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MARRIOTT REPORTS HIGHER SALES AND NET INCOME FOR ITS FISCAL 1992

 WASHINGTON, Feb. 4 /PRNewswire/ -- Marriott Corporation (NYSE: MHS) today reported net income of $85 million for its fiscal year ended Jan. 1, 1993, compared to $82 million a year ago. Marriott reported earnings per common share of 64 cents for 1992, compared to 80 cents in 1991. Sales totaled $8,722,000,000 vs. $8,331,000,000 in 1991.
 The company said that 1992 fourth quarter and full year results included pretax transaction costs of $21 million (13 cents per share) associated with its plan to divide Marriott into two separate companies by issuing a special dividend. Comparisons of 1992 operating results to those for 1991 also were affected by the impact of lodging dispositions in both years, recognition of depreciation expense and interest cost for recently opened lodging and senior living service properties, lower deferred gain amortization in 1992 and the issuance of preferred stock in late 1991. The company said that, excluding these non-comparable items, operating profit increased by 11 percent, net income by 56 percent, and earnings per common share by 50 percent in 1992.
 J.W. Marriott Jr., chairman and president, said reported results were in line with the company's forecast disclosed in a press release on Jan. 13, 1993. Marriott said 1992 results benefited from strong improvements in four of the company's five lodging divisions and its senior living service operations. He said performance of other divisions continued to be affected by the economy. Marriott added that the company's operating cash flow, before interest expense, income taxes, proceeds from sales of timeshare notes and changes in working capital, was approximately $680 million in 1992, up from $650 million in 1991.
 Marriott also commented that Marriott Corporation's plans to divide into two separate companies through a special dividend were proceeding, with a target completion date for the transaction in mid- 1993. One company will be named Marriott International, Inc., and will include Marriott's lodging, food and facilities management and senior living services operations. The other company -- the present company renamed Host Marriott Corporation -- will retain Marriott's real estate properties as well as its airport and tollroad concession businesses. After the special dividend, shareholders will have an identical number of shares in each company.
 The transaction is conditioned upon, among other things: declaration of the special dividend by Marriott Corporation's board of directors, ratification of the special dividend by a majority of Marriott shareholders and receipt of an affirmative ruling from the Internal Revenue Service that the special dividend will be tax-free.
 For the 1992 fourth quarter, Marriott Corporation reported net income of $19 million (13 cents per common share), compared to $27 million (25 cents per common share) for the 1991 period. Sales totaled $2,785,000,000, compared to $2,729,000,000 in the 1991 fourth quarter. Excluding the non-comparable items cited above, net income and earnings per common share both were up 65 percent in the 1992 quarter.
 Lodging operations reported four percent increases in both sales and operating profit for fiscal 1992. Excluding non-comparable items, operating profit advanced 14 percent, reflecting significant improvement for all product lines except full-service hotels, which were flat. Occupancy for comparable hotels rose in all four major lodging segments, and average room rates increased in two of the four lines. At year-end, the company's lodging business encompassed 746 properties with over 167,000 rooms, including a net addition of 48 hotels (approximately 5,800 rooms) in 1992.
 Marriott Hotels, Resorts and Suites reported 1992 occupancy rates for comparable units in the mid-70s, up 2 percentage points from 1991, while room rates were flat. Group business improved in 1992, while transient business was off slightly from year-earlier levels. Full-service lodging traditionally trails other businesses in an economic recovery cycle, and results reflected intense competition in this segment. Sales and profits for international hotels were up from year-earlier levels, aided by the addition of several franchised properties in the United Kingdom.
 Courtyard, the company's moderate price lodging product, posted occupancy rates for comparable units in the upper 70s, nearly 8 percentage points above 1991 levels, while room rates were off slightly from last year. Residence Inn, Marriott's extended stay product, reported a gain of nearly three points in occupancy for comparable units to the low 80s and a small increase in average rate. Fairfield Inn, Marriott's economy lodging product, reported more than three points higher occupancy for comparable units, to the upper 70s, and room rate growth which matched inflation. Results for all three divisions benefited from reduced administrative costs.
 Marriott Ownership Resorts posted significantly higher profits in 1992 due to increased sales at existing timesharing properties, the addition of two new properties and greater cost efficiencies in marketing and product development.
 Contract Services reported a 6 percent increase in sales and three percent higher operating profit for 1992. All four major divisions in the group reported higher sales.
 Marriott Management Services, which provides food service and facilities management for a broad range of organizations, benefited from increased profits in its health care, higher education and school services divisions. Overall results increased modestly as a consequence of losses at a new laundry facility and lower profits for Canadian operations.
 Host/Travel Plazas results were helped by operating efficiencies, and the impact of low summer airfares on its airport concessions, the September 1992 acquisition of the Dobbs airport concessions, and improved performance in stadiums and arenas. However, lower profits reflected reduced results on several major tollroads served by the company and at merchandise operations in Las Vegas and Atlantic City.
 Marriott Senior Living Services reported strong sales and profit increases in 1992, aided by the sale of condominium units at a new retirement community in the Washington area, and the maturing of units opened in prior years. Occupancy for comparable units increased by more than 9 percentage points to nearly 90 percent.
 Marriott Distribution Services, which distributes food and related products to company operations and external customers, had higher sales in 1992. Profits were slightly lower due to costs associated with new warehouse openings, and reduced volume at certain warehouses resulting from the company's disposition of one of its restaurant divisions.
 Corporate expenses decreased 3 percent in 1992, excluding costs associated with the planned special dividend, reflecting reduced staffing levels. Net interest expense declined two percent in 1992 due to reduced average borrowings as well as lower interest rates, which were partially offset by lower interest income and reduced capitalized interest.
 Washington-based Marriott Corporation is a diversified hospitality company involved in lodging and contract services.
 MARRIOTT CORPORATION FINANCIAL HIGHLIGHTS
 (in millions, except per share amounts)
 Fiscal Year Ended(A)
 Jan. 1, 1993 Jan. 3, 1992
 Sales $ 8,722 $ 8,331
 Operating Profit(B) 496 478
 Income Before Income Taxes 150 145
 Net Income 85(D) 82
 Earnings Available
 for Common Stock 68(D) 81
 Earnings Per
 Common Share(C) $ 0.64(D) $ 0.80
 Fully Diluted Shares 106.5 101.5
 Quarter Ended(A)
 Jan. 1, 1993 Jan. 3, 1992
 Sales $ 2,785 $ 2,729
 Operating Profit(B) 152 153
 Income Before Income Taxes 31 46
 Net Income 19(D) 27
 Earnings Available
 for Common Stock 14(D) 26
 Earnings Per
 Common Share(C) $ 0.13(D) $ 0.25
 Fully Diluted Shares 106.9 101.9
 (A) Fiscal 1992, which ended on Jan. 1, 1993, included 52 weeks versus 53 weeks in fiscal 1991, which ended on Jan. 3, 1992. Fourth quarter included 16 weeks for fiscal 1992, and 17 weeks for fiscal 1991.
 (B) Before corporate expenses and interest.
 (C) Fully diluted.
 (D) Includes pretax transaction costs of $21 million (13 cents per share) associated with the plan to divide Marriott into two separate companies.
 -0- 2/4/93
 /CONTACT: Robert T. Souers of Marriott Corporation, 301-380-1339/
 (MHS)


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

MH -- DC008 -- 2888 02/04/93 10:37 EST
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