MARRIOTT CORPORATIO

EXHIBIT 1
Financial History of Marriott Corporation
(dollars in millions, except per share amounts)

1978

1979

1980

1,174.1
107.1
23.7
83.5
35.4
48.1
54.3
101.2

1,426.0
133.5
27.8
105.6
43.8
61.8
71.0
117.5

1,633.9
150.3
46.8
103.5
40.6
62.9
72.0
125.8

1,000.3
826.9
309.9
37.5%
418.7

1,080.4
891.9
365.3
41.0%
413.5

1,214.3
977.7
536.6
54.9%
311.5

0.25
0.29
0.026
2.28
2.43
183.6

0.34
0.39
0.034
2.58
3.48
160.5

0.45
0.52
0.042
2.49
6.35
125.3

13.9%

17.0%

23.8%

Summary of Operations
Sales
EBIT
Interest expense
Income before taxes
Income taxes
Income from continuing operations
Net income
Funds from continuing operations
Capitalization and Returns
Total Assets
Total Capital
Long-term debt
% to total capital
Shareholders' equity
Per Share and Other Data
Earnings per share:
Continuing operations
Net income
Cash dividends
Shareholders' equity
Market price at year end
Shares outstanding (millions)
Return on avg. shareholder's
equity

MARRIOTT CORPORATION

EXHIBIT 1
istory of Marriott Corporation

ons, except per share amounts)

1981

1982

1983

1984

1985

1986

1987

1,905.7
173.3
52.0
121.3
45.2
76.1
86.1
160.8

2,458.9
205.5
71.8
133.7
50.2
83.5
94.3
203.6

2,950.5
247.9
62.8
185.1
76.7
108.4
115.2
272.7

3,524.9
297.7
61.6
236.1
100.8
135.3
139.8
322.5

4,241.7
371.3
75.6
295.7
128.3
167.4
167.4
372.3

5,266.5
420.5
60.3
360.2
168.5
191.7
191.7
430.3

6,522.2
489.4
90.5
398.9
175.9
223.0
223.0
472.8

1,454.9
1,167.5
607.7
52.1%
421.7

2,062.6
1,634.5
889.3
54.4%
516.0

2,501.4
2,007.5
1,071.6
53.4%
628.2

2,904.7
2,330.7
1,115.3
47.9%
675.6

3,663.8
2,861.4
1,192.3
41.7%
848.5

4,579.3
3,561.8
1,662.8
46.7%
991.0

5,370.5
4,247.8
2,498.8
58.8%
810.8

0.57
0.64
0.051
3.22
7.18
130.8

0.61
0.69
0.063
3.89
11.70
132.8

0.78
0.83
0.076
4.67
14.25
134.4

1.00
1.04
0.093
5.25
14.70
128.8

1.24
1.24
0.113
6.48
21.58
131.0

1.40
1.40
0.136
7.59
29.75
130.6

1.67
1.67
0.170
6.82
30.00
118.8

23.4%

20.0%

20.0%

22.1%

22.1%

20.6%

22.2%

MARRIOTT CORPORATION
EXHIBIT 2
Financial Summary of Marriott by Business Segment, 1982-7
(dollars in millions)
1982

1983

1984

1985

1986

Lodging:
Sales
Operating Profit
Identifiable Assets
Depreciation
Capital Expenditures

1,091.7
132.6
909.7
22.7
371.5

1,320.5
139.7
1,264.6
27.4
377.2

1,640.8
161.2
1,786.3
31.3
366.4

1,898.4
185.8
2,108.9
32.4
808.3

2,233.1
215.7
2,236.7
37.1
966.6

Contract Services:
Sales
Operating Profit
Identifiable Assets
Depreciation
Capital Expenditures

819.8
51.0
373.3
22.9
127.7

950.6
71.1
391.6
26.1
43.8

1,111.3
86.8
403.9
28.9
55.6

1,586.3
118.6
624.4
40.2
125.9

2,236.1
154.9
1,070.2
61.1
448.7

Restaurants:
Sales
Operating Profit
Identifiable Assets
Depreciation
Capital Expenditures

547.4
48.5
452.2
25.1
199.6

679.4
63.8
483.0
31.8
65.0

707.0
79.7
496.7
35.5
72.3

757.0
48.2
582.6
34.8
128.4

797.3
79.1
562.3
38.1
64.0

-7

1987
2,673.3
263.9
2,777.4
43.9
1,241.9

2,969.0
170.6
1,237.7
75.3
112.7

879.9
82.4
567.6
42.1
79.6

MARRIOTT CORPORATION
EXHIBIT 3
Information on comparable hotel and restaurant companies.

Marriott Corporation

Arith
Average
Return
10.57%

1987
Equity
Market Revenues
Beta
Leverage (billions)
1.11
41%
6.52

Hotels:
Hilton Hotels Corporation
Holiday Corporation
La Quinta Motor Inns
Ramada, Inc.

17.16%
32.89%
-5.19%
10.57%

0.76
1.35
0.89
1.36

14%
79%
69%
65%

0.77
1.66
0.17
0.75

Restaurants:
Church's Fried Chicken
Collins Foods International
Frisch's Restaurants
Lubys Cafeterias
McDonalds
Wendy International

1.79%
24.32%
45.83%
15.50%
23.93%
7.76%

1.45
1.45
0.57
0.76
0.94
1.32

40%
10%
6%
1%
23%
21%

0.39
0.57
0.14
0.23
4.89
1.05

MARRIOTT CORPORATION
EXHIBIT 4
Annual Holding Period Returns for Selected Securities and
Market Indexes, 1926-1987.

Years

Arith
Average
---------

Standard
Deviation
---------

3.54%
1.01%
3.67%
7.80%
10.32%
6.16%
5.46%

0.94%
0.40%
0.56%
0.83%
0.75%
0.19%
0.22%

4.58%
4.14%
2.39%
1.95%
17.85%
24.44%
-2.69%

7.58%
4.17%
6.45%
11.15%
14.26%
17.30%
10.28%

Short-term Treasury bills:

1926-87
1926-50
1951-75
1976-80
1981-85
1986
1987
Long-term US Gov't bond returns:
1926-87
1926-50
1951-75
1976-80
1981-85
1986
1987

Long-term high-grade corp bond returns:

1926-87
1926-50
1951-75
1976-80
1981-85
1986
1987

5.24%
4.82%
3.05%
2.70%
18.96%
19.85%
-0.27%

6.97%
3.45%
6.04%
10.87%
14.17%
8.19%
9.64%

S&P 500 Composite Stock Returns:

1926-87
1926-50
1951-75

12.01%
10.90%
11.87%

20.55%
27.18%
13.57%

1976-80
1981-85
1986
1987

14.81%
15.49%
18.47%
5.23%

14.60%
13.92%
17.94%
30.50%

MARRIOTT CORPORATION
EXHIBIT 5
Spreads between S&P 500 Composite Returns and Bond Rates.
Arith
Standard
Years
Average Deviation
--------- --------Spread between S&P 500 and short-term US Treasury bills:
1926-87
1926-50
1951-75
1976-80
1981-85
1986
1987

8.47%
9.89%
8.20%
7.01%
5.17%
12.31%
-0.23%

20.60%
27.18%
13.71%
14.60%
14.15%
17.92%
30.61%

Spread between S&P 500 and long-term US Gov't bonds:

1926-87
1926-50
1951-75
1976-80
1981-85
1986
1987

7.43%
6.76%
9.48%
12.86%
-2.36%
-5.97%
7.92%

20.78%
26.94%
14.35%
15.58%
13.70%
14.76%
35.35%

Spread between S&P 500 and long-term high-grade corp bonds:

1926-87
1926-50
1951-75
1976-80
1981-85
1986
1987

6.77%
6.08%
8.82%
12.11%
-3.47%
-1.38%
5.50%

20.31%
26.70%
13.15%
15.84%
13.59%
14.72%
34.06%