Marriott International : Non-GAAP Reconciliations – Q3 2019

MARRIOTT INTERNATIONAL, INC.

PRESS RELEASE SCHEDULES

TABLE OF CONTENTS

QUARTER 3, 2019

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-11
Adjusted EBITDA Forecast - Fourth Quarter 2019	A-12
Adjusted EBITDA Forecast - Full Year 2019	A-13
Explanation of Non-GAAP Financial and Performance Measures	A-14

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED

THIRD QUARTER 2019 AND 2018

(in millions except per share amounts, unaudited)

	As Reported			As Reported 10			Percent
	Three Months Ended			Three Months Ended			Better/(Worse)
	September 30, 2019			September 30, 2018			Reported 2019 vs. 2018
REVENUES
Base management fees	$	291	$	279	4
Franchise fees 1		530			502	6
Incentive management fees		134			151	(11)
Gross Fee Revenues		955			932	2
Contract investment amortization 2		(16)			(13)	(23)
Net Fee Revenues		939			919	2
Owned, leased, and other revenue 3		393			397	(1)
Cost reimbursement revenue 4		3,952			3,735	6
Total Revenues		5,284			5,051	5
OPERATING COSTS AND EXPENSES
Owned, leased, and other - direct 5		326			315	(3)
Depreciation, amortization, and other 6		52			52	-
General, administrative, and other 7		220			221	-
Merger-related costs and charges		9			12	25
Reimbursed expenses 4		4,070			3,855	(6)
Total Expenses		4,677			4,455	(5)
OPERATING INCOME		607			596	2
Gains and other income, net 8		10			18	(44)
Interest expense		(100)			(86)	(16)
Interest income		8			5	60
Equity in earnings 9		2			61	(97)
INCOME BEFORE INCOME TAXES		527			594	(11)
Provision for income taxes		(140)			(91)	(54)
NET INCOME	$	387	$	503	(23)
EARNINGS PER SHARE
Earnings per share - basic	$	1.17	$	1.45	(19)
Earnings per share - diluted	$	1.16	$	1.43	(19)
Basic Shares		329.9			346.7
Diluted Shares		332.5			350.6

• 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.
  8Gains and other income, netincludes gains and losses on the sale of real estate, the sale of joint venture interests and other investments, and adjustments from other equity investments.
  9Equity in earningsinclude our equity in earnings or losses of unconsolidated equity method investments.

10Reflects revised information as presented in our 2018 Annual Report on Form 10-K.

November 4, 2019

A-1

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED

THIRD QUARTER YEAR-TO-DATE 2019 AND 2018

(in millions except per share amounts, unaudited)

	As Reported			As Reported 10			Percent
	Nine Months Ended			Nine Months Ended			Better/(Worse)
	September 30, 2019			September 30, 2018			Reported 2019 vs. 2018
REVENUES
Base management fees	$	882	$	852	4
Franchise fees 1		1,505			1,394	8
Incentive management fees		462			482	(4)
Gross Fee Revenues		2,849			2,728	4
Contract investment amortization 2		(45)			(44)	(2)
Net Fee Revenues		2,804			2,684	4
Owned, leased, and other revenue 3		1,186			1,226	(3)
Cost reimbursement revenue 4		11,611			11,559	-
Total Revenues		15,601			15,469	1
OPERATING COSTS AND EXPENSES
Owned, leased, and other - direct 5		982			985	-
Depreciation, amortization, and other 6		162			164	1
General, administrative, and other 7		671			685	2
Merger-related costs and charges		191			64	(198)
Reimbursed expenses 4		12,069			11,627	(4)
Total Expenses		14,075			13,525	(4)
OPERATING INCOME		1,526			1,944	(22)
Gains and other income, net 8		16			191	(92)
Interest expense		(299)			(246)	(22)
Interest income		20			16	25
Equity in earnings 9		10			95	(89)
INCOME BEFORE INCOME TAXES		1,273			2,000	(36)
Provision for income taxes		(279)			(410)	32
NET INCOME	$	994	$	1,590	(37)
EARNINGS PER SHARE
Earnings per share - basic	$	2.97	$	4.51	(34)
Earnings per share - diluted	$	2.95	$	4.45	(34)
Basic Shares		334.4			352.8
Diluted Shares		337.2			357.1

• 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.
  8Gains and other income, netincludes gains and losses on the sale of real estate, the sale of joint venture interests and other investments, and adjustments from other equity investments.
  9Equity in earningsinclude our equity in earnings or losses of unconsolidated equity method investments.

10Reflects revised information as presented in our 2018 Annual Report on Form 10-K.

November 4, 2019

A-2

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					Nine Months Ended
								Percent									Percent
	September 30,		September 30,	Better/		September 30,		September 30,	Better/
		2019			2018 1			(Worse)			2019			2018 1			(Worse)
Total revenues, as reported	$	5,284	$	5,051				$	15,601	$	15,469
Less: Cost reimbursement revenue		(3,952)			(3,735)						(11,611)			(11,559)
Adjusted total revenues**		1,332			1,316						3,990			3,910
Operating income, as reported		607			596						1,526			1,944
Less: Cost reimbursement revenue		(3,952)			(3,735)						(11,611)			(11,559)
Add: Reimbursed expenses		4,070			3,855						12,069			11,627
Add: Merger-related costs and charges		9			12						191			64
Adjusted operating income **		734			728			1%			2,175			2,076			5%
Operating income margin		11%			12%						10%			13%
Adjusted operating income margin **		55%			55%						55%			53%
Net income, as reported		387			503						994			1,590
Less: Cost reimbursement revenue		(3,952)			(3,735)						(11,611)			(11,559)
Add: Reimbursed expenses		4,070			3,855						12,069			11,627
Add: Merger-related costs and charges		9			12						191			64
Less: Gain on sale of Avendra		-			-						-			(6)
Income tax effect of above adjustments		(26)			(37)						(148)			(34)
Add: U.S. Tax Cuts and Jobs Act of 2017		-			-						-			22
Adjusted net income **	$	488		$	598			-18%		$	1,495		$	1,704			-12%
Diluted EPS, as reported	$	1.16	$	1.43				$	2.95	$	4.45
Adjusted Diluted EPS**	$	1.47	$	1.70			-14%	$	4.43	$	4.77			-7%

• Denotesnon-GAAP financial measures. Please see pages A-14 and A-15 for information about our reasons for providing these alternative financial measures and the limitations on their use.

• Reflects revised information as presented in our 2018 Annual Report on Form10-K.

November 4, 2019

A-3

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of September 30, 2019

	North America	Total International	Total Worldwide
	Units	Rooms	Units	Rooms	Units	Rooms
Managed	757	240,287	1,205	313,453	1,962	553,740
Marriott Hotels	120	64,703	175	51,582	295	116,285
Marriott Hotels Serviced Apartments	-	-	1	154	1	154
Sheraton	27	23,386	187	63,965	214	87,351
Courtyard	233	37,020	98	21,238	331	58,258
Westin	43	23,638	71	22,090	114	45,728
JW Marriott	18	11,210	52	20,325	70	31,535
Renaissance	28	12,018	56	17,460	84	29,478
The Ritz-Carlton	38	10,981	56	14,943	94	25,924
The Ritz-Carlton Serviced Apartments	-	-	5	697	5	697
Le Méridien	3	570	72	20,103	75	20,673
Four Points	1	134	75	19,496	76	19,630
Residence Inn	107	16,387	5	565	112	16,952
W Hotels	25	7,163	29	7,296	54	14,459
The Luxury Collection	5	2,234	51	9,120	56	11,354
Gaylord Hotels	6	9,918	-	-	6	9,918
Aloft	1	330	38	8,936	39	9,266
St. Regis	9	1,730	33	7,458	42	9,188
St. Regis Serviced Apartments	-	-	1	70	1	70
AC Hotels by Marriott	3	517	59	7,099	62	7,616
Delta Hotels	25	6,770	1	360	26	7,130
Fairfield by Marriott	7	1,539	32	4,879	39	6,418
SpringHill Suites	30	4,896	-	-	30	4,896
Marriott Executive Apartments	-	-	31	4,525	31	4,525
Protea Hotels	-	-	35	4,228	35	4,228
Autograph Collection	6	1,806	15	2,406	21	4,212
EDITION	4	1,209	6	1,287	10	2,496
TownePlace Suites	17	1,948	-	-	17	1,948
Element	1	180	7	1,421	8	1,601
Tribute Portfolio	-	-	5	713	5	713
Moxy	-	-	4	599	4	599
Bulgari	-	-	5	438	5	438
Franchised	4,395	634,993	601	123,910	4,996	758,903
Courtyard	791	105,276	79	14,677	870	119,953
Fairfield by Marriott	985	91,706	19	3,177	1,004	94,883
Residence Inn	709	84,480	8	1,041	717	85,521
Marriott Hotels	214	67,377	54	15,563	268	82,940
Sheraton	161	47,584	64	18,056	225	65,640
SpringHill Suites	411	47,495	-	-	411	47,495
TownePlace Suites	388	39,169	-	-	388	39,169
Westin	87	28,854	24	7,596	111	36,450
Autograph Collection	98	20,160	62	13,094	160	33,254
Four Points	159	24,012	52	8,270	211	32,282
Renaissance	58	16,537	28	7,691	86	24,228
Aloft	113	16,687	19	3,127	132	19,814
AC Hotels by Marriott	56	9,495	40	5,897	96	15,392
The Luxury Collection	11	2,565	45	8,590	56	11,155
Delta Hotels	46	10,197	2	562	48	10,759
Moxy	16	3,334	30	6,125	46	9,459
Le Méridien	17	3,665	16	4,254	33	7,919
JW Marriott	12	5,643	6	1,624	18	7,267
Tribute Portfolio	22	4,843	11	1,211	33	6,054
Element	40	5,485	2	293	42	5,778
Protea Hotels	-	-	38	2,911	38	2,911
The Ritz-Carlton	1	429	-	-	1	429
Bulgari	-	-	1	85	1	85
Marriott Executive Apartments	-	-	1	66	1	66

November 4, 2019

A-4

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of September 30, 2019

	North America	Total International	Total Worldwide
	Units	Rooms	Units	Rooms	Units	Rooms
Owned/Leased	29	8,281	34	8,820	63	17,101
Courtyard	19	2,814	4	894	23	3,708
Sheraton	2	1,474	4	1,830	6	3,304
Marriott Hotels	3	1,664	5	1,631	8	3,295
W Hotels	1	509	2	665	3	1,174
Protea Hotels	-	-	7	1,168	7	1,168
Westin	1	1,073	-	-	1	1,073
Renaissance	1	317	3	749	4	1,066
The Ritz-Carlton	-	-	2	553	2	553
JW Marriott	-	-	1	496	1	496
St. Regis	1	238	1	160	2	398
Residence Inn	1	192	1	140	2	332
The Luxury Collection	-	-	2	287	2	287
Autograph Collection	-	-	2	247	2	247
Residences	60	6,557	35	3,314	95	9,871
The Ritz-Carlton Residences	36	4,421	11	938	47	5,359
W Residences	10	1,089	5	519	15	1,608
St. Regis Residences	7	585	7	598	14	1,183
Westin Residences	3	266	1	264	4	530
Bulgari Residences	-	-	4	448	4	448
The Luxury Collection Residences	2	151	3	115	5	266
Sheraton Residences	-	-	2	262	2	262
Marriott Hotels Residences	-	-	1	108	1	108
Autograph Collection Residences	-	-	1	62	1	62
EDITION Residences	2	45	-	-	2	45
Timeshare*	70	18,424	19	3,873	89	22,297
Grand Total	5,311	908,542	1,894	453,370	7,205	1,361,912

*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.

November 4, 2019

A-5

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of September 30, 2019

Total Systemwide	North America	Total International	Total Worldwide
Units	Rooms	Units	Rooms	Units	Rooms
Luxury	182	50,202	328	76,712	510	126,914
JW Marriott	30	16,853	59	22,445	89	39,298
The Ritz-Carlton	39	11,410	58	15,496	97	26,906
The Ritz-Carlton Residences	36	4,421	11	938	47	5,359
The Ritz-Carlton Serviced Apartments	-	-	5	697	5	697
The Luxury Collection	16	4,799	98	17,997	114	22,796
The Luxury Collection Residences	2	151	3	115	5	266
W Hotels	26	7,672	31	7,961	57	15,633
W Residences	10	1,089	5	519	15	1,608
St. Regis	10	1,968	34	7,618	44	9,586
St. Regis Residences	7	585	7	598	14	1,183
St. Regis Serviced Apartments	-	-	1	70	1	70
EDITION	4	1,209	6	1,287	10	2,496
EDITION Residences	2	45	-	-	2	45
Bulgari	-	-	6	523	6	523
Bulgari Residences	-	-	4	448	4	448
Full-Service	971	346,820	895	256,604	1,866	603,424
Marriott Hotels	337	133,744	234	68,776	571	202,520
Marriott Hotels Residences	-	-	1	108	1	108
Marriott Hotels Serviced Apartments	-	-	1	154	1	154
Sheraton	190	72,444	255	83,851	445	156,295
Sheraton Residences	-	-	2	262	2	262
Westin	131	53,565	95	29,686	226	83,251
Westin Residences	3	266	1	264	4	530
Renaissance	87	28,872	87	25,900	174	54,772
Autograph Collection	104	21,966	79	15,747	183	37,713
Autograph Collection Residences	-	-	1	62	1	62
Le Méridien	20	4,235	88	24,357	108	28,592
Delta Hotels	71	16,967	3	922	74	17,889
Gaylord Hotels	6	9,918	-	-	6	9,918
Tribute Portfolio	22	4,843	16	1,924	38	6,767
Marriott Executive Apartments	-	-	32	4,591	32	4,591
Limited-Service	4,088	493,096	652	116,181	4,740	609,277
Courtyard	1,043	145,110	181	36,809	1,224	181,919
Residence Inn	817	101,059	14	1,746	831	102,805
Fairfield by Marriott	992	93,245	51	8,056	1,043	101,301
SpringHill Suites	441	52,391	-	-	441	52,391
Four Points	160	24,146	127	27,766	287	51,912
TownePlace Suites	405	41,117	-	-	405	41,117
Aloft	114	17,017	57	12,063	171	29,080
AC Hotels by Marriott	59	10,012	99	12,996	158	23,008
Moxy	16	3,334	34	6,724	50	10,058
Protea Hotels	-	-	80	8,307	80	8,307
Element	41	5,665	9	1,714	50	7,379
Timeshare*	70	18,424	19	3,873	89	22,297
Grand Total	5,311	908,542	1,894	453,370	7,205	1,361,912

*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.

November 4, 2019

A-6

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated North American Properties

		Three Months Ended September 30, 2019 and September 30, 2018
		REVPAR		Occupancy			Average Daily Rate
Brand		2019	vs. 2018		2019	vs. 2018		2019	vs. 2018
JW Marriott	$205.96	3.1%	81.2%	0.5%	pts.	$253.49	2.5%
The Ritz-Carlton	$274.58	3.1%	74.0%	0.6%	pts.	$371.04	2.2%
W Hotels	$233.79	-2.9%	81.0%	-1.4%	pts.	$288.79	-1.2%
Composite North American Luxury1	$257.40	1.5%	78.7%	0.6%	pts.	$327.21	0.8%
Marriott Hotels	$155.82	2.6%	79.0%	1.0%	pts.	$197.21	1.3%
Sheraton	$156.80	-1.6%	81.5%	0.0%	pts.	$192.43	-1.6%
Westin	$167.10	-1.2%	79.6%	0.0%	pts.	$210.02	-1.2%
Composite North American Upper Upscale2	$155.24	1.5%	79.2%	0.7%	pts.	$196.08	0.6%
North American Full-Service3	$173.08	1.5%	79.1%	0.7%	pts.	$218.86	0.6%
Courtyard	$105.87	-0.7%	74.4%	-0.4%	pts.	$142.33	-0.2%
Residence Inn	$132.80	0.6%	81.9%	-0.3%	pts.	$162.09	1.0%
Composite North American Limited-Service4	$112.96	-0.5%	77.0%	-0.4%	pts.	$146.77	0.1%
North American - All5	$153.80	1.0%	78.4%	0.3%	pts.	$196.17	0.6%

Comparable Systemwide North American Properties

		Three Months Ended September 30, 2019 and September 30, 2018
		REVPAR		Occupancy			Average Daily Rate
Brand		2019	vs. 2018		2019	vs. 2018		2019	vs. 2018
JW Marriott	$197.91	3.9%	81.0%	0.6%	pts.	$244.18	3.1%
The Ritz-Carlton	$276.42	3.1%	74.7%	0.8%	pts.	$369.85	2.0%
W Hotels	$233.79	-2.9%	81.0%	-1.4%	pts.	$288.79	-1.2%
Composite North American Luxury1	$247.88	2.3%	79.3%	0.9%	pts.	$312.51	1.1%
Marriott Hotels	$134.75	2.9%	75.5%	0.7%	pts.	$178.43	2.0%
Sheraton	$123.61	0.2%	77.0%	0.4%	pts.	$160.50	-0.3%
Westin	$153.65	0.9%	78.5%	0.3%	pts.	$195.79	0.6%
Composite North American Upper Upscale2	$138.32	2.4%	76.7%	0.6%	pts.	$180.31	1.6%
North American Full-Service3	$149.14	2.4%	77.0%	0.7%	pts.	$193.77	1.5%
Courtyard	$107.79	0.1%	75.7%	-0.1%	pts.	$142.43	0.3%
Residence Inn	$126.18	0.4%	82.6%	-0.2%	pts.	$152.69	0.7%
Fairfield by Marriott	$90.14	-0.1%	76.1%	0.0%	pts.	$118.37	-0.1%
Composite North American Limited-Service4	$106.57	0.3%	77.8%	0.0%	pts.	$137.02	0.3%
North American - All5	$124.55	1.3%	77.4%	0.3%	pts.	$160.85	1.0%

• 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 Upper Upscale.

• 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.

November 4, 2019

A-7

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated International Properties

			Three Months Ended September 30, 2019 and September 30, 2018
			REVPAR		Occupancy			Average Daily Rate
Region			2019	vs. 2018		2019	vs. 2018		2019	vs. 2018
Greater China	$83.66	-0.4%	72.0%	1.7%	pts.	$116.20	-2.8%
Rest of Asia Pacific	$123.15	3.0%	77.6%	2.4%	pts.	$158.76	-0.1%
Asia Pacific	$100.50	1.4%	74.4%	2.0% pts.	$135.13	-1.3%
Caribbean & Latin America	$110.70	4.9%	63.5%	1.3%	pts.	$174.43	2.7%
Europe	$178.25	2.2%	80.7%	1.4%	pts.	$220.87	0.5%
Middle East & Africa	$92.73	1.5%	66.4%	2.3%	pts.	$139.65	-2.1%
International - All1	$117.74	1.9%	73.6%	1.9% pts.	$159.91	-0.6%
Worldwide2	$135.55	1.4%	76.0%	1.1% pts.	$178.39	0.0%
	Comparable Systemwide International Properties
			Three Months Ended September 30, 2019 and September 30, 2018
			REVPAR		Occupancy			Average Daily Rate
Region			2019	vs. 2018		2019	vs. 2018		2019	vs. 2018
Greater China	$82.82	-0.4%	71.3%	1.8%	pts.	$116.13	-2.8%
Rest of Asia Pacific	$125.29	3.0%	77.3%	2.3%	pts.	$162.12	-0.2%
Asia Pacific	$103.41	1.6%	74.2%	2.0% pts.	$139.35	-1.2%
Caribbean & Latin America	$88.15	3.1%	61.2%	0.4%	pts.	$143.94	2.4%
Europe	$156.31	2.1%	79.7%	0.9%	pts.	$196.06	1.0%
Middle East & Africa	$88.50	1.6%	66.3%	2.1%	pts.	$133.55	-1.6%
International - All1	$115.68	1.9%	73.3%	1.5% pts.	$157.83	-0.2%
Worldwide2	$122.03	1.5%	76.3%	0.6% pts.	$160.02	0.7%

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

November 4, 2019

A-8

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated North American Properties

		Nine Months Ended September 30, 2019 and September 30, 2018
		REVPAR		Occupancy			Average Daily Rate
Brand		2019	vs. 2018		2019	vs. 2018		2019	vs. 2018
JW Marriott	$216.32	1.7%	79.3%	-1.5%	pts.	$272.93	3.6%
The Ritz-Carlton	$297.09	3.7%	75.7%	0.8%	pts.	$392.36	2.7%
W Hotels	$239.65	-3.2%	79.2%	-2.4%	pts.	$302.44	-0.2%
Composite North American Luxury1	$273.09	1.4%	78.1%	-0.6% pts.	$349.77	2.3%
Marriott Hotels	$158.35	1.9%	77.7%	0.3%	pts.	$203.88	1.5%
Sheraton	$150.09	-2.3%	78.4%	-0.6%	pts.	$191.36	-1.5%
Westin	$160.90	-1.1%	77.3%	-0.5%	pts.	$208.24	-0.5%
Composite North American Upper Upscale2	$155.01	1.0%	77.6%	0.1% pts.	$199.88	0.8%
North American Full-Service3	$175.64	1.1%	77.6%	0.0% pts.	$226.21	1.1%
Courtyard	$105.04	-1.2%	72.6%	-1.4%	pts.	$144.61	0.7%
Residence Inn	$130.27	0.5%	80.1%	-0.2%	pts.	$162.70	0.8%
Composite North American Limited-Service4	$111.73	-0.8%	75.1%	-1.2% pts.	$148.68	0.7%
North American - All5	$155.14	0.6%	76.8%	-0.4% pts.	$201.90	1.1%
Comparable Systemwide North American Properties
		Nine Months Ended September 30, 2019 and September 30, 2018
		REVPAR		Occupancy			Average Daily Rate
Brand		2019	vs. 2018		2019	vs. 2018		2019	vs. 2018
JW Marriott	$206.82	2.2%	79.2%	-1.1%	pts.	$261.17	3.6%
The Ritz-Carlton	$295.39	3.7%	75.9%	0.8%	pts.	$389.16	2.5%
W Hotels	$239.65	-3.2%	79.2%	-2.4%	pts.	$302.44	-0.2%
Composite North American Luxury1	$258.23	1.7%	78.1%	-0.5% pts.	$330.70	2.4%
Marriott Hotels	$135.37	2.3%	74.2%	0.3%	pts.	$182.36	2.0%
Sheraton	$117.94	-0.7%	73.8%	-0.6%	pts.	$159.75	0.2%
Westin	$151.93	0.6%	76.4%	-0.2%	pts.	$198.93	0.9%
Composite North American Upper Upscale2	$137.07	1.9%	74.8%	0.1% pts.	$183.23	1.7%
North American Full-Service3	$149.04	1.8%	75.1%	0.0% pts.	$198.37	1.8%
Courtyard	$104.26	-0.2%	73.3%	-0.8%	pts.	$142.25	0.9%
Residence Inn	$120.55	0.0%	79.9%	-0.5%	pts.	$150.84	0.7%
Fairfield by Marriott	$84.30	-0.5%	72.4%	-0.7%	pts.	$116.43	0.4%
Composite North American Limited-Service4	$102.06	0.1%	75.0%	-0.5% pts.	$136.03	0.8%
North American - All5	$121.90	1.0%	75.1%	-0.3% pts.	$162.38	1.4%

• 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 Upper Upscale.

• 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.

November 4, 2019

A-9

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated International Properties

		Nine Months Ended September 30, 2019 and September 30, 2018
		REVPAR		Occupancy			Average Daily Rate
Region		2019	vs. 2018		2019	vs. 2018		2019	vs. 2018
Greater China	$84.63	1.7%	69.1%	1.8%	pts.	$122.46	-0.9%
Rest of Asia Pacific	$122.94	4.3%	75.5%	2.6%	pts.	$162.76	0.7%
Asia Pacific	$100.98	3.0%	71.9%	2.1%	pts.	$140.54	0.0%
Caribbean & Latin America	$132.96	3.0%	65.3%	1.0%	pts.	$203.54	1.4%
Europe	$152.89	2.9%	74.9%	0.9%	pts.	$204.05	1.6%
Middle East & Africa	$102.23	-1.1%	67.0%	2.3%	pts.	$152.64	-4.5%
International - All1	$115.44	2.3%	71.2%	1.8%	pts.	$162.10	-0.3%
Worldwide2	$135.08	1.4%	74.0%	0.7%	pts.	$182.54	0.4%

Comparable Systemwide International Properties

		Nine Months Ended September 30, 2019 and September 30, 2018
		REVPAR		Occupancy			Average Daily Rate
Region		2019	vs. 2018		2019	vs. 2018		2019	vs. 2018
Greater China	$83.86	1.8%	68.6%	1.9%	pts.	$122.27	-1.1%
Rest of Asia Pacific	$122.98	3.9%	75.2%	2.3%	pts.	$163.52	0.8%
Asia Pacific	$102.83	3.0%	71.8%	2.1%	pts.	$143.23	0.0%
Caribbean & Latin America	$103.69	2.5%	63.1%	0.0%	pts.	$164.26	2.6%
Europe	$133.89	2.8%	73.8%	0.7%	pts.	$181.41	1.8%
Middle East & Africa	$97.25	-0.9%	66.5%	2.1%	pts.	$146.26	-3.9%
International - All1	$111.54	2.4%	70.7%	1.4%	pts.	$157.86	0.3%
Worldwide2	$118.97	1.3%	73.8%	0.2%	pts.	$161.15	1.1%

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

November 4, 2019

A-10

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA

	($	in millions)
					Fiscal Year 2019
	First		Second			Third
	Quarter			Quarter			Quarter			Total
Net income, as reported	$	375		$	232	$	387	$	994
Cost reimbursement revenue		(3,756)			(3,903)			(3,952)			(11,611)
Reimbursed expenses		3,892			4,107			4,070			12,069
Interest expense		97			102			100			299
Interest expense from unconsolidated joint ventures		2			1			3			6
Tax provision		57			82			140			279
Depreciation and amortization		54			56			52			162
Contract investment amortization		14			15			16			45
Depreciation classified in reimbursed expenses		30			29			33			92
Depreciation and amortization from unconsolidated joint ventures		7			8			5			20
Share-based compensation		40			50			47			137
Gain on asset dispositions		-			-			(9)			(9)
Merger-related costs and charges		9			173			9			191
Adjusted EBITDA **	$	821		$	952	$	901	$	2,674
Increase over 2018 Adjusted EBITDA **		7%			1%			0%			2% 1
						Fiscal Year 2018 2
	First		Second			Third			Fourth
	Quarter			Quarter			Quarter			Quarter			Total
Net income, as reported	$	420		$	667	$	503	$	317		$	1,907
Cost reimbursement revenue		(3,776)			(4,048)			(3,735)			(3,984)			(15,543)
Reimbursed expenses		3,808			3,964			3,855			4,151			15,778
Interest expense		75			85			86			94			340
Interest expense from unconsolidated joint ventures		2			3			2			3			10
Tax provision		112			207			91			28			438
Depreciation and amortization		54			58			52			62			226
Contract investment amortization		18			13			13			14			58
Depreciation classified in reimbursed expenses		33			34			39			41			147
Depreciation and amortization from unconsolidated joint ventures		10			10			10			10			40
Share-based compensation		38			47			43			43			171
Gain on asset dispositions		(58)			(109)			(16)			(6)			(189)
Gain on investees' property sales		-			(10)			(55)			-			(65)
Merger-related costs and charges		34			18			12			91			155
Adjusted EBITDA **	$	770		$	939	$	900	$	864		$	3,473

• Denotesnon-GAAP financial measures. See pages A-14 and A-15 for information about our reasons for providing these alternative financial measures and the limitations on their use.

1Represents the percentage increase of Adjusted EBITDA of $2,674 million for the first three quarters of 2019 over Adjusted EBITDA of $2,609 million for the first three quarters of 2018.

• Reflects revised information for our 2018 first, second, and third quarters as presented in our 2018 Annual Report on Form10-K.

November 4, 2019

A-11

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

FOURTH QUARTER 2019

($ in millions)

		Range
		Estimated
Net income excluding certain items 1		Fourth Quarter 2019				Fourth Quarter 2018 **
$	475	$	486
Interest expense		99			99
Interest expense from unconsolidated joint ventures		4			4
Tax provision		159			163
Depreciation and amortization		55			55
Contract investment amortization		20			20
Depreciation classified in reimbursed expenses		33			33
Depreciation and amortization from unconsolidated joint ventures		10			10
Share-based compensation		43			43
Adjusted EBITDA **	$	898		$	913		$	864
Increase over 2018 Adjusted EBITDA **		4%			6%

• Denotesnon-GAAP financial measures. See pages A-14 and A-15 for information about our reasons for providing these alternative financial measures and the limitations on their use.

1Guidance excludes cost reimbursement revenue, reimbursed expenses, and merger-related costs and charges, which the company cannot accurately forecast and which may be significant, except for depreciation classified in reimbursed expenses, which is included in the caption "Depreciation classified in reimbursed expenses" above.

November 4, 2019

A-12

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

FULL YEAR 2019

($ in millions)

		Range
		Estimated
Net income excluding certain items 1		Full Year 2019				Full Year 2018**
$	1,970	$	1,981
Interest expense		398			398
Interest expense from unconsolidated joint ventures		10			10
Tax provision		586			590
Depreciation and amortization		217			217
Contract investment amortization		65			65
Depreciation classified in reimbursed expenses		125			125
Depreciation and amortization from unconsolidated joint ventures		30			30
Share-based compensation		180			180
Gain on asset dispositions		(9)			(9)
Adjusted EBITDA **	$	3,572		$	3,587		$	3,473
Increase over 2018 Adjusted EBITDA **		3%			3%

• Denotesnon-GAAP financial measures. See pages A-14 and A-15 for information about our reasons for providing these alternative financial measures and the limitations on their use.

1Guidance excludes cost reimbursement revenue, reimbursed expenses, and merger-related costs and charges, which the company cannot accurately forecast and which may be significant, except for depreciation classified in reimbursed expenses, which is included in the caption "Depreciation classified in reimbursed expenses" above.

November 4, 2019

A-13

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 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 charges, the gain on the sale of our ownership interest in Avendra, and the income tax effect of these adjustments, as well as the impact of the U.S. Tax Cuts and Jobs Act of 2017. 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,pre-taxmerger-relatedcosts and 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, and Adjusted diluted EPS, we exclude transaction and transition costs associated with the Starwood merger, which we record in the "Merger-related costs and 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.

November 4, 2019

A-14

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 may not be comparable to similarly titled measures, such as revenues. We calculate RevPAR by dividing room sales (recorded in local currency) for comparable properties by room nights available for the period. 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.

November 4, 2019

A-15