MARRIOTT "REINVENTS" COURTYARD

Opens 500th Courtyard by Marriott Hotel, Introduces Major Product Redesign


Marriott International, Inc. (NYSE:MAR) announced today that Courtyard by Marriott officially opened its 500th hotel worldwide. The 500th Courtyard is located in Hannover, Germany, and represents the brand's 40th property outside of the United States. Heralded as the first Marriott brand to reach 500 hotels, Courtyard will open an additional 35 properties by year-end 2000. In the U.S., Courtyard is also launching a major "reinvention" of the brand that will dramatically change and enhance the look, feel and functionality of its hotels.

Growth outside the U.S. will be based upon the brand’s successful domestic strategy, with Marriott establishing a foothold with its full-service Marriott brand prior to introducing Courtyard as its moderately priced lodging product. Courtyard plans to more than double its international presence to over 90 hotels by year-end 2004.

Currently, the brand’s portfolio features locations in key international gateway and business destinations such as London, England; Paris, France; Frankfurt, Germany; Buenos Aires, Argentina; and Beijing China. Courtyard hotels under construction, or in advanced stages of development include Roissy Park (near Paris), France; Pudong Shanghai, China; and Dusseldorf, Germany. Courtyard is also renovating a 100-room hotel in Petra, Jordan, that is scheduled to open later this year.

Earlier this month in Fair Oaks, Virginia, Courtyard unveiled the prototype for a new product and service concept designed primarily for its U.S. hotels. The "reinvention" of the Courtyard focuses on meeting the needs of today's traveler while maintaining the brand's solid positioning as an industry leader in the moderate-tier lodging segment. The new design brings innovation and style to the category that will further distinguish Courtyard from its competition.

Property conversions will begin later this year, and the traditional Courtyard lobby will be changed to offer a more open, bright and functional space. Modifications include a walk-around front desk for more guest interaction and personalized service, and a business library featuring well-lit individual workstations with power outlets, high-speed data ports and ergonomic seating. Guests also will enjoy a new pantry-style, 24-hour "grab and go" food and beverage area offering pre-made gourmet sandwiches and salads made fresh daily. Traffic flow will be improved along with upgrades in décor and furnishings. The brand plans to initiate changes to the guest rooms in 2001.

"Courtyard's global expansion and brand reinvention is an important step in our continued growth and ability to maintain customer preference," said Craig Lambert, senior vice president, select service lodging, Marriott International. "We are making these changes to Courtyard from a position of strength in the marketplace. The brand currently enjoys a 25 percent premium in REVPAR versus its competitive set and a 16 percent premium in occupancy."*

Courtyard by Marriott also participates in the company’s award-winning Marriott Rewards program, the world’s largest frequent stay program with 13 million members, offering more than 2,000 participating hotels worldwide.

Designed by business travelers, Courtyard provides guests with a combination of casual comfort and an array of services. Featuring larger guest rooms, many overlooking a landscaped central courtyard, Courtyard locations range from airports and office parks to downtown and several revitalized historical buildings. Courtyard currently has 459 hotels in operation in the United States; 12 in Germany; 10 in the United Kingdom; six in China; five in Canada, three in Australia; two in Austria; one in France; one in Mexico; and one in Argentina.

Marriott International recently celebrated reaching 2,000 properties worldwide. Over a five-year period between 1999 and 2003, the company plans to add 1,000 hotels and 175,000 guest rooms. Currently, more than two thirds are already open or in development.