LOS ANGELES— Marriott International has long boasted it reaps the rewards of hotel management contracts without the risks of ownership, but analysts caution its huge portfolio of hotel loans makes it vulnerable to downturns in the industry, noted a Reuters report. Last week, the No. 1 hotel operator in the United States wrote off $85 million in loans and guarantees it provided to owners of its hotels. Marriott also provided a battery of new information about its total $1.7 billion in such financing. The move to both provide more disclosure on related risks is part of a growing trend among major U.S. companies that in recent weeks have faced increased scrutiny over their accounting due to the Enron scandal. Analysts acknowledged the new attention to corporate liabilities has taken some shine off Marriotts image as the nations premier hotel chain and the market premium it commanded. Marriott executives discussed their lending program extensively during a call Feb. 13 to review fourth-quarter earnings, but also said the portfolio had been regularly disclosed in filings with securities regulators. Analysts welcomed the companys move to write down $85 million of its total exposure during one of the industrys worst-ever downturns, saying it shows Marriott has been a prudent lender. Still, Marriotts $1.7 billion loans and guarantees dwarfs figures for its two biggest rivals, Starwood Hotels & Resorts Worldwide and Hilton Hotels Corp. Starwood, whose brands include Westin and Sheraton, has loans and loan guarantees totaling about $160 million, while Hilton has between $100 million and $120 million, company spokesmen said. SOURCE: Reuters