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 WASHINGTON, Sept. 29 /PRNewswire/ -- Marriott Corporation (NYSE: MHS) today reported net income of $27 million for the 1993 third quarter ended Sept. 10, compared to $26 million a year ago.
 The company reported earnings per common share of 21 cents for the 1993 third quarter, unchanged from the year-earlier period. Sales totaled $2,028,000,000 in the 1993 quarter, compared to $1,948,000,000 last year.
 Marriott explained that the 1993 reported results reflected 5 cents per common share of non-cash income tax adjustments, principally the impact of federal income tax legislation enacted during the quarter. On a comparable basis, excluding the impact of the income tax adjustments as well as lodging dispositions in both years, Marriott posted a 7 percent increase in operating profit, 20 percent higher net income and a 15 percent increase in earnings per share for the 1993 quarter.
 J.W. Marriott Jr., chairman and president, said results for the 1993 third quarter reflected improved overall performance in both the company's lodging and contract service groups.
 Marriott said that, as announced earlier today, the company's board of directors has voted to proceed with the distribution of the special dividend scheduled to be completed on Oct. 8, under which Marriott Corporation will be divided into two companies. Third quarter 1993 results for Marriott International, Inc., the company whose shares will be distributed to Marriott Corporation shareholders in the special dividend, will be reported in mid-October.
 For the 1993 nine months, Marriott reported net income of $80 million, compared to $66 million for the 1992 period. The company reported earnings per common share of 63 cents in the 1993 nine months, vs. 51 cents for the year-earlier period. Sales were $6,263,000,000 in the 1993 nine months, vs. $5,937,000,000 in 1992.
 Results for the 1993 nine months reflected two changes in accounting principles -- accounting for income taxes in the first quarter, and a second quarter change in accounting for assets previously reported as held for sale. Excluding these accounting changes and the impact of the previously mentioned income tax adjustments and lodging dispositions, net income for the 1993 nine months was 38 percent higher and earnings per common share were up 43 percent.
 LODGING operations reported a three percent sales gain, while operating profit rose 11 percent in the 1993 third quarter, including profit realized in connection with the disposition of the equity interest in an international hotel. Sales and profits were higher in all lodging product lines. Comparable unit sales and occupancy rose solidly in all four hotel brands. Marriott operated or franchised 768 hotels, totaling about 171,000 rooms, at the quarter's end.
 Marriott Hotels, Resorts and Suites, the company's full-service lodging division, posted an increase of more than 2 percentage points in occupancy -- to the upper 70s -- for comparable U.S. hotels, while room rates were in line with year-earlier levels. Higher room sales and food and beverage sales reflected increased demand in the transient and group meeting segments, and the success of the division's rational pricing program.
 The company reported higher operating profits in its Courtyard, Residence Inn and Fairfield Inn divisions for the 1993 quarter. Courtyard, Marriott's moderate price lodging product, posted over 2 percentage points higher occupancy -- to the mid-80s -- for comparable units, aided by strong weekend business. Growth in average room rates exceeded inflation.
 Residence Inn, the company's extended stay product, posted over 2 percentage points increase in occupancy -- to the high 80s -- for comparable units, while average room rates were slightly above 1992. Continuing promotion of weekend business boosted occupancy.
 Fairfield Inn, Marriott's economy lodging offering, reported nearly 3 percentage points higher occupancy -- to the upper 80s -- for comparable units, and growth in average room rates exceeded inflation. A complimentary breakfast program rolled out earlier in 1993 helped fuel a strong increase in comparable unit sales.
 Marriott Ownership Resorts reported substantially higher operating profits during the 1993 third quarter, benefiting from continuing strong sales at existing timesharing projects and the impact of new national marketing programs. The division began sales at a new resort in Williamsburg, Va., during the quarter, and will start sales at a new resort in Park City, Utah, in October 1993.
 CONTRACT SERVICES reported a 6 percent sales gain and 2 percent higher operating profit for the 1993 third quarter.
 Marriott Management Services posted slightly higher sales and strong overall profit growth. A profit increase in the health care product line was generated by comparable units and new business. Results for other key product lines, including corporate services, higher education and school services, were unchanged.
 The Host/Travel Plazas division reported higher sales for the 1993 third quarter, while operating profits were down moderately. Sales benefited from the third quarter 1992 acquisition of the former Dobbs airport operations, but 1993 profit comparisons were hurt by a decrease in U.S. enplanements and higher rent at a key airport. Airline traffic, which had been boosted by "fare wars" in 1992, continued to be affected by route cutbacks by major carriers in 1993. Results for the travel plazas business were flat due to unit remodeling on one tollroad and reduced traffic on two other key tollroad systems.
 Marriott Senior Living Services reported increased sales and substantially higher operating profits in the 1993 quarter. Results benefited from the maturing of three properties opened in 1992, including a condominium retirement community which continued to have strong sales in the 1993 third quarter. Comparable occupancy increased nearly four percentage points to the low 90s.
 Marriott Distribution Services, which supplies food and related products to Marriott operations and external clients, posted increased sales and slightly higher operating profits in the 1993 quarter. Sales benefited from the opening of two distribution centers since mid-1992 and the start of service to a large regional restaurant chain during the 1993 quarter.
 Corporate expenses rose eight percent in the 1993 third quarter, primarily due to reduced joint venture results. Interest expense decreased seven percent from 1992, reflecting lower rates and lower average debt balances.
 Marriott's effective income tax rate jumped nearly 9 percentage points over the 1992 quarter, primarily due to the income tax adjustments cited above.
 Marriott Corporation, based in Washington, is a diversified hospitality company involved in lodging and contract services.
 12 weeks ended Sept. 10, 1993 Sept. 11, 1992
 (in millions, except per share amounts)
 Sales ? $ 2,028 $ 1,948
 Operating Profit (a) 134 124
 Income before Income Taxes 58 47
 Net Income 27 26
 Earnings Per Common Share (b) $ 0.21 $ 0.21
 Weighted Average Shares (b) 110.1 106.1
 36 weeks ended Sept. 10, 1993 Sept. 11, 1992
 (in millions, except per share amounts)
 Sales $ 6,263 $ 5,937
 Operating Profit (a) 383 344
 Income before Income Taxes 158 119
 Income before Accounting Changes 82 66
 Accounting Changes (c) (2) --
 Net Income 80 66
 Earnings Per Common Share (b)
 Before Accounting Changes $ 0.65 $ 0.51
 Accounting Changes (c) (0.02) --
 Net Income $ 0.63 $ 0.51
 Weighted Average Shares (b) 109.8 105.3
 (a) Before corporate expenses and interest.
 (b) Fully diluted.
 (c) Cumulative effects of changes in accounting for 1) income
 taxes, as required by FASB Statement No. 109; and 2) assets
 previously reported as held for sale; as reflected in 1993
 first and second quarter results, respectively.
 -0- 9/29/93
 /CONTACT: Nick Hill of Marriott Corporation, 301-380-7484/

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

DC-KD -- DC030 -- 6811 09/29/93 12:10 EDT
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Publication:PR Newswire
Date:Sep 29, 1993

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