THIS YEAR WE CELEBRATE TWO ANNIVERSARIES AT MARRIOTT: THE 80TH YEAR SINCE OUR FOUNDING, AND THE 50TH YEAR THAT WE’VE BEEN IN THE LODGING BUSINESS.

EVEN AT MY AGE, THAT SEEMS LIKE A LONG TIME. AND WE CERTAINLY ASK OURSELVES: WHAT DOES IT TAKE TO ENDURE?

WHAT MAKES A COMPANY SUSTAINABLE DESPITE ECONOMIC UPS AND DOWNS, REVOLUTIONS IN TECHNOLOGY AND WORLD AFFAIRS AND CONSTANTLY CHANGING CONSUMER HABITS AND PREFERENCES?

WHY DO SOME COMPANIES LAST, WHILE SO MANY OTHERS THAT APPEAR TO DOMINATE THE LANDSCAPE WITHER AWAY AND VANISH?

AFTER 51 YEARS IN THE BUSINESS, I HOPE I HAVE BEEN ABLE TO LEARN A FEW BASIC PRINCIPLES. IN A SERVICE INDUSTRY LIKE OURS, PEOPLE ARE EVERYTHING.

AS MY DAD USED TO SAY, TREAT YOUR PEOPLE WELL, AND THEY’LL TREAT YOUR CUSTOMERS WELL – AND THEY’LL KEEP COMING BACK AND BACK AND BACK.

IN 1927, MY MOTHER AND FATHER STARTED OUT WITH A NINE-SEAT A&W ROOT BEER STAND IN WASHINGTON, D.C.... AND LATER THAT AUTUMN, ADDED MEXICAN FOOD, HAMBURGERS AND HOT DOGS TO THE MENU.

THEY CALLED THEIR PLACE ‘THE HOT SHOPPE’ AND THEY GREW THE BUSINESS INTO A LARGE CHAIN OF DRIVE-THRU RESTAURANTS.

MY DAD FIRST DISCOVERED HOW IMPORTANT PEOPLE WERE ONE DAY WHEN THE COOK DIDN’T SHOW UP. AND THE LADY WHO WAS FILLING UP THE ROOT BEER MUGS DIDN’T SHOW UP, EITHER. AND HE HAD A REAL PROBLEM.

HE REALIZED MORE THAN EVER, THAT JOB NUMBER ONE WAS TO TAKE CARE OF HIS PEOPLE. WHEN THEY WERE SICK IN THE HOSPITAL, HE VISITED THEM.

WHEN THEY GOT IN TROUBLE, HE GOT THEM OUT OF TROUBLE – WHEREVER THEY WERE – AND BROUGHT THEM BACK TO WORK. WHEN THEY WANTED TO TALK TO HIM, HE WAS THERE TO LISTEN.

MY DAD CREATED THE FIRST HEALTH CARE SYSTEM IN THE INDUSTRY BACK IN 1935, WHEN HE HIRED A FULL-TIME DOCTOR TO TAKE CARE OF HIS EMPLOYEES.

THIS WAS THE DEPRESSION. NO ONE HAD HEALTH CARE IN THE 1930s. THE PEOPLE WHO WORKED AT THE HOT SHOPPES BACK THEN WERE PAID NORMAL WAGES FOR THAT SORT OF WORK, WHICH WERE LOW, AND THEY COULDN’T AFFORD MEDICAL CARE.

SO MY FATHER HIRED A DOCTOR, PUT HIM ON THE PAYROLL, AND 5 YEARS LATER, HE HIRED A SURGEON. BUT TODAY, TAKING CARE OF YOUR PEOPLE MEANS MORE THAN JUST HEALTHCARE. WE HAVE TO PROVIDE GOOD BENEFITS ... AND PAY COMPETITIVELY. BUT WE ALSO HAVE TO INSPIRE OUR PEOPLE.

WE TALK A LOT ABOUT CULTURE AT MARRIOTT, AND THE HEART OF THAT CULTURE IS THAT ALL PEOPLE SHOULD BE TREATED WITH DIGNITY AND RESPECT.

THE LEAD SERVER IN OUR HOTEL IN SAN DIEGO – ANNIE SAENZ– TOLD ME ABOUT A YOUNG MAN WHO HAD RECENTLY EMIGRATED FROM AFRICA AND WAS NEWLY EMPLOYED AS A DISHWASHER. SHE DIDN’T KNOW THE MAN’S NAME, YET. SO, SHE SIMPLY ADDRESSED HIM AS “SIR.”

SHE SAYS THAT WHEN SHE SAID THAT, HE LOOKED COMPLETELY ASTONISHED.

NO ONE IN HIS HOME COUNTRY HAD EVER CALLED HIM “SIR” BEFORE. IT MADE HIM HAPPY, JUST A LITTLE BIT PROUD. AND MAYBE GAVE HIM JUST THE CONFIDENCE AND COURAGE HE NEEDED IN A NEW AND CHALLENGING JOB.

PART OF RESPECT AND DIGNITY IS GIVING PEOPLE OPPORTUNITY.

NEARLY HALF OF THE MANAGERS IN OUR HOTELS HAVE COME FROM THE RANKS OF OUR HOURLY EMPLOYEES. SOME HAVE RISEN TO EXECUTIVE-LEVEL JOBS – LIKE THE PRESIDENT OF OUR INTERNATIONAL BUSINESS, ED FULLER, WHO STARTED AS A NIGHT WATCHMAN, AND OUR HEAD OF NORTH AMERICAN LODGING OPERATIONS, BOB MCCARTHY, WHO STARTED AS A WAITER.

GIVING PEOPLE OPPORTUNITY DOESN’T JUST MAKE THEM FEEL BETTER – IT HELPS THEM COMMIT TO THE LONG TERM SUCCESS OF OUR BUSINESS.

I ASKED ONE OF OUR EXECUTIVES, WHOM WE’D RECENTLY HIRED AWAY FROM A COMPETITOR, WHAT THE AVERAGE LENGTH OF EMPLOYMENT WAS FOR MANAGERS AT HIS FORMER COMPANY. HE SAID A COUPLE OF YEARS AT MOST.

THE GENERAL MANAGERS AT OUR FULL SERVICE HOTELS AVERAGE ALMOST 24 YEARS WITH MARRIOTT. – OUR SENIOR TEAM – 35 YEARS.

I THINK THAT’S SUSTAINABILITY.

WE KNOW THAT KIND OF LOYALTY, EXPERIENCE AND BENCHSTRENGTH…DELIVERS A BETTER EXPERIENCE FOR OUR GUESTS…AND A STRONGER COMPANY FOR OUR SHAREHOLDERS.

WE’RE ABOUT OPPORTUNITY AT EVERY LEVEL.

UPWARDS OF 50 DIFFERENT NATIONALITIES WORK AT OUR VARIOUS HOTELS – HERE IN THE U.S. WE’VE GOT PEOPLE FROM MONGOLIA WORKING IN MINNEAPOLIS AND CHINESE ASSOCIATES IN OUR BOSTON PROPERTIES.

WE’VE GOT EMPLOYEES FROM HAITI AND MEXICO, BUT WE STILL BRING IN PEOPLE FROM JAMAICA ON 6-MONTH WORK PERMITS BECAUSE LABOR MARKETS ARE SO TIGHT.

IMMIGRATION IS A HOT BUTTON ISSUE THESE DAYS, BUT WE SIMPLY CAN’T GET THE WORK DONE WITHOUT WORKERS FROM OTHER COUNTRIES.

EVERY NATION HAS THE RIGHT – AND, THE OBLIGATION – TO SECURE ITS BORDERS AND REGULATE IMMIGRATION.

BUT I PERSONALLY BELIEVE THAT THE MORE OPPORTUNITY WE PROVIDE, THE MORE OPPORTUNITY WE WILL ALL HAVE, AND THAT AMERICA WILL BE STRONGER IF WE ALLOW PEOPLE THE CHANCE TO BUILD A BETTER LIFE FOR THEMSELVES AND HELP THEIR FAMILIES LIVE THE AMERICAN DREAM.

PART OF THE WAY WE HELP OUR EMPLOYEES IS WITH A PROGRAM CALLED SED DE SABER, WHICH MEANS “THIRST FOR KNOWLEDGE.” IT’S A SPANISH-TO-ENGLISH ELECTRONIC LEARNING PROGRAM.

IN OUR PILOT PROGRAM, OVER 85% OF THE PARTICIPANTS GAINED IN ENGLISH PROFICIENCY – AND THEY’VE IMPROVED AN AVERAGE OF 65%. AND NOW IT’S AVAILABLE IN ALL OF OUR NORTH AMERICAN HOTELS.

SUSTAINABILITY ALSO MEANS STAYING AHEAD OF THE TRENDS.

WE MUST KEEP UP WITH TECHNOLOGY – BOTH THE FLAT SCREEN TVs WITH INTERCONNECTIVITY THAT GUESTS DEMAND ... AND THE BACK-OFFICE WIZARDRY THAT ALLOWS US TO COMPETE IN THE 21ST CENTURY.

AND INFORMATIONWEEK CONFIRMED THIS WHEN THEY RANKED US NUMBER ONE IN OUR INDUSTRY FOR THE INNOVATIVE USE OF TECHNOLOGY FOR THE SECOND STRAIGHT YEAR.

WE’RE ALSO REINVENTING THE LODGING EXPERIENCE WITH MUSIC, LIGHTING, EVEN AROMA THERAPY.

I’VE HAD A HARD TIME PRONOUNCING THAT WORD. BUT I’VE SMELLED IT – AND IT WORKS.

WE’RE MAKING HOTELS A WHOLE NEW EXPERIENCE, WITH LOBBIES, BARS AND PUBLIC SPACES THAT BECOME PLACES OF ACTIVITY AND CONNECTIVITY.

FOR OUR BUSINESS MODEL, SUSTAINABILITY MEANS GLOBAL EXPANSION. WE’VE GOT 30 HOTELS IN CHINA AND ANOTHER 17 UNDER CONSTRUCTION.

WE’RE DOUBLING THE NUMBER OF OUR HOTELS IN INDIA, STRENGTHENING OUR POSITION IN THE MIDDLE EAST, EXPANDING IN MOSCOW AND BERLIN. WE’RE THE LARGEST OPERATOR OF HOTELS IN ENGLAND.

SOME 3 BILLION PEOPLE HAVE JOINED THE GLOBAL ECONOMY IN THE LAST 15 YEARS. THAT’S HALF THE WORLD’S POPULATION, AND AS LIVING STANDARDS INCREASE IN ASIA AND EASTERN EUROPE, SO DOES TRAVEL.

THE MIDDLE CLASS IN INDIA IS NOW ABOUT THE SAME SIZE AS THE ENTIRE POPULATION OF THE UNITED STATES – AND THERE ARE SOME 250 THOUSAND MILLIONAIRES IN CHINA.

NOT SURPRISINGLY, THE NUMBER OF VISITORS TO OUR HOTELS FROM CHINA, INDIA AND KOREA HAS BEEN RISING BY DOUBLE DIGITS.

BUT WE CAN’T REMAIN COMPETITIVE GLOBALLY WITH OUR CURRENT VISA SYSTEM.

IN A RECENT SURVEY, 39 PERCENT SAID THE U.S. HAD THE WORST ENTRY PROCESS – FOLLOWED BY THE MIDDLE EAST, WHICH WAS CITED BY ONLY 6 PERCENT.

RIGHT NOW, 7 OUT OF 10 PEOPLE WHO APPLY FOR A VISA TO THE U.S. DON’T GET ONE – WITH THE RESULT THAT THE U.S. IS NOW THIRD BEHIND FRANCE AND SPAIN AS A TRAVEL DESTINATION.

WE OUGHT TO BE NUMBER ONE.

THE DECLINE IN MARKET SHARE HAS COST OUR ECONOMY AN ESTIMATED $286 BILLION IN THE LAST 13 YEARS.

CLEARLY, SECURITY CONCERNS MUST COME FIRST. BUT WE’RE SHOOTING OURSELVES IN THE FOOT ECONOMICALLY.

FINDING WAYS OF FIXING THE VISA PROCESS TO ATTRACT MORE INTERNATIONAL VISITORS TO AMERICA MUST BE A CRITICAL ELEMENT OF OUR NATION’S DIPLOMATIC PROCESS.

WHEN WE SELL A ROOM HERE IN NEW YORK CITY, THAT IS AN EXPORT, WE HAVE A VERY POSITIVE BALANCE OF PAYMENT IN TOURISM, BUT IT NEEDS TO BE HIGHER.

VISITORS TO AMERICA DOUBLE THEIR POSITIVE VIEW OF OUR COUNTRY AND OUR PEOPLE. WE CERTAINLY NEED MORE OF THIS.

FOR OUR COMPANY, SUSTAINABILITY ALSO MEANS A COMMITMENT TO SOCIAL RESPONSIBILITY. AS ALL OF YOU KNOW, WE ARE NOT A PHILANTHROPIC ORGANIZATION. OUR FIRST OBLIGATION IS TO OUR STOCKHOLDERS, AND EMPLOYEES AND OUR CUSTOMERS.

BUT I ALSO KNOW THAT WE CAN DO BETTER BY DOING GOOD. RIGHT NOW THAT COMES DOWN TO FRENCH FRIES. WE SOLD 6 MILLION POUNDS OF THEM LAST YEAR IN AMERICA.

AS OF FEBRUARY 15, THEY’RE NO LONGER BEING PREPARED WITH TRANS FATS. WE’VE ALSO TAKEN THEM OUT OF BAKED GOODS AND SALAD DRESSINGS. THAT ELIMINATES TRANS FATS FROM THE VAST MAJORITY OF OUR FOOD.

LAST YEAR, ALL OF OUR HOTELS IN NORTH AMERICA BECAME COMPLETELY SMOKE-FREE – INCLUDING GUEST ROOMS, PUBLIC SPACES AND EMPLOYEE WORK AREAS – AND THE GUESTS LOVE IT, ACCORDING TO OUR SURVEYS.

EVEN SMOKERS TELL US THEY HATED TO STAY IN A “SMOKING” ROOM AND WE TRIED HARD FOR YEARS TO GET THE SMELL OF STALE SMOKE OUT, BUT COULDN’T.

WE FIGURE THAT IF WE HELP KEEP OUR GUESTS ALIVE LONGER THEY’LL HAVE AN OPPORTUNITY TO RETURN.

THESE DAYS, CUSTOMERS WANT US TO BE GREEN-FRIENDLY. SO WE’VE REPLACED HUNDREDS OF THOUSANDS OF STANDARD LIGHT BULBS WITH FLUORESCENT LIGHTING. THIS CHANGE REDUCES OUR OVERALL LIGHTING COSTS BY ABOUT 65%.

AND WE'RE SAVING LOTS OF MONEY AND ENERGY BY REPLACING THOUSANDS OF OUR OUTDOOR SIGNS WITH L.E.D. AND FIBER OPTIC TECHNOLOGY; AND 400,000 SHOWER HEADS WITH NEW ONES THAT USE LESS WATER.

WE REDUCE, REUSE AND RECYCLE THROUGHOUT OUR OPERATIONS – LOWERING COSTS AND DELIVERING MORE DOLLARS TO THE BOTTOM LINE.

WE WERE THE FIRST HOTEL COMPANY TO PROACTIVELY JOIN THE EPA’S CLIMATE LEADERS PROGRAM, AND ARE ON TRACK TO MEET OUR GREENHOUSE GAS REDUCTION GOAL OF 6 PERCENT PER AVAILABLE ROOM BY 2010. AND WE’VE BEEN AWARDED MORE ENERGY STAR LABELS THAN ANY OTHER HOTEL COMPANY.

WE’VE GOT TO KEEP UP WITH CHANGING TIMES – BUT WE HAVE TO PRESERVE THOSE VALUES THAT NEVER CHANGE – THE KIND OF VALUES EXEMPLIFIED BY SO MANY OF OUR EMPLOYEES.

LIKE TUNI KYI. WHEN HE WAS TEN YEARS OLD, THE BURMESE ARMY CONFISCATED HIS FAMILY FARM AND THREW HIS FATHER INTO PRISON. RELEASED AFTER FOUR YEARS ON THE CONDITION HE LEAVE THE COUNTY, HIS FATHER WAS FORCED TO TAKE 14 YEAR OLD TUNI AND THE REST OF HIS FAMILY INTO EXILE IN THAILAND BEFORE EVENTUALLY MAKING IT TO THE U.S.

WHEN TUNI JOINED MARRIOTT HE FELT RIGHT AT HOME BECAUSE OF THE FAMILY FEELING AND THE FACT THAT THE SUPERVISORS REALLY CARED ABOUT THE PEOPLE WHO WORKED FOR THEM.

THAT, HE SAYS, “REALLY HIT HOME.”

TUNI’S BEEN WITH US FOR 27 YEARS NOW AND WAS ON THE TEAM THAT OPENED OUR FIRST HOTEL IN HONG KONG. SINCE THEN HE HAS HELPED OPEN SOME 37 HOTELS IN COUNTRIES THROUGHOUT ASIA, INCLUDING CHINA AND VIETNAM.

PEOPLE LIKE TUNI HAVE BUILT OUR COMPANY AND THEY HAVE ESTABLISHED A CULTURE THAT ATTRACTS AND WELCOMES AND GIVES PEOPLE THE OPPORTUNITY TO DEVELOP THEIR SKILLS AND TALENTS AND TO PROVIDE FOR BETTER LIVING FOR THEIR FAMILIES.

OUR CULTURE VALUES PEOPLE AND WE WORK TO KEEP IT SO.

THERE'S A STORY ABOUT AN OLD MAN WHO WALKED THE BEACH AT DAWN. AS HE WALKED, HE NOTICED A YOUNG MAN AHEAD OF HIM PICKING UP STARFISH AND FLINGING THEM INTO THE SEA.

CATCHING UP WITH THE YOUTH, THE MAN ASKED HIM WHY HE WAS DOING THIS. THE ANSWER WAS THAT THE STRANDED STARFISH WOULD DIE IF LEFT UNTIL THE MORNING SUN DRIED THEM OUT.

"BUT THE BEACH GOES ON FOR MILES AND THERE ARE MILLIONS OF STARFISH," COUNTERED THE OLD MAN. "HOW CAN YOUR EFFORT MAKE ANY DIFFERENCE?"

THE YOUNG MAN LOOKED AT THE STARFISH IN HIS HAND AND THREW IT TO THE SAFETY OF THE WAVES. "WELL, IT WILL MAKE A DIFFERENCE FOR THIS ONE," HE SAID.

SO IT IS WITH EACH OF US. IF WE CAN PROVIDE AN OPPORTUNITY TO JUST ONE PERSON, IT WILL MAKE A DIFFERENCE TO THAT ONE.

WE HAVE ALL BEEN GIVEN TREMENDOUS OPPORTUNITIES IN OUR LIVES. AT MARRIOTT, IT’S OUR GOAL TO DO THE SAME FOR OTHERS. WE KNOW THAT AS WE CONTINUE TO PROVIDE OPPORTUNITIES AND A GREAT WORK ENVIRONMENT – OUR PEOPLE WILL CONTINUE TO GROW AND OUR CULTURE WILL BE SUSTAINED FOR MANY YEARS TO COME.

MARRIOTT INTERNATIONAL, INC. (NYSE: MAR) is a leading lodging company with more than 2,800 lodging properties in the United States and 67 other countries and territories. Marriott International operates and franchises hotels under the Marriott, JW Marriott, The Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Bulgari brand names; develops and operates vacation ownership resorts under the Marriott Vacation Club, Horizons by Marriott Vacation Club, The Ritz-Carlton Club and Grand Residences by Marriott brands; operates Marriott Executive Apartments; provides furnished corporate housing through its Marriott ExecuStay division; and operates conference centers. The company is headquartered in Washington, D.C., and had approximately 151,000 employees at 2006 year-end. It is ranked as the lodging industry’s most admired company and one of the best places to work for by FORTUNE®. The company is also a 2006 U.S. Environmental Protection Agency (EPA) ENERGY STAR® Partner. In fiscal year 2006, Marriott International reported sales from continuing operations of $12.2 billion. For more information or reservations, please visit our web site at .

Tom Marder
+1-301-380-2553
Marriott