marriott international inc. fy 2010 mars 2011. 2 marriott vs. its main competitors rooms network as...

37
Marriott International Inc. FY 2010 Mars 2011

Upload: cheyenne-warrior

Post on 29-Mar-2015

218 views

Category:

Documents


3 download

TRANSCRIPT

Page 1: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

Marriott International Inc.

FY 2010

Mars 2011

Page 2: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

2

Marriott vs. its main competitorsR

oo

ms

ne

two

rk

as o

f F

Y 2

010

Source : Companies annual reports except for Hilton network, Accor internal data

88%

86%

85%

83%

68%

61%

56% 28%

208 Kr

366Kr

In ‘000 rooms

EMEA Americas

The 3rd largest global hotel group, the second if we include Timeshare segment (618 Kr)

647

613

605

~600

507

495

302

Network

13%19%

8% 9%

8%7%

10% 4%

16%

7%5%

20%19%

Ro

om

s p

ipel

ine

as o

f F

Y20

10

In ‘000 rooms

Pipeline

An increasing pipeline vs. 2009 in line with its key competitors

205

103

105

138

101

51

85

NB: Figures include traditional lodging and extended stay units but exclude timeshare products

APACVs

end 2009

-3%

-5%

+5%

+6%

0%

-24%

0%

(2)

(2) Hilton pipeline based on an internal press release, January 2011(1) Hilton geographical breakdown based on 2009 figures

(1)

Pipeline

Page 3: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

3Marriott – Company profile

FY 2010

Marriott Hotels & Resorts Worldwide Inc.Summary

1. Company overview Slide 4

2. Company organization Slide 5

3. Brand positioning Slide 6

4. Room portfolio Slide 7

5. Operating mode Slide 8

6. Group strategy Slide 10

7. Pipeline and lodging development Slide 13

8. Key figures Slide 14

9. SWOT analysis Slide 17

10. Company history Slide 18

11. Brands description Slide 20

12. Management Slide 36

Page 4: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

1%

13%

13%

11%18%

44%

North American Full ServiceNorth American Limited ServiceInternationalLuxury Timeshare Other

4Marriott – Company profile

FY 2010

1. Company overview

Description

Main Figures Revenue breakdown

Revenues by segment

– American leading global player in the hospitality business– 3,545 hotels and vacation ownership, 11 conference centers– 618,104 rooms (incl. Timeshare)– Positioning: mostly upscale to luxury segments– 129,000 employees / 300,000 including franchisees

– Funded in 1967, Marriott operates in 3 main segments:– Traditional lodging industry– Extended stay segment– Timeshare segment (leading worldwide player)

– Hotels are mostly located in North America– US leader, with a 9% market share (1% worldwide)– Hotels in 70 countries and territories worldwide

– Other activities– Marriott Golf: management of 42 golf courses – Architecture and Construction: providing design,

development, construction, refurbishment and procurement services to owners and franchisees of lodging properties

Ownership

Public company since 1998, listed on the Nasdaq Stock Exchance

Owners Stake

Float 78%

Marriott (J W Jr) 14%

T.Rowe Price Associates , Inc 13%

Marriott (Richard E) 7%

Sources: Marriott Annual Report 2010, Reuters

# rooms

Mid-Lux 3,545 618,104

# hotels

67.8% 128.8$ 87.3$

ADROR Revpar

segment

2009 2010 2011E 2012E

Financials (M$)Revenue 10,908 11,691 11,010 11,859

% Change in Revenue -15.3% 7.2% -5.8% 7.7%

EBITDA 898 1,044 1,174 1,369

EBITDA margin 8.2% 8.9% 10.7% 11.5%

Net Profit 342 435 528 650

Net margin 3.1% 3.7% 4.8% 5.5%

Market Data (M$)Market Cap 13,880

NetworkHotels 3,420 3,545

Rooms 595,461 618,104

Market Data as of April 28, 2011

Page 6: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

6

3. Brand positioning

LimitedService

FullService

ExtendedStay

Timeshare

Lodging Extended Stay Timeshare

ServicedApartments

Luxury(4% of room

network)

Upscale(57% of room

network)

Midscale(39% of room

network)

Marriott – Company profileFY 2010

Source: Marriott Annual Report 2010(1) Only short term lease agreements with apartment

owners and managers

2h.

105h.

1h.

13h.

49h.

494h.

146h.

11h.

892h.

274h.

658h.

193h.

(1)

23h.

613h.

14h.

4h.

53h.

Page 7: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

7

4. Room portfolio

Marriott – Company profileFY 2010

Source: Marriott Annual Report 2010

2009 2010 Var

Occupancy rate 64,2% 67,8% 3,6

Average Daily rate ($) 128,9 128,8 (0,1%)

RevPar ($) 82,8 87,3 5,4%

H R H R H R H RH R

Upscale & Luxury 821 284 912 347 131 40 704 515 190 378 60 18 511 25 7 625 90 27 694

Bulgari Luxury 2 117 59 1 58 1 59 0% 100% 0%

Ritz-Carlton Luxury Sofitel 105 25 587 244 9 2 545 66 14 560 7 1 979 5 1 414 18 5 089 3% 97% 0%

EDITION Luxury 1 353 353 1 353 0% 100% 0%

Autograph Collection Upscale Pullman 13 3 828 294 13 3 828 0% 0% 100%

Marriott H&R / JW Marriott Upscale Pullman 543 200 721 370 89 27 409 346 140 051 45 13 859 18 5 543 45 13 859 2% 63% 34%

Marriott Conference centers Upscale Pullman 11 3 298 300 11 3 298

Renaissance Upscale Pullman 146 51 008 349 32 10 692 78 28 288 8 2 673 2 668 26 8 687 4% 63% 33%

Midscale 1 824 222 899 122 39 7 814 1 716 202 105 43 7 771 2 401 24 4 809

Courtyard Ltd-Service Mercure 892 131 069 147 39 7 814 795 111 634 32 6 412 2 401 24 4 809 3% 39% 58%

SpringHill Suites Ltd-Service Suitehotel 274 32 085 117 273 31 961 1 124 0% 16% 84%

Fairf ield Inn Up. Eco. Ibis 658 59 745 91 648 58 510 10 1 235 0% 2% 98%

Total Lodging 2 645 507 811 192 170 48 518 2 231 392 483 103 26 281 27 8 026 114 32 503

Extended Stay 829 97 330 117 4 657 787 90 891 23 3 321 3 492 12 1 970

Executive Appart. Up. Upscale 23 3 775 164 4 657 4 657 3 492 12 1 970 0% 97% 3%

Residences Inn Up. Mid. 613 74 130 121 595 71 571 18 2 559 0% 26% 74%

Tow nePlace Suites Midscale Suitehotel 193 19 425 101 192 19 320 1 105 0% 19% 81%

Timeshare 71 12 963 183 6 1 012 56 10 648 7 918 0 0 2 385

The Ritz-Carlton Club Luxury 14 729 52 11 581 3 148 0% 100% 0%

Vacation Club Up. upscale 53 11 918 225 5 963 42 9 800 4 770 2 385 0% 100% 0%

Grand-Residences Up. upscale 4 316 79 1 49 3 267 0% 100% 0%

Total 3 545 618 104 182 2% 46% 52%

RoomsFchised

Breakdown by brand

CategoryACCORBrand

(for example)

Hotels

TS = 2% of total network

Hotel avSize

Geographical repartition (italic=estimation) Operating mode-%room

Europe United States Americas Af. Mdle-East Asia Pac.Ow ned

& LeasedMnged

Page 8: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

8

5. Operating modeEvolution 2005 - 2010

Global network per operating mode(In room number)

Network 2005499,165 rooms / 2,741

h

FranchiseOwned & Leased Management

2%

52%

46%

Source: Marriott Annual Reports 2005 and 2010

52% 46%

2%

+118,939 rooms+24% over 5 years

Network 2010618,104 rooms / 3,545

h

Marriott – Company profileFY 2010

Page 9: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

9

5. Operating modeMain Brands, 2009 FY

Source: Marriott Annual Report 2010

Brand Hotels Rooms Ownership by brand

105 25,587

49 21,987

494 178,734

146 51,008

892 131,069

613 74,130

193 19,425

658 59,745

274 32,085

3% 60% 37%OwnedManagedFranchised

4% 64% 32%OwnedManagedFranchised

3% 97%OwnedManagedFranchised

89%OwnedManagedFranchised

3% 39% 58%OwnedManagedFranchised

26% 74%OwnedManagedFranchised

19% 81%OwnedManagedFranchised

2% 98%OwnedManagedFranchised

16% 84%OwnedManagedFranchised

Marriott – Company profileFY 2010

Page 10: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

Network 2010

3,545 hotels618,104 rooms

– +1,445 hotels and 228,104 rooms– Brand value for customers and owners– Innovative loyalty programs– Development by brand conversion &

new building

Network 2000

2,100 hotels390,000 rooms

10

6. Group strategy (1/3)

Source: Marriott Press release Q4 2010

Timeshare Strategy Spin-off of Timeshare activity forecast for 2011 but no further

information

Investments $[500-700]m (incl. 50-100 for maintenance Capex)

Guidance openings

Share Buybacks

Debt monitoring

Marriott – Company profileFY 2010

35 k r. in 2011 vs. 30 k r. in 2010Guidance openings

Excess cash return to shareholders through repurchase rather than dividends

Share Buybacks

BBB investment grade back in 2010 in all three rating agencies: cash will be invest primarily in the business (no need to dramatic debt reduction furthermore)

Debt monitoring

Page 11: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

11

6. Group strategy (2/3)

Brand development– ‘Edition’, new luxury boutique brand designed by Schrager: 1st Edition hotel opened in Hawaii in

September 2010, following by Edition Istanbul in February 2011

– ‘ Autograph Collection’, new brand launched in November 2009, comprised of upper-upscale and luxury, independent hotels located in major cities and desired destinations worldwide. Actual network: 13h in the US only at year end 2010 but international expansion in 2011.

Partnership– ‘ AC Hotels by Marriott’: created in Q4, 2010 through a co-branding with AC Hotels of Spain JV aims at

increasing the number of AC Hotels by Marriott across Europe and Latin America. 4 former AC hotels to be rebranded as Autograph Collection in Spain in 2011.

Operating type: development trough management contracts rather than franchise (very few owned properties)

Distribution & Technology– Deal with Ctrip.com, an online travel agency based in China to sell hotel inventory across Marriott

brands and affiliated hotels to travelers in China

– Rollout of a new program called Navigator, a rethinking of the concierge concept that offers guests a complete personalized itinerary for their stays

1

2

3

Source: Press reviewMarriott – Company profile

FY 2010

4

Page 12: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

12

EMEA : 18% of full service pipelineCourtyard to double its presence in

Europe by 2015

Marriott to convert historic Berners Hotel into London edition

A £350 million property under construction in London’s Knightsbridge area to be flagged by Marriott International’s ultra-luxury Bulgari Hotels brand

First four Autograph Collection to be launched in Spain by May 2011

Ambition to double its European presence by 2015

6. Group strategy (3/3)Development by geographic area

APAC : 45% of the full service pipelineAggressive expansion in India: +6

properties in 2011 Marriott plans to increase its network to 100 h in 5 years.

Latin America & the Caribbean's : limited ambitions (3% of total pipeline)

Ambitions to grow Marriott portfolio in Brazil by signing development deal for 50 Fairfield Inns

USA : 86% of the limited service pipeline Marriott plans to double its budget and

midscale presence in NYC adding 13 properties, i.e. + 2,900 rooms by 2013

Marriott – Company profileFY 2010

Source: Press review

Page 13: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

13

7. Pipeline and lodging development

Development in 2010Opening of 154 properties / 28,114 rooms. Highlights of the year include:

Conversion of 23 properties / 3,660 rooms in 2009 (13% of total openings)

28% of all new rooms opened outside the US

+102 h (12,030 r) added to North American Limited-Service brands

Opening of the first EDITION hotel in Waikiki, Hawaii (353 r)

Pipeline, as announced end of year 2010

- Nearly 105,000 r under construction, awaiting conversion or approved for development

35,000 r to be added in portfolio in 2011

Pipeline according to Lodging, Q3 2010

20% of total pipeline on extended stay, through Residence Inn and Towne Place

1/3 of total pipeline outside the US

(1) Lodging Q3 2010 excl.Openings 2010Sources: Marriott Annual Report 2010, Lodging Q3 2010

Pipeline Full service: 32 Kr.

47%

7% 15%

22%

9%Europe

Middle EastAfrica

North America

Latin America

APAC

Pipeline Limited service: 69 Kr.

3%

3%

86%

3%5%

Europe

Middle EastAfrica

North America

Latin America

APAC

Marriott – Company profileFY 2010

(1) (1)

Page 14: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

14

8. Key figuresP&L evolution & forecasts

Marriott – Company profileFY 2010Source: Reuters

Financials (in M€) 2000A 2001A 2002A 2003A 2004A 2005A 2006A 2007A 2008A 2009A 2010A 2011E 2012E CAGR 2003-2010

Revenue 7,911 7,768 8,415 9,014 10,099 11,129 11,995 12,990 12,879 10,908 11,691 11,010 11,859 3.8%

% Change in Revenue 69.3% NA NA 12.0% 10.2% 7.8% 8.3% -0.9% -15.3% 7.2% -5.8% 7.7%

EBITDA 1,075 854 573 530 646 883 1,275 1,397 1,298 898 1,044 1,174 1,369 10.2%

EBITDA margin 13.6% 11.0% 6.8% 5.9% 6.4% 7.9% 10.6% 10.8% 10.1% 8.2% 8.9% 10.7% 11.5%

Net Profit 479 236 277 502 594 543 712 697 359 342 435 528 650 -2.0%

Net margin 6.1% 3.0% 3.3% 5.6% 5.9% 4.9% 5.9% 5.4% 2.8% 3.1% 3.7% 4.8% 5.5%

Sources: company reports and Reuters consensus estimates as of April 28, 2011

Page 15: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

15

8. Key FiguresLodging Fees

208 220 232 245 296 329 390 439 451 400 441

383 372 379 388435

497553

620 635530

562316202 162 109

142

201

281154

182

0

200

400

600

800

1000

1200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Incentive Mngt Fees

Base Mngt Fees

Franchise Fees

Marriott – Company profileFY 2010

Fees 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total Fees 907 794 773 742 873 1027 1224 1428 1397 1084 1185Incentive Mngt Fees 316 202 162 109 142 201 281 369 311 154 182Franchise Fees 208 220 232 245 296 329 390 439 451 400 441Base Mngt Fees 383 372 379 388 435 497 553 620 635 530 562

Source: Marriott Annual Report 2010

369 311

Page 16: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

16

– Leading hotel operator in the US (10% market share)– Highest Return on Investment in the industry (25%)– Asset light strategy : less than 1% of portfolio owned;

less vulnerability to conjuncture– High levels of free cash flow and low required capital

spending– Attractive fee-based business model– Well balanced portfolio, from midscale to high-luxury– Strong loyalty program (>30m members,2,900 hotels

participating in 65 countries) and reservation network– Experienced management team

Strength

– Weak innovation capacity– Overdependence on the North American market (80%

of global room portfolio)

Weaknesses

– Growing appeal of suite hotels to international

consumers may benefit to Extended Stay properties– Strong pipeline and development plan– Global opportunities in emerging markets such as

Eastern Europe and Asia Pacific; 40% of the full-

service unit pipeline located outside the US– Global brand penetration opportunities– New brands such as Autograph and Edition launched

to benefit from the growing appeal for boutique hotels

Opportunities

– High earnings volatility caused by Marriott’s incentive

management fees– Reliability upon business travelers in case of

recession– Increasing popularity of boutique hotels as more

consumers turn away from traditional hotel chain

establishments– Timeshare segment trend to be considered with

caution– Limited ability to retain earnings owing to REIT rules

Threats

9. SWOT analysis

Sources: Global market informationdatabase by Euromonitor, broker research

Marriott – Company profileFY 2010

Page 17: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

17

10. Company history

Joint venture with Whitbread PLC to acquire Whitbread’s portfolio of 46 franchised Marriott and Renaissance hotels; JV sold to RBS in 2006Purchase of 32 hotels and JV interests from CTF Holdings

2005

Ramada is sold to Cendant2004

Ownership interest in the Ritz-Carlton Company LLC rises to 98 %1998

Partnership with Nickelodeon to co-develop a new lodging resort brand for travelers seeking funPartnership with designer Ian Schrager to create a lifestyle boutique hotel brand called Edition 2007

J.W. Marriott starts a food service management business named the Hot Shoppe Inc1927

Global corporate restructuring: rfocus on mega-markets in lodging and contract servicesDevelopment of facilities management1989

Acquisition of the Renaissance Hotel group (Renaissance, Ramada international, New World)1997Acquisition of a 49% interest in the Ritz-Carlton Hotel Company1995

1984 Development of Timeshare

1957 Development of Hospitality

1939 Development of Food Service Management

1937 Development of Air Catering

1988 Development of Senior rental and living services

Source: Marriott’s Factbook

Launch of the Autograph Collection, an upper-upscale full-service brand of independent hotels2009

1953 Public Offering

1987 Acquisition of The Residence Inn Company, all-suite hotel chain targeting extended stay travelers

Split of operations between 2 companies: Marriott International & Host Marriot Corp.1993

Acquisition of ExecuStay and launch of corporate housing business1999

Exit of Marriott Marriott Distribution Services2002

Marriott – Company profileFY 2010

Page 18: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

18

Marriott International Inc.

which is formed to manage and operate various brands of Marriott hotels

10. Company history From Marriott Corporation to Marriott International Inc. and Host H&R

In 1993, Marriott Corporation split it activities into two separate, distinct and totally independent companies :

Host has continued to acquire full service hotelswhile it moves away from the limited-service and F&B operations

–1995: Host, spun off the Host Marriott Operating Group as a separate company called Host Marriott Services

–1998: Host launches a brand diversification strategy by acquiring luxury and upper upscale hotels that include brand names such as Four Seasons, Ritz-Carlton and Hyatt

–1999: Host becomes a REIT, and is required to lease its properties to unaffiliated third parties. It does so to Crestline Capital Corporation, (Host spin off, Dec 1998)

–2005: Host announced the acquisition of a portfolio of hotels from Starwood. On April 19, 2006, it changes its name to Host Hotels & Resorts, to reflect its enhanced brand diversity

–2009:Today Host H&R Inc owns or leases a portfolio of 146 Marriott Hotels under long term agreements. Host also owns hotels from other luxury or upper-upscale brands worldwide

Source: Marriott Website

1967 1993 1995 1998 19991967 1993 1995 1998 1999

Host Marriott Corporation

which retains ownership of 24 full service hotels, 102 limited service hotels, 14 senior living communities and the Host Marriott Operating Group, an entity that provided F&B in airports

Marriott – Company profileFY 2010

Page 19: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

19 Source: Marriott Annual Report 2010

11. Brands description

Lodging Brands

The Ritz-Carlton Edition

Bulgari Autograph

JW Marriott H&R Courtyard

Marriott H&R SpringHill Suites

Conference Center Fairfield

Renaissance H&RAC Hotels by Marriott

Extended Stay

ExecuStay Residence Inn

Executive Apartments TownePlace Suites

Timeshare

The Ritz-Carlton Club Vacation Club

Grand Residences

Marriott – Company profileFY 2010

Page 20: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

20

11. Brands descriptionFull-service – The Ritz-Carlton

Overview

Full service, luxury brand►Premium traditional accommodations and

amenities for both business and leisure travelers.►Hotels are operated by the Ritz-Carlton Hotel

Company, which is owned up to 98% by Marriott.

Key figuresFY 2010 North AM► ADR: 280.1$►Occupancy: 67.6%►RevPar: $189.3

Mostly fitted out with► Business center, high speed Internet access►24h room service►Fitness center and swimming pools►Meeting and banquet facilities►Club level►Gift shops

Main competitors►The Waldorf=Astoria Collection, Four Seasons,

Fermont Hotels

Network

Network► 77 hotels + 28 residences / 25,587 rooms

= 244 rooms per hotel in average

Locations► Mainly in key city centers or in resort locations

Geographical breakdown

Source: Company website & reports(1) Includes Bulgari Hotels

FY 2010 International (1)

► ADR: $310.5► Occupancy: 64.0%► RevPar: $198.82

Marriott – Company profileFY 2010

10%

57%

8%

6%

20%Europe

US

Americas

MEA

APAC

Page 21: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

21

Full service, luxury brand►Joint Venture between The Ritz-Carlton Hotel

Company, LLC and Bulgari, an Italian Jeweler►Bulgari licenses the brand while Marriott, via The

Ritz-Carlton, manages the hotels

Main competitors►Park Hyatt, independent Boutique Hotels

11. Brands descriptionFull-service – Bulgari Hotels & Resorts

Overview Network

Network► 2 hotels / 117 rooms in operation

= 59 rooms per hotel in average

Locations► Only in prime locations

Geographical breakdown► 1 hotel in Milan, 1 in Bali► 2 restaurants in Tokyo, in connection with 2

Bulgari retail stores

Source: Company website & reportsMarriott – Company profile

FY 2010

Page 22: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

22

Full service, upper-upscale & luxury brand►Launched in November 2009

►Diverse collection of independent and unique

hotels, whether they are resort, historic hotel,

boutique arts or urban-edge hotel in a dynamic

gateway city

►Partnership with the Kessler Collection: 7 hotels

will join the Autograph Collection. These 7 hotels

are located in the US

11. Brands descriptionFull-service – Autograph Collection

Overview Network

Network► 13 h, 3,828 r

Locations► Footprint: US only

► Targeted locations: major cities and desired

destinations worldwide

Marriott – Company profileFY 2010Source: Company website & reports

Page 23: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

23

Full service, luxury brand►Launched in 2007 through an agreement with the

hotel innovator Ian Schrager►Lifestyle boutique hotels designed by Ian Schrager

and operated by Marriott

11. Brands descriptionFull-service – Edition

Overview Network

Network► First EDITION hotel opened in Waikiki, Hawaii

(september 2010), followed by an opening in Istanbul (february 2011)

Marriott – Company profileFY 2010Source: Company website & reports

Page 24: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

24

11. Brands descriptionFull-service – JW Marriott Hotels & Resorts

Overview

Full service, luxury brand

Upgraded services compared to typical Marriott full-service property

►World-Class golf (in most hotels)►Spa facilities (in most hotels)►Upgraded executive lounges►Business centers►Fitness centers►24-hour room service

Main competitors►Sofitel, Grand Hyatt, Intercontinental, Westin,

Conrad

Network

Network► 49 hotels / 21,987 rooms in operation

= 449 rooms per hotel in average

Locations► Gateway cities and upscale locations

throughout the world

Geographical breakdown► Nearly half of the network located in the US

Source: Company website & reportsMarriott – Company profile

FY 2010

Page 25: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

25

11. Brands descriptionFull-service – Marriott Hotels & Resorts

Overview

Full service, upscale brand►Marriott’s global flagship brand, primarily serving

business and leisure upper-upscale travelers

Key figures (incl. JW properties)FY 2010 North Am► ADR: $143.1► Occupancy: 66.5% ►RevPar: $95.1

Mostly fitted out with►Business center►Meeting facilities►Swimming-pool►Fitness center►Many resorts have additional recreational facilities

such as golf courses, tennis courts, spa facilities

Main competitors►Pullman, Sheraton, Hilton, Grand Plaza, Hyatt

Regency

Network

Network► 494 hotels / 178,734 rooms in operation

= 362 rooms per hotel in average

Locations► Mainly in key city centers, airports or resort

locations

Geographical breakdown► Breakdown includes JW Marriott hotels

Source: Company website & reports

14%

70%

7%

3%

7%

Europe

US

Americas

MEA

APAC

Marriott – Company profileFY 2010

Page 26: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

26

11. Brands descriptionFull-service – Marriott Conference Centers

Overview

Full service, upscale brand►Properties specialized in small- to mid-sized

meetings organization►In addition to features found in typical Marriott full-

service property, centers include expanding meeting room space, banquet and dining facitilites

Mostly fitted out with►Business center►Meeting facilities fitted out with latest

communications technology►Recreational facilities

Network

Network► 11 hotels / 3,298 rooms in operation

= 295 rooms per hotel in average

Locations► Mainly in business cities, in the US only

Source: Company website & reportsMarriott – Company profile

FY 2010

Page 27: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

27

11. Brands descriptionFull-service – Renaissance Hotels & Resorts

Overview

Full service, upscale brand►Stylish and personalized properties targeting

business and leisure travelers

Key figuresFY 2010 North Am► ADR: $139.7►Occupancy: 67.2%► RevPar: $93.8

Mostly fitted out with►Business center►Meeting and banquet facilities►Swimming Pool &Fitness Center►Distinctive restaurants and lounges►State-of-the art technology

Main competitors►Pullman, Sheraton, Hilton, Radisson, Hyatt

Regency

Network

Network► 146 hotels, including 2 ClubSport / 51,008

rooms

= 354 rooms per hotel in average

Locations► Mainly in downtown locations in major cities, in

suburban office parks, near major gateway airports and in destination resorts

Geographical breakdown

Source: Company website & reports

21%

55%

5%

1%

17%

Europe

US

Americas

MEA

APAC

Marriott – Company profileFY 2010

Page 28: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

The Renaissance Hotels brand is a special case of affiliated brand :– Upselling brand: from midscale (Ramada) to upscale (Renaissance)

– Launched as Ramada Renaissance, an upscale spin-off brand of Ramada Inns, but rebranded later as a stand-alone brand : Renaissance Hotels, once the success and the brand reputation were established

28

1982 1993 1997 2006/7 2009

Launch of Ramada Renaissance Hotels, an upscale spin-off brand of Ramada Inns

Change of logo, following the renovation plan, inspired by the trend launched by W hotels.

Launch of a $2 billion renovation plan.

Acquisition by Marriott of the Renaissance Hotel Group N.V.

Marriott retains the stand-alone Renaissance brand, while shedding the Ramada International business in phases to Cendant (Wyndham’s parent company).

Disposal of the affiliation

Renaissance Hotels is now a stand-alone brand.

11. Brands descriptionRenaissance: Spin-Off Of A Flagship Brand

Page 29: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

29

11. Brands descriptionFull-service – AC Hotels by Marriott

Overview

JV with AC Hotels, spanish hospitality group

►AC Hotels concepts: urban style four star hotel product

►Management contracts and franchise transferred to the joint venture which will rebrand these hotels “AC Hotels by Marriott”

►No change in hotels ownership►Integration with Marriott international’s global

systems , distributions and sales platforms

Mostly fitted out with►Own unique style and character ►“AC Bed” with four large pillows and built-in

reading light►Mini bar, 24-hour room service, wifi…►“AC fitness centers” and “AC lounge”►Meeting rooms

Network

Network► At the launch of JV, nearly all of the 92 existing

AC hotels in Spain, Italy and Portugal are expected to transition to the new co-brand during 2011

Ambition► To become a market leader in Europe and Latin

America in the urban, four-star hotel category

Locations► Europe and Latin America only

Source: Company website & reports(1) Includes Bulgari Hotels

Marriott – Company profileFY 2010

Page 30: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

30

11. Brands descriptionLimited-service – Courtyard

Overview

Select-service, midscale brand►Mostly targeting business travelers. It has recently

been redesigned

Key figuresFY 2010 North Am► ADR: $110.0► RevPar: $72.27► Occupancy: 65.7%

Mostly fitted out with► Central courtyard► Exercise room► Swimming-pool►The Market (self-serve store 24h/24)►The Bistro

Main competitors► Novotel, Hilton Garden Inn, Ramada, Holliday Inn,

Hyatt Place

Network

Network► 892 hotels / 131,069 rooms in operation

= 147 rooms per hotel in average

Locations► Mainly downtown in primary or secondary cities

Geographical breakdown► Mostly in the US

Source: Company website & reports

6%

85%

5%

0%4%

Europe

US

Americas

MEA

APAC

Marriott – Company profileFY 2010

Page 31: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

31

11. Brands descriptionLimited-service – SpringHill Suites

Overview

Limited service, midscale brand►All-suites targeting business travelers as well as

leisure travelers

Key figuresFY 2010► ADR: $97.32► RevPar: $63.91► Occupancy: 65.7%

Mostly fitted out with► Complimentary hot continental breakfast►Indoor pool and exercise room►Self-serve business center►Lobby computer, free in-room high speed Internet

access and Wi-fi access in the lobby►On-Site business services (copying, faxing &

printing)►The Market (self-serve food store 24h24)

Main competitors►Suitehotel, Hawthorn Suites, Homewood Suites

Network

Network► 274 hotels / 32,095 rooms in operation

= 117 rooms per hotel in average

Geographical breakdown► Only in North America (The US and Canada)

Source: Company website & reportsMarriott – Company profile

FY 2010

Page 32: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

32

Limited service, midscale brand►Targeting business travelers►Marriott’s fastest-growing brand, rejuvenated by an

aggressive “plant and prune” strategy : its network is expected to double within 3 years

Key figuresFY 2010► ADR: $84.5► RevPar: $53.3► Occupancy: 63.1%

Mostly fitted out with►Continental breakfast►Swimming pool and exercise facilities (in most

hotels)►Lobby computer, free in-room high speed Internet

access and Wi-fi access in the lobby►On-Site business services ►The Market (self-serve food store 24h24)

Main competitors►Ibis, Holiday Inn Express

11. Brands descriptionLimited-service – Fairfield Inn

Overview Network

Network► 658 hotels / 59,745 rooms in operation

= 91 rooms per hotel in average

Geographical breakdown► The US (648 hotels), Mexico and Canada

Source: Company website & reportsMarriott – Company profile

FY 2010

Page 33: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

33

Extended stay, upper-upscale brand►Mainly targeting business travelers staying at least

one month. It offers travelers residential accommodations with hotel-like amenities

Network:►Marriot comes to short-term lease agreements

with apartments owners and managers and franchise agreements. About 3,850 apartments are managed in 43 major markets

Geographical footprint► Only in the US

Main competitors►Embassy Suites, AmeriSuites9

11. Brands descriptionExtended stay – Executive Apartments & Execustay

Overview Overview

ExecuStay’s sister brand for the international market► Extended stay, upper-upscale brand, mainly

targeting business travelers staying at least one month. It offers travelers residential

accommodations with hotel-like amenities

Network► 20 properties / 3,911 rooms in operation

= 196 rooms per hotel on average

Geographical breakdown► Only outside the US, in 14 countries

Main competitors► Embassy Suites, AmeriSuites9

Source: Company website & reportsMarriott – Company profile

FY 2010

Page 34: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

34

Extended stay, upscale brand►Mainly targeting business and leisure travelers

staying 5 or more days

Key figuresFY 2010► ADR: $112.1► RevPar: $84.4► Occupancy: 75.3%

Mostly fitted out with►Spacious accommodations►Fully equipped kitchen, Free hot breakfast►Swimming pool and Sport court►Self-serve business center, Free in-room high

speed Internet and Wi-fi access in the lobby►Evening social events►Free grocery shopping services, Laundry facilities►24-hour staff

Main competitors►Suitehotel, Homewood Suites, Hawthorn Suites,

Baymont Inn & Suites, Summerfield Suites

11. Brands descriptionExtended stay – Residence Inn

Overview Network

Network► 613 hotels / 74,130 rooms in operation

= 121 rooms per hotel in average

Geographical breakdown► Only in North America: 595 properties in the

US, 18 in Canada and Mexico

Source: Company website & reportsMarriott – Company profile

FY 2010

Page 35: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

35

Extended stay, midscale brand►Mainly targeting business and leisure travelers

staying 5 or more days

Key figuresFY 2010► ADR: 80.0$► RevPar: 55$► Occupancy: 68.7%

Mostly fitted out with►Fully equipped kitchen, Free hot breakfast►Swimming pool and Sport court►Self-serve business center, Free in-room high

speed Internet and Wi-fi access in the lobby►Free grocery shopping services, Laundry facilities►24-hour staff, trained ►Housekeeping services

Main competitors►Suitehotel, Homewood Suites, Hawthorn Suites,

Baymont Inn & Suites

11. Brands descriptionExtended stay – TownePlace Suites

Overview Network

Network► 184 hotels / 18,451 rooms in operation

= 100 rooms per hotel in average

Geographical breakdown► Only in the US (41 states)

Source: Company website & reportsMarriott – Company profile

FY 2010

Page 36: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

36

Timeshare, upscale brand►Full-serviced villas featuring living and

dining areas,1/2/3 bedrooms, a full kitchen, washer/dryer units

►Purchase of 1 week or more►Incorporates “Horizons” since 2009

Network:►53 properties / 11,918 units in operation

= 225 units per property on average►More than 312,000 owners

Locations►Resort destinations: US, Aruba, France,

Spain, St. Thomas, West Indies, Thailand

Prices►Average weekly price of $26,500

Timeshare, luxury brand►Functioning on basis of fractional

ownership. Club members have also benefits at Ritz-Carlton H&R worldwide

Network:►14 properties / 729 units in operation

=52 units per property on average

Locations►In the world’s most picturesque cities and

in resort destinations

Prices►Membership: from $100,000 to $800,000►3- to 5-weeks ownership fractions: from

$144,000 to 545,000

11. Brands descriptionTimeshare

Overview Overview

Timeshare, upper-upscale brand► Functioning on basis of fractional

ownership. ► 3 to 13 week ownership fractions

Network► 4 properties / 316 units in operation

= 79 units per property on average

Locations► Regional second home destinations

Prices► From $100,000 to $600,000

Source: Company website & reports

Overview

Marriott – Company profileFY 2010

Page 37: Marriott International Inc. FY 2010 Mars 2011. 2 Marriott vs. its main competitors Rooms network as of FY 2010 Source : Companies annual reports except

37

12. Organisation COMEX

Source: Company website

Name Position

J. W Marriott, Jr Chairman of the Board and Chief Executive OfficerArne Sorenson Chief Operating OfficerCarl Berquist Chief Financial OfficerAnthony Capuano Global DevelopmentSimon Cooper The Ritz Carlton Hotel CompanyEdwin Fuller Managing Director, International LodgingRobert McCarthy The Americas and Global Lodging ServicesAmy McPherson Managing Director, European DivisionDavid Rodriguez Global Human ResourcesEdward Ryan General CounselWilliam Shaw Vice ChairmanStephan Weisz Marriott Vacation Club

Marriott – Company profileFY 2010