Marriott International : Non-GAAP Reconciliations – Q1 2020

MARRIOTT INTERNATIONAL, INC.

PRESS RELEASE SCHEDULES

TABLE OF CONTENTS

QUARTER 1, 2020

Consolidated Statements of Income - As Reported	A-1
Non-GAAP Financial Measures	A-2
Total Lodging Products	A-3
Key Lodging Statistics	A-6
Adjusted EBITDA	A-8
Explanation of Non-GAAP Financial and Performance Measures	A-9

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED

FIRST QUARTER 2020 AND 2019

(in millions except per share amounts, unaudited)

	As Reported			As Reported			Percent
	Three Months Ended			Three Months Ended			Better/(Worse)
	March 31, 2020			March 31, 2019			Reported 2020 vs. 2019
REVENUES
Base management fees	$	214	$	282	(24)
Franchise fees 1		415			450	(8)
Incentive management fees		-			163	(100)
Gross Fee Revenues		629			895	(30)
Contract investment amortization 2		(25)			(14)	(79)
Net Fee Revenues		604			881	(31)
Owned, leased, and other revenue 3		280			375	(25)
Cost reimbursement revenue 4		3,797			3,756	1
Total Revenues		4,681			5,012	(7)
OPERATING COSTS AND EXPENSES
Owned, leased, and other - direct 5		272			325	16
Depreciation, amortization, and other 6		150			54	(178)
General, administrative, and other 7		270			222	(22)
Merger-related costs and (recoveries) charges		(2)			9	122
Reimbursed expenses 4		3,877			3,892	-
Total Expenses		4,567			4,502	(1)
OPERATING INCOME		114			510	(78)
(Losses) gains and other income, net 8		(4)			5	(180)
Interest expense		(93)			(97)	4
Interest income		6			6	-
Equity in (losses) earnings 9		(4)			8	(150)
INCOME BEFORE INCOME TAXES		19			432	(96)
Benefit (provision) for income taxes		12			(57)	121
NET INCOME	$	31	$	375	(92)
EARNINGS PER SHARE
Earnings per share - basic	$	0.10	$	1.10	(91)
Earnings per share - diluted	$	0.09	$	1.09	(92)
Basic Shares		325.4			339.6
Diluted Shares		327.4			342.8

• Franchise feesinclude fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, and residential branding fees.

• Contract investment amortizationincludes amortization of capitalized costs to obtain contracts with our owner and franchisee customers, and any related impairments, accelerations, or write-offs.

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

• Cost reimbursement revenueincludes reimbursements from properties for property-level and centralized programs and services that we operate for the benefit of our hotel owners. Reimbursed expensesinclude costs incurred by Marriott for certain property-level operating expenses and centralized programs and services.

• Owned, leased, and other - directexpenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses.
  6Depreciation, amortization, and otherexpenses include depreciation for fixed assets, amortization of capitalized costs incurred to acquire management, franchise, and license agreements, and any related impairments, accelerations, or write-offs.
  7General, administrative, and otherexpenses include our corporate and business segments overhead costs and general expenses.
  8(Losses) gains and other income, netincludes losses and gains on the sale of real estate, the sale of joint venture interests and other investments, and adjustments from other equity investments.
  9Equity in (losses) earningsinclude our equity in losses or earnings of unconsolidated equity method investments.

May 11, 2020

A-1

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 EPS, to the most directly comparable GAAP measure. Adjusted total revenues is used in the determination of Adjusted operating income margin.

		Three Months Ended
								Percent
		March 31,			March 31,	Better/
		2020			2019			(Worse)
Total revenues, as reported	$	4,681	$	5,012
Less: Cost reimbursement revenue		(3,797)			(3,756)
Adjusted total revenues**		884			1,256
Operating income, as reported		114			510
Less: Cost reimbursement revenue		(3,797)			(3,756)
Add: Reimbursed expenses		3,877			3,892
Add: Merger-related costs and (recoveries) charges		(2)			9
Adjusted operating income **		192			655			-71%
Operating income margin		2%			10%
Adjusted operating income margin **		22%			52%
Net income, as reported		31			375
Less: Cost reimbursement revenue		(3,797)			(3,756)
Add: Reimbursed expenses		3,877			3,892
Add: Merger-related costs and (recoveries) charges		(2)			9
Income tax effect of above adjustments		(24)			(38)
Adjusted net income **	$	85		$	482			-82%
Diluted EPS, as reported	$	0.09	$	1.09
Adjusted Diluted EPS**	$	0.26	$	1.41			-82%

• Denotesnon-GAAP financial measures. Please see pages A-9 and A-10 for information about our reasons for providing these alternative financial measures and the limitations on their use.

May 11, 2020

A-2

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of March 31, 2020

	North America	Total International	Total Worldwide
	Units	Rooms	Units	Rooms	Units	Rooms
Managed	762	240,843	1,255	322,561	2,017	563,404
Marriott Hotels	120	64,651	175	51,190	295	115,841
Marriott Hotels Serviced Apartments	-	-	1	154	1	154
Sheraton	28	23,606	192	64,607	220	88,213
Sheraton Serviced Apartments	-	-	1	212	1	212
Courtyard	233	37,020	102	22,006	335	59,026
Westin	42	22,845	71	21,779	113	44,624
JW Marriott	18	11,210	59	22,099	77	33,309
Renaissance	28	12,018	59	18,179	87	30,197
The Ritz-Carlton	39	11,533	60	15,645	99	27,178
The Ritz-Carlton Serviced Apartments	-	-	5	713	5	713
Le Méridien	3	570	75	20,778	78	21,348
Four Points	1	134	78	20,233	79	20,367
Residence Inn	108	16,498	6	701	114	17,199
W Hotels	24	6,893	31	8,148	55	15,041
The Luxury Collection	5	2,236	52	9,412	57	11,648
Gaylord Hotels	6	9,918	-	-	6	9,918
Aloft	1	330	40	9,193	41	9,523
St. Regis	10	1,968	33	7,457	43	9,425
St. Regis Serviced Apartments	-	-	1	70	1	70
AC Hotels by Marriott	5	901	68	8,323	73	9,224
Delta Hotels	25	6,770	1	360	26	7,130
Fairfield by Marriott	7	1,539	34	5,437	41	6,976
SpringHill Suites	30	4,896	-	-	30	4,896
Marriott Executive Apartments	-	-	32	4,607	32	4,607
Autograph Collection	7	1,970	16	2,466	23	4,436
Protea Hotels	-	-	35	4,270	35	4,270
EDITION	4	1,209	6	1,282	10	2,491
TownePlace Suites	17	1,948	-	-	17	1,948
Element	1	180	7	1,421	8	1,601
Tribute Portfolio	-	-	6	782	6	782
Moxy	-	-	4	599	4	599
Bulgari	-	-	5	438	5	438
Franchised	4,519	651,588	632	128,873	5,151	780,461
Courtyard	804	107,128	85	15,738	889	122,866
Fairfield by Marriott	1,009	94,014	22	3,652	1,031	97,666
Residence Inn	724	86,398	12	1,473	736	87,871
Marriott Hotels	218	68,394	58	16,707	276	85,101
Sheraton	161	48,235	64	18,052	225	66,287
SpringHill Suites	428	49,417	-	-	428	49,417
TownePlace Suites	406	40,976	-	-	406	40,976
Westin	88	29,452	24	7,436	112	36,888
Autograph Collection	105	21,096	64	12,347	169	33,443
Four Points	157	23,686	52	8,267	209	31,953
Renaissance	58	16,657	28	7,691	86	24,348
Aloft	119	17,456	18	2,977	137	20,433
AC Hotels by Marriott	63	10,614	34	5,973	97	16,587
Moxy	21	4,149	38	7,685	59	11,834
The Luxury Collection	11	2,565	46	8,601	57	11,166
Delta Hotels	45	9,973	6	1,067	51	11,040
Le Méridien	18	3,910	15	4,057	33	7,967
JW Marriott	12	5,643	6	1,624	18	7,267
Element	45	6,087	2	293	47	6,380
Tribute Portfolio	22	4,568	14	1,511	36	6,079
Protea Hotels	-	-	37	2,877	37	2,877
Design Hotels	4	741	5	694	9	1,435
The Ritz-Carlton	1	429	-	-	1	429
Bulgari	-	-	1	85	1	85
Marriott Executive Apartments	-	-	1	66	1	66

May 11, 2020

A-3

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of March 31, 2020

	North America	Total International	Total Worldwide
	Units	Rooms	Units	Rooms	Units	Rooms
Owned/Leased	26	6,483	40	9,164	66	15,647
Courtyard	19	2,814	4	894	23	3,708
Marriott Hotels	2	1,308	5	1,631	7	2,939
Sheraton	-	-	4	1,830	4	1,830
W Hotels	2	779	2	665	4	1,444
Protea Hotels	-	-	7	1,168	7	1,168
Westin	1	1,073	-	-	1	1,073
Renaissance	1	317	2	505	3	822
Autograph Collection1	-	-	7	705	7	705
The Ritz-Carlton	-	-	2	553	2	553
JW Marriott	-	-	1	496	1	496
The Luxury Collection2	-	-	4	417	4	417
Residence Inn	1	192	1	140	2	332
St. Regis	-	-	1	160	1	160
Residences	61	6,334	34	3,099	95	9,433
The Ritz-Carlton Residences	36	4,080	11	938	47	5,018
W Residences	10	1,089	5	519	15	1,608
St. Regis Residences	8	703	7	598	15	1,301
Westin Residences	3	266	1	264	4	530
Bulgari Residences	-	-	4	448	4	448
The Luxury Collection Residences	2	151	3	112	5	263
Marriott Hotels Residences	-	-	1	108	1	108
Autograph Collection Residences	-	-	1	62	1	62
Sheraton Residences	-	-	1	50	1	50
EDITION Residences	2	45	-	-	2	45
Timeshare*	72	18,905	19	3,850	91	22,755
Grand Total	5,440	924,153	1,980	467,547	7,420	1,391,700

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

• Includes five properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend tore-brand under the Autograph Collection brand following the completion of planned renovations.

• Includes two properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend tore-brand under The Luxury Collection brand following the completion of planned renovations.

May 11, 2020

A-4

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of March 31, 2020

Total Systemwide	North America	Total International	Total Worldwide
Units	Rooms	Units	Rooms	Units	Rooms
Luxury	184	50,533	345	80,480	529	131,013
JW Marriott	30	16,853	66	24,219	96	41,072
The Ritz-Carlton	40	11,962	62	16,198	102	28,160
The Ritz-Carlton Residences	36	4,080	11	938	47	5,018
The Ritz-Carlton Serviced Apartments	-	-	5	713	5	713
The Luxury Collection1	16	4,801	102	18,430	118	23,231
The Luxury Collection Residences	2	151	3	112	5	263
W Hotels	26	7,672	33	8,813	59	16,485
W Residences	10	1,089	5	519	15	1,608
St. Regis	10	1,968	34	7,617	44	9,585
St. Regis Residences	8	703	7	598	15	1,301
St. Regis Serviced Apartments	-	-	1	70	1	70
EDITION	4	1,209	6	1,282	10	2,491
EDITION Residences	2	45	-	-	2	45
Bulgari	-	-	6	523	6	523
Bulgari Residences	-	-	4	448	4	448
Full-Service	985	348,338	930	259,897	1,915	608,235
Marriott Hotels	340	134,353	238	69,528	578	203,881
Marriott Hotels Residences	-	-	1	108	1	108
Marriott Hotels Serviced Apartments	-	-	1	154	1	154
Sheraton	189	71,841	260	84,489	449	156,330
Sheraton Residences	-	-	1	50	1	50
Sheraton Serviced Apartments	-	-	1	212	1	212
Westin	131	53,370	95	29,215	226	82,585
Westin Residences	3	266	1	264	4	530
Renaissance	87	28,992	89	26,375	176	55,367
Autograph Collection2	112	23,066	87	15,518	199	38,584
Autograph Collection Residences	-	-	1	62	1	62
Le Méridien	21	4,480	90	24,835	111	29,315
Delta Hotels	70	16,743	7	1,427	77	18,170
Gaylord Hotels	6	9,918	-	-	6	9,918
Tribute Portfolio	22	4,568	20	2,293	42	6,861
Marriott Executive Apartments	-	-	33	4,673	33	4,673
Design Hotels	4	741	5	694	9	1,435
Limited-Service	4,199	506,377	686	123,320	4,885	629,697
Courtyard	1,056	146,962	191	38,638	1,247	185,600
Residence Inn	833	103,088	19	2,314	852	105,402
Fairfield by Marriott	1,016	95,553	56	9,089	1,072	104,642
SpringHill Suites	458	54,313	-	-	458	54,313
Four Points	158	23,820	130	28,500	288	52,320
TownePlace Suites	423	42,924	-	-	423	42,924
Aloft	120	17,786	58	12,170	178	29,956
AC Hotels by Marriott	68	11,515	102	14,296	170	25,811
Moxy	21	4,149	42	8,284	63	12,433
Protea Hotels	-	-	79	8,315	79	8,315
Element	46	6,267	9	1,714	55	7,981
Timeshare*	72	18,905	19	3,850	91	22,755
Grand Total	5,440	924,153	1,980	467,547	7,420	1,391,700

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

• Includes two properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend tore-brand under The Luxury Collection brand following the completion of planned renovations.

• Includes five properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend tore-brand under the Autograph Collection brand following the completion of planned renovations.

May 11, 2020

A-5

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated North American Properties

			Three Months Ended March 31, 2020 and March 31, 2019
		REVPAR		Occupancy			Average Daily Rate
Brand		2020	vs. 2019		2020	vs. 2019			2020	vs. 2019
JW Marriott	$172.96	-23.8%	59.2%	-16.9%	pts.	$292.11	-2.0%
The Ritz-Carlton	$268.25	-22.5%	59.3%	-17.8%	pts.	$452.37	0.8%
W Hotels	$144.69	-19.7%	56.2%	-13.0%	pts.	$257.34	-1.2%
Composite North American Luxury1	$224.65	-21.6%	59.3%	-15.9%	pts.	$378.54	-0.6%
Marriott Hotels	$112.96	-23.0%	57.1%	-15.7%	pts.	$197.67	-1.9%
Sheraton	$105.84	-21.6%	54.6%	-15.9%	pts.	$193.70	1.3%
Westin	$116.74	-22.7%	56.7%	-15.6%	pts.	$205.90	-1.4%
Composite North American Premium2	$111.33	-22.4%	56.7%	-15.6%	pts.	$196.40	-1.1%
North American Full-Service3	$133.72	-22.1%	57.2%	-15.6%	pts.	$233.73	-0.9%
Courtyard	$73.65	-23.2%	52.3%	-14.4%	pts.	$140.73	-2.1%
Residence Inn	$102.36	-15.8%	63.3%	-12.2%	pts.	$161.79	0.4%
Composite North American Limited-Service4	$81.92	-20.7%	55.8%	-13.9%	pts.	$146.81	-0.9%
North American - All5	$117.00	-21.8%	56.8%	-15.1%	pts.	$206.15	-1.0%
Comparable Systemwide North American Properties
			Three Months Ended March 31, 2020 and March 31, 2019
		REVPAR		Occupancy			Average Daily Rate
Brand		2020	vs. 2019		2020	vs. 2019			2020	vs. 2019
JW Marriott	$167.91	-20.7%	58.6%	-15.9%	pts.	$286.73	0.7%
The Ritz-Carlton	$260.87	-22.6%	58.4%	-18.0%	pts.	$446.80	1.1%
W Hotels	$144.69	-19.7%	56.2%	-13.0%	pts.	$257.34	-1.2%
Composite North American Luxury1	$208.71	-20.6%	58.8%	-15.3%	pts.	$355.13	0.0%
Marriott Hotels	$98.28	-21.6%	55.2%	-14.4%	pts.	$177.89	-1.2%
Sheraton	$81.02	-20.2%	53.3%	-12.8%	pts.	$152.10	-0.9%
Westin	$113.95	-20.3%	57.3%	-13.8%	pts.	$198.73	-1.1%
Composite North American Premium2	$100.38	-20.3%	55.5%	-13.8%	pts.	$180.88	-0.6%
North American Full-Service3	$112.46	-20.4%	55.9%	-13.9%	pts.	$201.32	-0.5%
Courtyard	$73.30	-21.0%	54.3%	-12.8%	pts.	$135.00	-2.4%
Residence Inn	$92.16	-15.1%	64.4%	-9.8%	pts.	$143.04	-2.1%
Fairfield by Marriott	$58.40	-19.1%	53.7%	-10.9%	pts.	$108.73	-2.6%
Composite North American Limited-Service4	$73.85	-18.5%	57.2%	-11.4%	pts.	$129.00	-2.3%
North American - All5	$89.64	-19.5%	56.7%	-12.4%	pts.	$158.14	-1.8%

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

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

• Includes Composite North American Luxury and Composite North American Premium.

• Includes Courtyard, Residence Inn, Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four Points, Aloft, Element, and AC Hotels by Marriott. Systemwide also includes Moxy.

• Includes North AmericanFull-Service and Composite North American Limited-Service.

May 11, 2020

A-6

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated International Properties

				Three Months Ended March 31, 2020 and March 31, 2019
Region			REVPAR		Occupancy			Average Daily Rate
		2020	vs. 2019		2020	vs. 2019			2020	vs. 2019
Greater China			$29.02	-63.6%		24.5%	-37.5%	pts.		$118.23	-7.8%
Rest of Asia Pacific	$87.39	-28.1%	53.9%	-18.0%	pts.	$162.18	-4.0%
Asia Pacific	$56.24	-43.3%	38.2%	-28.4%	pts.	$147.12	-1.1%
Caribbean & Latin America	$130.13	-19.2%	54.3%	-11.7%	pts.	$239.59	-1.8%
Europe	$84.07	-25.0%	48.4%	-15.9%	pts.	$173.56	-0.5%
Middle East & Africa	$88.71	-19.6%	58.6%	-10.5%	pts.	$151.37	-5.3%
International - All1	$74.16	-32.0%	45.4%	-21.1%	pts.	$163.28	-0.4%
Worldwide2	$94.61	-26.3%	50.8%	-18.2%	pts.	$186.13	0.1%
	Comparable Systemwide International Properties
				Three Months Ended March 31, 2020 and March 31, 2019
Region			REVPAR		Occupancy			Average Daily Rate
	2020	vs. 2019		2020	vs. 2019			2020	vs. 2019
Greater China			$29.17	-63.1%		24.6%	-37.1%	pts.		$118.39	-7.5%
Rest of Asia Pacific	$86.56	-28.1%	53.6%	-18.4%	pts.	$161.56	-3.4%
Asia Pacific	$58.62	-41.5%	39.5%	-27.5%	pts.	$148.44	-0.8%
Caribbean & Latin America	$100.18	-19.8%	52.2%	-12.2%	pts.	$191.80	-1.0%
Europe	$73.76	-24.6%	47.5%	-15.3%	pts.	$155.19	-0.4%
Middle East & Africa	$84.72	-19.6%	58.3%	-10.3%	pts.	$145.32	-5.4%
International - All1	$71.80	-30.4%	46.1%	-19.6%	pts.	$155.77	-0.9%
Worldwide2	$84.51	-22.5%	53.6%	-14.5%	pts.	$157.55	-1.5%

• Includes Asia Pacific, Caribbean & Latin America, Europe, and Middle East & Africa.
  2Includes North American - All and International - All.

May 11, 2020

A-7

MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
		ADJUSTED EBITDA
		($ in millions)
	Fiscal Year 2020
		First
		Quarter
Net income, as reported	$	31
Cost reimbursement revenue		(3,797)
Reimbursed expenses		3,877
Interest expense		93
Interest expense from unconsolidated joint ventures		3
(Benefit) provision for income taxes		(12)
Depreciation and amortization		150
Contract investment amortization		25
Depreciation classified in reimbursed expenses		26
Depreciation and amortization from unconsolidated joint ventures		7
Share-based compensation		41
Merger-related costs and (recoveries) charges		(2)
Adjusted EBITDA **	$	442
Change from 2019 Adjusted EBITDA **		-46%
							Fiscal Year 2019
		First			Second			Third			Fourth
		Quarter				Quarter			Quarter			Quarter			Total
Net income, as reported	$	375		$	232	$	387	$	279	$	1,273
Cost reimbursement revenue		(3,756)				(3,903)			(3,952)			(3,988)			(15,599)
Reimbursed expenses		3,892				4,107			4,070			4,370			16,439
Interest expense		97				102			100			95			394
Interest expense from unconsolidated joint ventures		2				1			3			2			8
Provision for income taxes		57				82			140			47			326
Depreciation and amortization		54				56			52			179			341
Contract investment amortization		14				15			16			17			62
Depreciation classified in reimbursed expenses		30				29			33			29			121
Depreciation and amortization from unconsolidated joint ventures		7				8			5			9			29
Share-based compensation		40				50			47			49			186
Gain on asset dispositions		-				-			(9)			(134)			(143)
Merger-related costs and (recoveries) charges		9				173			9			(53)			138
Adjusted EBITDA **	$	821		$	952	$	901	$	901	$	3,575

• Denotesnon-GAAP financial measures. See pages A-9 and A-10 for information about our reasons for providing these alternative financial measures and the limitations on their use.

May 11, 2020

A-8

MARRIOTT INTERNATIONAL, INC.

EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES

In our press release and schedules, and on the related conference call, we report certain financial measures that are not required by, or presented in accordance with, United States generally accepted accounting principles ("GAAP"). We discuss management's reasons for reporting these non-GAAP measures below, and the press release schedules reconcile the most directly comparable GAAP measure to each non-GAAP measure that we refer to. 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 and Adjusted operating income margin exclude cost reimbursement revenue, reimbursed expenses, andmerger-relatedcosts and (recoveries) charges. Adjusted operating income margin reflects Adjusted operating income divided by Adjusted total revenues. We believe that these are meaningful metrics because they allow forperiod-over-periodcomparisons of our ongoing operations before these items and for the reasons further described below.

Adjusted Net Income and Adjusted Diluted EPS.Adjusted net income and Adjusted diluted EPS reflect our net income and diluted earnings per share excluding the impact of cost reimbursement revenue, reimbursed expenses, merger-related costs and (recoveries) charges, and the income tax effect of these adjustments. We calculate the income tax effect of the adjustments using an estimated tax rate applicable to each adjustment. 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 (including depreciation classified in "Reimbursed expenses," as discussed below), amortization, and provision for income taxes,merger-relatedcosts and (recoveries) charges, andshare-basedcompensation expense for all periods presented. When applicable, Adjusted EBITDA also excludes gains and losses on asset dispositions made by us or by our joint venture investees.

In our presentations of Adjusted operating income and Adjusted operating income margin, Adjusted net income, Adjusted diluted EPS and Adjusted EBITDA, we exclude transaction and transition costs associated with the Starwood merger, which we record in the "Merger-related costs and (recoveries) charges" caption of 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. We do not operate these programs and services to generate a profit over the contract term, and accordingly, when we recover the costs that we incur for these programs and services from our hotel owners, we do not seek a mark-up. For property-level services, our owners typically reimburse us at the same time that we incur expenses. However, for centralized programs and services, our owners may reimburse us before or after we incur expenses, causing timing differences between the costs we incur and the related reimbursement from hotel owners 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 and facilitates our comparison of results before these items with results from other lodging companies. We use Adjusted EBITDA to evaluate 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 classified in "Reimbursed expenses" and "Contract investment amortization" in our Consolidated Statements of Income (our "Income Statements"), because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. Depreciation classified in "Reimbursed expenses" reflects depreciation of Marriott-owned assets, for which we receive cash from owners 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 share-based compensation expense in all periods presented to address the considerable variability among companies in recording compensation expense because companies use share-based payment awards differently, both in the type and quantity of awards granted.

May 11, 2020

A-9

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 is a meaningful indicator of our performance because it measures the period-over-period change in room revenues for comparable properties. RevPAR relates to property level revenue and may not be comparable to similarly titled measures, such as revenues, and should not be viewed as necessarily correlating with our fee revenue. We calculate RevPAR by dividing room sales (recorded in local currency) for comparable properties by room nights available for the period. We do not consider interruptions related to COVID-19 when determining which properties to classify as comparable. We present growth in comparative RevPAR on a constant dollar basis, which we calculate by applying exchange rates for the current period to each period presented. We believe constant dollar analysis provides valuable information regarding our properties' performance as it removes currency fluctuations from the presentation of such results.

May 11, 2020

A-10