Revenue Generation
Responding to the challenging lodging demand environment in 2008, we deployed a range of promotions to maintain loyalty among existing customers while also attracting new ones. Our new Sales Force One strategy enabled us to cast a wider net for valuable business customers in 2008. In the leisure transient segment, quick-to-market promotions such as "RejuveNation" offered discounts for weekend stays. And with "No Blackout Dates," more than 30 million members of Marriott Rewards,^® our award-winning guest loyalty program, can redeem points every day of the year.

Technology remains one of our strongest competitive advantages. Marriott.com, the seventh largest consumer retail Web site in the world, accounts for 20 percent of Marriott's gross property-level sales. The site generated $6.2 billion in gross property-level revenues in 2008, up nearly 19 percent from a year ago. Property- level sales from our international Web sites increased 66 percent, and guests booked over $2 million via our new Marriott Mobile booking engine in the last part of 2008.

As more of our customers use social media, we've connected with more than 400,000 of them on YouTube, Twitter, Facebook, Marriott Rewards Insiders, and through our blog "Marriott on the Move." And we're especially pleased that blog visitors have gone on to book $2.7 million in gross property-level sales on Marriott.com.

Reinvention and Innovation
While we are focused on operating as efficiently as possible, we remain committed to investing in our brands for the long term. By reinventing them to be relevant and fresh, we drive customer and owner preference and higher RevPAR.

In cities worldwide, many of your favorite Marriott hotels have been transformed. The owners of the Atlanta Marriott Marquis completed a $138 million renovation this year. The hotel's stunning lobby- m.i.greatroom™, a prototype for the Marriott Hotels & Resorts brand- has become a popular meeting spot for Atlantans and visitors alike.

Renaissance Hotels & Resorts is nearing completion of a three-year $2 billion makeover by owners and franchisees, including two milestones in 2008: a $24 million renovation of the Renaissance New York Hotel Times Square and a $128 million restoration of The Blackstone, A Renaissance Hotel, in Chicago.

Building on its reputation for offering unrivaled experiences, Ritz-Carlton opened hotels in Sanya and Guangzhou in China in 2008.

Our Courtyard brand, which celebrated its 25th anniversary in 2008, just opened its 800th hotel in Shanghai, China. In North America, Courtyard is undergoing a $500 million makeover by owners and franchisees over the next three years. By the end of 2009, nearly 150 hotels will feature a new, exciting lobby experience where guests can socialize, relax, work or entertain. These redefined Courtyards are making a significant impact with customers, whose overall perceptions of the brand have improved by 15 percent.

While we continue to refresh our existing portfolio, we're also exploring new brand development opportunities. By the end of 2011, we expect to open four Edition hotels, a new lifestyle boutique brand developed in partnership with visionary Ian Schrager.

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