Adjusted results for the 2011 third quarter exclude $352 million pretax ($251 million after-tax and

• At the end of the third quarter, the company’s worldwide pipeline of hotels under construction, awaiting conversion or approved for development increased to more than 105,000 rooms, including over 47,000 rooms outside North America and more than 26,000 rooms in Asia;
• Nearly cheap travel to costa rica 6,000 rooms were added to the worldwide lodging portfolio during the third quarter, including approximately 3,000 rooms in international markets and nearly 1,100 rooms converting from competitor brands;
• Marriott repurchased 18.0 million shares of the company’s common stock for $550 million during the quarter. Year-to-date through September 9, 2011, the company repurchased 36.5 million shares for $1.2 billion.
THIRD QUARTER 2011 RESULTS Third quarter 2011 adjusted net income totaled $104 million, a 25 percent increase compared to third quarter 2010 net income. Adjusted diluted EPS totaled $0.29, a 32 percent increase from diluted EPS in the year-ago cheap travel to costa rica quarter. On July 13, 2011, the company forecasted third quarter diluted EPS of $0.25 to $0.29.
The reported net loss was $179 million in the third quarter of 2011 compared to net income of $83 million in the year-ago quarter. Reported diluted losses per share was $0.52 in the third quarter of 2011 compared to diluted EPS of $0.22 in the third quarter of 2010.
Adjusted cheap travel to costa rica results for the 2011 third quarter exclude $352 million pretax ($251 million after-tax and $0.73 per diluted share) of non-cash other charges. Other charges include $324 million pretax of impairment charges, which Marriott previously cheap travel to costa rica disclosed, cheap travel to costa rica related to the timeshare segment. Other charges also include an $18 million pretax impairment charge on an investment in equity securities due to a recent decline in the market price of these securities cheap travel to costa rica and a $10 million pretax write-off of both deferred contract acquisition costs and an accounts receivable balance related to one property whose owner filed for bankruptcy. Adjusted results also exclude $32 million ($0.09 per diluted share) of tax expense recorded in the 2011 third quarter in conjunction with the write-off of international deferred tax assets related to the timeshare segment cheap travel to costa rica that Marriott determined were impaired, which the company also previously disclosed.
J.W. Marriott, Jr., Marriott International chairman and chief executive officer, said, “We were very pleased with our performance in the third quarter. Despite continued economic uncertainty, revenue per available room growth was very strong and adjusted EPS rose 32 percent.
“After reaching targeted debt levels in mid 2010, we have been investing in growth while also returning substantial cash to our shareholders. In the last 12 months, we have opened 33,000 new rooms while returning $1.4 billion to our shareholders through share repurchases and dividends. Third quarter share repurchases alone totaled $550 million.
“The spin-off of our timeshare cheap travel to costa rica business is on track and we expect cheap travel to costa rica to conclude the transaction in the 2011 fourth quarter. When complete, Marriott will have taken another innovative step, leading the industry as a manager and franchisor of the greatest lodging cheap travel to costa rica and timeshare brand portfolio in the business.
“We are cautiously optimistic about 2012 and are well-positioned for continued growth. We expect to add approximately 30,000 rooms in 2012, most of which are already under construction and included in our 105,000 room development pipeline. While there is considerable economic uncertainty, assuming worldwide systemwide REVPAR growth of 3 to 7 percent, our earnings per share could total $1.48 to $1.68 per share and return on invested capital cheap travel to costa rica could increase substantially.”
For the 2011 third quarter, REVPAR for worldwide comparable systemwide cheap travel to costa rica properties increased 6.9 percent (an 8.7 percent increase using actual dollars). Excluding the Middle East and Japan markets, worldwide comparable systemwide REVPAR rose 7.4 percent (a 9.0 percent increase using actual dollars).
International comparable systemwide REVPAR rose 6.9 percent (a 15.8 percent increase using actual dollars), including a 4.9 percent increase in average daily rate (a 13.6 percent increase using actual dollars) in the third quarter of 2011. Excluding the Middle East and Japan markets, international comparable systemwide constant dollar REVPAR increased 9.2 percent (an 18.7 percent increase using actual dollars).
In North America, comparable systemwide REVPAR increased 6.9 percent in the third quarter of 2011, including a 3.3 percent increase in average daily rate. Most North American markets reflected both strong demand increases and modest supply growth. REVPAR for comparable systemwide North American full-service and luxury hotels (including Marriott cheap travel to costa rica Hotels Resorts, The Ritz-Carlton and Renaissance Hotels) increased 6.5 percent in the third quarter with a 3.7 percent cheap travel to costa rica increase in average daily rate. REVPAR for comparable systemwide North American limited-service hotels (including Courtyard, Residence Inn, SpringHill Suites, TownePlace cheap travel to costa rica Suites and Fairfield Inn Suites) increased 7.3 percent in the third quarter with a 3.2 percent increase in average daily rate.
Marriott added 38 new properties (5,969 rooms) to its worldwide lodging portfolio in the 2011 third quarter, including the Ritz-Carlton Oman, the Boscolo Palace Roma, Autograph Collection, in Rome and the Courtyard Pune City Centre cheap travel to costa rica in India. Five properties (1,234 rooms) exited the system during the quarter. At quarter-end, cheap travel to costa rica the company’s lodging group encompassed nearly 3,700 properties and timeshare resorts for a total of more than 638,000 rooms.
MARRIOTT REVENUES totaled nearly $2.9 billion in the 2011 third quarter compared to over $2.6 billion for the third quarter of 2010. Base management and franchise fees rose 12 percent cheap travel to costa rica to $260 million reflecting higher REVPAR at existing hotels, fees from new hotels and, to a lesser extent, favorable foreign exchange rates. Third quarter worldwide incentive management cheap travel to costa rica fees increased 38 percent to $29 million. In the third quarter, 24 percent of company-managed hotels earned incentive management fees compared to 23 percent in the year-ago quarter. Incentive management fees largely came from hotels outside of North America in both the 2011 and 2010 quarters.
cheap travel to costa rica North American comparable company-operated house profit margins increased 130 basis points in the third quarter primarily reflecting higher occupancy and rate increases. House profit margins for comparable cheap travel to costa rica company-operated properties outside North America increased 40 basis points, challenged by lower REVPAR in the Middle East and Japan.
Owned, leased, corporate housing and other revenue, net of direct expenses, cheap travel to costa rica increased from $7 million in the 2010 third quarter to $35 million, cheap travel to costa rica largely reflecting $13 million of higher credit card and residential branding cheap travel to costa rica fees, $8 million of higher termination fees and improved operating results at leased hotels.
In the third quarter, Timeshare segment contract sales increased $15 million cheap travel to costa rica to $179 million from segment contract sales of $164 million in the year-ago quarter. In the third quarter, 43 percent of timeshare contract sales came from new customers compared to 37 percent in the year ago quarter. cheap travel to costa rica Average contract price improved 45 percent year-over-year while volume per guest increased 10 percent in the third quarter.
In the third quarter, Timeshare sales and services revenue, net of expenses, declined $20 million to $36 million largely due to the year-over-year unfavorable impact of a $15 million adjustment to the Marriott Rewards cheap travel to costa rica liability recorded in the year-ago quarter and, to a lesser extent, lower interest income on a smaller mortgage portfolio.
cheap travel to costa rica Adjusted Timeshare segment results include Timeshare sales and services cheap travel to costa rica revenue, net of direct expenses, as well as base management fees, gains and other income, equity in earnings (losses), interest expense and general, administrative and other expenses associated with the timeshare business. Adjusted Timeshare segment results for the 2011 third quarter totaled $22 million and included $10 million of interest expense related to securitized Timeshare notes. The adjustments to reported Timeshare segment results for the 2011 third quarter are shown on page A-10. In the prior year quarter, Timeshare segment results totaled $38 million and included $12 million of interest expense related to securitized Timeshare notes as shown on page A-10.
ADJUSTED cheap travel to costa rica GENERAL, ADMINISTRATIVE and OTHER expenses for the 2011 third quarter increased 14 percent to $170 million, compared to expenses of $149 million in the year-ago quarter. The adjustments cheap travel to costa rica to reported general, administrative and other expenses for the 2011 third quarter are shown on page A-1. The increase in adjusted expenses reflected cheap travel to costa rica several non-routine items including $8 million of transaction-related expenses associated with the spin-off of the timeshare business, $5 million related to the increase of a guarantee reserve for one hotel and the write-off of deferred contract acquisition costs. Adjusted general, administrative and other expenses also increased due to higher costs associated cheap travel to costa rica with growth cheap travel to costa rica in international cheap travel to costa rica markets and incentive compensation increases. The increase in adjusted expenses was partially offset by $6 million of lower legal expenses. The quarter-over-quarter variance also reflected the unfavorable impact of the $4 million reversal in the 2010 third quarter of an accrual related to a tax settlement on a European asset.
Adjusted Earnings before Interest Expense, Taxes, Depreciation and Amortization (EBITDA) Marriott International adjusted EBITDA totaled $240 million in the 2011 third quarter, a 9 percent increase over EBITDA of $220 million in the year-ago quarter. Adjusted EBITDA for the Timeshare cheap travel to costa rica segment declined 35 percent cheap travel to costa rica to $39 million in the 2011 third quarter largely due to lower interest income and the year-over-year unfavorable cheap travel to costa rica impact of a third quarter 2010 adjustment to the Marriott Rewards liability. See pages A-12 and A-13 for the EBIT