"Our plan to continue adding hotel rooms puts us well ahead of our competition, which has scaled back their room growth. With an improving industry room supply picture and an economic rebound, we have the opportunity for 2002 and 2003 to be exceptional years," Marriott told analysts. "Our strategy of managing, rather than owning, hotels results in a strong balance sheet and a healthy cash flow. This allows us to expand our brands without being overly limited by debt."

Another company official, president and chief operating officer William J. Shaw, said the company's broad range of hotel brands helps insulate it from economic downturns, while chief financial officer Arne Sorenson said the company's expansion efforts are just now beginning to see results. "Over 95% of Marriott's lodging growth from 2000 to 2003 is expected to come from recently opened properties and properties under development or approved for construction," Sorenson said.

Company officials also said 5% of reservations are expected to be made online this year.