• Fourth quarter 2022 comparable systemwide constant dollar RevPAR increased 28.8 percent worldwide, 23.6 percent in the U.S. & Canada, and 45.1 percent in international markets, compared to the 2021 fourth quarter; 
  • Fourth quarter 2022 comparable systemwide constant dollar RevPAR increased 4.6 percent worldwide, 5.2 percent in the U.S. & Canada, and 3.4 percent in international markets, compared to the 2019 fourth quarter; 
  • Fourth quarter reported diluted EPS totaled $2.12, compared to reported diluted EPS of $1.42 in the year-ago quarter.  Fourth quarter adjusted diluted EPS totaled $1.96, compared to fourth quarter 2021 adjusted diluted EPS of $1.30;
  • Fourth quarter reported net income totaled $673 million, compared to reported net income of $468 million in the year-ago quarter.  Fourth quarter adjusted net income totaled $622 million, compared to fourth quarter 2021 adjusted net income of $430 million;
  • Adjusted EBITDA totaled $1,090 million in the 2022 fourth quarter, compared to fourth quarter 2021 adjusted EBITDA of $741 million;
  • The company added more than 65,000 rooms globally during 2022, including approximately 40,000 rooms in international markets and nearly 17,500 conversion rooms. Net rooms grew 3.1 percent from year-end 2022;
  • At the end of the year, Marriott's worldwide development pipeline totaled over 3,000 properties and more than 496,000 rooms, including roughly 22,300 rooms approved, but not yet subject to signed contracts.  Approximately 199,000 rooms in the pipeline were under construction as of the end of 2022;
  • For full year 2022, Marriott repurchased 16.8 million shares of common stock for $2.6 billion, including 8.7 million shares for $1.4 billion in the fourth quarter.  The company returned $2.9 billion to shareholders in 2022.

Marriott International, Inc. (NASDAQ: MAR) today reported fourth quarter and full year 2022 results.

Anthony Capuano, Chief Executive Officer, said, "Our performance in 2022 was terrific.  Just two years after experiencing the sharpest downturn in our company's history, we reported record financial results.  Our fee-driven, asset-light business model generated significant cash during the year, allowing us to both invest in the growth of our business and return $2.9 billion to shareholders.

"For the fourth quarter, worldwide RevPAR1 grew 5 percent compared to 2019, driven by a 13 percent increase in ADR.  With the exception of Greater China, RevPAR in all regions more than fully recovered and continued to show meaningful advances in occupancy and ADR.  Our international business posted RevPAR 3 percent above 2019 levels in the fourth quarter.

"In our largest region, the U.S. & Canada, RevPAR increased 5 percent over the 2019 quarter, driven by further improvement in occupancy and an 11 percent increase in ADR.  Leisure demand remained robust and group demand more than fully recovered, leading to fourth quarter group revenues 10 percent above pre-pandemic levels.  Business transient demand was at nearly 90 percent recovery in the quarter, while ADR was 3 percent above 2019.  Our successful negotiation of high single-digit special corporate rate increases for 2023 bodes well for continued price strength.

"Owners and franchisees continue to show a strong preference for our brands.  Our development team had an excellent year, signing nearly 108,000 rooms globally.  We were pleased to see nearly 40 percent of those rooms in high value luxury and premium brands.  With nearly 50 percent of rooms signed during the year in international markets, we look forward to further expanding our distribution and adding more options for our over 177 million Marriott Bonvoy members.

"As we look ahead, while concerns about the macroeconomic environment persist around the world, booking trends to date remain robust and we have significant momentum in our business.  With our industry-leading brand portfolio, powerful loyalty program, the largest global rooms distribution, and our incredibly dedicated associates, Marriott is well-positioned for strong growth over the coming years as people around the world further embrace their love for travel."

Fourth Quarter 2022 Results

Marriott's reported operating income totaled $996 million in the 2022 fourth quarter, compared to 2021 fourth quarter reported operating income of $635 million.  Reported net income totaled $673 million in the 2022 fourth quarter, compared to 2021 fourth quarter reported net income of $468 million.  Reported diluted earnings per share (EPS) totaled $2.12 in the quarter, compared to reported diluted EPS of $1.42 in the year-ago quarter.

Adjusted operating income in the 2022 fourth quarter totaled $926 million, compared to 2021 fourth quarter adjusted operating income of $578 million.  Fourth quarter 2022 adjusted net income totaled $622 million, compared to 2021 fourth quarter adjusted net income of $430 million.  Adjusted diluted EPS in the 2022 fourth quarter totaled $1.96, compared to adjusted diluted EPS of $1.30 in the year-ago quarter. 

Adjusted results excluded cost reimbursement revenue, reimbursed expenses and restructuring, merger-related charges, and other expenses.  See pages A-3 and A-12 for the calculation of adjusted results and the manner in which the adjusted measures are determined in this announcement.

Base management and franchise fees totaled $945 million in the 2022 fourth quarter, compared to base management and franchise fees of $737 million in the year-ago quarter.  The year-over-year increase in these fees is primarily attributable to RevPAR increases due to the continued recovery in lodging demand, as well as unit growth, partially offset by $16 million of unfavorable foreign exchange.  Other non-RevPAR related franchise fees in the 2022 fourth quarter totaled $215 million, compared to $186 million in the year-ago quarter, largely driven by higher credit card branding fees.

Incentive management fees totaled $186 million in the 2022 fourth quarter, compared to $94 million in the 2021 fourth quarter.  Fees in the quarter surpassed 2019 levels, with 60 percent earned in International markets.

Owned, leased, and other revenue, net of direct expenses, totaled $101 million in the 2022 fourth quarter, compared to $33 million in the year-ago quarter.  The year-over-year increase in revenue net of expenses largely reflects the continued recovery in lodging demand and $21 million of higher termination fees.

General, administrative, and other expenses for the 2022 fourth quarter totaled $236 million, compared to $213 million in the year-ago quarter.  The year-over-year change included an $18 million favorable litigation settlement in the 2021 fourth quarter.

Interest expense, net, totaled $107 million in the 2022 fourth quarter compared to $91 million in the year-ago quarter.  The increase was largely due to higher interest expense associated with higher debt balances.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $1,090 million in the 2022 fourth quarter, compared to fourth quarter 2021 adjusted EBITDA of $741 million.  See page A-12 for the adjusted EBITDA calculation.

Selected Performance Information

The company added 145 properties (22,589 rooms) to its worldwide lodging portfolio during the 2022 fourth quarter, including nearly 6,900 rooms converted from competitor brands and approximately 16,700 rooms in international markets.  Eighteen properties (4,484 rooms) exited the system during the quarter.  At the end of the year, Marriott's global lodging system totaled nearly 8,300 properties, with over 1,525,000 rooms.

At the end of the year, the company's worldwide development pipeline totaled 3,028 properties with more than 496,000 rooms, including 1,009 properties with approximately 199,000 rooms under construction, or 40 percent of the pipeline, and 133 properties with roughly 22,300 rooms approved for development, but not yet subject to signed contracts.

In the 2022 fourth quarter, worldwide RevPAR increased 28.8 percent (a 25.6 percent increase using actual dollars) compared to the 2021 fourth quarter.  RevPAR in the U.S. & Canada increased 23.6 percent (a 23.3 percent increase using actual dollars), and RevPAR in international markets increased 45.1 percent (a 32.2 percent increase using actual dollars).

Balance Sheet & Common Stock

At year-end 2022, Marriott's total debt was $10.1 billion and cash and equivalents totaled $0.5 billion, compared to $10.1 billion in debt and $1.4 billion of cash and equivalents at year-end 2021.

The company repurchased 8.7 million shares of common stock in the 2022 fourth quarter for $1.4 billion.  For full year 2022, Marriott repurchased 16.8 million shares for $2.6 billion.  Year to date through February 10, the company has repurchased 2.5 million shares for $400 million.

Company Outlook1

Results in the first quarter are expected to benefit significantly from the easier comparison to the 2022 quarter when the emergence of Omicron depressed lodging demand.  Roughly halfway through the quarter, global booking trends remain robust.  In January, worldwide RevPAR was up 51.6 percent year over year.

Given short-term booking windows and a high level of macroeconomic uncertainty, there is less visibility in forecasting the company's financial performance for full year 2023.  As a result, the company is providing a broad range of potential full year RevPAR and other key metrics in the following tables.  The high end of the range reflects relatively steady global economic conditions throughout 2023, with continued resilience of travel demand across customer segments and markets.  The low end of the range reflects a meaningful softening of the global economy beginning in the second quarter with worldwide RevPAR roughly flat compared to 2022 in the second half of the year. 

First Quarter 2023

vs First Quarter 2022

Full Year 2023

vs Full Year 2022

Comparable systemwide constant $

 RevPAR growth

        Worldwide

30% to 32%

6% to 11%

U.S. & Canada

25% to 27%

5% to 9%

International

47% to 49%

12% to 18%

Year-End 2023

vs Year-End 2022

Gross Rooms Growth

Approx. 5.5%

        Deletions

1% to 1.5%

        Net rooms growth

4% to 4.5%

($ in millions, except EPS)

First Quarter 2023

Full Year 2023

Gross fee revenues

$1,045 to $1,065

$4,325 to $4,555

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

Approx. $60

$265 to $285

General, administrative, and other expenses

$205 to $200  

$935 to $915

Adjusted EBITDA2,3

$980 to $1,005

$4,030 to $4,300

Adjusted EPS – diluted3

$1.82 to $1.88

$7.23 to $7.91

1

This outlook assumes that the $100 million City Express transaction closes in the first half of 2023.

2

See pages A-13 & A-14 for the adjusted EBITDA calculations.

3

Adjusted EBITDA and Adjusted EPS – diluted for first quarter and full year 2023 do not include cost reimbursement revenue, reimbursed expenses, restructuring, merger-related charges, and other expenses, or any asset sales that may occur during the year, each of which the company cannot forecast with sufficient accuracy, and which may be significant.

Additional Company Information

Marriott also announced that Craig S. Smith, Group President, International, has announced his decision to retire February 24, 2023, after a 35-year career with the company.  

Marriott International, Inc. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of nearly 8,300 properties under 30 leading brands spanning 138 countries and territories.

1

All occupancy, Average Daily Rate (ADR) and RevPAR statistics and estimates are systemwide constant dollar and include hotels that have been temporarily closed due to COVID-19.  Unless otherwise stated, all changes refer to year-over-year changes for the comparable period.  Occupancy, ADR and RevPAR comparisons between 2022 and 2021 reflect properties that are comparable in both years. Occupancy, ADR and RevPAR comparisons between 2022 and 2019 reflect properties that are defined as comparable as of December 31, 2022, even if they were not open and operating for the full year 2019 or they did not meet all the other criteria for comparable in 2019.  Unless otherwise stated, all comparisons to pre-pandemic or 2019 are comparing to the same time period each year.

IRPR#1

Tables follow

MARRIOTT INTERNATIONAL, INC.

announcement SCHEDULES

TABLE OF CONTENTS

QUARTER 4, 2022

Consolidated Statements of Income - As Reported

A-1

Non-GAAP Financial Measures 

A-3

Total Lodging Products

A-4

Key Lodging Statistics

A-7

Adjusted EBITDA

A-12

Adjusted EBITDA Forecast - First Quarter 2023

A-13

Adjusted EBITDA Forecast - Full Year 2023

A-14

Explanation of Non-GAAP Financial and Performance Measures

A-15

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED

FOURTH QUARTER 2022 AND 2021

(in millions except per share amounts, unaudited)

As Reported

As Reported

Percent

Three Months Ended

Three Months Ended

Better/(Worse)

December 31, 2022

December 31, 2021

Reported 2022 vs. 2021

REVENUES

Base management fees

$                                             287

$                                             217

32

Franchise fees 1

658

520

27

Incentive management fees

186

94

98

  Gross Fee Revenues

1,131

831

36

Contract investment amortization 2

(24)

(19)

(26)

  Net Fee Revenues

1,107

812

36

Owned, leased, and other revenue 3

396

260

52

Cost reimbursement revenue 4

4,420

3,374

31

  Total Revenues

5,923

4,446

33

OPERATING COSTS AND EXPENSES

Owned, leased, and other - direct 5

295

227

(30)

Depreciation, amortization, and other 6

46

54

15

General, administrative, and other 7

236

213

(11)

Restructuring, merger-related charges, and other

1

-

 * 

Reimbursed expenses 4

4,349

3,317

(31)

  Total Expenses

4,927

3,811

(29)

OPERATING INCOME

996

635

57

Gains and other income, net 8

2

4

(50)

Interest expense

(115)

(97)

(19)

Interest income 

8

6

33

Equity in earnings (losses) 9

-

-

-

INCOME BEFORE INCOME TAXES

891

548

63

Provision for income taxes

(218)

(80)

(173)

NET INCOME

$                                             673

$                                             468

44

EARNINGS PER SHARE

  Earnings per share - basic

$                                            2.13

$                                            1.43

49

  Earnings per share - diluted

$                                            2.12

$                                            1.42

49

Basic Shares

316.5

327.6

Diluted Shares 

317.9

329.8

 * 

Calculated percentage is not meaningful.

1

Franchise fees include fees from our franchise agreements, application and relicensing fees, timeshare and yacht fees, co-branded credit card fees, and 

residential branding fees.

2

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

impairments, accelerations, or write-offs.

3

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

4

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

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

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 capitalized costs incurred to acquire management, franchise,

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

7

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

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 (losses) include our equity in earnings or losses of unconsolidated equity method investments.

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED

FOURTH QUARTER YEAR-TO-DATE 2022 AND 2021

(in millions except per share amounts, unaudited)

As Reported

As Reported

Percent

Twelve Months Ended

Twelve Months Ended

Better/(Worse)

December 31, 2022

December 31, 2021

Reported 2022 vs. 2021

REVENUES

Base management fees

$                                           1,044

$                                             669

56

Franchise fees 1

2,505

1,790

40

Incentive management fees

529

235

125

  Gross Fee Revenues

4,078

2,694

51

Contract investment amortization 2

(89)

(75)

(19)

  Net Fee Revenues

3,989

2,619

52

Owned, leased, and other revenue 3

1,367

796

72

Cost reimbursement revenue 4

15,417

10,442

48

  Total Revenues

20,773

13,857

50

OPERATING COSTS AND EXPENSES

Owned, leased, and other - direct 5

1,074

734

(46)

Depreciation, amortization, and other 6

193

220

12

General, administrative, and other 7

891

823

(8)

Restructuring, merger-related charges, and other

12

8

(50)

Reimbursed expenses 4

15,141

10,322

(47)

  Total Expenses

17,311

12,107

(43)

OPERATING INCOME

3,462

1,750

98

Gains and other income, net 8

11

10

10

Loss on extinguishment of debt

-

(164)

100

Interest expense

(403)

(420)

4

Interest income 

26

28

(7)

Equity in earnings (losses) 9

18

(24)

175

INCOME BEFORE INCOME TAXES

3,114

1,180

164

Provision for income taxes

(756)

(81)

(833)

NET INCOME 

$                                           2,358

$                                           1,099

115

EARNINGS PER SHARE

  Earnings per share - basic

$                                            7.27

$                                            3.36

116

  Earnings per share - diluted

$                                            7.24

$                                            3.34

117

Basic Shares

324.4

327.2

Diluted Shares 

325.8

329.3

1

Franchise fees include fees from our franchise agreements, application and relicensing fees, timeshare and yacht fees, co-branded credit card fees, and 

residential branding fees.

2

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

impairments, accelerations, or write-offs.

3

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

4

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

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

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 capitalized costs incurred to acquire management, franchise,

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

7

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

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 (losses) include our equity in earnings or losses of unconsolidated equity method investments.

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

Twelve Months Ended

Percent

Percent

December 31,

December 31,

Better/

December 31,

December 31,

Better/

2022

2021

(Worse)

2022

2021

(Worse)

Total revenues, as reported

$             5,923

$             4,446

$            20,773

$            13,857

Less: Cost reimbursement revenue

(4,420)

(3,374)

(15,417)

(10,442)

Add: Impairments 1

-

-

5

-

Adjusted total revenues **

1,503

1,072

5,361

3,415

Operating income, as reported

996

635

3,462

1,750

Less: Cost reimbursement revenue

(4,420)

(3,374)

(15,417)

(10,442)

Add: Reimbursed expenses

4,349

3,317

15,141

10,322

Add: Restructuring, merger-related charges, and other

1

-

12

8

Add: Impairments 2

-

-

5

11

Adjusted operating income **

926

578

60 %

3,203

1,649

94 %

Operating income margin

17 %

14 %

17 %

13 %

Adjusted operating income margin **

62 %

54 %

60 %

48 %

Net income, as reported

673

468

2,358

1,099

Less: Cost reimbursement revenue

(4,420)

(3,374)

(15,417)

(10,442)

Add: Reimbursed expenses

4,349

3,317

15,141

10,322

Add: Restructuring, merger-related charges, and other

1

-

12

8

Add: Impairments 3

-

-

11

15

Add: Loss on extinguishment of debt

-

-

-

164

Less: Gains on investees' property sales 4

-

-

(23)

-

Less: Gain on asset dispositions 5

-

-

(2)

-

Income tax effect of above adjustments

19

19

69

(17)

Less: Income tax special items

-

-

30

(98)

Adjusted net income **

$                622

$                430

45 %

$             2,179

$             1,051

107 %

Diluted earnings per share, as reported

$               2.12

$               1.42

$               7.24

$               3.34

Adjusted diluted earnings per share**

$               1.96

$               1.30

51 %

$               6.69

$               3.19

110 %

**

Denotes non-GAAP financial measures. Please see pages A-15 and A-16 for information about our reasons for providing these alternative financial measures and the limitations on their use.

1

Twelve months ended December 31, 2022 includes impairment charges reported in Contract investment amortization of $5 million.

2

Twelve months ended December 31, 2022 includes impairment charges reported in Contract investment amortization of $5 million. Twelve months ended December 31, 2021 includes impairment charges reported in Depreciation, amortization, and other of $11 million.

3

Twelve months ended December 31, 2022 includes impairment charges reported in Contract investment amortization of $5 million and Equity in earnings (losses) of $6 million. Twelve months ended December 31, 2021 includes impairment charges reported in Depreciation, amortization, and other of $11 million and Equity in earnings (losses) of $4 million.

4

Gains on investees' property sales reported in Equity in earnings (losses).

5

Gain on asset dispositions reported in Gains and other income, net.

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of December 31, 2022

US & Canada

Total International

Total Worldwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

Managed

632

215,331

1,357

345,220

1,989

560,551

Marriott Hotels

104

57,534

169

52,624

273

110,158

Sheraton

25

20,383

183

61,815

208

82,198

Courtyard

168

27,063

112

24,007

280

51,070

Westin

40

21,865

76

23,545

116

45,410

JW Marriott

21

12,724

68

24,729

89

37,453

The Ritz-Carlton

40

12,079

67

16,611

107

28,690

The Ritz-Carlton Serviced Apartments

-

-

5

715

5

715

Renaissance

24

10,607

54

17,327

78

27,934

Four Points

1

134

84

23,267

85

23,401

Le Méridien

1

100

72

20,119

73

20,219

W Hotels

23

6,516

38

10,246

61

16,762

W Hotels Serviced Apartments

-

-

1

160

1

160

Residence Inn

76

12,199

9

1,116

85

13,315

Delta Hotels by Marriott

25

6,770

27

4,956

52

11,726

St. Regis

10

1,977

41

9,586

51

11,563

St. Regis Serviced Apartments

-

-

1

70

1

70

The Luxury Collection

6

2,296

47

8,268

53

10,564

Fairfield by Marriott

6

1,431

67

8,954

73

10,385

Aloft

2

505

44

9,727

46

10,232

Gaylord Hotels

6

10,220

-

-

6

10,220

AC Hotels by Marriott

7

1,165

68

8,466

75

9,631

Autograph Collection

8

2,508

22

3,356

30

5,864

Autograph Collection Serviced Apartments

-

-

1

158

1

158

Marriott Executive Apartments

-

-

34

4,866

34

4,866

SpringHill Suites

25

4,241

-

-

25

4,241

EDITION

5

1,379

10

2,216

15

3,595

Element

3

810

13

2,551

16

3,361

Protea Hotels

-

-

25

3,081

25

3,081

Tribute Portfolio

-

-

8

1,150

8

1,150

Moxy

-

-

6

1,092

6

1,092

TownePlace Suites

6

825

-

-

6

825

Bulgari

-

-

5

442

5

442

Franchised

5,121

735,470

907

179,319

6,028

914,789

Courtyard

863

115,148

114

21,251

977

136,399

Fairfield by Marriott

1,135

106,907

45

7,551

1,180

114,458

Residence Inn

772

92,072

26

3,482

798

95,554

Marriott Hotels

233

74,118

61

17,795

294

91,913

Sheraton

147

46,238

71

20,680

218

66,918

SpringHill Suites

507

58,773

-

-

507

58,773

Autograph Collection

138

27,170

108

23,564

246

50,734

TownePlace Suites

480

48,894

-

-

480

48,894

Westin

91

30,818

27

7,858

118

38,676

Four Points

158

23,924

63

10,602

221

34,526

Aloft

154

22,077

22

3,607

176

25,684

Renaissance

64

18,074

29

7,487

93

25,561

AC Hotels by Marriott

100

16,601

47

8,385

147

24,986

Moxy

28

5,316

88

16,700

116

22,016

Delta Hotels by Marriott

62

14,123

11

2,557

73

16,680

The Luxury Collection

12

3,188

56

10,268

68

13,456

Tribute Portfolio

51

7,952

28

3,185

79

11,137

Element

79

10,586

2

269

81

10,855

Le Méridien

24

5,605

18

4,640

42

10,245

JW Marriott

12

6,072

11

2,714

23

8,786

Design Hotels

10

1,385

40

3,469

50

4,854

Protea Hotels

-

-

35

2,706

35

2,706

The Ritz-Carlton

1

429

-

-

1

429

W Hotels

-

-

1

246

1

246

Bulgari

-

-

2

161

2

161

Marriott Executive Apartments

-

-

2

142

2

142

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of December 31, 2022

US & Canada

Total International

Total Worldwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

Owned/Leased

26

6,483

38

9,209

64

15,692

Courtyard

19

2,814

4

894

23

3,708

Marriott Hotels

2

1,308

6

2,064

8

3,372

Sheraton

-

-

4

1,830

4

1,830

W Hotels

2

779

2

665

4

1,444

Westin

1

1,073

-

-

1

1,073

Protea Hotels

-

-

5

912

5

912

Renaissance

1

317

2

505

3

822

The Ritz-Carlton

-

-

2

550

2

550

JW Marriott

-

-

1

496

1

496

The Luxury Collection1

-

-

3

383

3

383

Autograph Collection2

-

-

5

361

5

361

Residence Inn

1

192

1

140

2

332

Tribute Portfolio3

-

-

2

249

2

249

St. Regis

-

-

1

160

1

160

Residences

67

7,128

46

4,353

113

11,481

The Ritz-Carlton Residences

40

4,396

14

1,135

54

5,531

St. Regis Residences

10

1,196

11

1,490

21

2,686

W Residences

10

1,089

7

547

17

1,636

Bulgari Residences

-

-

5

514

5

514

Sheraton Residences

-

-

2

282

2

282

Westin Residences

3

266

1

9

4

275

Marriott Hotels Residences

-

-

2

246

2

246

The Luxury Collection Residences

1

91

3

115

4

206

EDITION Residences

3

90

-

-

3

90

Le Méridien Residences

-

-

1

15

1

15

Timeshare*

72

18,839

21

3,906

93

22,745

Yacht*

-

-

1

149

1

149

Grand Total

5,918

983,251

2,370

542,156

8,288

1,525,407

*Timeshare and Yacht counts are included in this table by geographical location. For external reporting purposes, these offerings are captured within "Unallocated corporate and other."

1 Includes one property acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-brand under The Luxury Collection brand following the completion of planned renovations.

2 Includes four properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-brand under the Autograph Collection brand following the completion of planned renovations.

3 Includes two properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-brand under the Tribute Portfolio brand following the completion of planned renovations.

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of December 31, 2022

US & Canada

Total International

Total Worldwide

Total Systemwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

Luxury

196

54,301

402

92,487

598

146,788

JW Marriott

33

18,796

80

27,939

113

46,735

The Ritz-Carlton

41

12,508

69

17,161

110

29,669

The Ritz-Carlton Residences

40

4,396

14

1,135

54

5,531

The Ritz-Carlton Serviced Apartments

-

-

5

715

5

715

The Luxury Collection1

18

5,484

106

18,919

124

24,403

The Luxury Collection Residences

1

91

3

115

4

206

W Hotels

25

7,295

41

11,157

66

18,452

W Residences

10

1,089

7

547

17

1,636

W Hotels Serviced Apartments

-

-

1

160

1

160

St. Regis

10

1,977

42

9,746

52

11,723

St. Regis Residences

10

1,196

11

1,490

21

2,686

St. Regis Serviced Apartments

-

-

1

70

1

70

EDITION

5

1,379

10

2,216

15

3,595

EDITION Residences

3

90

-

-

3

90

Bulgari

-

-

7

603

7

603

Bulgari Residences

-

-

5

514

5

514

Full-Service

1,060

358,434

1,066

286,854

2,126

645,288

Marriott Hotels

339

132,960

236

72,483

575

205,443

Marriott Hotels Residences

-

-

2

246

2

246

Sheraton

172

66,621

258

84,325

430

150,946

Sheraton Residences

-

-

2

282

2

282

Westin

132

53,756

103

31,403

235

85,159

Westin Residences

3

266

1

9

4

275

Autograph Collection2

146

29,678

135

27,281

281

56,959

Autograph Collection Serviced Apartments

-

-

1

158

1

158

Renaissance

89

28,998

85

25,319

174

54,317

Le Méridien

25

5,705

90

24,759

115

30,464

Le Méridien Residences

-

-

1

15

1

15

Delta Hotels by Marriott

87

20,893

38

7,513

125

28,406

Tribute Portfolio3

51

7,952

38

4,584

89

12,536

Gaylord Hotels

6

10,220

-

-

6

10,220

Marriott Executive Apartments

-

-

36

5,008

36

5,008

Design Hotels

10

1,385

40

3,469

50

4,854

Limited-Service

4,590

551,677

880

158,760

5,470

710,437

Courtyard

1,050

145,025

230

46,152

1,280

191,177

Fairfield by Marriott

1,141

108,338

112

16,505

1,253

124,843

Residence Inn

849

104,463

36

4,738

885

109,201

SpringHill Suites

532

63,014

-

-

532

63,014

Four Points

159

24,058

147

33,869

306

57,927

TownePlace Suites

486

49,719

-

-

486

49,719

Aloft

156

22,582

66

13,334

222

35,916

AC Hotels by Marriott

107

17,766

115

16,851

222

34,617

Moxy

28

5,316

94

17,792

122

23,108

Element

82

11,396

15

2,820

97

14,216

Protea Hotels

-

-

65

6,699

65

6,699

Timeshare*

72

18,839

21

3,906

93

22,745

Yacht*

-

-

1

149

1

149

Grand Total

5,918

983,251

2,370

542,156

8,288

1,525,407

*Timeshare and Yacht counts are included in this table by geographical location. For external reporting purposes, these offerings are captured within "Unallocated corporate and other."

1 Includes one property acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-brand under The Luxury Collection brand following the completion of planned renovations.

2 Includes four properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-brand under the Autograph Collection brand following the completion of planned renovations.

3 Includes two properties acquired when we purchased Elegant Hotels Group in December 2019 which we currently intend to re-brand under the Tribute Portfolio brand following the completion of planned renovations.

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated US & Canada Properties

Three Months Ended December 31, 2022 and December 31, 2021

REVPAR

Occupancy

Average Daily Rate

Brand

2022

 vs. 2021

2022

 vs. 2021

2022

 vs. 2021

JW Marriott

$206.19

25.6 %

66.9 %

8.3 %

pts.

$308.03

10.1 %

The Ritz-Carlton

$329.80

11.5 %

63.8 %

4.3 %

pts.

$516.85

3.9 %

W Hotels

$231.42

15.3 %

62.0 %

5.2 %

pts.

$373.37

5.6 %

Composite US & Canada Luxury1

$283.73

17.4 %

65.8 %

6.2 %

pts.

$431.29

6.3 %

Marriott Hotels

$150.23

43.6 %

64.6 %

9.9 %

pts.

$232.56

21.4 %

Sheraton

$139.41

38.8 %

60.2 %

9.3 %

pts.

$231.66

17.3 %

Westin

$165.10

33.1 %

65.8 %

8.1 %

pts.

$250.91

16.7 %

Composite US & Canada Premium2

$151.55

40.4 %

64.7 %

10.6 %

pts.

$234.22

17.5 %

US & Canada Full-Service3

$180.03

31.7 %

64.9 %

9.6 %

pts.

$277.24

12.1 %

Courtyard

$98.40

27.3 %

62.6 %

4.5 %

pts.

$157.20

18.3 %

Residence Inn

$134.97

17.5 %

74.0 %

2.4 %

pts.

$182.39

13.7 %

Composite US & Canada Limited-Service4

$110.64

24.5 %

66.7 %

4.1 %

pts.

$165.86

16.9 %

US & Canada - All5

$163.60

30.5 %

65.4 %

8.3 %

pts.

$250.31

13.9 %

Comparable Systemwide US & Canada Properties

Three Months Ended December 31, 2022 and December 31, 2021

REVPAR

Occupancy

Average Daily Rate

Brand

2022

 vs. 2021

2022

 vs. 2021

2022

 vs. 2021

JW Marriott

$201.05

22.0 %

67.6 %

6.8 %

pts.

$297.40

9.6 %

The Ritz-Carlton

$327.38

12.0 %

64.0 %

4.4 %

pts.

$511.53

4.2 %

W Hotels

$231.42

15.3 %

62.0 %

5.2 %

pts.

$373.37

5.6 %

Composite US & Canada Luxury1

$267.65

17.3 %

66.2 %

6.0 %

pts.

$404.02

6.6 %

Marriott Hotels

$122.75

35.0 %

62.1 %

9.0 %

pts.

$197.73

15.5 %

Sheraton

$106.63

37.5 %

59.9 %

10.0 %

pts.

$178.16

14.6 %

Westin

$148.46

31.0 %

65.0 %

9.0 %

pts.

$228.49

12.8 %

Composite US & Canada Premium2

$130.00

32.6 %

63.1 %

9.4 %

pts.

$205.99

12.8 %

US & Canada Full-Service3

$146.07

29.0 %

63.5 %

9.0 %

pts.

$230.13

10.7 %

Courtyard

$98.88

21.7 %

64.6 %

4.1 %

pts.

$153.00

13.9 %

Residence Inn

$115.21

13.9 %

72.3 %

0.8 %

pts.

$159.32

12.7 %

Fairfield by Marriott

$82.66

14.7 %

65.6 %

2.8 %

pts.

$125.98

9.8 %

Composite US & Canada Limited-Service4

$98.45

18.2 %

67.3 %

3.0 %

pts.

$146.32

13.0 %

US & Canada - All5

$118.48

23.6 %

65.7 %

5.5 %

pts.

$180.39

13.2 %

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

2 Includes Marriott Hotels, Sheraton, Westin, Renaissance, 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, Residence Inn, Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four Points, Aloft, Element,

  and AC Hotels by Marriott.  Systemwide also includes Moxy.

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

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated International Properties

Three Months Ended December 31, 2022 and December 31, 2021

REVPAR

Occupancy

Average Daily Rate

Region

2022

 vs. 2021

2022

 vs. 2021

2022

 vs. 2021

Greater China

$47.80

-21.3 %

46.2 %

-8.9 %

pts.

$103.47

-6.1 %

Asia Pacific excluding China

$111.53

110.1 %

70.3 %

22.0 %

pts.

$158.74

44.4 %

Caribbean & Latin America

$142.69

35.3 %

64.0 %

9.1 %

pts.

$222.93

16.0 %

Europe

$151.51

67.0 %

67.8 %

18.0 %

pts.

$223.55

22.6 %

Middle East & Africa

$165.28

31.1 %

70.9 %

4.4 %

pts.

$233.09

22.9 %

International - All1

$107.64

38.9 %

61.5 %

7.1 %

pts.

$175.15

22.8 %

Worldwide2

$132.56

34.1 %

63.2 %

7.7 %

pts.

$209.78

17.9 %

Comparable Systemwide International Properties

Three Months Ended December 31, 2022 and December 31, 2021

REVPAR

Occupancy

Average Daily Rate

Region

2022

 vs. 2021

2022

 vs. 2021

2022

 vs. 2021

Greater China

$47.39

-18.2 %

46.5 %

-7.7 %

pts.

$101.96

-4.6 %

Asia Pacific excluding China

$109.93

102.1 %

70.1 %

21.0 %

pts.

$156.91

41.6 %

Caribbean & Latin America

$118.21

40.4 %

61.2 %

9.6 %

pts.

$193.11

18.3 %

Europe

$121.30

70.3 %

65.5 %

19.6 %

pts.

$185.10

19.5 %

Middle East & Africa

$152.97

32.6 %

69.9 %

4.2 %

pts.

$218.85

24.7 %

International - All1

$103.00

45.1 %

61.8 %

9.5 %

pts.

$166.75

22.7 %

Worldwide2

$113.83

28.8 %

64.5 %

6.7 %

pts.

$176.46

15.4 %

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

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

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated US & Canada Properties

Twelve Months Ended December 31, 2022 and December 31, 2021

REVPAR

Occupancy

Average Daily Rate

Brand

2022

 vs. 2021

2022

 vs. 2021

2022

 vs. 2021

JW Marriott

$201.97

59.0 %

65.2 %

17.5 %

pts.

$309.81

16.3 %

The Ritz-Carlton

$328.27

41.0 %

64.0 %

14.6 %

pts.

$512.71

8.9 %

W Hotels

$228.43

56.0 %

62.3 %

16.9 %

pts.

$366.45

13.7 %

Composite US & Canada Luxury1

$275.30

51.4 %

65.0 %

16.9 %

pts.

$423.51

12.0 %

Marriott Hotels

$145.18

88.9 %

64.8 %

21.4 %

pts.

$224.18

26.6 %

Sheraton

$137.74

84.6 %

61.5 %

21.0 %

pts.

$224.03

21.5 %

Westin

$163.93

76.7 %

66.2 %

21.0 %

pts.

$247.81

20.5 %

Composite US & Canada Premium2

$146.02

85.1 %

64.3 %

21.7 %

pts.

$227.26

22.6 %

US & Canada Full-Service3

$173.86

72.0 %

64.4 %

20.7 %

pts.

$269.92

16.9 %

Courtyard

$98.87

49.8 %

64.0 %

8.8 %

pts.

$154.51

29.1 %

Residence Inn

$138.90

33.5 %

76.1 %

6.4 %

pts.

$182.65

22.3 %

Composite US & Canada Limited-Service4

$111.38

45.7 %

68.0 %

9.0 %

pts.

$163.82

26.5 %

US & Canada - All5

$159.06

67.0 %

65.3 %

17.9 %

pts.

$243.73

21.3 %

Comparable Systemwide US & Canada Properties

Twelve Months Ended December 31, 2022 and December 31, 2021

REVPAR

Occupancy

Average Daily Rate

Brand

2022

 vs. 2021

2022

 vs. 2021

2022

 vs. 2021

JW Marriott

$200.06

57.0 %

66.7 %

17.1 %

pts.

$299.82

16.8 %

The Ritz-Carlton

$324.64

41.8 %

64.0 %

14.9 %

pts.

$506.92

8.8 %

W Hotels

$228.43

56.0 %

62.3 %

16.9 %

pts.

$366.45

13.7 %

Composite US & Canada Luxury1

$260.62

51.8 %

65.6 %

16.9 %

pts.

$397.00

12.8 %

Marriott Hotels

$122.91

69.2 %

62.7 %

17.7 %

pts.

$195.91

21.4 %

Sheraton

$106.46

70.8 %

60.2 %

17.2 %

pts.

$176.84

22.0 %

Westin

$146.55

70.7 %

65.2 %

19.3 %

pts.

$224.76

20.1 %

Composite US & Canada Premium2

$128.10

66.4 %

63.1 %

17.9 %

pts.

$203.01

19.3 %

US & Canada Full-Service3

$143.57

63.1 %

63.4 %

17.8 %

pts.

$226.47

17.4 %

Courtyard

$101.08

39.8 %

66.7 %

8.9 %

pts.

$151.62

21.1 %

Residence Inn

$119.52

25.4 %

75.5 %

4.3 %

pts.

$158.24

18.2 %

Fairfield by Marriott

$85.87

27.3 %

68.1 %

6.7 %

pts.

$126.03

14.8 %

Composite US & Canada Limited-Service4

$101.13

32.6 %

69.7 %

7.2 %

pts.

$145.14

18.9 %

US & Canada - All5

$118.97

46.5 %

67.0 %

11.6 %

pts.

$177.47

21.1 %

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

2 Includes Marriott Hotels, Sheraton, Westin, Renaissance, 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, Residence Inn, Fairfield by Marriott, SpringHill Suites, TownePlace Suites, Four Points, Aloft, Element,

  and AC Hotels by Marriott.  Systemwide also includes Moxy.

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

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated International Properties

Twelve Months Ended December 31, 2022 and December 31, 2021

REVPAR

Occupancy

Average Daily Rate

Region

2022

 vs. 2021

2022

 vs. 2021

2022

 vs. 2021

Greater China

$53.22

-18.5 %

47.5 %

-8.0 %

pts.

$112.14

-4.8 %

Asia Pacific excluding China

$84.41

122.5 %

59.2 %

23.1 %

pts.

$142.60

35.8 %

Caribbean & Latin America

$126.55

67.0 %

60.8 %

17.7 %

pts.

$208.17

18.4 %

Europe

$153.51

148.3 %

63.5 %

30.3 %

pts.

$241.65

29.9 %

Middle East & Africa

$124.63

52.8 %

64.7 %

13.1 %

pts.

$192.54

22.0 %

International - All1

$94.64

55.5 %

57.0 %

11.7 %

pts.

$166.06

23.4 %

Worldwide2

$123.30

61.9 %

60.7 %

14.5 %

pts.

$203.23

23.3 %

Comparable Systemwide International Properties

Twelve Months Ended December 31, 2022 and December 31, 2021

REVPAR

Occupancy

Average Daily Rate

Region

2022

 vs. 2021

2022

 vs. 2021

2022

 vs. 2021

Greater China

$51.38

-16.6 %

46.8 %

-7.2 %

pts.

$109.71

-3.9 %

Asia Pacific excluding China

$83.87

111.8 %

59.3 %

22.2 %

pts.

$141.47

32.5 %

Caribbean & Latin America

$105.26

72.3 %

58.0 %

17.1 %

pts.

$181.42

21.6 %

Europe

$121.38

146.2 %

61.1 %

29.8 %

pts.

$198.67

25.9 %

Middle East & Africa

$116.91

55.8 %

64.2 %

13.3 %

pts.

$182.07

23.5 %

International - All1

$91.30

66.2 %

57.0 %

14.6 %

pts.

$160.21

23.7 %

Worldwide2

$110.64

51.0 %

64.0 %

12.5 %

pts.

$172.85

21.5 %

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

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

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS - 2022 vs 2019

In Constant $

Comparable Systemwide Properties1

Three Months Ended December 31, 2022 and December 31, 2019

REVPAR

Occupancy

Average Daily Rate

Region

2022

 vs. 2019

2022

 vs. 2019

2022

 vs. 2019

Greater China

$47.39

-42.3 %

46.5 %

-22.4 %

pts.

$101.96

-14.5 %

Asia Pacific excluding China

$109.93

5.5 %

70.1 %

-4.8 %

pts.

$156.91

12.8 %

Caribbean & Latin America

$118.21

27.6 %

61.2 %

2.1 %

pts.

$193.11

23.2 %

Europe

$121.30

7.4 %

65.5 %

-4.9 %

pts.

$185.10

15.6 %

Middle East & Africa

$152.97

43.8 %

69.9 %

-2.1 %

pts.

$218.85

48.1 %

International - All2

$103.00

3.4 %

61.8 %

-8.3 %

pts.

$166.75

17.3 %

US & Canada - All

$118.48

5.2 %

65.7 %

-3.7 %

pts.

$180.39

11.1 %

Worldwide3

$113.83

4.6 %

64.5 %

-5.1 %

pts.

$176.46

12.8 %

Comparable Systemwide Properties1

Twelve Months Ended December 31, 2022 and December 31, 2019

REVPAR

Occupancy

Average Daily Rate

Region

2022

 vs. 2019

2022

 vs. 2019

2022

 vs. 2019

Greater China

$51.38

-40.8 %

46.8 %

-20.7 %

pts.

$109.71

-14.6 %

Asia Pacific excluding China

$83.87

-20.2 %

59.3 %

-13.3 %

pts.

$141.47

-2.3 %

Caribbean & Latin America

$105.26

9.7 %

58.0 %

-3.0 %

pts.

$181.42

15.4 %

Europe

$121.38

-5.8 %

61.1 %

-11.1 %

pts.

$198.67

11.3 %

Middle East & Africa

$116.91

23.4 %

64.2 %

-3.2 %

pts.

$182.07

29.6 %

International - All2

$91.30

-11.9 %

57.0 %

-12.2 %

pts.

$160.21

7.0 %

US & Canada - All

$118.97

-0.8 %

67.0 %

-6.0 %

pts.

$177.47

8.1 %

Worldwide3

$110.64

-4.0 %

64.0 %

-7.9 %

pts.

$172.85

7.9 %

1 The comparisons between 2022 and 2019 reflect properties that are defined as comparable as of December 31, 2022, even if in 2019 they

were not open and operating for the full year or did not meet all the criteria for comparable in 2019.

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

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

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA

($ in millions)

Fiscal Year 2022

First

Quarter

Second

Quarter

Third

Quarter

Fourth

Quarter

Total

Net income, as reported

$                  377

$              678

$              630

$              673

$           2,358

Cost reimbursement revenue

(3,146)

(3,920)

(3,931)

(4,420)

(15,417)

Reimbursed expenses

3,179

3,827

3,786

4,349

15,141

Interest expense

93

95

100

115

403

Interest expense from unconsolidated joint ventures 

1

2

2

1

6

Provision for income taxes

99

200

239

218

756

Depreciation and amortization

48

49

50

46

193

Contract investment amortization

24

19

22

24

89

Depreciation and amortization classified in reimbursed expenses

26

29

32

31

118

Depreciation, amortization, and impairments from unconsolidated joint ventures

13

3

7

4

27

Stock-based compensation

44

52

48

48

192

Restructuring, merger-related charges, and other

9

-

2

1

12

Gains on investees' property sales

(8)

(13)

(2)

-

(23)

Gain on asset dispositions

-

(2)

-

-

(2)

Adjusted EBITDA **

$                  759

$           1,019

$              985

$           1,090

$           3,853

Change from 2021 Adjusted EBITDA **

156 %

83 %

44 %

47 %

69 %

Fiscal Year 2021

First

Quarter

Second

Quarter

Third

Quarter

Fourth

Quarter

Total

Net (loss) income, as reported

$                  (11)

$              422

$              220

$              468

$           1,099

Cost reimbursement revenue

(1,780)

(2,338)

(2,950)

(3,374)

(10,442)

Reimbursed expenses

1,833

2,255

2,917

3,317

10,322

Loss on extinguishment of debt

-

-

164

-

164

Interest expense

107

109

107

97

420

Interest expense from unconsolidated joint ventures 

2

1

2

2

7

(Benefit) provision for income taxes

(16)

(41)

58

80

81

Depreciation and amortization

52

50

64

54

220

Contract investment amortization

17

18

21

19

75

Depreciation and amortization classified in reimbursed expenses

28

27

28

28

111

Depreciation, amortization, and impairments from unconsolidated joint ventures

10

9

5

7

31

Stock-based compensation

53

43

43

43

182

Restructuring, merger-related charges, and other

1

3

4

-

8

Adjusted EBITDA **

$                  296

$              558

$              683

$              741

$           2,278

** Denotes non-GAAP financial measures. Please see pages A-15 and A-16 for information about our reasons for providing these alternative financial measures and the limitations on their use.

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

FIRST QUARTER 2023

($ in millions)

Range

Estimated

First Quarter 2023

First Quarter 2022 **

Net income excluding certain items 1

$            563

$            582

Interest expense

122

122

Interest expense from unconsolidated joint ventures

1

1

Provision for income taxes

154

160

Depreciation and amortization

45

45

Contract investment amortization

22

22

Depreciation and amortization classified in reimbursed expenses

28

28

Depreciation, amortization, and impairments from unconsolidated joint ventures

5

5

Stock-based compensation

40

40

Adjusted EBITDA **

$            980

$          1,005

$                                    759

Increase over 2022 Adjusted EBITDA **

29 %

32 %

** Denotes non-GAAP financial measures. See pages A-15 and A-16 for information about our reasons for providing these alternative financial

measures and the limitations on their use.

1 Guidance excludes cost reimbursement revenue, reimbursed expenses, and restructuring, merger-related charges, and other expenses, each of which the

company cannot forecast with sufficient accuracy 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 asset sales that

may occur during the year, which the company cannot forecast with sufficient accuracy and which may be significant.

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

FULL YEAR 2023

($ in millions)

Range

Estimated

Full Year 2023

Full Year 2022**

Net income excluding certain items 1

$          2,214

$          2,409

Interest expense

518

533

Interest expense from unconsolidated joint ventures

6

6

Provision for income taxes

686

746

Depreciation and amortization

196

196

Contract investment amortization

89

89

Depreciation and amortization classified in reimbursed expenses

109

109

Depreciation, amortization, and impairments from unconsolidated joint ventures

18

18

Stock-based compensation

194

194

Adjusted EBITDA **

$          4,030

$          4,300

$                                 3,853

Increase over 2022 Adjusted EBITDA **

5 %

12 %

** Denotes non-GAAP financial measures. See pages A-15 and A-16 for information about our reasons for providing these alternative financial

measures and the limitations on their use.

1 Guidance excludes cost reimbursement revenue, reimbursed expenses, and restructuring, merger-related charges, and other expenses, each of which the

company cannot forecast with sufficient accuracy 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 asset sales that

may occur during the year, which the company cannot forecast with sufficient accuracy and which may be significant.

MARRIOTT INTERNATIONAL, INC.

EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES

In our announcement 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 the manner in which the non-GAAP measures reported in this announcement and schedules are determined and management's reasons for reporting these non-GAAP measures below, and the announcement 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, restructuring, merger-related charges, and other expenses, and certain non-cash impairment charges. 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, merger-related charges, and other expenses, certain non-cash impairment charges, loss on extinguishment of debt (when applicable), gains and losses on asset dispositions made by us or by our joint venture investees (when applicable), the income tax effect of these adjustments, and income tax special items. The income tax special items primarily related to the resolution of tax audits. 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/loss excluding the impact of the following items: cost reimbursement revenue and reimbursed expenses, interest expense, depreciation and amortization (including depreciation and amortization classified in "Reimbursed expenses," as discussed below), certain non-cash impairment charges related to equity investments, benefit (provision) for income taxes, restructuring, merger-related charges, and other expenses, and stock-based compensation expense for all periods presented. When applicable, Adjusted EBITDA also excludes loss on extinguishment of debt and 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 earnings per share, and Adjusted EBITDA, we exclude a one-time cost in the 2022 first quarter related to certain property-level adjustments related to compensation, charges incurred under our restructuring plans that we initiated beginning in the 2020 second quarter to achieve cost savings in response to the decline in lodging demand caused by COVID-19, and transition costs associated with the Starwood merger, which we record in the "Restructuring, merger-related charges, and other" caption of our Consolidated Statements of Income (our "Income Statements"), as well as the loss related to the debt extinguishment in the 2021 third quarter, which we recorded in the "Loss on extinguishment of debt" caption of our prior period Income Statements, to allow for period-over period comparisons of our ongoing operations before the impact of these items. We also exclude 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 (losses)" captions 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 long 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. 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 (losses)" 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 and software, 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 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.

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. The comparisons between 2022 and 2019 reflect properties that are defined as comparable as of December 31, 2022, even if in 2019 they were not open and operating for the full year or did not meet all the other criteria for comparable in 2019. 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.

SOURCE Marriott International, Inc.