EX-992mar-2025q2xex99earningsrel.htmEX-99 Document

NEWS

Marriott International Reports Second Quarter 2025 Results

•Second quarter 2025 RevPAR1 increased 1.5 percent worldwide, with 5.3 percent growth in international markets and U.S. & Canada RevPAR in line with the year-ago quarter

•Second quarter reported diluted EPS totaled $2.78 and adjusted diluted EPS totaled $2.65

•Second quarter reported net income totaled $763 million and adjusted net income totaled $728 million

•Second quarter adjusted EBITDA totaled $1,415 million

•The company added roughly 17,300 net rooms during the quarter and net rooms grew 4.7% from the end of the second quarter of 2024

•At the end of the quarter, Marriott’s worldwide development pipeline reached a new record and totaled approximately 3,900 properties and over 590,000 rooms

•The company repurchased 2.8 million shares of common stock for $0.7 billion in the 2025 second quarter. Year to date through July 30, the company has returned approximately $2.1 billion to shareholders through dividends and share repurchases

For a summary of quarterly highlights, please visit: https://news.marriott.com/static-assets/component-resources/newscenter/earnings/2025/2025-q2-earnings-infographic.pdf

BETHESDA, MD – August 5, 2025 - Marriott International, Inc. (Nasdaq: MAR) today reported second quarter 2025 results.

Anthony Capuano, President and Chief Executive Officer, said, “T1Marriott delivered another solid quarter, highlighted by strong financial results and robust net rooms growth despite heightened macro-economic uncertainty. Global RevPAR increased 1.5 percent in the second quarter primarily driven by the leisure segment. T2International RevPAR rose over 5 percent, with strong growth in APEC and EMEA. T3In the U.S. & Canada, RevPAR was flat year over year with continued strength in the luxury segment offset by a decline in select service demand, largely reflecting reduced government travel and weaker business transient demand. Adjusting for the Easter holiday shift, U.S. & Canada RevPAR increased by nearly 1 percent.

1All occupancy, Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) statistics and estimates are systemwide constant dollar. Unless otherwise stated, all changes refer to year-over-year changes for the comparable period. Occupancy, ADR and RevPAR comparisons between 2025 and 2024 reflect properties that are comparable in both years.

“Development activity remained robust. We signed nearly 32,000 rooms, over 70 percent of which were in international markets, and T4our quarter-end pipeline stood at a record of more than 590,000 rooms. Conversions continued to be a key driver of growth, representing approximately 30 percent of our room signings and openings in the first half of this year. We still expect full year net rooms growth to approach 5 percent this year.

“With our strategy to be everywhere our guests want us to be, T5we expanded our industry leading global brand portfolio with the launch of Series by Marriott™, a new regional collection brand targeting the midscale and upscale segments. We are excited about our founding deal to affiliate the Fern portfolio of brands in India with Series by Marriott, and by the strong interest from owners around the world in this extension of our successful soft brand model. We also recently completed the acquisition of the innovative lifestyle brand citizenM, further broadening offerings for our guests, Marriott Bonvoy members and owners. We believe both of these new brands have meaningful global growth potential.

“We continue to enhance our powerful Marriott Bonvoy travel platform. Membership reached nearly 248 million members at the end of June, and we are deepening engagement through unique experiences and strategic collaborations.

“Our results in the second quarter underscore the resiliency of our cash-generating, asset-light business model and the strength of our brands. T6Year to date through July 30, we have returned approximately $2.1 billion to our shareholders through share repurchases and dividends, and we remain on track to return approximately $4 billion for full year 2025.”

Second Quarter 2025 Results

Base management and franchise fees totaled $1,200 million in the 2025 second quarter, a nearly 5 percent increase compared to base management and franchise fees of $1,148 million in the year-ago quarter. Higher RevPAR, rooms growth and co-branded credit card fees were key contributors to the increase.

Incentive management fees totaled $200 million in the 2025 second quarter, compared to $195 million in the 2024 second quarter, driven by strong international hotel results. Managed hotels in international markets contributed nearly two-thirds of the incentive fees earned in the quarter.

Owned, leased, and other revenue, net of direct expenses, totaled $113 million in the 2025 second quarter, compared to $99 million in the 2024 second quarter. The increase was mainly driven by the addition of the Sheraton Grand Chicago to our portfolio of owned hotels.

General, administrative, and other expenses for the 2025 second quarter totaled $245 million, compared to $248 million in the year-ago quarter. The year-over-year change largely reflects lower compensation costs.

Interest expense, net, totaled $191 million in the 2025 second quarter, compared to $164 million in the year-ago quarter. The increase was largely due to higher interest expense associated with higher debt balances.

In the 2025 second quarter, the provision for income taxes totaled $291 million compared to $268 million in the 2024 second quarter.

Marriott’s reported operating income totaled $1,236 million in the 2025 second quarter, compared to 2024 second quarter reported operating income of $1,195 million. Reported net income totaled $763 million in the 2025 second quarter, a 1 percent decrease compared to 2024 second quarter reported net income of $772 million. Reported diluted earnings per share (EPS) totaled $2.78 in the quarter, compared to reported diluted EPS of $2.69 in the year-ago quarter.

Adjusted operating income in the 2025 second quarter totaled $1,186 million, compared to 2024 second quarter adjusted operating income of $1,120 million. Second quarter 2025 adjusted net income totaled $728 million, compared to 2024 second quarter adjusted net income of $716 million. Adjusted diluted EPS in the 2025 second quarter totaled $2.65, compared to adjusted diluted EPS of $2.50 in the year-ago quarter.

Adjusted results excluded cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges, and, for the 2025 second quarter, income tax special items. See the press release schedules for the calculation of adjusted results and the manner in which the adjusted measures are determined in this press release.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $1,415 million in the 2025 second quarter, a 7 percent increase compared to second quarter 2024 adjusted EBITDA of $1,324 million. See the press release schedules for the adjusted EBITDA calculation.

Selected Performance Information

The company added roughly 17,300 net rooms during the quarter, including more than 8,500 net rooms in international markets. At the end of the quarter, Marriott’s global system totaled over 9,600 properties, with approximately 1,736,000 rooms.

At the end of the quarter, the company’s worldwide development pipeline totaled 3,858 properties with more than 590,000 rooms, including 234 properties with over 37,000 rooms approved for

development, but not yet subject to signed contracts. The quarter-end pipeline included 1,447 properties with over 238,000 rooms under construction, including hotels that are in the process of converting to our system. Over half of the rooms in the quarter-end pipeline are in international markets. The quarter-end pipeline does not reflect any rooms from our acquisition of the citizenM brand or from the launch of Series by Marriott.

In the 2025 second quarter, worldwide RevPAR increased 1.5 percent (a 1.7 percent increase using actual dollars) compared to the 2024 second quarter. RevPAR in the U.S. & Canada was flat (a 0.1 percent decrease using actual dollars) year-over-year, and RevPAR in international markets increased 5.3 percent (a 6.1 percent increase using actual dollars) year-over-year.

Balance Sheet & Common Stock

At the end of the quarter, Marriott’s total debt was $15.7 billion and cash and equivalents totaled $0.7 billion, compared to $14.4 billion in debt and $0.4 billion of cash and equivalents at year-end 2024.

The company repurchased 2.8 million shares of common stock in the 2025 second quarter for $0.7 billion. Year to date through July 30, the company has repurchased 6.4 million shares for $1.7 billion.

Company Outlook

The Company's updated outlook generally assumes the continuation of the current macro-economic environment.

Third Quarter 2025

vs. Third Quarter 2024

Full Year 2025

vs. Full Year 2024

G1G2Comparable systemwide constant $ RevPAR growth

Worldwide

flat to 1.0%

1.5% to 2.5%

Year-End 2025

vs. Year-End 2024

G3Net rooms growth

Approaching 5%

($ in millions, except EPS)

Third Quarter 2025

Full Year 2025

G4G5Gross fee revenues

$1,310 to $1,325

$5,365 to $5,420

G6G7Owned, leased, and other revenue, net of direct expenses

$80 to $90

$360 to $370

G8G9General, administrative, and other expenses

$245 to $240

$985 to $965

G10G11Adjusted EBITDA1,2

$1,288 to $1,318

$5,310 to $5,395

G12G13Adjusted EPS – diluted2,3

$2.31 to $2.39

$9.85 to $10.08

G14Investment spending (including $355 million for citizenM)4

$1,355 to $1,455

G15Capital return to shareholders5

Approx. $4,000

1See the press release schedules for the adjusted EBITDA calculations.

2Adjusted EBITDA and Adjusted EPS – diluted for third quarter and full year 2025 do not include cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges, income tax special items, or any potential asset sales or property or brand acquisitions that may occur during the year (other than our acquisition of the citizenM brand in the 2025 third quarter), each of which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant. Adjusted EPS – diluted for full year 2025 excludes the benefit of income tax special items of $74 million.

3Assumes the level of capital return to shareholders noted above.

4This outlook includes $355 million of funding related to our acquisition of the citizenM brand. Investment spending includes capital and technology expenditures, loan advances, contract acquisition costs, and other investing activities, but excludes any other potential property or brand acquisitions, which we cannot forecast with sufficient accuracy and which may be significant.

5Assumes the level and types of investment spending noted above and that no asset sales, property acquisitions or additional brand acquisitions occur during the year.

Marriott International, Inc. (Nasdaq: MAR) will conduct its quarterly earnings review for the investment community and news media on Tuesday, August 5, 2025, at 8:30 a.m. Eastern Time (ET). The conference call will be webcast simultaneously via Marriott’s investor relations website at 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 August 5, 2026.

The telephone dial-in number for the conference call is US Toll Free: 800-274-8461, or Global: +1 203-518-9814. The conference ID is MAR2Q25. A telephone replay of the conference call will be available from 1:00 p.m. ET, Tuesday, August 5, 2025, until 8:00 p.m. ET, Tuesday, August 12, 2025. To access the replay, call US Toll Free: 800-723-0389 or Global: +1 402-220-2647 using conference ID MAR2Q25.

Note on forward-looking statements: All statements in this press release and the accompanying schedules are made as of August 5, 2025. 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 our RevPAR, rooms growth and other financial metric estimates, outlook and assumptions; cash generation and shareholder returns; our growth prospects; our development pipeline; our Marriott Bonvoy travel platform; 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 uncertainty resulting from economic, political or other global, national, and regional conditions and events, including related to tariffs, trade, travel and other policies; and the risk factors that we describe in our U.S.

Securities and Exchange Commission filings, including our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. 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 over 9,600 properties across more than 30 leading brands in 143 countries and territories. Marriott operates, franchises, and licenses hotel, residential, timeshare, and other lodging properties all around the world. The company offers Marriott Bonvoy®, its highly awarded travel platform. 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 X and Instagram.

Marriott encourages investors, the media, and others interested in the company to review and subscribe to the information Marriott posts on its investor relations website at www.marriott.com/investor or Marriott’s news center website at www.marriottnewscenter.com, 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 U.S. Securities and Exchange Commission, and any references to the websites are intended to be inactive textual references only.

MEDIA & INVESTOR RELATIONS CONTACTS:

Melissa Froehlich Flood

Senior Vice President, Global Corporate Communications & Public Policy

Marriott International

newsroom@marriott.com

Jackie Burka McConagha

Senior Vice President, Investor Relations

Marriott International

jackie.mcconagha@marriott.com

Pilar Fernandez

Senior Director, Investor Relations

Marriott International

pilar.fernandez@marriott.com

IRPR#1

Tables follow

MARRIOTT INTERNATIONAL, INC.

PRESS RELEASE SCHEDULES

TABLE OF CONTENTS

QUARTER 2, 2025

Consolidated Statements of Income - As Reported

A-2

Non-GAAP Financial Measures

A-4

Total Lodging Products by Ownership Type

A-5

Total Lodging Products by Tier

A-7

Key Lodging Statistics

A-8

Adjusted EBITDA

A-12

Adjusted EBITDA Forecast - Third Quarter 2025

A-13

Adjusted EBITDA Forecast - Full Year 2025

A-14

Explanation of Non-GAAP Financial and Performance Measures

A-15

A-1

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED

SECOND QUARTER 2025 AND 2024

($ in millions except per share amounts, unaudited)

As Reported

Percent

Three Months Ended

Better/(Worse)

June 30, 2025

June 30, 2024

Reported 2025 vs. 2024

REVENUES

Base management fees

340

330

Franchise fees1

860

818

Incentive management fees

200

195

Gross fee revenues

1,400

1,343

Contract investment amortization2

(29)

(27)

(7)

Net fee revenues

1,371

1,316

Owned, leased, and other revenue3

441

395

Cost reimbursement revenue4

4,932

4,728

6,744

6,439

OPERATING COSTS AND EXPENSES

Owned, leased, and other - direct5

328

296

(11)

Depreciation, amortization, and other6

(13)

General, administrative, and other7

245

248

Restructuring and merger-related charges

—

Reimbursed expenses4

4,874

4,645

(5)

5,508

5,244

(5)

OPERATING INCOME

1,236

1,195

Gains and other income, net8

Interest expense

(203)

(173)

(17)

Interest income

Equity in earnings9

(20)

INCOME BEFORE INCOME TAXES

1,054

1,040

Provision for income taxes

(291)

(268)

(9)

NET INCOME

763

772

(1)

EARNINGS PER SHARE

Earnings per share - basic

2.78

2.70

Earnings per share - diluted

2.78

2.69

Basic shares

274.2

285.8

Diluted shares

274.7

286.7

1 Franchise fees include fees from our franchise and license agreements for lodging properties (including our timeshare properties), application and relicensing fees, co-branded credit card fees, and residential branding fees.

2 Contract investment amortization includes amortization of capitalized costs to obtain contracts with customers and any related impairments.

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

4 Cost reimbursement revenue includes reimbursements from hotel owners and certain other counterparties for property-level and centralized programs and services that we operate for their benefit. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services that we operate for the benefit of our hotel owners and certain other counterparties.

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

6 Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of acquired contracts, software, and other definite-lived intangible assets, 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.

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

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

A-2

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED

SECOND QUARTER YEAR-TO-DATE 2025 AND 2024

($ in millions except per share amounts, unaudited)

As Reported

Percent

Six Months Ended

Better/(Worse)

June 30, 2025

June 30, 2024

Reported 2025 vs. 2024

REVENUES

Base management fees

665

643

Franchise fees1

1,606

1,506

Incentive management fees

404

—

Gross fee revenues

2,675

2,553

Contract investment amortization2

(57)

(50)

(14)

Net fee revenues

2,618

2,503

Owned, leased, and other revenue3

802

752

Cost reimbursement revenue4

9,587

9,161

13,007

12,416

OPERATING COSTS AND EXPENSES

Owned, leased, and other - direct5

624

582

(7)

Depreciation, amortization, and other6

104

(13)

General, administrative, and other7

490

509

Restructuring and merger-related charges

Reimbursed expenses4

9,596

9,146

(5)

10,823

10,345

(5)

OPERATING INCOME

2,184

2,071

Gains and other income, net8

(63)

Interest expense

(395)

(336)

(18)

Interest income

Equity in earnings9

—

INCOME BEFORE INCOME TAXES

1,818

1,767

Provision for income taxes

(390)

(431)

NET INCOME

1,428

1,336

EARNINGS PER SHARE

Earnings per share - basic

5.18

4.64

Earnings per share - diluted

5.17

4.62

Basic shares

275.5

288.1

Diluted shares

276.2

289.1

2 Contract investment amortization includes amortization of capitalized costs to obtain contracts with customers and any related impairments.

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

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

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

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

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

A-3

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

Six Months Ended

Percent

June 30,

Better/

June 30,

Better/

2025

2024

(Worse)

2025

2024

(Worse)

Total revenues, as reported

6,744

6,439

13,007

12,416

Less: Cost reimbursement revenue

(4,932)

(4,728)

(9,587)

(9,161)

Adjusted total revenues†

1,812

1,711

3,420

3,255

Operating income, as reported

1,236

1,195

2,184

2,071

Less: Cost reimbursement revenue

(4,932)

(4,728)

(9,587)

(9,161)

Add: Reimbursed expenses

4,874

4,645

9,596

9,146

Add: Restructuring and merger-related charges

Adjusted operating income†

1,186

1,120

2,202

2,072

Operating income margin

Adjusted operating income margin†

Net income, as reported

763

772

1,428

1,336

Less: Cost reimbursement revenue

(4,932)

(4,728)

(9,587)

(9,161)

Add: Reimbursed expenses

4,874

4,645

9,596

9,146

Add: Restructuring and merger-related charges

Income tax effect of above adjustments

(1)

Less: Income tax special items

(3)

—

(74)

—

Adjusted net income†

728

716

1,373

1,336

Diluted earnings per share, as reported

2.78

2.69

5.17

4.62

Adjusted diluted earnings per share†

2.65

2.50

4.97

4.62

† Denotes non-GAAP financial measures. Please see Explanation of Non-GAAP Financial and Performance Measures in these Press Release Schedules for information about our reasons for providing these alternative financial measures and the limitations on their use.

A-4

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY OWNERSHIP TYPE

As of June 30, 2025

US & Canada

Total International1

Total Worldwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

Managed

612

213,382

1,360

353,456

1,972

566,838

Marriott Hotels

56,180

187

59,155

286

115,335

Sheraton

19,769

180

57,877

205

77,646

Courtyard by Marriott

155

25,227

132

28,912

287

54,139

Westin

22,486

23,888

120

46,374

JW Marriott

13,191

27,076

40,267

The Ritz-Carlton

12,798

18,394

121

31,192

Four Points by Sheraton

134

25,583

25,717

Renaissance Hotels

9,065

16,054

25,119

Le Méridien

—

18,286

W Hotels

5,513

12,460

17,973

St. Regis

2,669

11,380

14,049

Residence Inn by Marriott

12,002

1,116

13,118

Gaylord Hotels

11,820

—

11,820

The Luxury Collection

2,296

7,859

10,155

Delta Hotels by Marriott

6,622

3,329

9,951

Fairfield by Marriott

1,431

8,450

9,881

Aloft Hotels

505

8,777

9,282

Autograph Collection

3,269

3,209

6,478

Marriott Executive Apartments

—

5,489

EDITION

1,379

2,844

4,223

AC Hotels by Marriott

1,512

2,680

4,192

Element Hotels

810

2,964

3,774

SpringHill Suites by Marriott

3,499

—

3,499

Moxy Hotels

380

2,876

3,256

Protea Hotels by Marriott

—

2,737

Tribute Portfolio

—

1,415

TownePlace Suites by Marriott

825

—

825

Bvlgari

—

646

Owned/Leased

5,539

8,667

14,206

Sheraton

1,218

1,724

2,942

Marriott Hotels

1,304

1,631

2,935

Courtyard by Marriott

987

894

1,881

W Hotels

765

665

1,430

Westin

1,073

—

1,073

Protea Hotels by Marriott

—

912

The Ritz-Carlton

—

548

Renaissance Hotels

—

505

JW Marriott

—

496

The Luxury Collection

—

383

Autograph Collection

—

360

Residence Inn by Marriott

192

140

332

Tribute Portfolio

—

249

St. Regis

—

160

A-5

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY OWNERSHIP TYPE

As of June 30, 2025

US & Canada

Total International1

Total Worldwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

Franchised, Licensed, and Other

5,725

849,133

1,714

289,705

7,439

1,138,838

Courtyard by Marriott

920

123,572

137

25,379

1,057

148,951

Fairfield by Marriott

1,179

111,061

114

15,993

1,293

127,054

Residence Inn by Marriott

810

96,464

4,766

848

101,230

Marriott Hotels

234

74,162

22,034

312

96,196

Autograph Collection

153

34,504

159

32,171

312

66,675

Sheraton

141

43,631

22,628

222

66,259

SpringHill Suites by Marriott

552

64,189

—

552

64,189

TownePlace Suites by Marriott

541

54,487

—

541

54,487

Westin

32,010

9,615

128

41,625

Four Points by Sheraton

148

21,350

108

19,600

256

40,950

AC Hotels by Marriott

127

21,145

106

15,615

233

36,760

Aloft Hotels

167

23,904

5,782

197

29,686

Moxy Hotels

8,093

111

20,848

158

28,941

Renaissance Hotels

19,545

8,347

104

27,892

MGM Collection with Marriott Bonvoy**

26,210

—

26,210

Tribute Portfolio

17,646

8,269

153

25,915

Timeshare*

18,949

3,911

22,860

Delta Hotels by Marriott

15,195

6,283

21,478

The Luxury Collection

7,812

13,560

21,372

City Express by Marriott

258

153

17,781

155

18,039

Design Hotels*

2,573

165

11,355

189

13,928

Element Hotels

12,404

827

13,231

Le Méridien

5,060

7,184

12,244

JW Marriott

6,080

3,261

9,341

Sonder by Marriott Bonvoy

5,374

2,695

146

8,069

Four Points Flex by Sheraton

—

6,234

Protea Hotels by Marriott

—

3,283

Outdoor-Focused Collection

1,532

—

1,532

W Hotels

1,117

226

1,343

Marriott Executive Apartments

—

1,117

Apartments by Marriott Bonvoy

253

231

484

The Ritz-Carlton

429

—

429

The Ritz-Carlton Yacht Collection*

—

377

St. Regis

—

172

Bvlgari

—

161

StudioRes

124

—

124

Residences

7,670

8,267

140

15,937

The Ritz-Carlton Residences

4,760

1,866

6,626

St. Regis Residences

1,267

1,947

3,214

W Residences

1,092

768

1,860

Marriott Residences

—

1,337

JW Marriott Residences

—

767

Westin Residences

266

413

679

Bvlgari Residences

—

526

Sheraton Residences

—

472

The Luxury Collection Residences

176

Renaissance Residences

112

—

112

EDITION Residences

Le Méridien Residences

—

Autograph Collection Residences

—

Grand Total

6,423

1,075,724

3,178

660,095

9,601

1,735,819

1 "International" refers to: (i) Europe, Middle East & Africa, (ii) Greater China, (iii) Asia Pacific excluding China, and (iv) Caribbean & Latin America.

* Timeshare, Design Hotels, and The Ritz-Carlton Yacht Collection counts are included in this table by geographical location. For external reporting purposes, these offerings are captured within “Unallocated corporate and other.”

** Excludes five MGM Collection with Marriott Bonvoy properties (two Autograph Collection, one Tribute Portfolio, one The Luxury Collection and one W Hotels) which are presented in "Franchised, Licensed and Other" within their respective brands.

Property and room counts presented by brand in the above table include certain hotels in our system that are not yet operating under such brand, but are expected to operate under such brand following the completion of planned renovations.

A-6

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY TIER

As of June 30, 2025

US & Canada

Total International1

Total Worldwide

Total Systemwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

Luxury

208

61,341

462

106,637

670

167,978

JW Marriott

19,271

30,833

127

50,104

JW Marriott Residences

—

767

The Ritz-Carlton

13,227

18,942

124

32,169

The Ritz-Carlton Residences

4,760

1,866

6,626

The Ritz-Carlton Yacht Collection*

—

377

The Luxury Collection

10,108

106

21,802

127

31,910

The Luxury Collection Residences

176

W Hotels

7,395

13,351

20,746

W Residences

1,092

768

1,860

St. Regis

2,669

11,712

14,381

St. Regis Residences

1,267

1,947

3,214

EDITION

1,379

2,844

4,223

EDITION Residences

Bvlgari

—

807

Bvlgari Residences

—

526

Premium

1,240

409,347

1,408

327,398

2,648

736,745

Marriott Hotels

335

131,646

270

82,820

605

214,466

Marriott Residences

—

1,337

Sheraton

167

64,618

264

82,229

431

146,847

Sheraton Residences

—

472

Westin

137

55,569

112

33,503

249

89,072

Westin Residences

266

413

679

Autograph Collection

164

37,773

180

35,740

344

73,513

Autograph Collection Residences

—

Renaissance Hotels

28,610

24,906

178

53,516

Renaissance Residences

112

—

112

Delta Hotels by Marriott

21,817

9,612

140

31,429

Le Méridien

5,060

25,470

115

30,530

Le Méridien Residences

—

Tribute Portfolio

17,646

9,933

166

27,579

MGM Collection with Marriott Bonvoy**

26,210

—

26,210

Design Hotels*

2,573

165

11,355

189

13,928

Gaylord Hotels

11,820

—

11,820

Sonder by Marriott Bonvoy

5,374

2,695

146

8,069

Marriott Executive Apartments

—

6,606

Apartments by Marriott Bonvoy

253

231

484

Select

4,899

585,705

1,093

198,134

5,992

783,839

Courtyard by Marriott

1,082

149,786

273

55,185

1,355

204,971

Fairfield by Marriott

1,185

112,492

169

24,443

1,354

136,935

Residence Inn by Marriott

884

108,658

6,022

932

114,680

SpringHill Suites by Marriott

572

67,688

—

572

67,688

Four Points by Sheraton

149

21,484

204

45,183

353

66,667

TownePlace Suites by Marriott

547

55,312

—

547

55,312

AC Hotels by Marriott

135

22,657

120

18,295

255

40,952

Aloft Hotels

169

24,409

14,559

239

38,968

Moxy Hotels

8,473

124

23,724

172

32,197

Element Hotels

13,214

3,791

117

17,005

Protea Hotels by Marriott

—

6,932

Outdoor-Focused Collection

1,532

—

1,532

Midscale

382

194

24,015

197

24,397

City Express by Marriott

258

153

17,781

155

18,039

Four Points Flex by Sheraton

—

6,234

StudioRes

124

—

124

Timeshare*

18,949

3,911

22,860

Grand Total

6,423

1,075,724

3,178

660,095

9,601

1,735,819

1 "International" refers to: (i) Europe, Middle East & Africa, (ii) Greater China, (iii) Asia Pacific excluding China, and (iv) Caribbean & Latin America.

A-7

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated US & Canada Properties

Three Months Ended June 30, 2025 and June 30, 2024

RevPAR

Occupancy

Average Daily Rate

Brand

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

JW Marriott

256.91

3.2

73.5

-0.1

pts.

349.48

3.4

The Ritz-Carlton

379.22

5.8

69.1

0.9

pts.

548.82

4.5

W Hotels

265.40

4.8

72.4

2.4

pts.

366.32

1.3

Composite US & Canada Luxury1

323.19

5.0

71.9

0.9

pts.

449.29

3.6

Marriott Hotels

186.65

0.6

73.5

-1.2

pts.

253.89

2.2

Sheraton

172.43

-1.3

70.3

-2.5

pts.

245.42

2.2

Westin

201.18

1.6

73.8

-1.0

pts.

272.63

3.0

Composite US & Canada Premium2

184.53

0.8

72.9

-0.9

pts.

252.99

2.0

US & Canada Full-Service3

214.88

2.2

72.7

-0.5

pts.

295.49

2.8

Courtyard by Marriott

121.91

-2.2

71.5

-0.7

pts.

170.39

-1.2

Residence Inn by Marriott

158.59

0.0

79.4

0.3

pts.

199.72

-0.4

Composite US & Canada Select4

135.00

-1.0

74.3

-0.2

pts.

181.64

-0.8

US & Canada - All5

195.25

1.6

73.1

-0.4

pts.

267.04

2.2

Comparable Systemwide US & Canada Properties

Three Months Ended June 30, 2025 and June 30, 2024

RevPAR

Occupancy

Average Daily Rate

Brand

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

JW Marriott

246.76

1.7

74.4

-0.8

pts.

331.59

2.8

The Ritz-Carlton

378.95

6.0

69.7

0.8

pts.

543.79

4.7

W Hotels

265.40

4.8

72.4

2.4

pts.

366.32

1.3

Composite US & Canada Luxury1

304.02

4.1

72.8

0.5

pts.

417.38

3.4

Marriott Hotels

157.02

0.6

72.3

-0.7

pts.

217.09

1.5

Sheraton

140.24

-0.8

70.7

-1.8

pts.

198.48

1.7

Westin

179.02

1.4

73.9

-0.7

pts.

242.16

2.3

Composite US & Canada Premium2

159.60

1.0

72.2

-0.5

pts.

221.04

1.7

US & Canada Full-Service3

175.79

1.6

72.3

-0.4

pts.

243.23

2.2

Courtyard by Marriott

120.10

-2.6

72.3

-1.7

pts.

166.11

-0.3

Residence Inn by Marriott

139.07

-0.8

79.6

-0.7

pts.

174.62

0.0

Fairfield by Marriott

101.21

-1.8

72.8

-1.5

pts.

139.00

0.2

Composite US & Canada Select4

120.57

-1.5

74.9

-1.2

pts.

160.88

0.1

US & Canada - All5

142.78

0.0

73.9

-0.9

pts.

193.29

1.2

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

2 Includes Marriott Hotels, Sheraton, Westin, Renaissance Hotels, Autograph Collection, Delta Hotels by Marriott, and Gaylord Hotels. Systemwide also includes Le Méridien and Tribute Portfolio.

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

4 Includes Courtyard by Marriott, Residence Inn by Marriott, Fairfield by Marriott, SpringHill Suites by Marriott, TownePlace Suites by Marriott, Four Points by Sheraton, Aloft Hotels, Element Hotels, AC Hotels by Marriott, and Moxy Hotels.

5 Includes US & Canada Full-Service and Composite US & Canada Select.

A-8

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated US & Canada Properties

Six Months Ended June 30, 2025 and June 30, 2024

RevPAR

Occupancy

Average Daily Rate

Brand

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

JW Marriott

262.35

4.4

73.3

1.1

pts.

358.15

2.9

The Ritz-Carlton

397.01

6.9

68.9

1.5

pts.

575.98

4.5

W Hotels

264.75

4.8

69.2

2.5

pts.

382.76

1.1

Composite US & Canada Luxury1

337.22

5.3

71.2

1.4

pts.

473.60

3.2

Marriott Hotels

175.96

2.9

70.3

-0.2

pts.

250.27

3.3

Sheraton

166.98

0.3

68.0

-1.8

pts.

245.51

3.0

Westin

184.91

3.5

69.4

0.1

pts.

266.43

3.3

Composite US & Canada Premium2

174.32

3.0

69.7

0.0

pts.

250.04

3.0

US & Canada Full-Service3

209.98

3.8

70.0

0.3

pts.

299.80

3.3

Courtyard by Marriott

113.09

0.3

67.2

0.2

pts.

168.19

-0.1

Residence Inn by Marriott

152.98

1.4

76.6

0.7

pts.

199.76

0.5

Composite US & Canada Select4

127.71

0.9

70.7

0.6

pts.

180.60

0.1

US & Canada - All5

189.76

3.3

70.2

0.4

pts.

270.29

2.7

Comparable Systemwide US & Canada Properties

Six Months Ended June 30, 2025 and June 30, 2024

RevPAR

Occupancy

Average Daily Rate

Brand

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

JW Marriott

251.03

3.3

73.5

0.5

pts.

341.34

2.6

The Ritz-Carlton

392.19

7.0

69.1

1.6

pts.

567.54

4.6

W Hotels

264.75

4.8

69.2

2.5

pts.

382.76

1.1

Composite US & Canada Luxury1

312.34

4.9

71.6

1.2

pts.

436.26

3.2

Marriott Hotels

146.29

2.8

68.5

0.3

pts.

213.68

2.4

Sheraton

129.22

0.8

66.5

-0.8

pts.

194.27

2.0

Westin

168.82

3.4

70.4

0.4

pts.

239.87

2.8

Composite US & Canada Premium2

148.95

3.0

68.5

0.3

pts.

217.59

2.5

US & Canada Full-Service3

167.27

3.3

68.8

0.4

pts.

243.11

2.7

Courtyard by Marriott

109.56

-1.1

67.8

-1.1

pts.

161.61

0.4

Residence Inn by Marriott

129.43

0.1

76.0

-0.2

pts.

170.37

0.4

Fairfield by Marriott

90.95

-0.5

67.7

-0.8

pts.

134.28

0.7

Composite US & Canada Select4

110.68

-0.2

70.7

-0.6

pts.

156.58

0.7

US & Canada - All5

133.45

1.6

69.9

-0.2

pts.

190.83

1.9

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

2 Includes Marriott Hotels, Sheraton, Westin, Renaissance Hotels, Autograph Collection, Delta Hotels by Marriott, and Gaylord Hotels. Systemwide also includes Le Méridien and Tribute Portfolio.

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

5 Includes US & Canada Full-Service and Composite US & Canada Select.

A-9

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated International Properties

Three Months Ended June 30, 2025 and June 30, 2024

RevPAR

Occupancy

Average Daily Rate

Region

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

Europe

266.53

3.3

77.1

2.5

pts.

345.92

-0.1

Middle East & Africa

135.25

13.4

68.8

4.2

pts.

196.52

6.4

Greater China

80.06

-0.5

68.6

0.5

pts.

116.78

-1.2

Asia Pacific excluding China

122.60

7.5

69.4

0.9

pts.

176.58

6.1

Caribbean & Latin America

186.34

6.9

65.0

-2.1

pts.

286.47

10.4

International - All1

126.06

5.5

69.5

1.3

pts.

181.50

3.5

Worldwide2

154.88

3.4

71.0

0.6

pts.

218.20

2.6

Comparable Systemwide International Properties

Three Months Ended June 30, 2025 and June 30, 2024

RevPAR

Occupancy

Average Daily Rate

Region

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

Europe

178.96

3.8

75.3

1.6

pts.

237.71

1.5

Middle East & Africa

125.23

14.0

68.2

3.8

pts.

183.59

7.6

Greater China

73.75

-0.5

66.9

0.3

pts.

110.29

-0.9

Asia Pacific excluding China

127.23

8.8

70.5

1.1

pts.

180.35

7.0

Caribbean & Latin America

121.22

3.0

62.0

-1.7

pts.

195.51

5.8

International - All1

122.49

5.3

69.0

0.9

pts.

177.52

3.9

Worldwide2

136.00

1.5

72.2

-0.3

pts.

188.25

1.9

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

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

A-10

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated International Properties

Six Months Ended June 30, 2025 and June 30, 2024

RevPAR

Occupancy

Average Daily Rate

Region

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

Europe

208.40

4.2

69.7

2.6

pts.

299.19

0.2

Middle East & Africa

141.06

8.6

69.5

2.3

pts.

203.09

5.0

Greater China

79.55

-1.2

66.6

0.6

pts.

119.50

-2.1

Asia Pacific excluding China

127.75

9.1

70.4

1.3

pts.

181.54

7.1

Caribbean & Latin America

215.47

9.3

67.8

0.2

pts.

317.70

9.0

International - All1

124.32

5.5

68.5

1.2

pts.

181.48

3.5

Worldwide2

151.61

4.3

69.2

0.9

pts.

219.04

3.0

Comparable Systemwide International Properties

Six Months Ended June 30, 2025 and June 30, 2024

RevPAR

Occupancy

Average Daily Rate

Region

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

Europe

141.66

5.0

68.1

2.4

pts.

208.14

1.3

Middle East & Africa

129.96

9.3

68.6

2.2

pts.

189.40

5.8

Greater China

73.19

-1.0

65.1

0.5

pts.

112.36

-1.7

Asia Pacific excluding China

129.68

9.8

71.0

1.6

pts.

182.57

7.3

Caribbean & Latin America

136.36

5.4

63.6

-0.8

pts.

214.38

6.8

International - All1

117.35

5.7

67.3

1.2

pts.

174.37

3.8

Worldwide2

128.08

2.8

69.1

0.3

pts.

185.47

2.4

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

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

A-11

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA

($ in millions)

Fiscal Year 2025

First

Quarter

Second

Quarter

Total

Net income, as reported

665

763

1,428

Cost reimbursement revenue

(4,655)

(4,932)

(9,587)

Reimbursed expenses

4,722

4,874

9,596

Interest expense

192

203

395

Interest expense from unconsolidated joint ventures

Provision for income taxes

291

390

Depreciation and amortization

104

Contract investment amortization

Depreciation and amortization classified in reimbursed expenses

118

Depreciation, amortization, and impairments from unconsolidated joint ventures

Stock-based compensation

110

Restructuring and merger-related charges

Adjusted EBITDA†

1,217

1,415

2,632

Change from 2024 Adjusted EBITDA†

Fiscal Year 2024

First

Quarter

Second

Quarter

Third

Quarter

Fourth

Quarter

Total

Net income, as reported

564

772

584

455

2,375

Cost reimbursement revenue

(4,433)

(4,728)

(4,617)

(4,704)

(18,482)

Reimbursed expenses

4,501

4,645

4,681

4,972

18,799

Interest expense

163

173

179

180

695

Interest expense from unconsolidated joint ventures

Provision for income taxes

163

268

202

143

776

Depreciation and amortization

183

Contract investment amortization

103

Depreciation and amortization classified in reimbursed expenses

206

Depreciation, amortization, and impairments from unconsolidated joint ventures

Stock-based compensation

237

Restructuring and merger-related charges

Gain on asset dispositions

—

(11)

Adjusted EBITDA†

1,142

1,324

1,229

1,286

4,981

A-12

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

THIRD QUARTER 2025

($ in millions)

Range

Estimated

Third Quarter 2025

Third Quarter 2024

Net income excluding certain items1

629

651

Interest expense

207

Interest expense from unconsolidated joint ventures

Provision for income taxes

237

245

Depreciation and amortization

Contract investment amortization

Depreciation and amortization classified in reimbursed expenses

Depreciation, amortization, and impairments from unconsolidated joint ventures

Stock-based compensation

Adjusted EBITDA†

1,288

1,318

1,229

Increase over 2024 Adjusted EBITDA†

1 Guidance excludes cost reimbursement revenue, reimbursed expenses, and restructuring and merger-related charges, each of which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant, except for depreciation and amortization classified in reimbursed expenses, which is included in the caption "Depreciation and amortization classified in reimbursed expenses" above. Guidance does not reflect any potential asset sales or property or brand acquisitions that may occur during the year (other than our acquisition of the citizenM brand in the 2025 third quarter), each of which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant.

A-13

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

FULL YEAR 2025

($ in millions)

Range

Estimated

Full Year 2025

Full Year 2024

Net income excluding certain items1

2,771

2,833

Interest expense

815

Interest expense from unconsolidated joint ventures

Provision for income taxes

889

912

Depreciation and amortization

205

Contract investment amortization

120

Depreciation and amortization classified in reimbursed expenses

260

Depreciation, amortization, and impairments from unconsolidated joint ventures

Stock-based compensation

225

Adjusted EBITDA†

5,310

5,395

4,981

Increase over 2024 Adjusted EBITDA†

A-14

MARRIOTT INTERNATIONAL, INC.

EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES

In our press release and schedules, on the related conference call, and in the infographic made available in connection with our press release, we report certain financial measures that are not required by, or presented in accordance with, United States generally accepted accounting principles (“GAAP”). These non-GAAP financial measures are labeled as “adjusted” and/or identified with the symbol “†”. We discuss the manner in which the non-GAAP measures reported in this press release, schedules, and infographic are determined and management’s reasons for reporting these non-GAAP measures below, and the press release schedules reconcile each to the most directly comparable GAAP measures (with respect to the forward-looking non-GAAP measures, to the extent available without unreasonable efforts).

Although management evaluates and presents these non-GAAP measures for the reasons described below, please be aware that these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for revenue, operating income, net income, earnings per share, or any other comparable operating measure prescribed by GAAP. In addition, we may calculate and/or present these non-GAAP financial measures differently than measures with the same or similar names that other companies report, and as a result, the non-GAAP measures we report may not be comparable to those reported by others.

Adjusted Operating Income and Adjusted Operating Income Margin. Adjusted operating income excludes cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges, and certain non-cash impairment charges (when applicable). Adjusted total revenues excludes cost reimbursement revenue. Adjusted operating income margin reflects Adjusted operating income divided by Adjusted total revenues. We believe that these are meaningful metrics because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.

Adjusted Net Income and Adjusted Diluted Earnings Per Share. Adjusted net income and Adjusted diluted earnings per share reflect our net income and diluted earnings per share excluding the impact of cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges, certain non-cash impairment charges (when applicable), and gains and losses on asset dispositions made by us or by our joint venture investees (when applicable and if above a specified threshold). Additionally, Adjusted net income and Adjusted diluted earnings per share exclude the income tax effect of the above adjustments (calculated using an estimated tax rate applicable to each adjustment) and income tax special items, which in 2025 primarily related to the release of tax reserves.

We believe that these measures are meaningful indicators of our performance because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.

Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization (“Adjusted EBITDA”). Adjusted EBITDA reflects net income excluding the impact of the following items: cost reimbursement revenue and reimbursed expenses, interest expense, depreciation and amortization, provision (benefit) for income taxes, restructuring and merger-related charges, and stock-based compensation expense for all periods presented. When applicable, Adjusted EBITDA also excludes certain non-cash impairment charges and gains and losses on asset dispositions made by us or by our joint venture investees (if above a specified threshold).

In our presentations of Adjusted operating income and Adjusted operating income margin, Adjusted net income and Adjusted diluted earnings per share, and Adjusted EBITDA, we exclude restructuring and merger-related charges as well as non-cash impairment charges (if above a specified threshold) related to our management and franchise contracts (if the impairment is non-routine), leases, equity investments, and other capitalized assets, which we record in the “Contract investment amortization,” “Depreciation, amortization, and other,” and “Equity in earnings” captions of our Consolidated Statements of Income (our “Income Statements”), to allow for period-over period comparisons of our ongoing operations before the impact of these items. We exclude cost reimbursement revenue and reimbursed expenses, which relate to property-level and centralized programs and services that we operate for the benefit of our hotel owners and certain other counterparties, and for which we receive reimbursement under our agreements with hotel owners and certain other counterparties with no added mark-up.

We do not operate these property-level and centralized programs and services to generate a profit over the long term, and accordingly, when we recover the costs that we incur for these programs and services from our hotel owners and certain other counterparties, we do not seek a mark-up. For property-level services, we recognize cost reimbursement revenue at the same time that we incur expenses, and property-level services have no net impact on our Income Statements in the reporting period. However, for centralized programs and services, we may be reimbursed before or after we incur expenses, causing timing differences between the costs we incur and the related reimbursement from hotel owners and certain other counterparties in our operating and net income.

Over the long term, these programs and services are not designed to impact our economics, either positively or negatively. Because we do not retain any such profits or losses over time, we exclude the net impact when evaluating period-over-period changes in our operating results.

We believe that Adjusted EBITDA is a meaningful indicator of our operating performance because it permits period-over-period comparisons of our ongoing operations before these items. Our use of Adjusted EBITDA also facilitates comparison with results from other lodging companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company’s capital structure, debt levels, and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate.

As a result, effective tax rates and provisions for income taxes can vary considerably among companies. Our Adjusted EBITDA also excludes depreciation 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 in earnings” of our Income Statements, because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. Depreciation and amortization classified in “Reimbursed expenses” reflects depreciation and amortization of Marriott-owned assets, for which we receive cash from hotel owners and certain other counterparties to reimburse the company for its investments made for the benefit of the system.

These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We exclude stock-based compensation expense in all periods presented to address the considerable variability among companies in recording compensation expense because companies use stock-based payment awards differently, both in the type and quantity of awards granted.

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MARRIOTT INTERNATIONAL, INC.

EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES

RevPAR. In addition to the foregoing non-GAAP financial measures, we present Revenue per Available Room (“RevPAR”) as a performance measure. We believe RevPAR, which we calculate by dividing property level room revenue by total rooms available for the period, is a meaningful indicator of our performance because it measures the period-over-period change in room revenues. RevPAR may not be comparable to similarly titled measures, such as revenues, and should not be viewed as necessarily correlating with our fee revenue. We also believe occupancy and average daily rate (“ADR”), which are components of calculating RevPAR, are meaningful indicators of our performance. Occupancy, which we calculate by dividing total rooms sold by total rooms available for the period, measures the utilization of a property’s available capacity.

ADR, which we calculate by dividing property level room revenue by total rooms sold, measures average room price and is useful in assessing pricing levels. Comparisons to prior periods are on a constant U.S. dollar basis, which we calculate by applying exchange rates for the current period to the prior comparable period. We believe constant dollar analysis provides valuable information regarding the performance of hotels in our system as it removes currency fluctuations from the presentation of such results.

We define our comparable properties as hotels in our system that were open and operating under one of our brands since the beginning of the last full calendar year (since January 1, 2024 for the current period) and have not, in either the current or previous year: (1) undergone significant room or public space renovations or expansions, (2) been converted between company-operated and franchised, or (3) sustained substantial property damage or business interruption. Our comparable properties also exclude MGM Collection with Marriott Bonvoy, Design Hotels, The Ritz-Carlton Yacht Collection, residences, and timeshare properties.

We use the term “hotel owners” throughout these schedules to refer, collectively, to owners of hotels and other lodging offerings operating in our system pursuant to management agreements, franchise agreements, license agreements or similar arrangements, and we use the term “hotels in our system” to refer to hotels and other lodging offerings operating in our system pursuant to such arrangements, as well as hotels that we own or lease. The terms “hotel owners” and “hotels in our system” exclude Homes & Villas by Marriott Bonvoy® (which we also exclude from our property and room count), timeshare, residential, and The Ritz-Carlton Yacht Collection®.

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Mentions · how they’re counted

Category	Underlined	Word counter	Model’s count
AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM	0	0	0
Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring	14	—	0
Recession recession, downturn, contraction, slowdown	0	0	1
Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy	1	1	1
Buybacks share repurchase, buyback program	2	—	2

Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.

Source: SEC EDGAR · public domain · Highlights by Palanor