MAR 4Q 2013 YOUTUBE

In preparation for MAR's FQ4 2013 earnings release tonight, we’ve put together the recent pertinent forward looking company commentary.

2014 GUIDANCE

• Occupancy rates at MAR hotels are nearly at record levels in North America, well ahead of industry averages.

TRANSIENT

• Transient business benefited from improving mix as high-rated retail business was very strong.
• Looking to shift more and more of that transient business towards higher-rated segments in the hotels

GROUP

• North America Group revenue pace for the Marriott brand for the fourth quarter is up nearly 7% due to a strong short-term booking.
• 2014 group booking pace for the North American company-operated Marriott-branded hotels is currently up 4% to 5%
  
• 4% or plus 4.5% for next year is overwhelmingly volume, not rate. Rate is up very modestly, 1-ish% or 0% to 1%.
  
• Seeing more corporate business such as training meetings and new product launches.
  
• 60% of 2014 group business is already on the books
  
• Expect system-wide RevPAR at North American hotels will likely increase at a 4% to 6% rate in 2014, with the improvement largely coming from rate.
  
• Smaller the group, probably the stronger, but seeing improvements really in all segments
  

DC

• Weak government demand. RevPAR in downtown D.C. declined about 1.5% while RevPAR at MAR hotels across the greater Washington market declined 6%.

EUROPE

• In Europe, 4Q RevPAR growth should improve as comparisons get easier in the U.K.
• In Europe, strong performance in Eastern Europe offset declines in London, enabling +2% RevPAR. 
• Constant-dollar RevPAR to increase at a low single-digit rate at our European hotels in 2014

ME/AFRICA

• Modeling a mid-single digit RevPAR growth for 2014 on easy comps
  
• Constant-dollar RevPAR in the Middle East will likely remain challenged. 
• Unrest in Egypt reduced RevPAR in the Middle East by 3%.

CARIBBEAN/LATIN AMERICA

• 2014 constant-dollar RevPAR in the Caribbean and Latin America market to grow at a mid-single-digit rate.
• Favorable leisure demand drove RevPAR up 7% as greater numbers of groups and leisure travelers enjoyed the resorts in Cancun.

ASIA PACIFIC 

• Expect mid-single-digit constant-dollar REVPAR in 2014, constrained a bit by recent supply growth

WORLDWIDE HOUSE MARGINS 

• Expect roughly 100 basis points of margin improvement for the full year.

4Q REVPAR

• 4Q North America RevPAR to increase 4.5% to 5.5%.

FY 2013 INCENTIVE FEES

• Expect very strong performance at our hotels in New York, Boston, San Antonio, and New Orleans and expect more hotels globally will be paying incentive fees during the year.

G&A

• Expect G&A spending to grow more slowly in 2014.

CAPITAL ALLOCATION

• Expect to return roughly $1 billion to shareholders through share repurchases and dividends in 2013 and expect to continue to repurchase shares in 2014.

ATTRITIONS/CANCELLATIONS

• There's no real change in trend lines on attritions or cancellations. Obviously, in the Washington market the whole government shutdown had some impact.