Hotels, | ||||||||||
and Le Méridien. Systemwide also includes Tribute Portfolio. | ||||||||||
3 Includes Composite US & Canada Luxury and Composite US & Canada Premium. | ||||||||||
4 Includes Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four Points, Aloft, Element, | ||||||||||
and AC Hotels by Marriott. Systemwide also includes Moxy. | ||||||||||
5 Includes US & Canada Full-Service and Composite US & Canada Limited-Service. |
MARRIOTT INTERNATIONAL, INC. | ||||||||||
KEY LODGING STATISTICS | ||||||||||
In Constant $ | ||||||||||
Comparable Company-Operated International Properties | ||||||||||
Twelve Months Ended December 31, 2020 and December 31, 2019 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2020 | vs. 2019 | 2020 | vs. 2019 | 2020 | vs. 2019 | ||||
Greater China | - | - | pts. | - | ||||||
Rest of Asia Pacific | - | - | pts. | - | ||||||
Asia Pacific | - | - | pts. | - | ||||||
Caribbean & Latin America | - | - | pts. | - | ||||||
Europe | - | - | pts. | - | ||||||
Middle East & Africa | - | - | pts. | - | ||||||
International - All1 | - | - | pts. | - | ||||||
Worldwide2 | - | - | pts. | - | ||||||
Comparable Systemwide International Properties | ||||||||||
Twelve Months Ended December 31, 2020 and December 31, 2019 | ||||||||||
REVPAR | Occupancy | Average Daily Rate | ||||||||
Region | 2020 | vs. 2019 | 2020 | vs. 2019 | 2020 | vs. 2019 | ||||
Greater China | - | - | pts. | - | ||||||
Rest of Asia Pacific | - | - | pts. | - | ||||||
Asia Pacific | - | - | pts. | - | ||||||
Caribbean & Latin America | - | - | pts. | - | ||||||
Europe | - | - | pts. | - | ||||||
Middle East & Africa | - | - | pts. | - | ||||||
International - All1 | - | - | pts. | - | ||||||
Worldwide2 | - | - | pts. | - | ||||||
1 Includes Asia Pacific, Caribbean & Latin America, Europe, and Middle East & Africa. | ||||||||||
2 Includes US & Canada - All and International - All. |
MARRIOTT INTERNATIONAL, INC. | |||||||||
NON-GAAP FINANCIAL MEASURES | |||||||||
ADJUSTED EBITDA | |||||||||
($ in millions) | |||||||||
Fiscal Year 2020 | |||||||||
First | Second | Third | Fourth | Total | |||||
Net income (loss), as reported | $ 31 | $ (234) | $ 100 | $ (164) | $ (267) | ||||
Cost reimbursement revenue | (3,797) | (1,202) | (1,789) | (1,664) | (8,452) | ||||
Reimbursed expenses | 3,877 | 1,241 | 1,683 | 1,634 | 8,435 | ||||
Interest expense | 93 | 127 | 113 | 112 | 445 | ||||
Interest expense from unconsolidated joint ventures | 3 | 1 | 12 | 8 | 24 | ||||
(Benefit) provision for income taxes | (12) | (64) | 27 | (150) | (199) | ||||
Depreciation and amortization | 150 | 72 | 53 | 71 | 346 | ||||
Contract investment amortization | 25 | 21 | 48 | 38 | 132 | ||||
Depreciation classified in reimbursed expenses | 26 | 27 | 27 | 29 | 109 | ||||
Depreciation, amortization and impairments from unconsolidated joint ventures | 7 | 16 | 3 | 78 | 104 | ||||
Stock-based compensation | 41 | 50 | 49 | 57 | 197 | ||||
Restructuring and merger-related (recoveries) charges | (2) | 6 | 1 | 262 | 267 | ||||
Loss on asset dispositions | - | - | - | 6 | 6 | ||||
Adjusted EBITDA ** | $ 442 | $ 61 | $ 327 | $ 317 | $ 1,147 | ||||
Change from 2019 Adjusted EBITDA ** | - | - | - | - | - | ||||
Fiscal Year 2019 | |||||||||
First | Second | Third | Fourth | Total | |||||
Net income, as reported | $ 375 | $ 232 | $ 387 | $ 279 | $ 1,273 | ||||
Cost reimbursement revenue | (3,756) | (3,903) | (3,952) | (3,988) | (15,599) | ||||
Reimbursed expenses | 3,892 | 4,107 | 4,070 | 4,370 | 16,439 | ||||
Interest expense | 97 | 102 | 100 | 95 | 394 | ||||
Interest expense from unconsolidated joint ventures | 2 | 1 | 3 | 2 | 8 | ||||
Provision for income taxes | 57 | 82 | 140 | 47 | 326 | ||||
Depreciation and amortization | 54 | 56 | 52 | 179 | 341 | ||||
Contract investment amortization | 14 | 15 | 16 | 17 | 62 | ||||
Depreciation classified in reimbursed expenses | 30 | 29 | 33 | 29 | 121 | ||||
Depreciation and amortization from unconsolidated joint ventures | 7 | 8 | 5 | 9 | 29 | ||||
Stock-based compensation | 40 | 50 | 47 | 49 | 186 | ||||
Gain on asset dispositions | - | - | (9) | (134) | (143) | ||||
Restructuring and merger-related (recoveries) charges | 9 | 173 | 9 | (53) | 138 | ||||
Adjusted EBITDA ** | $ 821 | $ 952 | $ 901 | $ 901 | $ 3,575 | ||||
** Denotes non-GAAP financial measures. Please see pages A-13 and A-14 for information about our reasons for providing these alternative financial measures and the | |||||||||
limitations on their use. |
MARRIOTT INTERNATIONAL, INC. | |||||||||||
EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES | |||||||||||
In our press release and schedules, and on the related conference call, we report certain financial measures that are not required by, or presented in accordance with, United States generally accepted accounting principles ("GAAP"). We discuss the manner in which the non-GAAP measures reported in this press release and schedules are determined and management's reasons for reporting these non-GAAP measures below, and the press release schedules reconcile the most directly comparable GAAP measure to each non-GAAP measure that we refer to. Although management evaluates and presents these non-GAAP measures for the reasons described below, please be aware that these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for revenue, operating income/loss, net income/loss, earnings/loss per share or any other comparable operating measure prescribed by GAAP. In addition, we may calculate and/or present these non-GAAP financial measures differently than measures with the same or similar names that other companies report, and as a result, the non-GAAP measures we report may not be comparable to those reported by others. | |||||||||||
Adjusted Operating Income/Loss and Adjusted Operating Income/Loss Margin. Adjusted operating income/loss and Adjusted operating income/loss margin exclude cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges (recoveries), and non-cash impairment charges. Adjusted operating income margin reflects Adjusted operating income/loss divided by Adjusted total revenues. We believe that these are meaningful metrics because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below. | |||||||||||
Adjusted Net Income/Loss and Adjusted Diluted Earnings/Loss Per Share. Adjusted net income/loss and Adjusted diluted EPS reflect our net income/loss and diluted earnings/loss per share excluding the impact of cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges (recoveries), non-cash impairment charges, losses and gains on asset dispositions, the income tax effect of these adjustments, and the income tax benefit arising from audit closures. We calculate the income tax effect of the adjustments using an estimated tax rate applicable to each adjustment. We believe that these measures are meaningful indicators of our performance because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below. | |||||||||||
Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("Adjusted EBITDA"). Adjusted EBITDA reflects net income/loss excluding the impact of the following items: cost reimbursement revenue and reimbursed expenses, interest expense, depreciation (including depreciation classified in "Reimbursed expenses," as discussed below), amortization, impairments from unconsolidated joint ventures, and benefit (provision) for income taxes, restructuring and merger-related charges (recoveries), stock-based compensation expense, and losses and gains on asset dispositions for all periods presented. When applicable, Adjusted EBITDA also excludes gains and losses on asset dispositions made by us or by our joint venture investees. | |||||||||||
In our presentations of Adjusted operating income/loss and Adjusted operating income/loss margin, Adjusted net income/loss, Adjusted diluted EPS and Adjusted EBITDA, we exclude charges incurred under our restructuring plans that we initiated beginning in the 2020 second quarter to achieve cost savings in response to the decline in lodging demand caused by COVID-19 and transition costs associated with the Starwood merger, which we record in the "Restructuring and merger-related charges (recoveries)" caption of our Income Statements, to allow for period-over period comparisons of our ongoing operations before the impact of these items. We also exclude non-cash impairment charges related to our management and franchise contract, operating lease, and equity investment assets, which we record in the "Contract investment amortization," "Depreciation, amortization, and other," and "Equity in earnings (losses)" captions of our Income Statements to allow for period-over period comparisons of our ongoing operations before the impact of these items. We exclude cost reimbursement revenue and reimbursed expenses, which relate to property-level and centralized programs and services that we operate for the benefit of our hotel owners. We do not operate these programs and services to generate a profit over the long term, and accordingly, when we recover the costs that we incur for these programs and services from our hotel owners, we do not seek a mark-up. For property-level services, our owners typically reimburse us at the same time that we incur expenses. However, for centralized programs and services, our owners may reimburse us before or after we incur expenses, causing timing differences between the costs we incur and the related reimbursement from hotel owners in our operating and net income. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively. Because we do not retain any such profits or losses over time, we exclude the net impact when evaluating period-over-period changes in our operating results. | |||||||||||
We believe that Adjusted EBITDA is a meaningful indicator of our operating performance because it permits period-over-period comparisons of our ongoing operations before these items and facilitates our comparison of results before these items with results from other lodging companies. We use Adjusted EBITDA to evaluate companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. Our Adjusted EBITDA also excludes depreciation and amortization expense which we report under "Depreciation, amortization, and other" as well as depreciation classified in "Reimbursed expenses" and "Contract investment amortization" in our Consolidated Statements of Income (our "Income Statements"), because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. Depreciation classified in "Reimbursed expenses" reflects depreciation of Marriott-owned assets, for which we receive cash from owners to reimburse the company for its investments made for the benefit of the system. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We exclude stock-based compensation expense in all periods presented to address the considerable variability among companies in recording compensation expense because companies use stock-based payment awards differently, both in the type and quantity of awards granted. |
MARRIOTT INTERNATIONAL, INC. | |||||||||||
EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES | |||||||||||
RevPAR. In addition to the foregoing non-GAAP financial measures, we present Revenue per Available Room ("RevPAR") as a performance measure. We believe RevPAR is a meaningful indicator of our performance because it measures the period-over-period change in room revenues for comparable properties. RevPAR relates to property level revenue and may not be comparable to similarly titled measures, such as revenues, and should not be viewed as necessarily correlating with our fee revenue. We calculate RevPAR by dividing room sales (recorded in local currency) for comparable properties by room nights available for the period. We do not consider interruptions related to COVID-19 when determining which properties to classify as comparable. We present growth in comparative RevPAR on a constant dollar basis, which we calculate by applying exchange rates for the current period to each period presented. We believe constant dollar analysis provides valuable information regarding our properties' performance as it removes currency fluctuations from the presentation of such results. |
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SOURCE Marriott International, Inc.
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