PR Newswire | May 10, 2021 07:01AM EDT

05/10 06:00 CDT

Marriott International Reports First Quarter 2021 Results BETHESDA, Md., May 10, 2021

BETHESDA, Md., May 10, 2021 /PRNewswire/ --

* First quarter 2021 comparable systemwide constant dollar RevPAR declined 46.3 percent worldwide, 46.3 percent in the U.S. & Canada, and 46.1 percent in international markets, compared to the 2020 first quarter; * First quarter 2021 comparable systemwide constant dollar RevPAR declined 59.1 percent worldwide, 57.1 percent in the U.S. & Canada, and 64.1 percent in international markets, compared to the 2019 first quarter; * First quarter reported diluted loss per share totaled $0.03, compared to reported diluted EPS of $0.09 in the year-ago quarter. First quarter adjusted diluted EPS totaled $0.10, compared to first quarter 2020 adjusted diluted EPS of $0.49; * First quarter reported net loss totaled $11 million, compared to reported net income of $31 million in the year-ago quarter. First quarter adjusted net income totaled $34 million, compared to first quarter 2020 adjusted net income of $160 million; * Adjusted EBITDA totaled $296 million in the 2021 first quarter, compared to first quarter 2020 adjusted EBITDA of $442 million; * The company added more than 23,500 rooms globally during the first quarter, including nearly 12,000 rooms in international markets and a total of about 7,300 conversion rooms; * At quarter end, Marriott's worldwide development pipeline totaled over 2,800 properties and approximately 491,000 rooms, including roughly 18,000 rooms approved, but not yet subject to signed contracts. More than 222,000 rooms in the pipeline were under construction as of the end of the 2021 first quarter; * At the end of the first quarter, the company's net liquidity totaled approximately $4.7 billion, representing $0.6 billion in available cash balances and $4.1 billion of unused borrowing capacity under its revolving credit facility.

Marriott International, Inc. (NASDAQ: MAR) today reported first quarter 2021 results, which were materially impacted by the COVID-19 global pandemic and efforts to contain it (COVID-19).

Tony Capuano, Chief Executive Officer, said, "We were pleased to see demand improve meaningfully during the first quarter. We are welcoming more and more guests to our hotels as consumers are traveling again once they feel it is safe. While recovery trajectories vary from region to region, the resiliency of demand has been most keenly demonstrated in mainland China, where occupancy is near the pre-pandemic level. Occupancy[1] reached 66 percent in mainland China in March, nearly the same as in March 2019, on strong demand from both leisure and business travelers.

"In our largest region, the U.S. & Canada, demand increased rapidly as vaccine rollouts accelerated. Occupancy started the year at 33 percent in January and reached 49 percent by March. Leisure demand gained momentum, particularly in ski and beach resort destinations. We are encouraged to see green shoots in special corporate and group bookings, which have been improving as companies slowly begin to return to their offices. The pickup in transient booking pace for the U.S. & Canada points toward continued improvement in consumer sentiment around travel.

"Our conversion signings were particularly strong in the quarter and included nearly 7,000 rooms that were part of an all-inclusive deal in our Caribbean and Latin America region. More than 23,500 rooms joined our system in the quarter. Consistent with our view a quarter ago, we expect gross rooms growth could accelerate to approximately 6 percent in 2021. Including deletions, we continue to estimate our rooms distribution could grow 3 to 3.5 percent, net, for the full year.

"Throughout the pandemic we have been proactive in connecting with our Marriott Bonvoy members, and we continue to focus on enhancing our valuable loyalty platform for our 150 million members. Over the last few weeks, we have announced several exciting new programs. We introduced new co-brand credits cards in South Korea and Mexico, and we rolled out a new collaboration with Uber, allowing members in the U.S. to earn points through ride sharing and food delivery.

"As vaccines roll out around the world and government restrictions ease, I am optimistic that demand will continue to strengthen. We have seen signs that there is a significant amount of pent-up demand, regardless of trip purpose, and we look forward to welcoming travelers in increasing numbers to our more than 7,600 properties around the world."

First Quarter 2021 Results

Marriott's reported operating income totaled $84 million in the 2021 first quarter, compared to 2020 first quarter reported operating income of $114 million. Reported net loss totaled $11 million in the 2021 first quarter, compared to 2020 first quarter reported net income of $31 million. Reported diluted loss per share totaled $0.03 in the quarter, compared to reported diluted earnings per share (EPS) of $0.09 in the year-ago quarter.

Adjusted operating income in the 2021 first quarter totaled $138 million, compared to 2020 first quarter adjusted operating income of $293 million. Adjusted operating income in the 2020 first quarter excluded impairment charges of $101 million.

First quarter 2021 adjusted net income totaled $34 million, compared to 2020 first quarter adjusted net income of $160 million. Adjusted diluted EPS in the 2021 first quarter totaled $0.10, compared to adjusted diluted EPS of $0.49 in the year-ago quarter. These adjusted 2021 first quarter results and adjusted 2020 first quarter results excluded impairment charges of $3 million after-tax ($0.01 per share) and $75 million after-tax ($0.23 per share), respectively.

Adjusted results also excluded restructuring and merger-related charges, cost reimbursement revenue, and reimbursed expenses. See pages A-2 and A-9 for the calculation of adjusted results and the manner in which the adjusted measures are determined in this press release.

Base management and franchise fees totaled $412 million in the 2021 first quarter, compared to base management and franchise fees of $629 million in the year-ago quarter. The year-over-year decline in these fees is primarily attributable to RevPAR declines related to COVID-19. Other non-RevPAR related franchise fees in the 2021 first quarter totaled $141 million compared to $139 million in the year-ago quarter, aided by $11 million of higher residential branding fees.

Incentive management fees totaled $33 million in the 2021 first quarter. The company recognized no incentive management fees in the first quarter of 2020. Roughly 45 percent of the incentive management fees recognized in the quarter were earned at hotels in the Asia Pacific region, largely in Greater China.

Contract investment amortization for the 2021 first quarter totaled $17 million, compared to $25 million in the year-ago quarter. The year-over-year change largely reflects impairments of investments in management and franchise contracts recorded in the 2020 first quarter.

Owned, leased, and other revenue, net of direct expenses, totaled a $27 million loss in the 2021 first quarter, compared to $8 million of profit in the year-ago quarter as a result of RevPAR declines related to COVID-19.

Depreciation, amortization, and other expenses for the 2021 first quarter totaled $52 million, compared to $150 million in the year-ago quarter. The year-over-year change largely reflects a $90 million impairment charge recorded in the 2020 first quarter.

General, administrative, and other expenses for the 2021 first quarter totaled $211 million, compared to $270 million in the year-ago quarter. The lower expenses in the 2021 first quarter largely reflect $50 million of lower bad debt expense and $14 million of lower guarantee reserves. Expenses in the 2021 quarter include $14 million of additional non-recurring executive compensation related to leadership changes.

Interest expense, net, totaled $100 million in the first quarter compared to $87 million in the year-ago quarter. The increase is largely due to higher interest expense associated with 2020 debt issuances.

Equity in losses for the first quarter totaled $12 million, compared to a $4 million loss in the year-ago quarter. The increase in losses largely reflects the negative impact on results at joint venture properties due to COVID-19.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $296 million in the 2021 first quarter, compared to first quarter 2020 adjusted EBITDA of $442 million. See page A-9 for the adjusted EBITDA calculation.

Selected Performance Information

The company added 134 new properties (23,567 rooms) to its worldwide lodging portfolio during the 2021 first quarter, including roughly 7,300 rooms converted from competitor brands and nearly 12,000 rooms in international markets. Additions in the 2021 first quarter included 11 all-inclusive conversion properties (3,700 rooms) in the company's Caribbean and Latin America region. One hundred and fourteen properties (17,381 rooms) exited the system during the quarter, including 88 Service Properties Trust hotels (12,803 rooms). At quarter end, Marriott's global lodging system totaled more than 7,600 properties, with over 1,429,000 rooms.

At quarter end, the company's worldwide development pipeline totaled 2,825 properties with approximately 491,000 rooms, including 1,141 properties with more than 222,000 rooms under construction and 105 properties with roughly 18,000 rooms approved for development, but not yet subject to signed contracts.

In the 2021 first quarter, worldwide RevPAR declined 46.3 percent (a 45.9 percent decline using actual dollars) compared to the 2020 first quarter. RevPAR in the U.S. & Canada declined 46.3 percent (a 46.3 percent decline using actual dollars), and RevPAR in international markets declined 46.1 percent (a 44.8 percent decline using actual dollars).

Balance Sheet and Liquidity

At quarter end, Marriott's net debt was $9.6 billion, representing total debt of $10.2 billion less cash and cash equivalents of $0.6 billion. At year-end 2020, the company's net debt was $9.5 billion, representing total debt of $10.4 billion less cash and cash equivalents of $0.9 billion.

In the first quarter, the company issued $1.1 billion of Series HH Senior Notes due in 2031 with a 2.85 percent interest rate coupon.

The company's net liquidity was approximately $4.7 billion at the end of the first quarter, representing $0.6 billion in available cash balances and $4.1 billion of unused borrowing capacity under its revolving credit facility.

The company halted share repurchases in February of 2020 and suspended its quarterly dividend beginning in the second quarter of 2020.

COVID-19

Due to the numerous uncertainties associated with COVID-19, Marriott cannot presently estimate the impact of this unprecedented situation on its future results, which is highly dependent on the severity and duration of the pandemic and its impacts, but expects that COVID-19 will continue to be material to the company's results.

The company expects to provide additional information about the current impact of COVID-19 on its business on its call later this morning.

Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings review for the investment community and news media on Monday, May 10, 2021 at 8:30 a.m. Eastern Time (ET). The conference call will be webcast simultaneously via Marriott's investor relations website at http://www.marriott.com/investor, click on "Events & Presentations" and click on the quarterly conference call link. A replay will be available at that same website until May 9, 2022.

The telephone dial-in number for the conference call is 1-706-679-3455 and the conference ID is 9559023. A telephone replay of the conference call will be available from 2:00 p.m. ET, Monday, May 10, 2021 until 8:00 p.m. ET, Monday, May 17, 2021. To access the replay, call 1-404-537-3406. The conference ID for the recording is 9559023.

Note on forward-looking statements: All statements in this press release and the accompanying schedules are made as of May 10, 2021. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. This press release and the accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including statements related to the possible effects on our business of the COVID-19 pandemic and efforts to contain it (COVID-19); travel and lodging demand; future performance of the company's hotels; booking trends; our development pipeline, rooms growth and conversions; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including those we identify below and other risk factors that we identify in our Securities and Exchange Commission filings, including our most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K. Risks that could affect forward-looking statements in this press release include the duration and scope of COVID-19, including the availability and distribution of effective vaccines or treatments; its short and longer-term impact on the demand for travel, transient and group business, and levels of consumer confidence; actions governments, businesses and individuals have taken or may take in response to the pandemic, including limiting, banning, or cautioning against travel and/or in-person gatherings or imposing occupancy or other restrictions on lodging or other facilities; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies, travel, and economic activity, including the duration and magnitude of its impact on unemployment rates and consumer discretionary spending; the ability of our owners and franchisees to successfully navigate the impacts of COVID-19; the pace of recovery when the pandemic subsides; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the effects of steps we and our property owners and franchisees have taken and may continue to take to reduce operating costs and/or enhance certain health and cleanliness protocols at our hotels; the impacts of our employee furloughs and reduced work week schedules, our voluntary transition program and our other restructuring activities; competitive conditions in the lodging industry and in the labor market; relationships with customers and property owners; the availability of capital to finance hotel growth and refurbishment; the extent to which we experience adverse effects from data security incidents; and changes in tax laws in countries in which we earn significant income. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release.

Marriott International, Inc. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of more than 7,600 properties under 30 leading brands spanning 133 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company offers Marriott Bonvoy(tm), its highly-awarded travel program. For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com. In addition, connect with us on Facebook and @MarriottIntl on Twitter and Instagram.

Marriott may post updates about COVID-19 and other matters on its investor relations website at www.marriott.com/investor or Marriott's news center website at www.marriottnewscenter.com. Marriott encourages investors, the media, and others interested in the company to review and subscribe to the information Marriott posts on these websites, which may be material. The contents of these websites are not incorporated by reference into this press release or any report or document Marriott files with the SEC, and any references to the websites are intended to be inactive textual references only.

1 All occupancy and RevPAR statistics are systemwide constant dollar and include hotels that have been temporarily closed due to COVID-19. Unless otherwise stated, all changes refer to year-over-year changes for the comparable period. RevPAR comparisons between 2021 and 2020 reflect properties that are comparable in both years. RevPAR comparisons between 2021 and 2019 reflect properties that are defined as comparable as of March 31, 2021, even if they were not open and operating for the full year 2019 or they did not meet all the other criteria for comparable in 2019.

IRPR#1

Tables follow

MARRIOTT INTERNATIONAL, INC.

PRESS RELEASE SCHEDULES

TABLE OF CONTENTS

QUARTER 1, 2021

Consolidated Statements of Income - As Reported A-1

Non-GAAP Financial Measures A-2

Total Lodging Products A-3

Key Lodging Statistics A-6

Adjusted EBITDA A-9

Explanation of Non-GAAP Financial and Performance Measures A-10

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED

FIRST QUARTER 2021 AND 2020

(in millions except per share amounts, unaudited)

As Reported As Reported Percent

Three Months Ended Three Months Ended Better/(Worse)

March 31, 2021 March 31, 2020 Reported 2021 vs. 2020

REVENUES

Base management fees $ 106 $ 214 (50)

Franchise fees ^1 306 415 (26)

Incentive management fees 33 - *

Gross Fee Revenues 445 629 (29)

Contract investment amortization ^2 (17) (25) 32

Net Fee Revenues 428 604 (29)

Owned, leased, and other revenue ^3 108 280 (61)

Cost reimbursement revenue ^4 1,780 3,797 (53)

Total Revenues 2,316 4,681 (51)

OPERATING COSTS AND EXPENSES

Owned, leased, and other - direct ^5 135 272 50

Depreciation, amortization, and other ^6 52 150 65

General, administrative, and other ^7 211 270 22

Restructuring and merger-related charges (recoveries) 1 (2) (150)

Reimbursed expenses ^4 1,833 3,877 53

Total Expenses 2,232 4,567 51

OPERATING INCOME 84 114 (26)

Gains (losses) and other income, net ^8 1 (4) 125

Interest expense (107) (93) (15)

Interest income 7 6 17

Equity in losses ^9 (12) (4) (200)

(LOSS) INCOME BEFORE INCOME TAXES (27) 19 (242)

Benefit for income taxes 16 12 33

NET (LOSS) INCOME $ (11) $ 31 (135)

(LOSS) EARNINGS PER SHARE

(Loss) Earnings per share - basic $ (0.03) $ 0.10 (130)

(Loss) Earnings per share - diluted $ (0.03) $ 0.09 (133)

Basic Shares 326.7 325.4

Diluted Shares ^10 326.7 327.4

* Calculated percentage is not meaningful.

^1 Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, and

residential branding fees.

^2 Contract investment amortization includes amortization of capitalized costs to obtain contracts with our owner and franchisee customers, and any related

impairments, accelerations, or write-offs.

^3 Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue.

Cost reimbursement revenue includes reimbursements from properties for^4 property-level and centralized programs and services that we operate for the benefit of

our hotel owners. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services.

Owned, leased, and other - direct expenses include operating expenses related^5 to our owned or leased hotels, including lease payments and pre-opening expenses.

Depreciation, amortization, and other expenses include depreciation for fixed^6 assets, amortization of capitalized costs incurred to acquire management, franchise,

and license agreements, and any related impairments, accelerations, or write-offs.

^7 General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses.

Gains (losses) and other income, net includes gains and losses on the sale of^8 real estate, the sale of joint venture interests and other investments, and adjustments from

other equity investments.

^9 Equity in losses include our equity in losses of unconsolidated equity method investments.

Basic and fully diluted weighted average shares outstanding used to calculate^10 (loss) earnings per share for the period in which we had a loss are the same because

inclusion of additional equivalents would be anti-dilutive.

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

($ in millions except per share amounts)

The following table presents our reconciliations of Adjusted operating income, Adjusted operating income margin, Adjusted

net income, and Adjusted diluted earnings per share, to the most directly comparable GAAP measure. Adjusted total

revenues is used in the determination of Adjusted operating income margin.

Three Months Ended

Percent

March 31, March 31, Better/

2021 2020 (Worse)

Total revenues, as reported $ 2,316 $ 4,681

Less: Cost reimbursement revenue (1,780) (3,797)

Add: Impairments ^1 - 7

Adjusted total revenues ** 536 891

Operating income, as reported 84 114

Less: Cost reimbursement revenue (1,780) (3,797)

Add: Reimbursed expenses 1,833 3,877

Add (Less): Restructuring and merger-related charges (recoveries) 1 (2)

Add: Impairments^2 - 101

Adjusted operating income ** 138 293 -53%

Operating income margin 4% 2%

Adjusted operating income margin ** 26% 33%

Net (loss) income, as reported (11) 31

Less: Cost reimbursement revenue (1,780) (3,797)

Add: Reimbursed expenses 1,833 3,877

Add (Less): Restructuring and merger-related charges (recoveries) 1 (2)

Add: Impairments^3 4 101

Income tax effect of above adjustments (13) (50)

Adjusted net income ** $ 34 $ 160 -79%

Diluted (loss) earnings per share, as reported $ (0.03) $ 0.09

Adjusted diluted earnings per share** $ 0.10 $ 0.49 -80%

** Denotes non-GAAP financial measures. Please see pages A-10 and A-11 for information about our reasons for providing

these alternative financial measures and the limitations on their use.

^1 Includes impairment charges reported in Contract investment amortization of $7 million in the 2020 first quarter.

^2 Includes impairment charges reported in Contract investment amortization of $7 million; and Depreciation, amortization, and

other of $94 million in the 2020 first quarter.

^3 Includes impairment charges reported in Equity in losses of $4 million in the 2021 first quarter. Includes impairment

charges reported in Contract investment amortization of $7 million; and Depreciation, amortization, and other of $94 million

in the 2020 first quarter.

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of March 31, 2021

US & Canada Total International Total Worldwide

Units Rooms Units Rooms Units Rooms

Managed 642 221,256 1,270 327,459 1,912 548,715

Marriott Hotels 114 61,576 181 52,740 295 114,316

Marriott Hotels Serviced Apartments - - 1 154 1 154

Sheraton 28 23,609 188 63,250 216 86,859

Courtyard 169 27,264 103 22,356 272 49,620

Westin 41 22,347 72 21,924 113 44,271

JW Marriott 21 12,711 63 23,356 84 36,067

Renaissance 24 10,607 59 18,402 83 29,009

The Ritz-Carlton 38 11,406 63 16,175 101 27,581

The Ritz-Carlton Serviced Apartments - - 5 715 5 715

Le M?ridien 1 100 70 20,031 71 20,131

Four Points 1 134 78 21,455 79 21,589

Residence Inn 76 12,198 8 982 84 13,180

W Hotels 22 6,403 33 8,985 55 15,388

W Hotels Serviced Apartments - - 1 160 1 160

The Luxury Collection 6 2,296 49 8,879 55 11,175

Gaylord Hotels 6 9,918 - - 6 9,918

St. Regis 10 1,968 35 8,253 45 10,221

Aloft 1 330 39 8,957 40 9,287

St. Regis Serviced Apartments - - 1 70 1 70

AC Hotels by Marriott 5 901 68 8,263 73 9,164

Delta Hotels 25 6,770 1 360 26 7,130

Fairfield by Marriott 7 1,539 45 6,287 52 7,826

SpringHill Suites 28 4,632 - - 28 4,632

Marriott Executive Apartments - - 33 4,812 33 4,812

Autograph Collection 8 2,335 14 2,200 22 4,535

Protea Hotels - - 30 3,737 30 3,737

EDITION 4 1,207 7 1,488 11 2,695

TownePlace Suites 6 825 - - 6 825

Element 1 180 8 1,690 9 1,870

Moxy - - 5 887 5 887

Tribute Portfolio - - 5 453 5 453

Bulgari - - 5 438 5 438

Franchised 4,788 686,986 705 145,131 5,493 832,117

Courtyard 830 110,872 94 17,348 924 128,220

Fairfield by Marriott 1,066 99,548 32 5,557 1,098 105,105

Residence Inn 748 89,055 16 2,246 764 91,301

Marriott Hotels 225 71,333 61 18,428 286 89,761

Sheraton 154 46,458 67 18,679 221 65,137

SpringHill Suites 469 54,027 - - 469 54,027

TownePlace Suites 443 44,800 - - 443 44,800

Autograph Collection 115 23,188 77 16,131 192 39,319

Westin 87 29,076 23 7,163 110 36,239

Four Points 158 23,795 58 9,520 216 33,315

Renaissance 61 17,607 27 7,514 88 25,121

Aloft 138 19,937 21 3,409 159 23,346

AC Hotels by Marriott 74 12,455 37 6,614 111 19,069

Moxy 26 4,913 50 9,913 76 14,826

Delta Hotels 55 12,284 7 1,706 62 13,990

The Luxury Collection 10 2,644 49 9,068 59 11,712

Le M?ridien 20 4,588 16 4,222 36 8,810

Element 60 8,014 2 293 62 8,307

JW Marriott 13 5,947 6 1,624 19 7,571

Tribute Portfolio 30 5,163 17 1,797 47 6,960

Protea Hotels - - 36 2,949 36 2,949

Design Hotels 5 853 7 799 12 1,652

The Ritz-Carlton 1 429 - - 1 429

Bulgari - - 1 85 1 85

Marriott Executive Apartments - - 1 66 1 66

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of March 31, 2021

US & Canada Total Total Worldwide International

Units Rooms Units Rooms Units Rooms

Owned/Leased 26 6,483 40 9,417 66 15,900

Courtyard 19 2,814 4 894 23 3,708

Marriott Hotels 2 1,308 6 2,064 8 3,372

Sheraton - - 4 1,830 4 1,830

W Hotels 2 779 2 665 4 1,444

Westin 1 1,073 - - 1 1,073

Protea Hotels - - 6 991 6 991

Renaissance 1 317 2 505 3 822

Autograph Collection^1 - - 7 705 7 705

The Ritz-Carlton - - 2 550 2 550

JW Marriott - - 1 496 1 496

The Luxury Collection ^2 - - 4 417 4 417

Residence Inn 1 192 1 140 2 332

St. Regis - - 1 160 1 160

Residences 63 6,773 36 2,924 99 9,697

The Ritz-Carlton Residences 37 4,177 12 965 49 5,142

St. Regis Residences 10 1,105 7 598 17 1,703

W Residences 10 1,089 4 359 14 1,448

Bulgari Residences - - 5 514 5 514

Westin Residences 3 266 - - 3 266

Marriott Hotels Residences - - 2 246 2 246

The Luxury Collection Residences 1 91 3 115 4 206

Autograph Collection Residences - - 1 62 1 62

Sheraton Residences - - 1 50 1 50

EDITION Residences 2 45 - - 2 45

Le M?ridien Residences - - 1 15 1 15

Timeshare* 72 18,880 20 3,862 92 22,742

Grand Total 5,591 940,378 2,071 488,793 7,662 1,429,171

*Timeshare property and room counts are included on this table in theirgeographical locations. For external reporting purposes, these counts arecaptured in the Corporate segment.

^1Includes five properties acquired when we purchased Elegant Hotels Group inDecember 2019 which we currently intend to re-brand under the AutographCollection brand following the completion of planned renovations.

^2 Includes two properties acquired when we purchased Elegant Hotels Group inDecember 2019 which we currently intend to re-brand under The Luxury Collectionbrand following the completion of planned renovations.

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of March 31, 2021

US & Canada Total Total Worldwide International

Total Systemwide Units Rooms Units Rooms Units Rooms

Luxury 187 52,297 359 84,135 546 136,432

JW Marriott 34 18,658 70 25,476 104 44,134

The Ritz-Carlton 39 11,835 65 16,725 104 28,560

The Ritz-Carlton Residences 37 4,177 12 965 49 5,142

The Ritz-Carlton Serviced - - 5 715 5 715Apartments

The Luxury Collection ^1 16 4,940 102 18,364 118 23,304

The Luxury Collection Residences 1 91 3 115 4 206

W Hotels 24 7,182 35 9,650 59 16,832

W Residences 10 1,089 4 359 14 1,448

W Hotels Serviced Apartments - - 1 160 1 160

St. Regis 10 1,968 36 8,413 46 10,381

St. Regis Residences 10 1,105 7 598 17 1,703

St. Regis Serviced Apartments - - 1 70 1 70

EDITION 4 1,207 7 1,488 11 2,695

EDITION Residences 2 45 - - 2 45

Bulgari - - 6 523 6 523

Bulgari Residences - - 5 514 5 514

Full-Service 1,006 350,776 951 266,308 1,957 617,084

Marriott Hotels 341 134,217 248 73,232 589 207,449

Marriott Hotels Residences - - 2 246 2 246

Marriott Hotels Serviced Apartments - - 1 154 1 154

Sheraton 182 70,067 259 83,759 441 153,826

Sheraton Residences - - 1 50 1 50

Westin 129 52,496 95 29,087 224 81,583

Westin Residences 3 266 - - 3 266

Renaissance 86 28,531 88 26,421 174 54,952

Autograph Collection ^2 123 25,523 98 19,036 221 44,559

Autograph Collection Residences - - 1 62 1 62

Le M?ridien 21 4,688 86 24,253 107 28,941

Le M?ridien Residences - - 1 15 1 15

Delta Hotels 80 19,054 8 2,066 88 21,120

Gaylord Hotels 6 9,918 - - 6 9,918

Tribute Portfolio 30 5,163 22 2,250 52 7,413

Marriott Executive Apartments - - 34 4,878 34 4,878

Design Hotels 5 853 7 799 12 1,652

Limited-Service 4,326 518,425 741 134,488 5,067 652,913

Courtyard 1,018 140,950 201 40,598 1,219 181,548

Fairfield by Marriott 1,073 101,087 77 11,844 1,150 112,931

Residence Inn 825 101,445 25 3,368 850 104,813

SpringHill Suites 497 58,659 - - 497 58,659

Four Points 159 23,929 136 30,975 295 54,904

TownePlace Suites 449 45,625 - - 449 45,625

Aloft 139 20,267 60 12,366 199 32,633

AC Hotels by Marriott 79 13,356 105 14,877 184 28,233

Moxy 26 4,913 55 10,800 81 15,713

Element 61 8,194 10 1,983 71 10,177

Protea Hotels - - 72 7,677 72 7,677

Timeshare* 72 18,880 20 3,862 92 22,742

Grand Total 5,591 940,378 2,071 488,793 7,662 1,429,171

*Timeshare property and room counts are included on this table in theirgeographical locations. For external reporting purposes, these counts arecaptured in the Corporate segment.

^1 Includes two properties acquired when we purchased Elegant Hotels Group inDecember 2019 which we currently intend to re-brand under The Luxury Collectionbrand following the completion of planned renovations.

^2Includes five properties acquired when we purchased Elegant Hotels Group inDecember 2019 which we currently intend to re-brand under the AutographCollection brand following the completion of planned renovations.

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated US & Canada Properties

Three Months Ended March 31, 2021 and March 31, 2020

REVPAR Occupancy Average Daily Rate

Brand 2021 vs. 2020 2021 vs. 2020 2021 vs. 2020

JW Marriott $89.82 -45.1% 32.3% -26.0% pts. $278.10 -1.0%

The Ritz-Carlton $183.46 -26.6% 35.4% -21.1% pts. $518.62 17.2%

W Hotels $91.01 -49.6% 28.0% -29.5% pts. $325.20 3.5%

Composite US & Canada Luxury^1 $133.07 -38.7% 31.9% -26.2% pts. $416.55 11.6%

Marriott Hotels $34.93 -70.2% 24.1% -32.6% pts. $145.03 -29.8%

Sheraton $25.88 -76.6% 17.4% -37.3% pts. $148.59 -26.4%

Westin $39.97 -66.0% 23.6% -31.5% pts. $169.16 -20.8%

Composite US & Canada Premium^2 $33.71 -70.5% 22.2% -33.9% pts. $151.96 -25.3%

US & Canada Full-Service^3 $53.80 -60.1% 24.2% -32.3% pts. $222.70 -6.7%

Courtyard $37.27 -50.5% 40.7% -12.2% pts. $91.47 -35.7%

Residence Inn $76.55 -32.1% 61.0% -5.2% pts. $125.39 -26.4%

Composite US & Canada Limited-Service^4 $47.20 -45.3% 45.4% -11.7% pts. $103.94 -31.2%

US & Canada - All^5 $52.31 -57.8% 29.0% -27.7% pts. $180.57 -17.5%

Comparable Systemwide US & Canada Properties

Three Months Ended March 31, 2021 and March 31, 2020

REVPAR Occupancy Average Daily Rate

Brand 2021 vs. 2020 2021 vs. 2020 2021 vs. 2020

JW Marriott $85.33 -47.6% 34.2% -23.8% pts. $249.16 -11.1%

The Ritz-Carlton $176.39 -27.7% 34.2% -21.6% pts. $516.07 17.9%

W Hotels $91.01 -49.6% 28.0% -29.5% pts. $325.20 3.5%

Composite US & Canada Luxury^1 $120.22 -41.2% 32.4% -25.7% pts. $371.32 5.4%

Marriott Hotels $36.60 -63.4% 27.4% -27.3% pts. $133.80 -26.8%

Sheraton $29.76 -65.3% 26.0% -27.3% pts. $114.33 -28.8%

Westin $40.89 -63.9% 26.7% -30.0% pts. $153.08 -23.4%

Composite US & Canada Premium^2 $38.01 -62.4% 27.3% -27.7% pts. $139.39 -24.3%

US & Canada Full-Service^3 $47.50 -58.0% 27.9% -27.4% pts. $170.52 -16.6%

Courtyard $42.87 -41.8% 43.4% -11.0% pts. $98.76 -27.1%

Residence Inn $70.61 -23.5% 62.1% -2.3% pts. $113.76 -20.6%

Fairfield by Marriott $41.41 -28.6% 46.9% -6.3% pts. $88.33 -18.9%

Composite US & Canada Limited-Service^4 $49.52 -32.8% 49.7% -7.3% pts. $99.65 -22.9%

US & Canada - All^5 $48.65 -46.3% 40.3% -16.0% pts. $120.79 -25.0%

^1 Includes JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St.Regis, and EDITION.

^2 Includes Marriott Hotels, Sheraton, Westin, Renaissance, AutographCollection, Delta Hotels, and Gaylord Hotels.

Systemwide also includes Le M?ridien and Tribute Portfolio.

^3 Includes Composite US & Canada Luxury and Composite US & Canada Premium.

^4 Includes Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites,TownePlace Suites, Four Points, Aloft, Element,

and AC Hotels by Marriott. Systemwide also includes Moxy.

^5 Includes US & Canada Full-Service and Composite US & Canada Limited-Service.

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated International Properties

Three Months Ended March 31, 2021 and March 31, 2020

REVPAR Occupancy Average Daily Rate

Region 2021 vs. 2020 2021 vs. 2020 2021 vs. 2020

Greater China $55.37 80.4% 47.9% 23.6% pts. $115.50 -8.2%

Asia Pacific excluding China $37.34 -56.4% 33.6% -19.6% pts. $111.02 -31.1%

Caribbean & Latin America $56.16 -49.5% 31.2% -24.0% pts. $179.84 -10.7%

Europe $17.24 -80.4% 13.3% -34.1% pts. $129.87 -30.2%

Middle East & Africa $64.08 -30.6% 41.6% -17.1% pts. $154.22 -2.0%

International - All^1 $44.46 -39.3% 34.8% -9.9% pts. $127.65 -22.0%

Worldwide^2 $48.14 -50.3% 32.1% -18.2% pts. $150.08 -22.1%

Comparable Systemwide International Properties

Three Months Ended March 31, 2021 and March 31, 2020

REVPAR Occupancy Average Daily Rate

Region 2021 vs. 2020 2021 vs. 2020 2021 vs. 2020

Greater China $53.59 76.8% 47.5% 23.2% pts. $112.78 -9.5%

Asia Pacific excluding China $38.54 -54.1% 34.6% -17.9% pts. $111.25 -30.3%

Caribbean & Latin America $40.19 -56.3% 28.5% -23.6% pts. $140.89 -20.2%

Europe $15.18 -80.4% 13.1% -33.5% pts. $116.34 -30.0%

Middle East & Africa $58.52 -31.3% 40.4% -17.4% pts. $144.93 -1.8%

International - All^1 $38.51 -46.1% 31.6% -13.8% pts. $121.75 -22.6%

Worldwide^2 $45.68 -46.3% 37.7% -15.3% pts. $121.02 -24.5%

^1 Includes Greater China, Asia Pacific excluding China, Caribbean & LatinAmerica, Europe, and Middle East & Africa.

^2 Includes US & Canada - All and International - All.

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS - 2021 vs 2019

In Constant $

Comparable Systemwide Properties^1

Three Months Ended March 31, 2021 and March 31, 2019

REVPAR Occupancy Average Daily Rate

Region 2021 vs. 2019 2021 vs. 2019 2021 vs. 2019

Greater China $53.59 -37.9% 47.5% -15.2% pts. $112.78 -18.1%

Asia Pacific excluding China $38.54 -68.3% 34.6% -37.2% pts. $111.25 -34.3%

Caribbean & Latin America $40.19 -65.9% 28.5% -35.9% pts. $140.89 -23.1%

Europe $15.18 -85.8% 13.1% -49.4% pts. $116.34 -31.9%

Middle East & Africa $58.52 -44.9% 40.4% -28.8% pts. $144.93 -5.6%

International - All^2 $38.51 -64.1% 31.6% -34.4% pts. $121.75 -25.0%

US & Canada - All $48.65 -57.1% 40.3% -28.7% pts. $120.79 -26.6%

Worldwide^3 $45.68 -59.1% 37.7% -30.4% pts. $121.02 -26.2%

^1 The comparisons between 2021 and 2019 reflect properties that are defined ascomparable as of March 31, 2021, even if in 2019 they were not open andoperating for the full year or did not meet all the other criteria forcomparable in 2019.

^2 Includes Greater China, Asia Pacific excluding China, Caribbean & LatinAmerica, Europe, and Middle East & Africa.

^3 Includes US & Canada - All and International - All.

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA

($ in millions)

Fiscal Year 2021

First Quarter

Net (loss), as reported $ (11)

Cost reimbursement revenue (1,780)

Reimbursed expenses 1,833

Interest expense 107

Interest expense from unconsolidated joint ventures^ 2

(Benefit) for income taxes (16)

Depreciation and amortization 52

Contract investment amortization 17

Depreciation and amortization classified in reimbursed expenses 28

Depreciation, amortization and impairments from unconsolidated joint ventures 10

Stock-based compensation 53

Restructuring and merger-related charges 1

Adjusted EBITDA ** $ 296

Change from 2020 Adjusted EBITDA ** -33%

Fiscal Year 2020

First Second Third Fourth Total Quarter Quarter Quarter Quarter

Net income (loss), as reported $ 31 $ (234) $ 100 $ (164) $ (267)

Cost reimbursement revenue (3,797) (1,202) (1,789) (1,664) (8,452)

Reimbursed expenses 3,877 1,241 1,683 1,634 8,435

Interest expense 93 127 113 112 445

Interest expense from unconsolidated joint ventures 3 1 12 8 24

(Benefit) provision for income taxes (12) (64) 27 (150) (199)

Depreciation and amortization 150 72 53 71 346

Contract investment amortization 25 21 48 38 132

Depreciation classified in reimbursed expenses 26 27 27 29 109

Depreciation, amortization and impairments from unconsolidated joint ventures 7 16 3 78 104

Stock-based compensation 41 50 49 57 197

Restructuring and merger-related (recoveries) charges (2) 6 1 262 267

Loss on asset dispositions - - - 6 6

Adjusted EBITDA ** $ 442 $ 61 $ 327 $ 317 $ 1,147

** Denotes non-GAAP financial measures. Please see pages A-10 and A-11 forinformation about our reasons for providing these alternative financialmeasures and the

limitations on their use.

MARRIOTT INTERNATIONAL, INC.EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES

In our press release and schedules, and on the related conference call, wereport certain financial measures that are not required by, or presented inaccordance with, United States generally accepted accounting principles("GAAP"). We discuss the manner in which the non-GAAP measures reported in thispress release and schedules are determined and management's reasons forreporting these non-GAAP measures below, and the press release schedulesreconcile the most directly comparable GAAP measure to each non-GAAP measurethat we refer to. Although management evaluates and presents these non-GAAPmeasures for the reasons described below, please be aware that these non-GAAPmeasures have limitations and should not be considered in isolation or as asubstitute for revenue, operating income, net loss/income, loss/earnings pershare or any other comparable operating measure prescribed by GAAP. Inaddition, we may calculate and/or present these non-GAAP financial measuresdifferently than measures with the same or similar names that other companiesreport, and as a result, the non-GAAP measures we report may not be comparableto those reported by others.

Adjusted Operating Income and Adjusted Operating Income Margin. Adjustedoperating income and Adjusted operating income margin exclude costreimbursement revenue, reimbursed expenses, restructuring and merger-relatedcharges (recoveries), and non-cash impairment charges. Adjusted operatingincome margin reflects Adjusted operating income divided by Adjusted totalrevenues. We believe that these are meaningful metrics because they allow forperiod-over-period comparisons of our ongoing operations before these items andfor the reasons further described below.

Adjusted Net Income and Adjusted Diluted Earnings Per Share. Adjusted netincome and Adjusted diluted EPS reflect our net loss/income and diluted loss/earnings per share excluding the impact of cost reimbursement revenue,reimbursed expenses, restructuring and merger-related charges (recoveries),non-cash impairment charges, losses and gains on asset dispositions (whenapplicable), and the income tax effect of these adjustments. We calculate theincome tax effect of the adjustments using an estimated tax rate applicable toeach adjustment. We believe that these measures are meaningful indicators ofour performance because they allow for period-over-period comparisons of ourongoing operations before these items and for the reasons further describedbelow.

Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization("Adjusted EBITDA"). Adjusted EBITDA reflects net loss/income excluding theimpact of the following items: cost reimbursement revenue and reimbursedexpenses, interest expense, depreciation and amortization (includingdepreciation and amortization classified in "Reimbursed expenses," as discussedbelow), non-cash impairment charges, benefit (provision) for income taxes,restructuring and merger-related charges (recoveries), and stock-basedcompensation expense for all periods presented. When applicable, AdjustedEBITDA also excludes gains and losses on asset dispositions made by us or byour joint venture investees.

In our presentations of Adjusted operating income and Adjusted operating incomemargin, Adjusted net income, Adjusted diluted EPS and Adjusted EBITDA, weexclude charges incurred under our restructuring plans that we initiatedbeginning in the 2020 second quarter to achieve cost savings in response to thedecline in lodging demand caused by COVID-19 and transition costs associatedwith the Starwood merger, which we record in the "Restructuring andmerger-related charges (recoveries)" caption of our Condensed ConsolidatedStatements of (Loss) Income (our "Income Statements"), to allow for period-overperiod comparisons of our ongoing operations before the impact of these items.We also exclude non-cash impairment charges related to our management andfranchise contracts, leases, and equity investments, which we record in the"Contract investment amortization," "Depreciation, amortization, and other,"and "Equity in losses" captions of our Income Statements to allow forperiod-over period comparisons of our ongoing operations before the impact ofthese items. We exclude cost reimbursement revenue and reimbursed expenses,which relate to property-level and centralized programs and services that weoperate for the benefit of our hotel owners. We do not operate these programsand services to generate a profit over the long term, and accordingly, when werecover the costs that we incur for these programs and services from our hotelowners, we do not seek a mark-up. For property-level services, our ownerstypically reimburse us at the same time that we incur expenses. However, forcentralized programs and services, our owners may reimburse us before or afterwe incur expenses, causing timing differences between the costs we incur andthe related reimbursement from hotel owners in our operating and net income.Over the long term, these programs and services are not designed to impact oureconomics, either positively or negatively. Because we do not retain any suchprofits or losses over time, we exclude the net impact when evaluatingperiod-over-period changes in our operating results.

We believe that Adjusted EBITDA is a meaningful indicator of our operatingperformance because it permits period-over-period comparisons of our ongoingoperations before these items and facilitates our comparison of results beforethese items with results from other lodging companies. We use Adjusted EBITDAto evaluate companies because it excludes certain items that can vary widelyacross different industries or among companies within the same industry. Forexample, interest expense can be dependent on a company's capital structure,debt levels, and credit ratings. Accordingly, the impact of interest expense onearnings can vary significantly among companies. The tax positions of companiescan also vary because of their differing abilities to take advantage of taxbenefits and because of the tax policies of the jurisdictions in which theyoperate. As a result, effective tax rates and provisions for income taxes canvary considerably among companies. Our Adjusted EBITDA also excludesdepreciation and amortization expense which we report under "Depreciation,amortization, and other" as well as depreciation and amortization classified in"Reimbursed expenses" and "Contract investment amortization" of our IncomeStatements, because companies utilize productive assets of different ages anduse different methods of both acquiring and depreciating productive assets.Depreciation and amortization classified in "Reimbursed expenses" reflectsdepreciation and amortization of Marriott-owned assets and software, for whichwe receive cash from owners to reimburse the company for its investments madefor the benefit of the system. These differences can result in considerablevariability in the relative costs of productive assets and the depreciation andamortization expense among companies. We exclude stock-based compensationexpense in all periods presented to address the considerable variability amongcompanies in recording compensation expense because companies use stock-basedpayment awards differently, both in the type and quantity of awards granted.

MARRIOTT INTERNATIONAL, INC.EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES

RevPAR. In addition to the foregoing non-GAAP financial measures, we presentRevenue per Available Room ("RevPAR") as a performance measure. We believeRevPAR is a meaningful indicator of our performance because it measures theperiod-over-period change in room revenues for comparable properties. RevPARrelates to property level revenue and may not be comparable to similarly titledmeasures, such as revenues, and should not be viewed as necessarily correlatingwith our fee revenue. We calculate RevPAR by dividing room sales (recorded inlocal currency) for comparable properties by room nights available for theperiod. We do not consider interruptions related to COVID-19 when determiningwhich properties to classify as comparable. The comparisons between 2021 and2019 reflect properties that are defined as comparable as of March 31, 2021,even if in 2019 they were not open and operating for the full year or did notmeet all the other criteria for comparable in 2019. We present growth incomparative RevPAR on a constant dollar basis, which we calculate by applyingexchange rates for the current period to each period presented. We believeconstant dollar analysis provides valuable information regarding ourproperties' performance as it removes currency fluctuations from thepresentation of such results.

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SOURCE Marriott International, Inc.