Marriott says income rose 19% before effects of tax charge

September 30, 1993

Bethesda-based Marriott Corp. said yesterday that its third-quarter earnings remained flat compared with a year ago, primarily because of a noncash item reflecting tax legislation enacted during the quarter.

Excluding the effect of the one-time charge to earnings, the company said net income rose nearly 20 percent, to $58 million.

All four of the company's hotel chains -- Marriott Hotels, Courtyard by Marriott, Residence Inn and Fairfield Inn -- posted average occupancy gains of at least 2 percentage points since last year's third quarter. Average occupancy percentage rates ranged from the mid-70s to the high 80s, the company said. The company's occupancy has been consistently higher than industry averages, which have been in the low-to-mid-60s.

The company also said its board of directors gave final approval to its plan to split Marriott into two companies. Marriott International Inc. will manage about 750 hotels in the four chains and also run food-service and senior-living facility management businesses.

The remainder of the company will be renamed Host Marriott Corp., and will retain the approximately 140 hotels that Marriott owns. Most hotels bearing the company name are owned by other companies and will be managed by Marriott International. Host Marriott will also own retirement communities, Marriott highway rest stops and airport restaurant businesses.

Holders of Marriott stock as of Sept. 30 will receive one share of Marriott International Inc. for each share of Marriott Corp. they own as of Oct. 8. Existing shares will convert to Host Marriott shares.

Marriott Corp.

.. .. .. .. .. .. .. .. .. .. ..Ticker .. .. .. .. .Yesterday's

.. .. .. .. .. .. .. .. .. .. ..Symbol .. .. .. .. ..Cls...Chg.

.. .. .. .. .. .. .. .. .. .. ...MHS .. .. .. .. .. ..30 3/4 ...+Period ended

Sept. 10 .. .. .. .. .. .. .3rd qtr. .. ...Year ago .. ...Chg.

Revenue .. .. .. .. .. .. $2,028,000 .. ..$1,948,000 .. .+4.1%

Net Income .. .. .. .. .. ...$27,000 .. .. ..$26,000 .. .+3.8%

Primary EPS .. .. .. .. .. .. .$0.21 .. .. .. .$0.21 .. ..0.0%

.. .. .. .. .. .. .. .. .. .. .36 wks. .. .. Year ago .. .Chg.

Revenue .. .. .. .. .. .. ..$6,263,000 .. ..$5,937,000 ..+5.5%

Net Income .. .. .. .. .. .. ..$80,000 .. .. ..$66,000 .+21.2%

Primary EPS .. .. .. .. .. .. ...$0.63 .. .. .. .$0.51 .+23.5%

Figures in thousands (except per share data.)

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