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MARRIOTT REPORTS STRONG INCREASE IN 1993 FIRST QUARTER EARNINGS

 WASHINGTON, April 14 /PRNewswire/ -- Marriott Corporation (NYSE: MHS) today reported earnings per common share (before the effect of the required change in accounting for income taxes) of 14 cents for the 1993 first quarter ended March 26, compared to 7 cents in the 1992 quarter.
 On the same basis, Marriott reported after-tax income of $19 million, compared to $11 million in the 1992 quarter. Operating profit totaled $113 million in the 1993 quarter, up from $95 million a year ago. Sales were $2,080,000,000, compared to $1,953,000,000 in the 1992 first quarter.
 The change in accounting for income taxes resulted in an increase in Marriott's 1993 first quarter net income of $30 million (28 cents per common share). Including the effect of this required accounting change, the company reported net income of $49 million and earnings per common share of 42 cents.
 J.W. Marriott Jr., chairman and president, said results for the 1993 first quarter benefited from strong operating profit increases in both of the company's business groups, adding that overall performance exceeded expectations. "We are off to a good start for 1993," said Marriott, "and despite the mixed signals in the economic environment, we are optimistic about the balance of the year."
 Marriott noted that the company continues to move ahead with its planned special dividend, which will divide Marriott into two separate companies -- one focused on management of lodging and service businesses, the other on capital-intensive businesses and real estate. The proposed dividend will be presented to shareholders for ratification at the company's 1993 annual meeting, now scheduled for June 22. Distribution of the dividend is planned for this summer.
 Lodging operations reported a 17 percent increase in operating profit on a 3 percent sales gain in the 1993 first quarter. Excluding the impact of hotel dispositions in 1992 and lower deferred gain amortization in 1993, the group posted a 22 percent higher operating profit for the 1993 quarter, with increases in all of its major businesses. Comparable unit sales rose in all four hotel brands. Across Marriott's lodging product lines, seven properties were added during the quarter. Marriott had 753 hotels, totaling about 168,400 rooms, at the end of the 1993 quarter.
 Marriott Hotels, Resorts and Suites, the company's full-service lodging division, posted an increase of nearly 3 percentage points in occupancy for comparable U.S. hotels -- to the mid-70s -- while room rates were in line with year-earlier levels. Business improved in both the transient and group segments. International hotels also posted higher profits.
 The company reported strong gains in operating profit in its Courtyard, Residence Inn and Fairfield Inn divisions. Courtyard, Marriott's moderate price lodging product, achieved more than 2 percentage points higher occupancy for comparable units -- to the


upper 70s -- while growth in average room rates exceeded inflation. A strong house profit increase for Courtyard also reflected enhanced efficiencies in food service operations.
 Residence Inn, the company's extended stay product, posted more than 2 percentage points improvement in occupancy -- to nearly 80 percent -- and higher average room rates. Occupancy benefited from weekend promotions, and profits were up solidly.
 Fairfield Inn, Marriott's economy lodging offering, reported an increase in average room rates which exceeded inflation, while occupancy was down 1 percentage point to the mid-70s. The division rolled out a new complimentary continental breakfast across its system during the quarter.
 Marriott Ownership Resorts achieved significant increases in sales and operating profit during the quarter, reflecting strong timeshare sales at developments in Hilton Head, S.C.; Orlando, Fla.; Palm Desert, Calif.; and Vail, Colo.
 Contract Services reported a 25 percent higher operating profit for the 1993 quarter, on an 11 percent sales gain. Profit increases were reported by three of the four major businesses in the group.
 Marriott Management Services posted solid profit improvement, reflecting growth in the health care, school services and corporate services product lines. These gains were partially offset by slightly reduced results in higher education and Canadian operations.
 The Host/Travel Plazas division experienced higher sales, but lower profits. The September 1992 acquisition of the Dobbs' airport concessions aided results for the quarter. However, results for travel plazas dropped sharply due to extreme winter weather which hurt highway travel and delayed construction on facilities undergoing conversion to branded concepts. Higher costs were partially associated with the Dobbs' integration, while lower results for the sports and entertainment business reflected reduced customer counts at certain key facilities.
 Marriott Senior Living Services posted substantially higher sales and profits, as comparable occupancy increased more than 9 percentage points to the low 90s. Results benefited from three new properties opened in 1992, including a condominium retirement community which had strong sales in the 1993 quarter.
 Marriott Distribution Services, which supplies food and related products to Marriott operations and external clients, generated strong increases in sales and profits in the 1993 quarter. These resulted from new customers in California, and contributions from a Florida distribution center opened in mid-1992.
 Corporate expenses increased 8 percent in the 1993 quarter, primarily due to the timing of certain employee benefit allocations. Interest expense, net of interest income, increased 2 percent over 1992, reflecting lower capitalized interest.
 Marriott Corporation, based in Washington, is a diversified hospitality company involved in lodging and contract services.
 MARRIOTT CORPORATION
 Financial Highlights
 (in millions, except per share amounts)
 12 weeks ended March 26, 1993 March 27, 1992
 Sales $ 2,080 $ 1,953
 Operating Profit(A) 113 95
 Income before Income Taxes 35 20
 Income before Accounting Change 19 11
 Accounting Change(B) 30 --
 Net Income 49 11
 Earnings Per Common Share(C)
 Before Accounting Change $ .14 $ .07
 Accounting Change(B) .28 --
 Net Income .42 .07
 Weighted Average Shares(C) 108.7 103.8
 Notes:
 (A) Before corporate expenses and interest.
 (B) Cumulative effect of the change in accounting for income
 taxes required by FASB Statement No. 109.
 (C) Fully diluted.
 -0- 4/14/93
 /CONTACT: Robert T. Souers of Marriott Corporation, 301-380-1339/
 (MHS)


CO: Marriott Corporation ST: District of Columbia IN: LEI SU: ERN

TW-IH -- DC011 -- 5631 04/14/93 10:50 EDT
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Date:Apr 14, 1993
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