customers or customer referrals, reflecting high customer satisfaction. Marriott Distribution Services reported a $1 million loss during the year (excluding restructuring and other charges). The business suffered from the soft economy, transportation inefficien- cies related to new customers, and the loss of a major contract in 2001. We are undertaking a strategic review of this business in 2002. Marriott Senior Living Services showed significant operating improve- ment in 2001, with results increasing as the business focused on operating excel- lence. The business also benefited from strengthening demand at maturing facili- ties and slower industry supply growth. Profits increased to $17 million in 2001, excluding a $60 million charge stemming from our decision to actively pursue the sale of our Village Oaks retirement com- munities and $2 million in other charges. Marriott’s strong overall results are  a testimony to our broad distribution, solid business model, powerful brand culture and experienced hotel managers, as well as our decisive response to the year’s unique challenges. As the economy slowed early in the year, we aggressively cut costs and improved efficiencies wherever possible. At the same time, we developed contin- gency plans to be implemented if condi- tions warranted. Following September 11, as travel industry conditions worsened, we acted 7 Marriott Rewards, our frequent stay program, was an important tool in driv- ing new demand in this environment. With a worldwide membership of nearly We offered a variety of promotions to get Americans traveling again and accel- erated the launch of our nationwide advertising campaign, “Come Out and Play,” which generated $100 million in revenue and 1.25 million room nights  in 2001. Our efforts would have been meaning- less, however, unless we also maintained customer satisfaction. We increased our usual keen focus on traveler needs and essential services, and worked hard to minimize any impact on our customers. We also took aggressive steps to build on our existing strengths, increase our visi- bility and leverage the power and prefer- ence of Marriott brands. We won accolades from our hotel owners and franchisees for our strong, immediate response to the changing environment. Through a variety of cost- containment measures at the property level, our hotels were able to operate profitably at lower occupancy rates. By taking equally aggressive measures at the corporate level, we were able to provide essential services to properties at a reduced cost. quickly. Across the company, we reduced staff, adjusted associate hours and delayed filling vacant positions. We modified restaurant menus and hours and deferred new business initiatives. We won accolades from our  hotel owners and franchisees for  our strong, immediate response  to the changing environment. Marriott International, Inc. 2001 Annual Report [l] Our associates take pride in offering the world-class service customers expect from Marriott International. [r] A sunlit view of the rotunda in the Bucharest Marriott Grand Hotel, Marriott's first property in Romania.