that Marriott brands accounted for nearly 20 percent of all new hotel rooms under construction and in per- mitting in the U.S. International expansion remains a key to Marriott’s growth. Three- quarters of the worldwide lodging industry is outside the U.S. While our international presence has increased eleven-fold over the past decade, we still have less than a 1 percent market share outside the U.S. This presents a tremen- dous opportunity. Nearly one-quarter of the rooms in our development pipeline are in non-U.S. markets. Overall, our vision remains unchanged: to be the world’s leading provider of hospitality services. Our company is solid. Our business model works. Our brands are strong  and highly preferred by customers and owners. And, of course, Marriott’s enduring culture and great people con- tinue to be our two most valued assets. Hospitality remains a major long-term growth industry. One-tenth of the global workforce is associated with the travel and tourism industry. As communications and technology bring the world closer togeth- er, it has emerged as a critical contributor to global economic prosperity. We continue to work hard – in partnership with our owners, franchisees, associates, customers and shareholders – to build a great tomorrow at Marriott. We appreciate your support. As we celebrate our 75th anniversary year, we look forward to a bright and promising future together. Our strong relative performance has encouraged hotel owners, franchisees and lenders to favor our brands as they consider branding alternatives. They know the strength of the Marriott brand will improve their business, even when people are traveling less. Conversions accounted for nearly 40 percent of our new room openings in 2001. Our hotel development pipeline features over 300 hotels with more than 55,000 rooms, including over 36,000 rooms under construction. Owners or franchisees are developing over 95 per- cent of the pipeline. Including conver- sions, we expect 25,000 to 30,000 rooms will open in each of 2002 and in 2003. There is still plenty of room for expansion. Our U.S. market share  of rooms increased from 4.7 percent to 7.9 percent in the last 10 years. At year- end, Lodging Econometrics reported March 1, 2002 Marriott International, Inc. 2001 Annual Report 9 Our company is solid. Our business model works. Our brands are strong  and highly preferred by  customers and owners. This may have been our most challenging year ever, but we accom- plished a great deal. We are cautious about 2002 but remain very optimistic about the longer term. While we antici- pate that early 2002 will continue to reflect challenging business conditions, we hope to see improvement in demand by the second half of the year. The good news is that new supply growth in the lodging industry should slow dramatically in 2002 and 2003. PricewaterhouseCoopers expects U.S. room supply to grow less than 1 percent in 2003, the lowest level in a decade. Lower supply growth will position the industry for a rebound in pricing power. Combined with the efficiency improve- ments made in 2001, it will also position Marriott well for increased profit growth in 2003 and 2004. and 62 percent of managers in our company. Diverse vendors account for  5 percent of our domestic spending, or $151 million in 2001. The number of properties owned and operated by women and minority franchisees has increased more than 21 percent over the past two years. J.W. Marriott, Jr. Chairman and Chief Executive Officer William J. Shaw President and Chief Operating Officer Celebrating Marriott’s  75 Years of the  “Spirit to Serve”