Looking Statements and Non GAAP Financial Measures
Transcript of Looking Statements and Non GAAP Financial Measures
September 8, 2014
Security Analyst MeetingMARRIOTT INTERNATIONAL
Forward‐Looking Statements andNon‐GAAP Financial Measures
This material contains “forward‐looking statements” within the meaning of federal securities laws, includingRevPAR, profit margin and earnings trends; the number of lodging properties we may add in future years; ourpotential investment spending and share repurchases; and similar statements concerning possible futureevents or expectations that are not historical facts. We caution you that these statements are not guaranteesof future performance and are subject to a number of risks and uncertainties, including changes in marketconditions; the continuation and pace of the economic recovery; supply and demand changes for hotel rooms;competitive conditions in the lodging industry; relationships with clients and property owners; the availabilityof capital to finance hotel growth and refurbishment; and other risk factors that we identify in our most recentquarterly report on Form 10‐Q; any of which could cause actual results to differ materially from theexpectations we express or imply here. We make these statements as of September 8, 2014 and we assumeno obligation to publicly update or revise any forward‐looking statement, whether as a result of newinformation, future events or otherwise.
Throughout the Security Analyst Meeting presentations we report certain financial measures, each identifiedwith the symbol "†," that are not required by, or presented in accordance with United States generallyaccepted accounting principles (“GAAP”). We discuss our reasons for reporting these non‐GAAP measures andreconcile each to the most directly comparable GAAP measures at www.marriott.com/investor.
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Executive Vice President and Chief Marketing & Commercial Officer
LINNARTZ
Stephanie
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NEWNOWNEXT
CONSUMER
CONSUMER16
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SIGNATURE LIFESTYLE EXTENDED STAY ENTERTAINMENT
LUXURY
UPPER UPSCALE
UPSCALE
UPPER MODERATE
MODERATE
ECONOMY
Portfolio Power
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International Arrivals
25M
278M
525M
1.1B
1.8B
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Gen X/YGLOBAL MARKETS—WORKING AGE POPULATION
Gen Y & BeyondGen X
Boomers
201473%
27%
41%
32%
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Gen X/YGLOBAL MARKETS—WORKING AGE POPULATION
Gen Y & BeyondGen X
Boomers
201473%
202487%
27%
41%
32%13%
60%
27%
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Gen Y—Distinctly Different
Values
Attitudes
Behaviors
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Gen Y—Distinctly Different
CHARACTERISTICS
Design and Style
Accustomed to Luxury
Blend Work and Play
Tech Dependent
Sharing Generation
CHARACTERISTICS
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New Brands Turning Heads
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HOTELS THAT DON’T ACT LIKE HOTELS
The New York EDITION
$8.5Btarget consumer opportunity in the U.S.
2hotels
9in global pipeline
WHERE GOOD THINGS COME TOGETHER
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The Miami Beach EDITION
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The London EDITION
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The Cosmopolitan of Las Vegas, NV
INDIVIDUAL AND ORIGINAL
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Hotel am Steinplatz, Germany
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Hotel Adagio, San Francisco, CA
61hotels
12,358rooms globally
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The Algonquin Hotel Times Square, NY
More than 100hotels expected
by 2017
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LIFESTYLE EXPERIENCE IN THE UPPER‐MODERATE TIER
Palau de Bellavista, Girona, Spain
43hotels in global
pipeline
LIFESTYLE EXPERIENCE IN THE UPPER MODERATE TIER
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New Orleans Bourbon/French Quarter Area, LA
73hotels in Europe
Openings in North America begin in October
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Cuzco, Madrid, Spain
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Ambassadeur Antibes‐Juan les Pins, France
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STYLE, ATTITUDE, VALUE
1hotel
15in global pipeline
STYLE, ATTITUDE, VALUE
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Opportunity exists in Europe
Only 28%of economy supply
is branded
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Broad Brand Appeal
View from The Ritz‐Carlton, Tokyo, Japan
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REDEFINING LUXURY IN TODAY’S WORLD
The Ritz‐Carlton, Lake Tahoe, Truckee, CA
85hotels
34in global pipeline
REDEFINING LUXURY IN TODAY’S WORLD
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The Ritz‐Carlton Key Biscayne, Miami, FL
130RevPAR Index
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OFFERING APPROACHABLE LUXURY
JW Marriott Hotel Pune, India
65hotels
48in global pipeline
doubled customer awareness
OFFERING APPROACHABLE LUXURY
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JW Marriott Hotel Mumbai, India
World’s
Top 5Luxury Hotel
Brands
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REINVENTING LIFESTYLE ON A GLOBAL SCALE
Renaissance Providence Downtown Hotel, RI
159hotels
44in global pipeline
REINVENTING LIFESTYLE ON A GLOBAL SCALE
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REIMAGINING EVERYTHING
Bangkok Marriott Hotel Sukhumvit, Thailand
493hotels
109in global pipeline
REIMAGING EVERYTHING
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WE PARTNERED WITH FELLOW TRAVELINNOVATOR VIRGIN AMERICA TO ASK:
HOW CAN WE MAKE THE JOURNEY AS BRILLIANT AS THEDESTINATION?
SU BM I T I D E A
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Baltimore Marriott Waterfront, MD
MARKETING
doubledad exposure
increasedbrand consideration
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0
50,000
100,000
150,000
200,000
250,000
Social MediaACTIONS
Marriott Hotels
HiltonHotels
WestinHotels
HyattHotels
Sheraton Hotels
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modern
designedwith Gen X & Y
feedback
Portland Marriott Downtown Waterfront, OR
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Bethesda Marriott, MD
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San Francisco Airport Marriott Waterfront, CA
M CLUB LOUNGE
73%choose
Marriott Hotels for next stay
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Amsterdam Marriott Hotel, Netherlands
GROUP BUSINESS
33%of room revenue in North America
30%globally
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A key reason why I would plan
a meeting at Marriott
MEETING SERVICES APP
“
”
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GLOBALIZATION55
Fairfield by Marriott Bengaluru Rajajinagar, India
customizedbrands
localization
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Fairfield by Marriott Bengaluru Rajajinagar, India
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Fairfield by Marriott Bengaluru Rajajinagar, India
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Fairfield by Marriott – Brazil Prototype
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Protea Hotel Kruger Gate, Skukuza, South Africa
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Relating to Gen Y
Reinventing
Tailoring global brands to local sensibilities
MARRIOTT PORTFOLIO
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SALES & MARKETING ENGINES
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7xgreater account
coverage
7‐pointincrease in
group RevPAR Index (5 years)
CHANGES NOW
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TRANSFORMING THE LOYALTY LANDSCAPE 64
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47Mmembers
50%paid/stayed room nights
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Best Hotel Loyalty Program
7 years
Turnberry Isle Miami, Aventura, Autograph Collection, FL
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The Ritz‐Carlton, Dove Mountain, Marana, AZ
#1 Best Hotels Rewards
Program
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Highest OverallSatisfaction AmongTravel‐Hospitality
Programs
Instant
Easy
Shareable
Meaningful
Surprising
GEN Y CONSUMERS
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Boscolo Exedra Roma, Autograph Collection, Italy
Earn points for sharing Marriott experiences
Low‐point redemption options
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JW Marriott Hotel Mumbai, India
60%Gen X and Y
accessed in over
80countries
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JW Marriott Marquis Hotel Dubai, UAE
12‐week offering starting July
High‐value, limited availability
Purchase with cash/points
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Announce in e‐blast
Available for 24 hours
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"I was able to book the JW Marriott Hotel in Hong Kong for 20000 points per night!”
milepoint
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TRANSFORMING THE LOYALTY LANDSCAPE
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35M+visits a month
nearly
$10Bgross room
bookings in 2013
MARRIOTT.COM
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Grand Bohemian Hotel Orlando, Autograph Collection, FL
40%from mobile devices
Ranked #1Lodging company in mobile sales
by Internet Retailer
MARRIOTT.COM
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Courtyard New York Manhattan/Chelsea, NY
70%of Gen X & Y
customers want mobile
check‐in/check‐out
MOBILE CHECK‐IN/CHECK‐OUT
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4,000hotels scheduled for
year‐end
400Kcheck‐ins,
100Kcheck‐outs
3.9Mapp downloads
Manila Marriott Hotel, Philippines
MOBILE CHECK‐IN/CHECK‐OUT
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Courtyard Stafford Quantico, VA
Scalable
Impeccable execution
MOBILE CHECK‐IN/CHECK‐OUT
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AC Santo Mauro, Autograph Collection, Madrid, Spain
MOBILE
78%stronger impression
of Marriott vs. competition
81%of Gen Ys would recommend
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DOUBLING DOWN ON DIGITAL
Digital conversations
Room selection
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NEWNOWNEXT
CONSUMER
CONSUMER85
Linnartz EndnotesSlide 18 – International ArrivalsUNWTO Tourism Highlights 2014 Edition
Slides 19 & 20 – Gen X/YU.S. Census Bureau, International Database
Slide 24 – EDITIONSTR Luxury Industry Revenue, December 2013
Slide 29 – Autograph CollectionAs of June 30, 2014
Slide 31 & 32 – AC HotelsAs of June 30, 2014
Slide 35 – MoxyAs of June 30, 2014
Slide 36 – MoxySTR Existing Supply Report, December 2011
Slide 41 – Ritz‐CarltonAs of June 30, 2014
Slide 42 – Ritz‐CarltonSTR Index Data, Last 12 months as of June 2014
Slide 43 – JW MarriottOpen and pipeline hotels as of June 30, 2014Doubled customer awareness from 2010 to 2013, U.S. Luxury Brand Tracking Survey, December 2013
Slide 44 – JW MarriottJ.D. Power & Associates 2012 and 2013
Slide 45 – RenaissanceAs of June 30, 2014
Slide 46 – MarriottAs of June 30, 2014
Slide 48 – MarriottMillward Brown, LRW, Hall & Partners (2013‐2014)
Slide 49 – Social MediaTrack Monitoring, January – June 2014
Slide 53 – Marriott Group BusinessFY2013 North America and worldwide systemwide room revenue by trip purpose
Slide 63 – Changes NowSTR Index Data for FY 2007 and FY2013
Slide 65 – Marriott RewardsNumber of Marriott Rewards members as of June 2014Percent of stayed and paid room nights for June 2014YTD
Slide 66 – Marriott RewardsJ.D. Power 2014 Hotel Loyalty/Rewards Program Satisfaction ReportFreddie Awards 2014 Hotel Program of the Year; also in 2013, 2012, 2011, 2010, 2009 and 2008
Slide 67 – Marriott RewardsU.S. News and World Report 2014‐2015 Best Rewards ProgramBond Brand Loyalty, The Loyalty Report 2014
Slide 78 – Marriott.comVisits per month YTD through 8/16/14Gross room bookings represent reservations made.
Slide 79 – Marriott.comFY2013 percent of visits to marriott.com via mobile devicesInternet Retailer, November 2013
Slide 81 – MobileCheck‐in statistics since launch in November 2013Check‐out statistics since launch in February 2014App downloads from August 2011 through August 2014, Distimo