FOURTH QUARTER 2011 RESULTS Fourth quarter 2011 adjusted net income totaled $159 million, an 18 perc

• At year-end, the company's worldwide pipeline of hotels under construction, awaiting conversion or approved for development totaled cheapest car rental ewr over 110,000 rooms, including over 52,000 rooms outside North America;
The company completed the spin-off of its Timeshare segment on November 21, 2011. Because of Marriott's significant continuing involvement in the business after the spin-off through licensing and other agreements, Timeshare segment results for periods prior to the spin-off date continue to be included in the company's cheapest car rental ewr historical cheapest car rental ewr financial results. However, cheapest car rental ewr to evaluate the performance of the company excluding the impact of the timeshare business, the company is adjusting results and previously provided guidance as if the spin-off cheapest car rental ewr had occurred on the first day of fiscal 2010. Timeshare spin-off adjustments include items such as the removal of timeshare business operating cheapest car rental ewr results and spin-off transaction costs, as well as the addition of license fees and other related cheapest car rental ewr items. See pages A-1 through A-6 for reported results, the timeshare spin-off adjustments and adjusted results.
FOURTH QUARTER 2011 RESULTS Fourth cheapest car rental ewr quarter 2011 adjusted net income totaled $159 million, an 18 percent increase compared to fourth quarter 2010 adjusted net income. Adjusted diluted EPS totaled $0.46, a 31 percent increase from adjusted diluted EPS in the year-ago cheapest car rental ewr quarter. On October 5, 2011, the company forecasted fourth quarter diluted EPS of $0.45 to $0.50, which assumed the timeshare spin-off would occur at year-end 2011. Adjusting for the timeshare spin-off as if the spin-off had occurred the first day of fiscal 2010, the company's guidance would have been $0.40 to $0.44 as shown on page A-18.
Reported net income totaled $141 million in the fourth quarter of 2011 compared to $173 million in the year-ago quarter. Reported diluted EPS was $0.41 in the fourth cheapest car rental ewr quarter of 2011 compared to $0.46 in the fourth quarter of 2010.
Adjusted net income and adjusted diluted EPS for the fourth quarter of 2010 exclude $22 million ($13 million cheapest car rental ewr after-tax and $0.04 per diluted share) of timeshare spin-off adjustments. Adjusted results for the fourth quarter of 2010 also exclude cheapest car rental ewr $25 million after-tax ($0.07 per diluted share) of impairment charges and certain tax items, including cheapest car rental ewr an $85 million ($0.22 per diluted share) non-cash benefit in the provision for income taxes.
J.W. Marriott, Jr., chairman and chief executive officer of Marriott International, said, "2011 was a great year. Occupancies and room rates improved at our hotels in most markets around the world. We increased our global hotel distribution and spun off our timeshare business as Marriott Vacations Worldwide Corporation, a new separately traded public company. Return on invested capital increased dramatically and meaningful top line growth in our lodging business helped drive base and franchise fees beyond their prior peak in 2008. Adjusted earnings per share was outstanding and we returned over $1.5 billion to our shareholders through share repurchases and dividends.
"Our system has never looked cheapest car rental ewr better. We opened 210 properties with nearly 32,000 rooms during the year, including 80 hotels flying our new AC Hotels by Marriott flag in Europe. With great momentum in international markets, the growth rate for our hotel rooms outside the U.S. was higher than within the U.S. The Autograph Collection made its debut in Europe adding nine properties, including the four spectacular Boscolo hotels. And our EDITION cheapest car rental ewr brand kicked into high gear with new hotel announcements, including the iconic Clock Tower building in New York. In total, our hotel development pipeline increased to over 110,000 rooms as we signed new management and franchise agreements for more than 320 hotels with over 50,000 rooms in 2011, most for hotels cheapest car rental ewr yet to open. "We are bullish about the long-term growth prospects for both Marriott and the global lodging industry. With a growing middle class and rapid economic growth in many emerging markets, global demand is increasing steadily. In the U.S., supply growth remains modest. As a result, we expect revenue per available room to continue cheapest car rental ewr to improve in most markets. Marriott is well positioned to benefit from these global macro trends. Our products are high quality, our guest satisfaction is very high, and our brands are preferred by owners and franchisees. New hotel openings and renovations of existing hotels continue to energize our brands, and with new designs and services, we continue to find new ways to engage our guests. We expect 2012 to be an exciting year."
For the 2011 fourth quarter, REVPAR for worldwide comparable systemwide properties increased 5.9 percent (a 6.3 percent increase using actual dollars). Excluding the Middle East and Japan markets, worldwide comparable systemwide REVPAR rose 6.2 percent (a 6.5 percent increase using actual dollars).
International comparable systemwide REVPAR rose 4.1 percent (a 5.9 percent increase using actual dollars), including a 4.5 percent increase in average daily rate (a 6.3 percent increase cheapest car rental ewr using actual dollars) in the fourth quarter of 2011. Excluding the Middle East and Japan markets, international comparable systemwide REVPAR increased 5.6 percent (a 6.9 percent increase using actual dollars).
In North America, comparable cheapest car rental ewr systemwide REVPAR increased 6.4 percent in the fourth quarter of 2011, including a 3.2 percent increase in average daily rate. REVPAR for comparable systemwide North American full-service and luxury hotels (including Marriott Hotels Resorts, cheapest car rental ewr The Ritz-Carlton and Renaissance Hotels) increased 5.8 percent cheapest car rental ewr with a 3.4 percent increase in average daily rate. REVPAR for comparable cheapest car rental ewr systemwide North American cheapest car rental ewr limited-service hotels (including Courtyard, Residence Inn, SpringHill cheapest car rental ewr Suites, cheapest car rental ewr TownePlace Suites and Fairfield Inn Suites) increased 7.0 percent in the fourth quarter with a 3.4 percent increase in average daily rate.
Marriott added 40 new properties (6,925 rooms) to its worldwide lodging cheapest car rental ewr portfolio in the 2011 fourth quarter, including Shanghai Marriott City Centre, the Renaissance and Courtyard Doha City Center hotels and the Scrub Island Resort, Spa and Marina, an Autograph Collection hotel in the British Virgin Islands. Nine properties (1,946 cheapest car rental ewr rooms) exited the system during the quarter. At year-end, the company's lodging group encompassed 3,718 properties and timeshare resorts for a total of 643,196 rooms.
The company's worldwide pipeline cheapest car rental ewr of hotels under construction, awaiting conversion or approved for development totaled nearly 700 properties with over 110,000 rooms at year-end. During 2011, the company signed new management cheapest car rental ewr and franchise agreements for more than 320 hotels cheapest car rental ewr with over 50,000 rooms.
MARRIOTT ADJUSTED REVENUES totaled $3.4 billion in the 2011 fourth quarter compared to approximately $3.2 billion for the fourth quarter of 2010. Adjusted base management and franchise fees rose 9 percent to $346 million reflecting higher REVPAR and fees from new hotels. Incentive fees declined 1 percent reflecting lower incentive fees in the Middle East and continued weakness in the greater Washington, DC market. In the fourth quarter, 27 percent of worldwide company-managed hotels earned incentive management fees compared to 26 percent in the year-ago quarter.
Worldwide comparable cheapest car rental ewr company-operated house profit margins increased 60 basis points in the fourth quarter reflecting higher occupancy, rate increases and strong productivity. House profit margins for comparable company-operated properties outside North America cheapest car rental ewr increased cheapest car rental ewr 20 basis points and North American comparable company-operated house profit margins increased 100 basis points from the year-ago quarter.
Owned, leased, corporate housing and other revenue, net of direct expenses, increased $15 million cheapest car rental ewr in the 2011 fourth quarter, to $56 million, largely due to higher credit card and residential branding fee revenues and improved operating results at owned and leased hotels.
Adjusted Earnings before Interest Expense, Taxes, Depreciation and Amortization cheapest car rental ewr (EBITDA) Adjusted EBITDA totaled $316 million in the 2011 fourth quarter, a 12 percent increase over 2010 fourth quarter adjusted EBITDA of $282 million. See pages A-12 for the EBITDA and adjusted EBITDA calculations.
FULL YEAR 2011 RESULTS For the full year 2011, adjusted net income totaled $475 million, a 23 percent increase over full year 2010 adjusted net income. Adjusted diluted EPS totaled $1.31, an increase of 28 percent from adjusted diluted EPS a year ago.
Reported net income totaled $198 million for full year 2011 compared to reported net income of $458 million a year ago. Reported diluted EPS was $0.55 for 2011 compared to reported cheapest car rental ewr diluted EPS of $1.21 for 2010.
Adjusted net income cheapest car rental ewr and adjusted diluted EPS for full year 2011 exclude $300 million ($260 million after-tax and $0.72 per diluted share) of timeshare spin-off adjustments. Adjusted results for the full year 2011 also exclude $28 million pretax ($17 million after-tax and $0.05 per diluted share) of non-cash impairment and other charges.
Adjusted net income and adjusted diluted EPS for full year 2010 exclude $76 million ($47 million after-tax and $0.12 per diluted share) of timeshare spin-off adjustments. Adjusted results for full year 2010 also exclude $25 million after-tax ($0.07 per diluted share) of impairment charges and certain tax items, including an $85 million ($0.23 per diluted cheapest car rental ewr share) non-cash benefit in the provision for income taxes.
REVPAR for the company's worldwide comparable systemwide properties increased 6.4 percent (a 7.1 percent increase using actual dollars) in 2011. Excluding the Middle East and Japan markets, worldwide comparable systemwide REVPAR rose 6.9 percent (a 7.4 percent increase using actual dollars).
International comparable systemwide REVPAR for 2011 increased 6.3 percent (a 9.6 percent increase using actual dollars), including a 0.9 percent increase in occupancy and a 4.9 percent increase in average cheapest car rental ewr daily