In the developed world, Marriott is creating new product niches and entering new markets and customer segments, expanding our share of rooms in both North America and Europe. At the same time, growth in new hotel supply in the developed world is very low, which we expect means strong occupancy and room rate improvement in the years ahead. With the increase in travel, new hotel development is accelerating in many emerging markets around the world. Marriott is pursuing growth in these rapidly expanding markets with our existing brands as well as new brands tailored for the local market, such as Courtyard® in China and Fairfield by MarriottSM in India and Brazil.
2013 PERFORMANCE HIGHLIGHTS
Here are some of the highlights from our successful 2013 efforts:
For the full year 2013, diluted earnings per share (EPS) totaled $2.00 and EPS increased 16 percent over the prior year. Adjusted for the Courtyard joint venture gain in 2012, EPS increased 22 percent over the prior year. Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization (EBITDA) rose 9 percent. Adjusted operating income margins reached a record 40 percent and return on invested capital reached 32 percent in 2013.2
Revenue Per Available Room (RevPAR) for the company’s worldwide comparable systemwide properties increased 4.6 percent in 2013 on a constant dollar basis, and average daily rates rose more than 3 percent. In North America, systemwide RevPAR rose 5 percent, with nearly 4 percent higher average daily rates.
Marriott Rewards®, our award-winning guest loyalty program, and The Ritz-Carlton Rewards® program, now in its fourth year, together surpassed 45 million members, accounting for more than half of our room nights worldwide. Our members are committed to us. Over the past seven years, the most active 1 percent of Marriott’s customers accounted for more than 30 percent of room nights.
One-quarter of our worldwide booked room nights in 2013 came through Marriott.com, our most cost-effective channel, and more than 13 percent of those were generated through a mobile device. The Marriott Mobile app also allows Marriott Rewards members to check in or check out at 329 North American and 20 international Marriott Hotels and in 2014 nearly all 500 Marriott Hotels worldwide plan to offer mobile check-in and checkout. To date, the Marriott Mobile app has been downloaded more than 2.8 million times.
During 2013, Marriott had the fastest-growing new-construction pipeline in the industry, worldwide.3 We opened nearly 26,000 rooms and signed more than one new hotel project per day, totaling a record 387 hotels. Given our strong pipeline and anticipated addition of the Protea hotel chain, we expect new hotel openings to accelerate in 2014 and 2015, and expect our system to grow by approximately 5 percent net of deletions in 2014.
Our portfolio of luxury brands—BVLGARI® Hotels & Resorts, The Ritz-Carlton®, JW Marriott®, and our latest luxury lifestyle brand, EDITION, together reached more than 170 properties and nearly 45,000 rooms worldwide.
We repurchased 20 million shares in 2013 for approximately $829 million. Including nearly $200 million in dividends, we returned more than $1 billion to shareholders during the year. We’re stepping up returns in 2014 and expect to return $1.25 to $1.5 billion in share repurchases and dividends to shareholders.
2 See pages 17 and 89-92 for additional information on these non-GAAP measures, including reconciliations, our reasons for providing these measures and limitations on their use.
3 Smith Travel Research