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NEWS | Marriott plans to expand its footprint globally

Marriott International, Inc. has said it plans to open 4,000 hotels in 90 countries across its 14-brand lodging portfolio by 2014. With 115,000 hotel rooms in its development pipeline, it plans to open between 90,000 and 105,000 new rooms around the world from 2012 to 2014, not including the planned Gaylord acquisition. Marriott also expects to have more than 100 hotels across nine brands and nearly 40 markets in China by 2014.
Arne Sorenson, President & CEO, Marriott International, Inc. said, "China is a fitting place to present our tremendous global growth story and discuss our outstanding financial prospects. Even today, China is our second most important market after North America, representing roughly five percent of total fees. On average we expect to open a hotel a month in this country over the next three years." According to the Company, it could generate between USD 1.8 billion and USD 1.9 billion in worldwide fee revenue through 2014, assuming compound worldwide system wide RevPAR growth of six to eight percent. With strong cash flow expected, Marriott expects investment spending of USD 2.6 to 2.8 billion from 2012 through 2014. The company expects to recycle USD 800 million to USD 1 billion of capital during the period. Assuming this level of net investment, a six to eight percent RevPAR growth scenario and new debt issuances, the company could have USD 4.0 to 4.7 billion to return to investors or deploy in additional opportunistic investments over the next three years. Marriott plans to hire 30,000 employees in the country by the end of 2015. Currently, it has one million Chinese members in its 38 million member guest loyalty program, Marriott Rewards. "We are excited about our future, here in China, elsewhere in Asia and around the world. Our core values are led by putting people first. That, combined with a strong brand portfolio, hotels in outstanding locations, and operations and development closely aligned with local markets, will enable us to grow market share, enhance guest loyalty and drive long-term profitability for both our hotel owners and shareholders," added Sorenson.

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