What was the overall financial performance of Marriott International in fiscal year 2005?

Marriott International demonstrated strong financial performance in fiscal year 2005, with revenues increasing by 14% to $11.55 billion. Operating income rose to $555 million, and diluted earnings per share from continuing operations increased by 17% to $2.89, driven by robust demand, effective cost management, and strategic property expansions.

How did the company's different segments perform?

The Lodging segments (Full-Service, Select-Service, Extended-Stay, and Timeshare) collectively showed strong revenue and profit growth, benefiting from increased RevPAR. The Full-Service segment saw a 14% revenue increase, Select-Service grew segment results by 49%, and Extended-Stay reported steady performance. The Timeshare segment also reported a 15% revenue increase and a 33% rise in segment results. The Synthetic Fuel segment, while incurring losses, was mitigated by tax credits.

What is Marriott's outlook for growth?

Marriott has a positive outlook for growth, with over 70,000 rooms in its development pipeline. The company expects to add approximately 25,000 hotel rooms and timeshare units to its system in 2006. This growth is supported by strong brand recognition, strategic acquisitions, and continued investment in property upgrades and guest experience enhancements.

How is Marriott managing its capital and shareholder returns?

Marriott International is actively managing its capital through a $2 billion revolving credit facility and has $1.611 billion in available borrowing capacity at year-end 2005. The company also repurchased 25.7 million shares of its common stock in 2005, reflecting a commitment to enhancing shareholder value, and increased its quarterly cash dividend.

MAR 10-K FY2005 Annual Report — Revenue, Net Income, EPS

Summary

Marriott International, Inc. (MAR) reported strong performance in its fiscal year ended December 30, 2005. The company experienced significant revenue growth driven by robust demand across its lodging segments, particularly in Full-Service, Select-Service, and Extended-Stay hotels, both domestically and internationally. This growth was fueled by increased occupancies and higher average daily rates (RevPAR), reflecting a healthy lodging industry recovery. The Timeshare segment also showed solid revenue and segment result increases. A notable aspect of the report is the company's continued expansion, with substantial development in the pipeline and a strategic focus on enhancing guest experiences through property upgrades and service initiatives. Financial highlights include increased operating income and diluted earnings per share from continuing operations, supported by effective management of expenses and strategic debt management. The company also actively engaged in share repurchases, demonstrating a commitment to returning value to shareholders. The Synthetic Fuel segment, while operating at a loss, was significantly offset by tax credits, though its future is dependent on oil price fluctuations and the continuation of these credits.

Key Highlights

1Marriott International reported a 14% increase in revenues to $11.55 billion for fiscal year 2005, driven by strong global lodging demand and RevPAR growth.

2Operating income increased by $78 million to $555 million, reflecting improved fee structures and higher timeshare sales, partially offset by increased administrative expenses.

3Diluted earnings per share from continuing operations grew 17% to $2.89, indicating strong profitability.

4The company added 134 new properties (21,611 rooms) to its system in 2005, with over 70,000 rooms in the development pipeline, signaling continued growth.

5Marriott's systemwide RevPAR for comparable company-operated properties increased by 10.1% globally, with particular strength in North America and international markets.

6The company repurchased 25.7 million shares of common stock in 2005, demonstrating a commitment to shareholder returns.

7The Synthetic Fuel segment incurred operating losses but was significantly offset by tax credits, with the company actively managing production based on oil price impacts on these credits.

MARRIOTT INTERNATIONAL INC /MD/ Annual Report, Year Ended Dec 30, 2005

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Key Highlights

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