10-KPeriod: FY2007

MARRIOTT INTERNATIONAL INC /MD/ Annual Report, Year Ended Dec 28, 2007

Filed February 15, 2008For Securities:MAR

Summary

Marriott International, Inc. reported a solid financial performance for the fiscal year ending December 28, 2007. The company experienced a significant increase in revenues, driven by strong global lodging demand and increased room rates across its various segments, particularly in full-service and luxury properties. Operating income also saw a healthy increase, reflecting improved property-level margins and unit growth. The company's strategic focus on driving room rate improvements and operational productivity contributed to this growth. While the company faces various risks inherent to the lodging industry, including competition, economic conditions, and geopolitical events, its diverse brand portfolio, strong loyalty program, and continued investment in new properties and services position it favorably for future performance. Investors can note the company's active share repurchase program and consistent dividend payouts as positive indicators of its financial health and commitment to shareholder returns.

Financial Highlights

27 data points
Beta

Revenue

$12.99B

Net Income

$696.00M

5.4% Net Margin

EPS (Diluted)

$1.73

Cash & Equivalents

$332.00M

Free Cash Flow

$107.00M

Financial Statements
Beta
Revenue$12.99B
Operating Expenses$11.81B
Operating Income$1.18B
Interest Expense$184.00M
Net Income$696.00M
EPS (Basic)$1.83
EPS (Diluted)$1.73

Key Highlights

  • 1Revenues increased by 8% to $12.99 billion in 2007, driven by strong global lodging demand and increased room rates.
  • 2Operating income grew by 9% to $1.19 billion, reflecting improved property-level margins and unit growth.
  • 3The company added 203 new properties (29,200 rooms) to its system in 2007, demonstrating continued expansion.
  • 4RevPAR (Revenue Per Available Room) for comparable company-operated properties increased by 7.0% worldwide.
  • 5Marriott International actively repurchased shares, with 41.0 million shares bought back in 2007, indicating a commitment to shareholder value.
  • 6The company announced plans for new brands, 'Nickelodeon Resorts by Marriott' and 'Edition,' signaling continued innovation and growth strategies.

Frequently Asked Questions

Marriott International reported a strong 2007 with an 8% increase in revenues to $12.99 billion and a 9% increase in operating income to $1.19 billion. This growth was driven by robust global lodging demand, increased room rates, and the addition of new properties to its portfolio.

The primary drivers of Marriott's revenue growth include stronger demand for hotel rooms worldwide, which allowed for increased room rates (RevPAR), and unit growth from opening new properties. Base management, incentive management, and franchise fees also contributed significantly due to these factors.

Marriott International faces several risks, including intense competition within the lodging industry, general economic and geopolitical conditions impacting travel demand, the potential impact of war or terrorist activity, travelers' fears of contagious diseases, natural disasters, and increases in operating costs such as wages, energy, and healthcare. Additionally, the company is subject to risks related to the success of new branded hotel products and potential disputes with hotel owners and franchisees.

Marriott International maintained a strong liquidity position, amending and restating its revolving credit facility to increase borrowing capacity to $2.5 billion. The company generated substantial cash from operations and used it to fund capital expenditures, invest in new properties, and repurchase shares. It also issued new senior notes to manage its debt structure and fund corporate purposes.