BETHESDA, MD – July 14, 2010 – Marriott International, Inc. (NYSE:MAR) today reported second quarter 2010 results, exceeding the company’s diluted EPS expectations and prior year results.

SECOND QUARTER 2010 RESULTS

Second quarter 2010 net income totaled $119 million, a 42 percent increase compared to second quarter 2009 adjusted net income.  Diluted EPS totaled $0.31, a 35 percent increase from adjusted diluted EPS in the year-ago quarter.  On April 22, 2010, the company forecasted second quarter diluted EPS of $0.25 to $0.29.

Adjusted results for the 2009 second quarter excluded $57 million pretax ($30 million after-tax and $0.08 per diluted share) of restructuring costs and other charges and $17 million of non-cash charges ($0.05 per diluted share) in the provision for income taxes.

Reported net income totaled $119 million in the second quarter of 2010 compared to reported net income of $37 million in the year-ago quarter.  Reported diluted EPS was $0.31 in the second quarter of 2010 compared to reported EPS of $0.10 in the second quarter of 2009.

J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, said, “This is an exciting time for Marriott.  Business and leisure stays at our hotels are trending up.  Revenue per available room increased more than expected in the second quarter and room rates at company-operated hotels in North America rose for the first time in nearly two years.

“Totaling approximately 95,000 rooms, our development pipeline reflects expanding global opportunities.  We opened over 6,500 rooms during the quarter.  With strong interest by owners and franchisees in our brands, we expect to open over 30,000 rooms in 2010, including conversions to our new brand, the Autograph Collection.

“We are seeing major international growth.  At the end of the quarter, a record 39 percent of our development pipeline was outside North America as were two-thirds of our worldwide rooms under construction.  During the quarter, we opened superb new international hotels in Phuket, Shanghai, St. Petersburg and Budapest.

“We anticipate even more favorable pricing in the second half of 2010 and into 2011.  Combined with productivity improvements achieved over the last year, strong unit growth and increasing demand, we look forward to growing cash flow and strong earnings in 2010 and beyond.”

For the 2010 second quarter, REVPAR for worldwide comparable company-operated properties increased 9.9 percent (an 8.2 percent increase using constant dollars) and REVPAR for worldwide comparable systemwide properties increased 8.5 percent (a 7.0 percent increase using constant dollars).

International comparable company-operated REVPAR rose 14.1 percent (a 9.8 percent increase using constant dollars), including a 2.0 percent increase in average daily rate (a 1.8 percent decline using constant dollars) in the second quarter of 2010.

In North America, comparable company-operated REVPAR increased 7.9 percent (a 7.5 percent increase using constant dollars) in the second quarter of 2010.  On a constant dollar basis, REVPAR for comparable company-operated North American full-service and luxury hotels (including Marriott Hotels & Resorts, The Ritz-Carlton and Renaissance Hotels) increased 9.0 percent with a 1.7 percent increase in average daily rate.

Marriott added 46 new properties (6,568 rooms) to its worldwide lodging portfolio in the 2010 second quarter and 14 properties (2,311 rooms) exited the system during the quarter.  At quarter-end, the company’s lodging group encompassed 3,489 properties and timeshare resorts for a total of over 607,000 rooms.

The company’s worldwide pipeline of hotels under construction, awaiting conversion or approved for development totaled nearly 600 properties with approximately 95,000 rooms at quarter-end.

Early in the 2010 third quarter, the company launched Marriott Vacation Club Destinations (MVCD), a points-based program that offers increased usage and purchase flexibility to its owners.  While Marriott Vacation Clubs in North America will offer this improved product to new customers going forward, existing owners will retain full rights and privileges of interval ownership as well as the opportunity to participate in MVCD. 

totaled nearly $2.8 billion in the 2010 second quarter compared to approximately $2.6 billion for the second quarter of 2009.  Base management and franchise fees rose 10 percent to $241 million reflecting higher REVPAR and fees from new hotels.  Second quarter incentive management fees increased 31 percent to $46 million.  In the second quarter, 25 percent of company-managed hotels earned incentive management fees compared to 23 percent in the year-ago quarter.  Approximately 62 percent of incentive management fees came from hotels outside North America in the 2010 quarter compared to 61 percent in the 2009 quarter.

Worldwide comparable company-operated house profit margins increased 90 basis points in the second quarter reflecting higher occupancy, slight rate increases and strong productivity.

Owned, leased, corporate housing and other revenue, net of direct expenses, increased $10 million in the 2010 second quarter, to $31 million, including a $6 million favorable impact of hotel termination fees net of property closing costs.  Operating results at owned and leased hotels improved year-over-year with stronger occupancy and margins.