PR Newswire | Nov 3, 2021 07:02AM EDT

11/03 06:00 CDT

Marriott International Reports Third Quarter 2021 Results BETHESDA, Md., Nov. 3, 2021

BETHESDA, Md., Nov. 3, 2021 /PRNewswire/ --

* Third quarter 2021 comparable systemwide constant dollar RevPAR increased 118.4 percent worldwide, 134.7 percent in the U.S. & Canada, and 76.3 percent in international markets, compared to the 2020 third quarter; * Third quarter 2021 comparable systemwide constant dollar RevPAR declined 25.8 percent worldwide, 19.9 percent in the U.S. & Canada, and 40.7 percent in international markets, compared to the 2019 third quarter; * Third quarter reported diluted EPS totaled $0.67, compared to reported diluted EPS of $0.31 in the year-ago quarter. Third quarter adjusted diluted EPS totaled $0.99, compared to third quarter 2020 adjusted diluted EPS of $0.13; * Third quarter reported net income totaled $220 million, compared to reported net income of $100 million in the year-ago quarter. Third quarter adjusted net income totaled $327 million, compared to third quarter 2020 adjusted net income of $44 million; * Adjusted EBITDA totaled $683 million in the 2021 third quarter, compared to third quarter 2020 adjusted EBITDA of $327 million; * The company added roughly 17,500 rooms globally during the third quarter, including approximately 8,500 rooms in international markets and a total of more than 2,200 conversion rooms; * At quarter end, Marriott's worldwide development pipeline totaled 2,769 properties and nearly 477,000 rooms, including roughly 25,000 rooms approved, but not yet subject to signed contracts. More than 206,000 rooms in the pipeline were under construction as of the end of the 2021 third quarter.

Marriott International, Inc. (NASDAQ: MAR) today reported third quarter 2021 results.

Anthony Capuano, Chief Executive Officer, said, "We were pleased to see continued meaningful improvement in global trends in the third quarter, despite the impact of the Delta variant during the second half of the quarter. For the quarter, worldwide RevPAR1 was down 26 percent compared to the 2019 third quarter, a significant improvement from the second quarter RevPAR decline of 44 percent compared to the same quarter in 2019. Third quarter occupancy topped 58 percent, driven largely by continued strength in leisure demand. Average daily rate, which was only 4 percent below 2019 levels for the quarter, has been recovering much more quickly than in the past two downturns.

"Most of our regions saw considerable improvement in RevPAR in the third quarter compared to the second quarter. In our largest region, the U.S. & Canada, third quarter RevPAR came in 20 percent below the same quarter in 2019, compared to down 40 percent in the second quarter versus the same quarter in 2019. Europe saw a dramatic rise in demand in the quarter, as many key international borders opened, with 2021 RevPAR compared to 2019 improving to down 44 percent from down 77 percent in the second quarter. ADR for the region trailed third quarter 2019 levels by just 5 percent.

"Globally, leisure travel generally remained very strong throughout the quarter, while the Delta variant had the most impact on business transient demand. With the worst of the Delta variant wave now hopefully behind us, business transient demand picked up again in October, a trend we expect to continue.

"Throughout the pandemic, we have worked closely with our owners and franchisees to drive revenue and lower costs. And we're seeing the benefits of this work in our development activity. Third quarter year-to-date room signings, nearly one-third of which were conversions, increased nearly 30 percent year-over-year, and our pipeline remains the largest in the industry. With more than 40 percent of our pipeline rooms in the luxury and upper upscale tiers, we believe we also have the most valuable pipeline in the industry. Finally on the development front, with more clarity around our estimated full year deletions, we now expect 2021 net rooms growth will be approximately 3.5 percent.

"We're proud of the dedication and perseverance our associates have demonstrated over the past year and a half, as they navigated the most challenging environment we have ever faced. With global trends improving, we believe we are well-positioned for growth as the global recovery continues. We are very optimistic about our future."

Third Quarter 2021 ResultsMarriott's reported operating income totaled $545 million in the 2021 third quarter, compared to 2020 third quarter reported operating income of $252 million. Reported net income totaled $220 million in the 2021 third quarter, compared to 2020 third quarter reported net income of $100 million. Reported diluted earnings per share (EPS) totaled $0.67 in the quarter, compared to reported diluted EPS of $0.31 in the year-ago quarter.

Adjusted operating income in the 2021 third quarter totaled $527 million, compared to 2020 third quarter adjusted operating income of $179 million. Adjusted operating income in the 2021 third quarter and the 2020 third quarter excluded impairment charges of $11 million and $32 million, respectively.

Third quarter 2021 adjusted net income totaled $327 million, compared to 2020 third quarter adjusted net income of $44 million. Adjusted diluted EPS in the 2021 third quarter totaled $0.99, compared to adjusted diluted EPS of $0.13 in the year-ago quarter. The 2021 third quarter adjusted results excluded a $122 million after-tax ($0.37 per share) loss on the extinguishment of debt and $8 million after-tax ($0.02 per share) of impairment charges. The 2020 third quarter adjusted results excluded $24 million after-tax ($0.07 per share) of impairment charges.

Adjusted results also excluded restructuring and merger-related charges, cost reimbursement revenue, and reimbursed expenses. These items totaled $23 million of after-tax profits ($0.07 per share) in the 2021 third quarter and $80 million of after-tax profits ($0.25 per share) in the 2020 third quarter. See pages A-3 and A-12 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 $723 million in the 2021 third quarter, compared to base management and franchise fees of $366 million in the year-ago quarter. The year-over-year increase in these fees is primarily attributable to RevPAR increases due to the ongoing recovery in lodging demand. Other non-RevPAR related franchise fees in the 2021 third quarter totaled $173 million, compared to $119 million in the year-ago quarter, aided by higher credit card and residential branding fees.

Incentive management fees totaled $53 million in the 2021 third quarter, compared to $31 million in the 2020 third quarter. Hotels in international markets earned $36 million of the fees in the quarter.

Contract investment amortization for the 2021 third quarter totaled $21 million, compared to $48 million in the year-ago quarter. The year-over-year change largely reflects impairments of investments in management and franchise contracts related to COVID-19 recorded in the 2020 third quarter.

Owned, leased, and other revenue, net of direct expenses, totaled a profit of $37 million in the 2021 third quarter, compared to an $18 million loss in the year-ago quarter, and reflected the ongoing recovery in lodging demand.

Depreciation, amortization, and other expenses for the 2021 third quarter totaled $64 million, compared to $53 million in the year-ago quarter. Expenses in the 2021 third quarter included an $11 million impairment charge.

General, administrative, and other expenses for the 2021 third quarter totaled $212 million, compared to $131 million in the year-ago quarter. The year-over-year increase primarily reflects higher compensation costs compared to 2020 cost reduction measures, which included reducing executive compensation, implementing reduced work weeks for many of our corporate associates, and furloughing a substantial number of associates.

Interest expense, net, totaled $99 million in the third quarter compared to $107 million in the year-ago quarter. The year-over-year decrease is largely due to lower debt balances.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $683 million in the 2021 third quarter, compared to third quarter 2020 adjusted EBITDA of $327 million. See page A-12 for the adjusted EBITDA calculation.

Selected Performance InformationThe company added 114 properties (17,456 rooms) to its worldwide lodging portfolio during the 2021 third quarter, including more than 2,200 conversion rooms and approximately 8,500 rooms in international markets. Twenty properties (5,414 rooms) exited the system during the quarter. At quarter end, Marriott's global lodging system totaled 7,892 properties, with nearly 1,464,000 rooms.

At quarter end, the company's worldwide development pipeline totaled 2,769 properties with nearly 477,000 rooms, including 1,028 properties with more than 206,000 rooms under construction and 155 properties with roughly 25,000 rooms approved for development, but not yet subject to signed contracts.

In the 2021 third quarter, worldwide RevPAR increased 118.4 percent (a 120.7 percent increase using actual dollars) compared to the 2020 third quarter. RevPAR in the U.S. & Canada increased 134.7 percent (a 135.4 percent increase using actual dollars), and RevPAR in international markets increased 76.3 percent (an 81.8 percent increase using actual dollars).

Balance Sheet and LiquidityAt quarter end, Marriott's net debt was $9.0 billion, representing total debt of $9.8 billion less cash and equivalents of $0.8 billion. At year-end 2020, the company's net debt was $9.5 billion, representing total debt of $10.4 billion less cash and equivalents of $0.9 billion.

In the third quarter, the company issued $700 million of Series II Senior Notes due in 2033 with a 2.75 percent interest rate coupon.

In September 2021, Marriott completed a cash tender offer and retired $1.0 billion aggregate principal amount of Series EE Senior Notes maturing in 2025 with a 5.75 percent interest rate coupon. The company used proceeds from the Series II Senior Notes offering and cash on hand to complete the repurchase of such notes, including the payment of accrued interest and other costs incurred.

Investment SpendingMarriott now anticipates that full year 2021 investment spending will total $525 million to $550 million. Total investment spending includes capital and technology expenditures, loan advances, contract acquisition costs, and other investing activities.

COVID-19Due 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.

Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings review for the investment community and news media on Wednesday, November 3, 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 November 2, 2022.

The telephone dial-in number for the conference call is 1-203-518-9704 and the conference ID is MAR3Q21. A telephone replay of the conference call will be available from 1:00 p.m. ET, Wednesday, November 3, 2021 until 8:00 p.m. ET, Wednesday, November 10, 2021. To access the replay, call 1-402-220-2693. The conference ID for the recording is MAR3Q21.

Note on forward-looking statements: All statements in this press release and the accompanying schedules are made as of November 3, 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); recovery in lodging demand; travel and lodging demand and trends; our growth prospects and expectations; future performance of the company's hotels; our development pipeline, signings, rooms growth and conversions; our investment spending expectations; 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; the pandemic's 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 the pandemic's 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 and any dislocations in recovery as a result of resurgences of the pandemic; 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 roughly 7,900 properties under 30 leading brands spanning 138 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company offers Marriott Bonvoy(r), 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, ADR 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. ADR and RevPAR comparisons between 2021 and 2019 reflect properties that are defined as comparable as of September 30, 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 3, 2021

Consolidated Statements of Income - As Reported A-1

Non-GAAP Financial Measures A-3

Total Lodging Products A-4

Key Lodging Statistics A-7

Adjusted EBITDA A-12

Explanation of Non-GAAP Financial and Performance Measures A-13

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED

THIRD QUARTER 2021 AND 2020

(in millions except per share amounts, unaudited)

As Reported As Reported Percent

Three Months Ended Three Months Ended Better/(Worse)

September 30, 2021 September 30, 2020 Reported 2021 vs. 2020

REVENUES

Base management fees $ 190 $ 87 118

Franchise fees ^1 533 279 91

Incentive management fees 53 31 71

Gross Fee Revenues 776 397 95

Contract investment amortization ^2 (21) (48) 56

Net Fee Revenues 755 349 116

Owned, leased, and other revenue ^3 241 116 108

Cost reimbursement revenue ^4 2,950 1,789 65

Total Revenues 3,946 2,254 75

OPERATING COSTS AND EXPENSES

Owned, leased, and other - direct ^5 204 134 (52)

Depreciation, amortization, and other ^6 64 53 (21)

General, administrative, and other ^7 212 131 (62)

Restructuring and merger-related charges 4 1 (300)

Reimbursed expenses ^4 2,917 1,683 (73)

Total Expenses 3,401 2,002 (70)

OPERATING INCOME 545 252 116

Gains and other income, net ^8 - 2 (100)

Loss on extinguishment of debt (164) - *

Interest expense (107) (113) 5

Interest income 8 6 33

Equity in losses ^9 (4) (20) 80

INCOME BEFORE INCOME TAXES 278 127 119

Provision for income taxes (58) (27) (115)

NET INCOME $ 220 $ 100 120

EARNINGS PER SHARE

Earnings per share - basic $ 0.67 $ 0.31 116

Earnings per share - diluted $ 0.67 $ 0.31 116

Basic Shares 327.3 325.9

Diluted Shares 329.3 326.8

* 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 and other income, net includes gains and losses on the sale of real^8 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.

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED

THIRD QUARTER YEAR-TO-DATE 2021 AND 2020

(in millions except per share amounts, unaudited)

As Reported As Reported Percent

Nine Months Ended Nine Months Ended Better/(Worse)

September 30, 2021 September 30, 2020 Reported 2021 vs. 2020

REVENUES

Base management fees $ 452 $ 341 33

Franchise fees ^1 1,270 876 45

Incentive management fees 141 43 228

Gross Fee Revenues 1,863 1,260 48

Contract investment amortization ^2 (56) (94) 40

Net Fee Revenues 1,807 1,166 55

Owned, leased, and other revenue ^3 536 445 20

Cost reimbursement revenue ^4 7,068 6,788 4

Total Revenues 9,411 8,399 12

OPERATING COSTS AND EXPENSES

Owned, leased, and other - direct ^5 507 527 4

Depreciation, amortization, and other ^6 166 275 40

General, administrative, and other ^7 610 579 (5)

Restructuring and merger-related charges 8 5 (60)

Reimbursed expenses ^4 7,005 6,801 (3)

Total Expenses 8,296 8,187 (1)

OPERATING INCOME 1,115 212 426

Gains and other income, net ^8 6 3 100

Loss on extinguishment of debt (164) - *

Interest expense (323) (333) 3

Interest income 22 20 10

Equity in losses ^9 (24) (54) 56

INCOME (LOSS) BEFORE INCOME TAXES 632 (152) 516

(Provision) benefit for income taxes (1) 49 (102)

NET INCOME (LOSS) $ 631 $ (103) 713

EARNINGS (LOSS) PER SHARE

Earnings (Loss) per share - basic $ 1.93 $ (0.32) 703

Earnings (Loss) per share - diluted $ 1.92 $ (0.32) 700

Basic Shares 327.0 325.7

Diluted Shares ^10 329.1 325.7

* 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 and other income, net includes gains and losses on the sale of real^8 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 Nine Months Ended

Percent Percent

September 30, September 30, Better/ September 30, September 30, Better/

2021 2020 (Worse) 2021 2020 (Worse)

Total revenues, as reported $ 3,946 $ 2,254 $ 9,411 $ 8,399

Less: Cost reimbursement revenue (2,950) (1,789) (7,068) (6,788)

Add: Impairments ^1 - 30 - 40

Adjusted total revenues ** 996 495 2,343 1,651

Operating income, as reported 545 252 1,115 212

Less: Cost reimbursement revenue (2,950) (1,789) (7,068) (6,788)

Add: Reimbursed expenses 2,917 1,683 7,005 6,801

Add: Restructuring and merger-related charges 4 1 8 5

Add: Impairments^2 11 32 11 157

Adjusted operating income ** 527 179 194% 1,071 387 177%

Operating income margin 14% 11% 12% 3%

Adjusted operating income margin ** 53% 36% 46% 23%

Net income (loss), as reported 220 100 631 (103)

Less: Cost reimbursement revenue (2,950) (1,789) (7,068) (6,788)

Add: Reimbursed expenses 2,917 1,683 7,005 6,801

Add: Restructuring and merger-related charges 4 1 8 5

Add: Impairments^3 11 32 15 165

Add: Loss on extinguishment of debt 164 - 164 -

Income tax effect of above adjustments (39) 17 (36) (60)

Less: Income tax special items - - (98) -

Adjusted net income ** $ 327 $ 44 643% $ 621 $ 20 3005%

Diluted earnings (loss) per share, as reported $ 0.67 $ 0.31 $ 1.92 $ (0.32)

Adjusted diluted earnings per share** $ 0.99 $ 0.13 662% $ 1.89 $ 0.06 3050%

Denotes non-GAAP financial measures. Please see pages A-13 and A-14 for ** information about our reasons for providing these alternative financial measures and the

limitations on their use.

Includes impairment charges reported in Contract investment amortization of $30^1 million and $40 million in the 2020 third quarter and 2020 third quarter year-to-date, respectively.

Includes impairment charges reported in Depreciation, amortization, and other^2 of $11 million in both the 2021 third quarter and 2021 third quarter year-to-date. Includes

impairment charges reported in Contract investment amortization of $30 million and $40 million; and Depreciation, amortization, and other of $2 million and $117 million

in the 2020 third quarter and 2020 third quarter year-to-date, respectively.

Includes impairment charges reported in Depreciation, amortization, and other^3 of $11 million and $11 million; and Equity in earnings (losses) of $0 million and $4 million in the

2021 third quarter and 2021 third quarter year-to-date, respectively. Includes impairment charges reported in Contract investment amortization of $30 million and $40 million;

Depreciation, amortization, and other of $2 million and $117 million; Equity in earnings (losses) of $0 million and $8 million in the 2020 third quarter and 2020 third quarter

year-to-date, respectively.

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of September 30, 2021

US & Canada Total International Total Worldwide

Units Rooms Units Rooms Units Rooms

Managed 639 220,257 1,291 331,304 1,930 551,561

Marriott Hotels 113 61,300 186 54,563 299 115,863

Marriott Hotels Serviced Apartments - - 1 154 1 154

Sheraton 27 23,108 189 63,804 216 86,912

Courtyard 169 27,265 104 22,626 273 49,891

Westin 40 21,850 73 22,225 113 44,075

JW Marriott 21 12,712 62 23,099 83 35,811

Renaissance 24 10,607 57 17,735 81 28,342

The Ritz-Carlton 38 11,406 65 16,410 103 27,816

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

Four Points 1 134 78 21,466 79 21,600

Le M?ridien 1 100 70 19,869 71 19,969

W Hotels 21 5,916 34 9,329 55 15,245

W Hotels Serviced Apartments - - 1 160 1 160

Residence Inn 76 12,199 8 982 84 13,181

The Luxury Collection 6 2,296 48 8,740 54 11,036

St. Regis 10 1,968 37 8,722 47 10,690

St. Regis Serviced Apartments - - 1 70 1 70

Gaylord Hotels 6 10,220 - - 6 10,220

AC Hotels by Marriott 7 1,165 69 8,339 76 9,504

Aloft 1 330 40 8,956 41 9,286

Fairfield by Marriott 7 1,539 50 6,856 57 8,395

Delta Hotels 25 6,770 2 477 27 7,247

Autograph Collection 8 2,340 16 2,441 24 4,781

Marriott Executive Apartments - - 34 4,646 34 4,646

SpringHill Suites 26 4,360 - - 26 4,360

Protea Hotels - - 28 3,466 28 3,466

Element 2 640 11 2,184 13 2,824

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

Moxy - - 5 887 5 887

TownePlace Suites 6 825 - - 6 825

Tribute Portfolio - - 5 453 5 453

Bulgari - - 5 442 5 442

Franchised 4,926 704,438 777 159,283 5,703 863,721

Courtyard 844 112,424 103 19,166 947 131,590

Fairfield by Marriott 1,096 102,571 36 6,132 1,132 108,703

Residence Inn 761 90,566 19 2,544 780 93,110

Marriott Hotels 226 71,450 61 18,073 287 89,523

Sheraton 152 46,001 67 18,722 219 64,723

SpringHill Suites 484 55,847 - - 484 55,847

TownePlace Suites 465 47,206 - - 465 47,206

Autograph Collection 122 24,331 93 20,175 215 44,506

Westin 90 30,484 24 7,353 114 37,837

Four Points 162 24,336 61 10,239 223 34,575

Renaissance 61 17,514 29 7,781 90 25,295

Aloft 142 20,501 22 3,561 164 24,062

AC Hotels by Marriott 84 13,867 38 6,968 122 20,835

Moxy 26 4,913 69 13,187 95 18,100

Delta Hotels 56 12,298 10 2,415 66 14,713

The Luxury Collection 10 2,644 51 9,459 61 12,103

Le M?ridien 22 5,096 17 4,468 39 9,564

Element 67 8,898 1 160 68 9,058

Tribute Portfolio 35 5,869 21 2,613 56 8,482

JW Marriott 14 6,328 9 2,305 23 8,633

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

Design Hotels 6 865 8 862 14 1,727

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 September 30, 2021

US & Canada Total International Total Worldwide

Units Rooms Units Rooms Units Rooms

Owned/Leased 26 6,483 39 9,288 65 15,771

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 - - 6 576 6 576

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 65 6,925 37 3,013 102 9,938

The Ritz-Carlton Residences 38 4,234 14 1,116 52 5,350

St. Regis Residences 11 1,200 7 598 18 1,798

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

Sheraton Residences - - 1 50 1 50

EDITION Residences 2 45 - - 2 45

Le M?ridien Residences - - 1 15 1 15

Timeshare* 72 18,839 20 3,862 92 22,701

Grand Total 5,728 956,942 2,164 506,750 7,892 1,463,692

*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 September 30, 2021

US & Canada Total International Total Worldwide

Total Systemwide Units Rooms Units Rooms Units Rooms

Luxury 189 52,344 369 86,014 558 138,358

JW Marriott 35 19,040 72 25,900 107 44,940

The Ritz-Carlton 39 11,835 67 16,960 106 28,795

The Ritz-Carlton Residences 38 4,234 14 1,116 52 5,350

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

The Luxury Collection^1 16 4,940 103 18,616 119 23,556

The Luxury Collection Residences 1 91 3 115 4 206

W Hotels 23 6,695 36 9,994 59 16,689

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

W Hotels Serviced Apartments - - 1 160 1 160

St. Regis 10 1,968 38 8,882 48 10,850

St. Regis Residences 11 1,200 7 598 18 1,798

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 - - 6 527 6 527

Bulgari Residences - - 5 514 5 514

Full-Service 1,021 353,167 986 274,181 2,007 627,348

Marriott Hotels 341 134,058 253 74,700 594 208,758

Marriott Hotels Residences - - 2 246 2 246

Marriott Hotels Serviced Apartments - - 1 154 1 154

Sheraton 179 69,109 260 84,356 439 153,465

Sheraton Residences - - 1 50 1 50

Westin 131 53,407 97 29,578 228 82,985

Westin Residences 3 266 - - 3 266

Renaissance 86 28,438 88 26,021 174 54,459

Autograph Collection^2 130 26,671 115 23,192 245 49,863

Le M?ridien 23 5,196 87 24,337 110 29,533

Le M?ridien Residences - - 1 15 1 15

Delta Hotels 81 19,068 12 2,892 93 21,960

Gaylord Hotels 6 10,220 - - 6 10,220

Tribute Portfolio 35 5,869 26 3,066 61 8,935

Marriott Executive Apartments - - 35 4,712 35 4,712

Design Hotels 6 865 8 862 14 1,727

Limited-Service 4,446 532,592 789 142,693 5,235 675,285

Courtyard 1,032 142,503 211 42,686 1,243 185,189

Fairfield by Marriott 1,103 104,110 86 12,988 1,189 117,098

Residence Inn 838 102,957 28 3,666 866 106,623

SpringHill Suites 510 60,207 - - 510 60,207

Four Points 163 24,470 139 31,705 302 56,175

TownePlace Suites 471 48,031 - - 471 48,031

Aloft 143 20,831 62 12,517 205 33,348

AC Hotels by Marriott 91 15,032 107 15,307 198 30,339

Moxy 26 4,913 74 14,074 100 18,987

Element 69 9,538 12 2,344 81 11,882

Protea Hotels - - 70 7,406 70 7,406

Timeshare* 72 18,839 20 3,862 92 22,701

Grand Total 5,728 956,942 2,164 506,750 7,892 1,463,692

*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 September 30, 2021 and September 30, 2020

REVPAR Occupancy Average Daily Rate

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

JW Marriott $133.20 203.7% 53.4% 32.7% pts. $249.67 17.5%

The Ritz-Carlton $254.66 144.3% 55.7% 28.2% pts. $457.14 20.7%

W Hotels $152.07 297.4% 53.0% 35.0% pts. $286.81 34.7%

Composite US & Canada Luxury^1 $195.98 204.4% 55.0% 33.6% pts. $356.59 18.3%

Marriott Hotels $100.16 345.2% 54.3% 38.1% pts. $184.57 32.3%

Sheraton $100.83 617.5% 53.0% 41.8% pts. $190.21 51.3%

Westin $119.69 336.8% 55.5% 37.1% pts. $215.57 44.6%

Composite US & Canada Premium^2 $103.64 357.2% 53.8% 38.1% pts. $192.52 33.9%

US & Canada Full-Service^3 $122.18 293.5% 54.1% 37.2% pts. $226.01 23.0%

Courtyard $83.23 205.2% 63.5% 35.8% pts. $131.16 32.9%

Residence Inn $120.56 89.4% 73.8% 25.6% pts. $163.28 23.8%

Composite US & Canada Limited-Service^4 $93.06 156.0% 66.1% 33.5% pts. $140.71 26.5%

US & Canada - All^5 $115.57 258.3% 56.8% 36.3% pts. $203.46 29.1%

Comparable Systemwide US & Canada Properties

Three Months Ended September 30, 2021 and September 30, 2020

REVPAR Occupancy Average Daily Rate

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

JW Marriott $140.74 209.3% 56.6% 34.7% pts. $248.47 19.8%

The Ritz-Carlton $253.78 149.0% 56.1% 29.0% pts. $452.14 20.4%

W Hotels $152.07 297.4% 53.0% 35.0% pts. $286.81 34.7%

Composite US & Canada Luxury^1 $188.74 206.6% 56.2% 34.1% pts. $335.54 20.6%

Marriott Hotels $93.79 222.7% 54.6% 32.6% pts. $171.74 30.3%

Sheraton $82.99 241.3% 52.7% 30.6% pts. $157.53 43.1%

Westin $110.44 248.2% 56.4% 33.9% pts. $195.85 38.9%

Composite US & Canada Premium^2 $99.00 220.6% 55.1% 32.3% pts. $179.55 32.8%

US & Canada Full-Service^3 $109.37 217.7% 55.3% 32.5% pts. $197.90 30.8%

Courtyard $90.46 127.7% 65.8% 27.6% pts. $137.50 32.3%

Residence Inn $111.49 58.6% 76.5% 17.1% pts. $145.74 23.1%

Fairfield by Marriott $84.81 93.0% 69.8% 22.9% pts. $121.51 29.8%

Composite US & Canada Limited-Service^4 $93.28 90.7% 69.7% 22.9% pts. $133.81 27.9%

US & Canada - All^5 $100.19 134.7% 63.5% 27.1% pts. $157.78 34.7%

^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 September 30, 2021 and September 30, 2020

REVPAR Occupancy Average Daily Rate

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

Greater China $67.15 -1.8% 54.6% -6.8% pts. $122.94 10.5%

Asia Pacific excluding China $34.57 37.1% 33.2% 9.1% pts. $104.22 -0.6%

Caribbean & Latin America $81.73 257.1% 46.4% 28.2% pts. $175.95 40.6%

Europe $104.65 215.8% 47.1% 28.8% pts. $222.03 22.5%

Middle East & Africa $72.42 90.7% 50.8% 24.2% pts. $142.46 -0.1%

International - All^1 $68.32 64.2% 46.3% 12.3% pts. $147.63 20.5%

Worldwide^2 $89.88 140.8% 51.1% 23.3% pts. $175.96 31.0%

Comparable Systemwide International Properties

Three Months Ended September 30, 2021 and September 30, 2020

REVPAR Occupancy Average Daily Rate

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

Greater China $63.41 -4.0% 52.7% -7.8% pts. $120.28 10.3%

Asia Pacific excluding China $40.46 37.6% 36.1% 10.9% pts. $112.14 -4.1%

Caribbean & Latin America $70.07 317.5% 45.7% 29.8% pts. $153.41 45.2%

Europe $92.75 177.7% 46.7% 26.3% pts. $198.64 21.0%

Middle East & Africa $68.19 93.3% 50.3% 23.8% pts. $135.45 2.1%

International - All^1 $67.53 76.3% 45.9% 14.9% pts. $147.04 19.2%

Worldwide^2 $90.32 118.4% 58.2% 23.4% pts. $155.21 30.6%

^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

In Constant $

Comparable Company-Operated US & Canada Properties

Nine Months Ended September 30, 2021 and September 30, 2020

REVPAR Occupancy Average Daily Rate

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

JW Marriott $117.36 60.1% 44.8% 16.5% pts. $261.98 1.1%

The Ritz-Carlton $225.07 73.8% 47.0% 15.8% pts. $479.30 15.2%

W Hotels $126.08 59.9% 41.4% 14.3% pts. $304.60 4.7%

Composite US & Canada Luxury^1 $168.79 67.7% 44.7% 16.1% pts. $377.22 7.5%

Marriott Hotels $67.80 35.2% 40.0% 13.4% pts. $169.48 -10.1%

Sheraton $61.72 40.7% 34.6% 10.6% pts. $178.51 -2.4%

Westin $80.07 53.2% 40.1% 13.4% pts. $199.52 2.0%

Composite US & Canada Premium^2 $68.27 40.3% 38.3% 12.4% pts. $178.10 -4.9%

US & Canada Full-Service^3 $88.47 49.7% 39.6% 13.1% pts. $223.29 0.2%

Courtyard $62.11 62.3% 54.1% 23.2% pts. $114.79 -7.4%

Residence Inn $99.92 39.6% 68.8% 20.8% pts. $145.31 -2.5%

Composite US & Canada Limited-Service^4 $71.84 52.1% 57.6% 22.1% pts. $124.74 -6.3%

US & Canada - All^5 $84.70 50.1% 43.7% 15.2% pts. $193.80 -1.9%

Comparable Systemwide US & Canada Properties

Nine Months Ended September 30, 2021 and September 30, 2020

REVPAR Occupancy Average Daily Rate

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

JW Marriott $118.41 61.6% 47.0% 18.7% pts. $251.90 -2.7%

The Ritz-Carlton $220.77 74.8% 46.5% 15.9% pts. $474.36 15.1%

W Hotels $126.08 59.9% 41.4% 14.3% pts. $304.60 4.7%

Composite US & Canada Luxury^1 $158.60 67.2% 45.6% 16.8% pts. $348.17 5.6%

Marriott Hotels $66.49 40.2% 42.2% 13.4% pts. $157.50 -4.3%

Sheraton $56.44 38.1% 39.9% 10.7% pts. $141.38 1.1%

Westin $76.15 44.4% 42.3% 12.8% pts. $180.20 0.8%

Composite US & Canada Premium^2 $69.43 43.5% 42.1% 12.8% pts. $165.03 -0.2%

US & Canada Full-Service^3 $79.74 48.3% 42.5% 13.3% pts. $187.74 2.0%

Courtyard $69.06 56.8% 56.7% 19.5% pts. $121.87 2.9%

Residence Inn $92.69 33.6% 70.9% 16.1% pts. $130.80 3.2%

Fairfield by Marriott $65.50 57.7% 60.8% 18.9% pts. $107.77 8.7%

Composite US & Canada Limited-Service^4 $73.54 47.5% 61.7% 18.2% pts. $119.19 4.1%

US & Canada - All^5 $76.20 47.9% 53.4% 16.1% pts. $142.59 3.4%

^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

Nine Months Ended September 30, 2021 and September 30, 2020

REVPAR Occupancy Average Daily Rate

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

Greater China $67.33 49.8% 55.8% 15.4% pts. $120.73 8.4%

Asia Pacific excluding China $34.38 -14.6% 32.3% 2.3% pts. $106.51 -20.8%

Caribbean & Latin America $68.54 39.9% 40.0% 13.0% pts. $171.46 -5.5%

Europe $54.26 32.4% 28.2% 5.6% pts. $192.41 6.1%

Middle East & Africa $68.11 35.0% 46.3% 12.0% pts. $147.14 -0.1%

International - All^1 $56.24 27.5% 41.3% 9.2% pts. $136.23 -1.1%

Worldwide^2 $69.24 39.2% 42.4% 11.9% pts. $163.35 0.0%

Comparable Systemwide International Properties

Nine Months Ended September 30, 2021 and September 30, 2020

REVPAR Occupancy Average Daily Rate

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

Greater China $64.10 46.8% 54.3% 14.4% pts. $118.03 7.9%

Asia Pacific excluding China $37.29 -10.9% 33.7% 3.3% pts. $110.55 -19.6%

Caribbean & Latin America $56.61 45.2% 38.4% 13.5% pts. $147.39 -5.7%

Europe $47.88 26.3% 27.8% 4.5% pts. $172.23 5.6%

Middle East & Africa $62.93 36.0% 45.3% 11.7% pts. $139.07 1.0%

International - All^1 $52.14 25.7% 38.9% 8.5% pts. $133.90 -1.7%

Worldwide^2 $68.94 42.2% 49.1% 13.8% pts. $140.51 2.2%

^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 September 30, 2021 and September 30, 2019

REVPAR Occupancy Average Daily Rate

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

Greater China $63.41 -27.4% 52.7% -16.9% pts. $120.28 -4.1%

Asia Pacific excluding China $40.46 -63.9% 36.1% -37.9% pts. $112.14 -26.0%

Caribbean & Latin America $70.07 -17.8% 45.7% -14.1% pts. $153.41 7.5%

Europe $92.75 -43.5% 46.7% -31.5% pts. $198.64 -5.4%

Middle East & Africa $68.19 -19.2% 50.3% -15.3% pts. $135.45 5.3%

International - All^2 $67.53 -40.7% 45.9% -25.4% pts. $147.04 -7.9%

US & Canada - All $100.19 -19.9% 63.5% -13.1% pts. $157.78 -3.4%

Worldwide^3 $90.32 -25.8% 58.2% -16.8% pts. $155.21 -4.4%

Comparable Systemwide Properties^1

Nine Months Ended September 30, 2021 and September 30, 2019

REVPAR Occupancy Average Daily Rate

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

Greater China $64.10 -25.8% 54.3% -12.2% pts. $118.03 -9.1%

Asia Pacific excluding China $37.29 -67.0% 33.7% -38.0% pts. $110.55 -29.9%

Caribbean & Latin America $56.61 -44.3% 38.4% -23.9% pts. $147.39 -9.7%

Europe $47.88 -66.1% 27.8% -44.5% pts. $172.23 -11.9%

Middle East & Africa $62.93 -32.0% 45.3% -20.6% pts. $139.07 -1.1%

International - All^2 $52.14 -52.9% 38.9% -29.9% pts. $133.90 -16.8%

US & Canada - All $76.20 -38.1% 53.4% -20.9% pts. $142.59 -13.9%

Worldwide^3 $68.94 -42.3% 49.1% -23.7% pts. $140.51 -14.5%

^1 The comparisons between 2021 and 2019 reflect properties that are defined ascomparable as of September 30, 2021, even if in 2019 they were not open andoperating for the full year or did not meet all the criteria for comparable in2019.

^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 Second Third Total Quarter Quarter Quarter

Net (loss) income, as reported $ (11) $ 422 $ 220 $ 631

Cost reimbursement revenue (1,780) (2,338) (2,950) (7,068)

Reimbursed expenses 1,833 2,255 2,917 7,005

Loss on extinguishment of debt - - 164 164

Interest expense 107 109 107 323

Interest expense from unconsolidated joint ventures^ 2 1 2 5

(Benefit) provision for income taxes (16) (41) 58 1

Depreciation and amortization 52 50 64 166

Contract investment amortization 17 18 21 56

Depreciation and amortization classified in reimbursed expenses 28 27 28 83

Depreciation, amortization and impairments from unconsolidated joint ventures 10 9 5 24

Stock-based compensation 53 43 43 139

Restructuring and merger-related charges 1 3 4 8

Adjusted EBITDA ** $ 296 $ 558 $ 683 $ 1,537

Change from 2020 Adjusted EBITDA ** -33% 815% 109% 85%

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-13 and A-14 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 this pressrelease and schedules are determined and management's reasons for reportingthese non-GAAP measures below, and the press release schedules reconcile themost directly comparable GAAP measure to each non-GAAP measure that we referto. Although management evaluates and presents these non-GAAP measures for thereasons described below, please be aware that these non-GAAP measures havelimitations and should not be considered in isolation or as a substitute forrevenue, operating income/loss, net income/loss, earnings/loss per share or anyother comparable operating measure prescribed by GAAP. In addition, we maycalculate and/or present these non-GAAP financial measures differently thanmeasures with the same or similar names that other companies report, and as aresult, the non-GAAP measures we report may not be comparable to those reportedby 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, and non-cash impairment charges. Adjusted operating income marginreflects Adjusted operating income divided by Adjusted total revenues. Webelieve 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 earnings per share reflect our net income/loss anddiluted earnings/loss per share excluding the impact of cost reimbursementrevenue, reimbursed expenses, restructuring and merger-related charges,non-cash impairment charges, losses and gains on asset dispositions (whenapplicable), loss on extinguishment of debt, income tax special items, and theincome tax effect of these adjustments. The income tax special items primarilyrelated to the income tax benefit arising from the favorable resolution ofpre-acquisition Starwood tax audits in the 2021 second quarter. We calculatethe income tax effect of the adjustments using an estimated tax rate applicableto each 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 income/loss 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), loss on extinguishment of debt, non-cash impairment charges, benefit(provision) for income taxes, restructuring and merger-related charges(recoveries), and stock-based compensation expense for all periods presented.When applicable, Adjusted EBITDA also excludes gains and losses on assetdispositions made by us or by our joint venture investees.



In our presentations of Adjusted operating income and Adjusted operating incomemargin, Adjusted net income, Adjusted diluted earnings per share and AdjustedEBITDA, as applicable, we exclude charges incurred under our restructuringplans that we initiated beginning in the 2020 second quarter to achieve costsavings in response to the decline in lodging demand caused by COVID-19 andtransition costs associated with the Starwood merger, which we record in the"Restructuring and merger-related charges" caption of our CondensedConsolidated Statements of Income (Loss) (our "Income Statements"), as well asthe loss related to the debt extinguishment, as applicable, which we record inthe "Loss on extinguishment of debt" caption of our Income Statements, to allowfor period-over period comparisons of our ongoing operations before the impactof these items. We also exclude non-cash impairment charges related to ourmanagement and franchise contracts, leases, equity investments, and othercapitalized assets, which we record in the "Contract investment amortization,""Depreciation, amortization, and other," and "Equity in losses" captions of ourIncome Statements to allow for period-over period comparisons of our ongoingoperations before the impact of these items. We exclude cost reimbursementrevenue and reimbursed expenses, which relate to property-level and centralizedprograms and services that we operate for the benefit of our hotel owners. Wedo not operate these programs and services to generate a profit over the longterm, and accordingly, when we recover the costs that we incur for theseprograms and services from our hotel owners, we do not seek a mark-up. Forproperty-level services, our owners typically reimburse us at the same timethat we incur expenses. However, for centralized programs and services, ourowners may reimburse us before or after we incur expenses, causing timingdifferences between the costs we incur and the related reimbursement from hotelowners in our operating and net income. Over the long term, these programs andservices are not designed to impact our economics, either positively ornegatively. Because we do not retain any such profits or losses over time, weexclude the net impact when evaluating period-over-period changes in ouroperating 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"Contract investment amortization," "Reimbursed expenses," and "Equity inlosses" of our Income Statements, because companies utilize productive assetsof different ages and use different methods of both acquiring and depreciatingproductive assets. Depreciation and amortization classified in "Reimbursedexpenses" reflects depreciation and amortization of Marriott-owned assets andsoftware, for which we receive cash from owners to reimburse the company forits investments made for the benefit of the system. These differences canresult in considerable variability in the relative costs of productive assetsand the depreciation and amortization expense among companies. We excludestock-based compensation expense in all periods presented to address theconsiderable variability among companies in recording compensation expensebecause companies use stock-based payment awards differently, both in the typeand 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 September 30,2021, even if in 2019 they were not open and operating for the full year or didnot meet 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.