Marriott Announces Ambitious Growth

At meetings in New York City and Bethesda, MD, this week Marriott International, Inc. announced that earnings by 2013 could reach new highs. Approximately $3 to $5 Billion could be returned to shareholders over three years.

At the meetings Marriott outlined its plans for ambitious growth as the company discussed its profit margin and earning trends, the number of lodging properties it expects to add in future years, its expected investment spending, and amounts it could return to shareholders.

J.W. Marriott, Jr., chairman and chief executive officer of the company, said, "We are on the threshold of extraordinary growth for our company. As we look ahead over three years, Marriott is poised to deliver substantial gains in bottom line results, as well as meaningful returns to hotel owners and shareholders, as our industry-leading portfolio of brands both recovers from the recent recession and grows worldwide."

According to the company, having reduced net debt by almost $1.5 billion since the end of 2008, Marriott has already reached its targeted debt levels. The company plans to invest $2.3 to $2.7 billion over the next three years, and could return between $3.3 billion and $5.3 billion to shareholders from 2011 through 2013 through dividends and share repurchases, while still maintaining its investment grade bond rating. However, Marriott reminded investors, "these statements are not guarantees of future performance and are subject to numerous risks and uncertainties."

The company expects to add at least 80,000 to 90,000 hotel rooms to its portfolio from 2011 through 2013 with additional opportunities for 22,000 rooms to open in Europe and Asia during that same period. The company will also be expanding its new brands outside of the United States, including EDITION, which just opened its first hotel on Waikiki Beach in Hawaii, and the Autograph Collection.

In 1995, Marriott Ownership Resorts, Inc. was renamed, becoming Marriott Vacation Club International (MVCI) reflecting the company’s evolution from real estate development and sales to timeshares. Currently there are 55 Marriott Vacation Club branded resorts around the world.
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