2012 PERFORMANCE HIGHLIGHTS

2012 was an excellent year for our company. Here are some of the highlights:

  • For the full year 2012, diluted earnings per share (EPS) totaled $1.72. Adjusting the prior year for the timeshare spin-off and other charges, EPS increased 31 percent and adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA) rose 16 percent.1 Full year fee revenue totaled $1.4 billion matching peak 2007 levels. Incentive management fees alone rose 19 percent. Return on invested capital reached 35 percent in 2012.1
  • Revenue Per Available Room (RevPAR) for the company’s worldwide comparable systemwide properties increased more than 6 percent in 2012 and average daily rates rose nearly 4 percent. We saw RevPAR improve around the world despite economic weakness in Europe and political uncertainty in the Middle East. In North America, a strengthening economy and modest industry supply growth pushed both room rates and RevPAR higher.
  • Marriott Rewards,® our award-winning guest loyalty program, and our new The Ritz-Carlton Rewards® program, together surpassed 41 million members accounting for more than half of our room nights worldwide.
  • Marriott.com, one of the top consumer retail sites in the world, accounted for more than $8.1 billion in property-level gross revenues in 2012.
  • During 2012, we opened 125 properties with over 27,000 rooms. We acquired the Gaylord brand with valuable long-term management agreements; opened high-profile hotels such as the JW Marriott Essex House in New York City; increased our Autograph Collection distribution now spanning four continents; and expanded our Greater China hotel portfolio to 62 properties. Our hotel development organization had an outstanding year signing a record 57,000 rooms worldwide. Our worldwide pipeline of rooms under construction, approved for development or pending conversion reached nearly 130,000 rooms.
  • Our portfolio of luxury brands—BVLGARI Hotels & Resorts, The Ritz-Carlton, JW Marriott, and our latest luxury lifestyle brand, EDITION, together reached over 180 properties and more than 50,000 rooms worldwide.
  • We repurchased 31 million shares in 2012 for approximately $1.2 billion. Including $191 million in dividends, we returned more than $1.3 billion to shareholders during the year.

STRATEGY FOR SUCCESS

As we grow globally, we remain committed to the enduring core values that set us apart, and the talented people who make this company great. Our vision remains to be the best hospitality company in the world. Our strategy combines our unique culture with an extensive portfolio of global brands, a customer-focused sales organization, tremendous guest loyalty and a broad distribution of hotels at multiple price points. By focusing on managing and franchising hotels, rather than owning them, we drive strong shareholder value and high return on invested capital.

 

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1 See the Non-GAAP Financial Measures Reconciliations pages in the Financial Information section for additional information on these non-GAAP measures, including reconciliations, our reasons for providing these measures and limitations on their use.