(1) As of December 31, 2012, there were 24 North American (U.S. and Canada) open and operating Autograph Collection hotels; all of which were franchised. There were 15 North American franchised hotels for which Smith Travel Research, Inc. (Smith Travel) data was available and which, as of December 31, 2012, were open and operating as franchised Autograph Collection hotels at least 1 year and, in the case of U.S. hotels, satisfied each of the following conditions (the Conditions). They did not undergo at any time during the preceding 2 years: (1) a rooms renovation that resulted in 5% or more of the total number of available rooms at such hotel being taken out of service for the year in which the renovation occurred; (2) a public space renovation that resulted in revenue displacement during the year in which such renovation occurred of 5% or more of the annual available room nights at the average daily rate of the most recent year prior to the renovation during which the hotel satisfied each of the Conditions; and (3) an expansion that resulted in an increase in revenues of 5% or more of the annual available room nights (before the expansion) at the average daily rate of the most recent year prior to the expansion during which the hotel satisfied each of the Conditions. Such hotels are referred to as Smith Travel Included Franchised Hotels (STIFH). For the 1 year period ended December 31, 2012, the STIFH achieved an average occupancy rate of 73.1%. The occupancy rate for the STIFH ranged from a high of 86.9% to a low of 51.4% and 9 of the STIFH (60%) achieved an average occupancy rate equal to or greater than 73.1%. The average occupancy rate is the total occupied rooms reported divided by total available rooms for the entire period. For the 1 year period ended December 31, 2012, the STIFH achieved an average daily room rate of $175.18. The average daily room rate for the STIFH ranged from a high of $310.98 to a low of $121.85 and 8 of the STIFH (53%) achieved an average daily room rate equal to or greater than $175.18. The average daily room rate is the gross room sales divided by total occupied rooms. For the 1 year period ended December 31, 2012, the STIFH achieved an average revenue per available room (RevPAR) of $128.12. The RevPAR of the STIFH ranged from a high of $239.19 to a low of $72.70 and 7 of the STIFH (47%) achieved or exceeded the average RevPAR of $128.12. The average RevPAR is the gross room sales divided by total available rooms. For the 1 year period ended December 31, 2012, the STIFH achieved an average RevPAR Index of 120.4%. The RevPAR Index of the STIFH ranged from a high of 213.4% to a low of 68.3% and 9 STIFH (60%) achieved an average RevPAR Index equal to or greater than 120.4%. RevPAR Index measures the fair share of the amount of available revenue a hotel (or hotel brand) receives relative to its competitive set (as defined by each hotel or brand) within a given market.
(2) There were 17 North American franchised Autograph Collection hotels that, as of December 31, 2012, were open and operating as franchised Autograph Collection hotels at least 1 year and, in the case of U.S. hotels, satisfied each of the Conditions (the North American Included Franchised Hotels (NAIFH)). During 2012, the average number of gross room nights booked through the Marriott Channels for NAIFH was 36,345 gross room nights per hotel. Gross room nights for hotels ranged from 427 for a small NAIFH with fewer than 50 rooms to 159,372 for a NAIFH with more than 150 rooms and 5 of the NAIFH (29.4%) had more than 36,345 gross room nights booked through the Marriott Channels. As a percentage of gross room nights per hotel, the percentage booked through the Marriott Channels for NAIFH in 2012 ranged from 35.0% to 97.5%, and the average percentage was 60.9% and 8 of the NAIFH(47.1%) had at least 60.9% of their gross room nights booked through the Marriott Channels. For the 1 year period ended December 31, 2012, hotel guests at NAIFH who were members of Marriott Rewards generated Marriott Rewards eligible revenue that was approximately 27% of the total room night revenue at such hotels, with an average daily spend of $219. The total of all Marriott Rewards room nights for such NAIFH was approximately 349,000, generating approximately $76,416,000 in room revenue, not including taxes and tips. For such NAIFH, Marriott Rewards members paid for an average of 20,500 room nights. These Marriott Rewards hotel room nights ranged from 0 to 111,300 and 4 NAIFH (24%) achieved or exceeded the average of 20,500 paid Marriott Rewards room nights.
( (3) See Item 19, Franchise Disclosure Document for Autograph Collection Hotels dated 3/31/2013. These statements relate to historical performance of North American Autograph Collection hotels that satisfy certain criteria as detailed above and are not guarantees of future performance. The figures above were based on hotels with at least one year of operating results. Hotels typically achieve lower results in their first year of operation. The Autograph Collection had 24 open and operating franchised hotels in North America as of December 31, 2012, and only 15 of those hotels had Smith Travel data available, were open and operating as franchised Autograph Collection hotels for at least one year as of December 31, 2012 and, in the case of U.S. hotels, satisfied each of the Conditions. Seven of such 15 hotels were owned and operated by the same person as part of a chain of hotels prior to joining the Autograph Collection. One year of data for a limited number of hotels is not enough historical data to equate to the results for hotels that we expect to stabilize after three years in the Autograph Collection, but it is the only information currently available. We do not claim or expect that you can or will expect to achieve the same average occupancy rate, average daily room rate, average RevPAR, RevPAR Index, reservations from the Marriott Channels, or Marriott Rewards room nights, as these figures will vary from hotel to hotel and will depend upon many variables and factors, including size, location, seasonality, competition, general economic conditions, the length of time your hotel has been open or affiliated with us, the condition and attractiveness of the hotel, the perception of your hotel by customers utilizing our distribution channels, the reputation for quality of service at the hotel, how effectively you participate in our programs and market your affiliation with us, and the efficiency with which you operate your hotel. Operating results are subject to numerous risks and uncertainties, including economic conditions, public reaction to terrorist attacks and political unrest, supply and demand changes for hotel rooms, competitive conditions in the hospitality industry, relationships with customers and property owners, and the availability of capital.
(4) Source: Marriott internal database. Global distribution figures represent open properties and pipeline projects as of Year-End 2013.