GLOBAL GROWTH
In 2009, we opened nearly 38,000 new rooms and residential units, an all-time record for the company. At year-end, our lodging portfolio totaled 3,420 hotels or timeshare resorts across 18 brands in 68 countries and territories.

Our development pipeline includes more than 600 hotels encompassing nearly 100,000 rooms. Over one-third of these new rooms are full service, and more than one-third are located outside of North America, where we already see tangible results from our global growth. In 2009, over two-thirds of the $154 million we earned in incentive management
fees — profits we share with our owners — came from hotels outside
of North America.

Moving ahead, a high percentage of Marriott’s growth will continue to be fueled by global development. In Asia, where we opened our first hotel 20 years ago, our portfolio has expanded to 114 properties with another 55 in the pipeline. We expect to operate 60 hotels in China alone by year-end 2010, making it our largest market outside of North America.

Our global growth involves a broad range of brands, from full service to extended stay. In 2009, we opened the Renaissance Paris Arc de Triomphe Hotel, which is set in the heart of the city, and the Bogota Marriott Hotel, our first hotel in Colombia. Courtyard celebrated its 800th hotel with a grand opening in Shanghai, and has nearly 20 hotels under development in India and China. Residence Inn is moving into Europe, and Fairfield Inn & Suites plans to add 36 hotels in Mexico in the next 10 years.

Of course, we continue to pursue opportunities in the U.S. as well. Two breathtaking new luxury hotels — the JW Marriott and The Ritz-Carlton L.A. LIVE — opened in early 2010, anchoring a new sports, residential and entertainment district in a resurgent downtown Los Angeles. The new JW Marriott San Antonio Hill Country Resort & Spa in Texas features a 36-hole PGA Tournament Golf Course and an exhilarating six-acre water experience for the whole family.

In addition, we see considerable franchise interest in expanding our limited-service brands to secondary and tertiary markets in North America, as well as owner interest in converting existing hotels to our brands. In 2009, we converted 19 properties to five different Marriott brands. Customers enjoy our service and style, while owners, franchisees and lenders appreciate the economic returns generated by our brands.