(1) As of December 31, 2011, there were 17 North American (U.S. and Canada) open and operating franchised Autograph Collection hotels. There were 12 North American franchised Autograph Collection hotels for which Smith Travel Research, Inc. (“Smith Travel”) data was available and which were open and operating at least one year as of December 31, 2011 (see “Basis and Assumptions” below). For the one-year period ending December 31, 2011, those franchised hotels achieved an average occupancy rate of 70.1%, an average daily room rate of $177.36, and an average revenue per available room (“RevPAR”) of $124.28. The occupancy rate for the 12 franchised hotels ranged from a high of 90.8% to a low of 51.3%. Six of the franchised hotels (50%) achieved an average occupancy rate equal to or greater than 70.1%. The average daily room rate ranged from a high of $267.04 to a low of $114.15. Seven of the franchised hotels (58%) achieved an average daily room rate equal to or greater than $177.36. The RevPAR ranged from a high of $242.41 to a low of $58.89. Six of these hotels (50%) achieved or exceeded the average RevPAR of $124.28.
The 12 North American franchised Autograph Collection hotels that had been open for at least one year as of December 31, 2011, based on Smith Travel data, achieved an average yield index of 118.8% for the one-year period ending December 31, 2011. The total yield index ranged from a high of 215.1% to a low of 65.9% for the hotels during that period. Seven North American franchised hotels (58%) achieved a total yield index equal to or greater than 118.8%.
(2) Marriott’s Consumer Marketing Department tracked the 12 North American franchised Autograph Collection hotels that had been open and operating for at least one year as of December 31, 2011. For those hotels, for the one-year period ending December 31, 2011, Autograph Collection hotel guests who were members of Marriott Rewards generated Marriott Rewards eligible revenue that is approximately 51% of the total room night revenue with an average daily spend of $236. The Marriott Rewards hotel room nights ranged from 4,700 to 26,400 and 4 North American franchised Autograph Collection Hotels (33%) achieved or exceeded the average of 15,000 paid Marriott Rewards room nights.
During 2011, the average number of gross room nights booked through the Marriott Channels was 30,574 for such 12 franchised Autograph Collection hotels that had been open for at least one year as of January 1, 2011, that were tracked in Marriott’s internal databases. As a percentage of gross room nights per hotel, the percentage generated by the Marriott Channels for such 12 franchised Autograph Collection hotels in 2011 ranged from 41.7% to 76.6%, and the average percentage was 57.3%. Four franchised Autograph Collection hotels (33%) had more than 57.3% of their gross room nights booked through the Marriott Channels.
(3) See Item 19, Franchise Disclosure Document for Autograph Collection dated 3/31/2012. [pdf] These statements relate to historical performance of franchised North American Autograph Collection hotels and are not guarantees of future performance. The figures above were based on hotels with at least two years of operating results. Hotels typically achieve lower results in their first year of operation. 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, reservations, Marriott Rewards room nights or yield index, as these figures will vary from hotel to hotel and will depend upon many variables and factors, including size, location, seasonality, competition, the length of time your hotel has been open or affiliated with Marriott, the condition of the hotel, the quality of service at the hotel, 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 committed pipeline projects as of 4th Quarter 2012.