Marriott International Reports Third Quarter 2025 Results

For a summary of quarterly highlights, please visit: https://news.marriott.com/static-assets/component-resources/newscenter/earnings/2025/2025-q3-earnings-infographic.pdf.

BETHESDA, Md., Nov. 4, 2025 /PRNewswire/ -- Marriott International, Inc. (Nasdaq: MAR) today reported third quarter 2025 results.

Anthony Capuano, President and Chief Executive Officer, said, "Our third quarter results demonstrated continued strong execution of our growth strategy, the power of our brands, and the cash flow benefits of our asset-light business model. We delivered another quarter of strong rooms growth, robust development signings and profit gains.

"Global RevPAR rose 0.5 percent in the third quarter, impacted by calendar shifts and ongoing macroeconomic uncertainty. International RevPAR increased 2.6 percent, led by APEC, which delivered nearly 5 percent growth fueled by strong performance in key markets like Japan, Australia and Vietnam. In the U.S. & Canada, RevPAR declined 0.4 percent due to weaker demand in the lower chain scales, largely reflecting reduced government travel. Globally, our luxury hotels continued to outperform, driven by robust demand and strong rate performance, with luxury RevPAR rising 4 percent in the quarter.

"Our diverse portfolio of brands, that range from midscale to luxury, and include traditional, extended stay, and unique lodging options like cabins and safari lodges, continues to drive strong owner preference. During the first nine months of the year, we had record year-to-date signings, and our momentum on conversions continued, comprising around one third of our signings and openings. We still expect net rooms growth to approach 5 percent for full year 2025 and be in the mid-single-digit range over the next few years.

"The power of Marriott Bonvoy has continued to grow. The platform has meaningfully evolved and expanded over the last several years to offer travelers exceptional hotel stays as well as a wide range of experiences, benefits, and services across their travel journeys. During the third quarter, we added another 12 million members, bringing total global membership to nearly 260 million. Member penetration remained strong at 75 percent in the U.S. & Canada and 68 percent globally, reflecting deep engagement with our expanding global member base.

"Our solid financial performance and strong cash generation allowed us to return approximately $3.1 billion to our shareholders year-to-date through October 30 through share repurchases and dividends. We continue to expect to return approximately $4.0 billion to our shareholders in 2025."

Third Quarter 2025 Results

Base management and franchise fees totaled $1,190 million in the 2025 third quarter, a nearly 6 percent increase compared to base management and franchise fees of $1,124 million in the year-ago quarter. The increase was primarily driven by rooms growth and higher co-branded credit card fees.

Incentive management fees totaled $148 million in the 2025 third quarter, compared to $159 million in the 2024 third quarter, primarily reflecting declines in the U.S. & Canada. Managed hotels in international markets contributed roughly three-quarters of the incentive fees earned in the quarter.

Owned, leased, and other revenue, net of direct expenses, totaled $94 million in the 2025 third quarter, compared to $81 million in the 2024 third quarter. The increase was mainly driven by the addition of the Sheraton Grand Chicago to our portfolio of owned hotels in the 2024 fourth quarter.

General, administrative, and other expenses for the 2025 third quarter totaled $234 million, compared to $276 million in the year-ago quarter. The year-over-year change largely reflects a $19 million operating guarantee reserve for a U.S. hotel in the 2024 third quarter, as well as lower compensation costs.

In the 2025 third quarter, restructuring and merger-related recoveries/charges, and other expenses totaled a $40 million benefit compared to a $9 million expense in the year-ago quarter. The year-over-year change was primarily driven by insurance recoveries related to the 2018 Starwood guest reservations database security incident.

Interest expense, net, totaled $194 million in the 2025 third quarter, compared to $168 million in the year-ago quarter. The increase was largely due to higher interest expense associated with higher debt balances.

In the 2025 third quarter, the provision for income taxes totaled $266 million compared to $202 million in the 2024 third quarter.

Marriott's reported operating income totaled $1,180 million in the 2025 third quarter, compared to 2024 third quarter reported operating income of $944 million. Reported net income totaled $728 million in the 2025 third quarter, a 25 percent increase compared to 2024 third quarter reported net income of $584 million. Reported diluted earnings per share (EPS) totaled $2.67 in the quarter, compared to reported diluted EPS of $2.07 in the year-ago quarter.

Adjusted operating income in the 2025 third quarter totaled $1,119 million, compared to 2024 third quarter adjusted operating income of $1,017 million. Third quarter 2025 adjusted net income totaled $674 million, compared to 2024 third quarter adjusted net income of $638 million. Adjusted diluted EPS in the 2025 third quarter totaled $2.47, compared to adjusted diluted EPS of $2.26 in the year-ago quarter.

Adjusted results excluded cost reimbursement revenue, reimbursed expenses, and restructuring and merger-related recoveries/charges, and other expenses. See the press release schedules for the calculation of adjusted results and the manner in which the adjusted measures are determined in this press release.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $1,349 million in the 2025 third quarter, a 10 percent increase compared to third quarter 2024 adjusted EBITDA of $1,229 million. See the press release schedules for the adjusted EBITDA calculation.

Selected Performance Information

The company added roughly 17,900 net rooms during the quarter, including nearly 13,900 net rooms in international markets. At the end of the quarter, Marriott's global system totaled over 9,700 properties, with approximately 1,754,000 rooms.

At the end of the quarter, the company's worldwide development pipeline totaled 3,923 properties with more than 596,000 rooms, including 229 properties with nearly 36,000 rooms approved for development, but not yet subject to signed contracts. The quarter-end pipeline included 1,536 properties with over 250,000 rooms under construction, including hotels that are in the process of converting to our system. Over half of the rooms in the quarter-end pipeline are in international markets. The quarter-end system size and pipeline do not reflect any rooms from our acquisition of the citizenM brand, which we expect to integrate into our system and platforms in the 2025 fourth quarter.

In the 2025 third quarter, worldwide RevPAR increased 0.5 percent (a 1.3 percent increase using actual dollars) compared to the 2024 third quarter. RevPAR in the U.S. & Canada declined 0.4 percent (a 0.4 percent decrease using actual dollars) year-over-year, and RevPAR in international markets increased 2.6 percent (a 5.3 percent increase using actual dollars) year-over-year.

Balance Sheet & Common Stock

At the end of the quarter, Marriott's total debt was $16.0 billion and cash and equivalents totaled $0.7 billion, compared to $14.4 billion in debt and $0.4 billion of cash and equivalents at year-end 2024.

The company repurchased 3.0 million shares of common stock in the 2025 third quarter for $0.8 billion. Year-to-date through October 30, the company has repurchased 9.7 million shares for $2.6 billion.

In the 2025 third quarter, the company issued $400 million of Series TT Senior Notes due in 2027 with a 4.20 percent interest rate coupon, $500 million of Series UU Senior Notes due in 2031 with a 4.50 percent interest rate coupon, and $600 million of Series VV Senior Notes due in 2035 with a 5.25 percent interest rate coupon.

Company Outlook

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

Fourth Quarter 2025

vs. Fourth Quarter 2024

Full Year 2025

vs. Full Year 2024

Comparable systemwide constant $ RevPAR growth

Worldwide

1.0% to 2.0%

1.5% to 2.5%

Year-End 2025

vs. Year-End 2024

Net rooms growth

Approaching 5%

($ in millions, except EPS)

Fourth Quarter 2025

Full Year 2025

Gross fee revenues

$1,382 to $1,402

$5,395 to $5,415

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

Approx. $98

Approx. $370

General, administrative, and other expenses

$261 to $251

$985 to $975

Adjusted EBITDA 1,2

$1,371 to $1,401

$5,352 to $5,382

Adjusted EPS – diluted 2,3

$2.54 to $2.62

$9.98 to $10.06

Investment spending (including $349 million for citizenM) 4

Approx. $1,450

Capital return to shareholders 5

Approx. $4,000

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

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

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

4This outlook includes $349 million of funding related to our acquisition of the citizenM brand. Investment spending includes capital and technology expenditures, loan advances, contract acquisition costs, and other investing activities, but excludes any other potential property or brand acquisitions, which we cannot forecast with sufficient accuracy and which may be significant.

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

Marriott International, Inc. (Nasdaq: MAR) will conduct its quarterly earnings review for the investment community and news media on Tuesday, November 4, 2025, at 8:30 a.m. Eastern Time (ET). The conference call will be webcast simultaneously via Marriott's investor relations website at www.marriott.com/investor (click on "Events & Presentations" and click on the quarterly conference call link). A replay will be available at that same website until November 4, 2026.

The telephone dial-in number for the conference call is US Toll Free: 800-445-7795, or Global:

+1 785-424-1699. The conference ID is MAR3Q25.

NOTE ON FORWARD-LOOKING STATEMENTS: All statements in this press release and the accompanying schedules are made as of November 4, 2025. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. This press release and the accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including statements related to our RevPAR, rooms growth and other financial metric estimates, outlook and assumptions; cash generation and shareholder returns; our growth prospects; our development pipeline; owner preference; our Marriott Bonvoy travel platform; integration of the citizenM rooms into our system and platforms; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including uncertainty resulting from economic, political or other global, national, and regional conditions and events, including related to tariffs, trade, travel and other policies; and the risk factors that we describe in our U.S. Securities and Exchange Commission filings, including our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release.

Marriott International, Inc. (Nasdaq: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of over 9,700 properties across more than 30 leading brands in 143 countries and territories. Marriott operates, franchises, and licenses hotel, residential, timeshare, and other lodging properties all around the world. The company offers Marriott Bonvoy®, its highly awarded travel platform. For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com. In addition, connect with us on Facebook and @MarriottIntl on X and Instagram.

Marriott encourages investors, the media, and others interested in the company to review and subscribe to the information Marriott posts on its investor relations website at www.marriott.com/investor or Marriott's news center website at www.marriottnewscenter.com, which may be material. The contents of these websites are not incorporated by reference into this press release or any report or document Marriott files with the U.S. Securities and Exchange Commission, and any references to the websites are intended to be inactive textual references only.

IRPR#1

Tables follow

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

MARRIOTT INTERNATIONAL, INC.

PRESS RELEASE SCHEDULES

TABLE OF CONTENTS

QUARTER 3, 2025

Consolidated Statements of Income - As Reported

A- 2

Non-GAAP Financial Measures

A- 4

Total Lodging Products by Ownership Type

A- 5

Total Lodging Products by Tier

A- 7

Key Lodging Statistics

A- 10

Adjusted EBITDA

A- 14

Adjusted EBITDA Forecast - Fourth Quarter 2025

A- 15

Adjusted EBITDA Forecast - Full Year 2025

A- 16

Explanation of Non-GAAP Financial and Performance Measures

A- 17

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED

THIRD QUARTER 2025 AND 2024

($ in millions except per share amounts, unaudited)

As Reported

Percent

Three Months Ended

Better/(Worse)

September 30, 2025

September 30, 2024

Reported 2025 vs. 2024

REVENUES

Base management fees

$ 314

$ 312

Franchise fees 1

876

812

Incentive management fees

148

159

(7)

Gross fee revenues

1,338

1,283

Contract investment amortization 2

(29)

(26)

(12)

Net fee revenues

1,309

1,257

Owned, leased, and other revenue 3

420

381

Cost reimbursement revenue 4

4,760

4,617

6,489

6,255

OPERATING COSTS AND EXPENSES

Owned, leased, and other - direct 5

326

300

(9)

Depreciation, amortization, and other 6

(11)

General, administrative, and other 7

234

276

Restructuring and merger-related (recoveries)

charges, and other

(40)

544

Reimbursed expenses 4

4,739

4,681

(1)

5,309

5,311

OPERATING INCOME

1,180

944

Gains and other income, net 8

(57)

Interest expense

(206)

(179)

(15)

Interest income

Equity in earnings 9

INCOME BEFORE INCOME TAXES

994

786

Provision for income taxes

(266)

(202)

(32)

NET INCOME

$ 728

$ 584

EARNINGS PER SHARE

Earnings per share - basic

$ 2.68

$ 2.08

Earnings per share - diluted

$ 2.67

$ 2.07

Basic shares

271.8

281.5

Diluted shares

272.5

282.4

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

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

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

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

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

6 Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of acquired contracts, software, and other definite-lived intangible assets, and any related impairments, accelerations, or write-offs.

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

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

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

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED

THIRD QUARTER YEAR-TO-DATE 2025 AND 2024

($ in millions except per share amounts, unaudited)

As Reported

Percent

Nine Months Ended

Better/(Worse)

September 30, 2025

September 30, 2024

Reported 2025 vs. 2024

REVENUES

Base management fees

$ 979

$ 955

Franchise fees 1

2,482

2,318

Incentive management fees

552

563

(2)

Gross fee revenues

4,013

3,836

Contract investment amortization 2

(86)

(76)

(13)

Net fee revenues

3,927

3,760

Owned, leased, and other revenue 3

1,222

1,133

Cost reimbursement revenue 4

14,347

13,778

19,496

18,671

OPERATING COSTS AND EXPENSES

Owned, leased, and other - direct 5

950

882

(8)

Depreciation, amortization, and other 6

154

137

(12)

General, administrative, and other 7

724

785

Restructuring and merger-related (recoveries)

charges, and other

(31)

224

Reimbursed expenses 4

14,335

13,827

(4)

16,132

15,656

(3)

OPERATING INCOME

3,364

3,015

Gains and other income, net 8

(60)

Interest expense

(601)

(515)

(17)

Interest income

Equity in earnings 9

INCOME BEFORE INCOME TAXES

2,812

2,553

Provision for income taxes

(656)

(633)

(4)

NET INCOME

$ 2,156

$ 1,920

EARNINGS PER SHARE

Earnings per share - basic

$ 7.86

$ 6.71

Earnings per share - diluted

$ 7.84

$ 6.69

Basic shares

274.3

285.9

Diluted shares

275.0

286.9

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

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

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

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

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

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

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

($ in millions except per share amounts)

The following table presents our reconciliations of Adjusted operating income, Adjusted operating income margin, Adjusted net income, and Adjusted diluted earnings per share to the most directly comparable GAAP measure. Adjusted total revenues is used in the determination of Adjusted operating income margin.

Three Months Ended

Nine Months Ended

Percent

September 30,

Better/

September 30,

Better/

2025

2024

(Worse)

2025

2024

(Worse)

Total revenues, as reported

$ 6,489

$ 6,255

$ 19,496

$ 18,671

Less: Cost reimbursement revenue

(4,760)

(4,617)

(14,347)

(13,778)

Adjusted total revenues †

1,729

1,638

5,149

4,893

Operating income, as reported

1,180

944

3,364

3,015

Less: Cost reimbursement revenue

(4,760)

(4,617)

(14,347)

(13,778)

Add: Reimbursed expenses

4,739

4,681

14,335

13,827

(Less) Add: Restructuring and merger-related (recoveries)

charges, and other

(40)

(31)

Adjusted operating income †

1,119

1,017

3,321

3,089

Operating income margin

18 %

15 %

17 %

16 %

Adjusted operating income margin †

65 %

62 %

64 %

63 %

Net income, as reported

728

584

2,156

1,920

Less: Cost reimbursement revenue

(4,760)

(4,617)

(14,347)

(13,778)

Add: Reimbursed expenses

4,739

4,681

14,335

13,827

(Less) Add: Restructuring and merger-related (recoveries)

charges, and other

(40)

(31)

Income tax effect of above adjustments

(19)

(20)

Less: Income tax special items

—

(74)

—

Adjusted net income †

$ 674

$ 638

$ 2,047

$ 1,974

Diluted earnings per share, as reported

$ 2.67

$ 2.07

$ 7.84

$ 6.69

Adjusted diluted earnings per share †

$ 2.47

$ 2.26

$ 7.44

$ 6.88

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

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY OWNERSHIP TYPE

As of September 30, 2025

US & Canada

Total International 1

Total Worldwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

Managed

605

212,036

1,356

353,446

1,961

565,482

Marriott Hotels

55,831

189

59,832

287

115,663

Sheraton

19,752

177

57,032

202

76,784

Courtyard by Marriott

153

24,955

131

28,795

284

53,750

Westin

22,486

23,417

118

45,903

JW Marriott

13,191

27,227

40,418

The Ritz-Carlton

12,801

18,394

121

31,195

Four Points by Sheraton

134

25,867

26,001

Renaissance Hotels

9,065

16,514

25,579

Le Méridien

—

18,449

W Hotels

5,400

12,738

18,138

St. Regis

2,669

11,380

14,049

Residence Inn by Marriott

11,919

1,116

13,035

Gaylord Hotels

11,820

—

11,820

The Luxury Collection

2,296

8,030

10,326

Fairfield by Marriott

1,431

8,355

9,786

Aloft Hotels

505

9,196

9,701

Delta Hotels by Marriott

6,622

1,440

8,062

Autograph Collection

3,269

3,209

6,478

Marriott Executive Apartments

—

6,004

EDITION

1,379

2,992

4,371

AC Hotels by Marriott

1,512

2,679

4,191

Element Hotels

810

2,964

3,774

Moxy Hotels

380

2,876

3,256

SpringHill Suites by Marriott

2,984

—

2,984

Protea Hotels by Marriott

—

2,737

Tribute Portfolio

—

1,557

TownePlace Suites by Marriott

825

—

825

Bvlgari

—

646

Owned/Leased

5,539

8,667

14,206

Sheraton

1,218

1,724

2,942

Marriott Hotels

1,304

1,631

2,935

Courtyard by Marriott

987

894

1,881

W Hotels

765

665

1,430

Westin

1,073

—

1,073

Protea Hotels by Marriott

—

912

The Ritz-Carlton

—

548

Renaissance Hotels

—

505

JW Marriott

—

496

The Luxury Collection

—

383

Autograph Collection

—

360

Residence Inn by Marriott

192

140

332

Tribute Portfolio

—

249

St. Regis

—

160

Franchised, Licensed, and Other

5,766

854,727

1,803

303,276

7,569

1,158,003

Courtyard by Marriott

923

123,996

139

25,759

1,062

149,755

Fairfield by Marriott

1,182

111,323

125

17,670

1,307

128,993

Residence Inn by Marriott

815

97,069

4,766

853

101,835

Marriott Hotels

235

74,523

22,893

317

97,416

Autograph Collection

156

35,019

162

32,616

318

67,635

Sheraton

141

43,625

23,390

225

67,015

SpringHill Suites by Marriott

558

64,976

—

558

64,976

TownePlace Suites by Marriott

551

55,328

—

551

55,328

Four Points by Sheraton

148

21,350

128

22,777

276

44,127

Westin

32,013

10,179

129

42,192

AC Hotels by Marriott

130

21,746

106

15,347

236

37,093

Moxy Hotels

8,224

116

21,694

164

29,918

Aloft Hotels

167

23,903

5,889

198

29,792

Renaissance Hotels

19,545

8,425

104

27,970

Tribute Portfolio

18,253

8,760

162

27,013

MGM Collection with Marriott Bonvoy**

26,210

—

26,210

Delta Hotels by Marriott

15,195

8,028

109

23,223

Timeshare*

18,949

3,911

22,860

The Luxury Collection

7,812

13,816

21,628

City Express by Marriott

379

147

17,781

151

18,160

Design Hotels*

2,693

178

11,890

203

14,583

Element Hotels

12,662

936

101

13,598

Le Méridien

5,060

7,601

12,661

JW Marriott

6,327

3,264

9,591

Sonder by Marriott Bonvoy

4,909

2,779

140

7,688

Four Points Flex by Sheraton

—

6,980

Protea Hotels by Marriott

—

3,283

Outdoor Collection by Marriott Bonvoy

1,527

—

1,527

Marriott Executive Apartments

—

1,385

W Hotels

1,117

226

1,343

The Ritz-Carlton Yacht Collection*

—

603

Apartments by Marriott Bonvoy

317

275

592

The Ritz-Carlton

429

449

StudioRes

248

—

248

St. Regis

—

172

Bvlgari

—

161

Residences

7,442

8,589

141

16,031

The Ritz-Carlton Residences

4,755

1,870

6,625

St. Regis Residences

1,267

1,946

3,213

W Residences

869

768

1,637

Marriott Residences

—

1,337

JW Marriott Residences

—

1,055

Westin Residences

266

413

679

Bvlgari Residences

—

526

Sheraton Residences

—

472

The Luxury Collection Residences

176

Renaissance Residences

112

—

112

EDITION Residences

Le Méridien Residences

—

Autograph Collection Residences

—

Grand Total

6,456

1,079,744

3,265

673,978

9,721

1,753,722

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

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

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

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

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS BY TIER

As of September 30, 2025

US & Canada

Total International 1

Total Worldwide

Total Systemwide

Properties

Rooms

Properties

Rooms

Properties

Rooms

Luxury

208

61,250

471

108,181

679

169,431

JW Marriott

19,518

30,987

128

50,505

JW Marriott Residences

—

1,055

The Luxury Collection

10,108

109

22,229

130

32,337

The Luxury Collection Residences

176

The Ritz-Carlton

13,230

18,962

125

32,192

The Ritz-Carlton Residences

4,755

1,870

6,625

The Ritz-Carlton Yacht Collection*

—

603

W Hotels

7,282

13,629

20,911

W Residences

869

768

1,637

St. Regis

2,669

11,712

14,381

St. Regis Residences

1,267

1,946

3,213

EDITION

1,379

2,992

4,371

EDITION Residences

Bvlgari

—

807

Bvlgari Residences

—

526

Premium

1,243

410,180

1,444

332,473

2,687

742,653

Marriott Hotels

335

131,658

276

84,356

611

216,014

Marriott Residences

—

1,337

Sheraton

167

64,595

264

82,146

431

146,741

Sheraton Residences

—

472

Westin

137

55,572

111

33,596

248

89,168

Westin Residences

266

413

679

Autograph Collection

167

38,288

183

36,185

350

74,473

Autograph Collection Residences

—

Renaissance Hotels

28,610

25,444

180

54,054

Renaissance Residences

112

—

112

Delta Hotels by Marriott

21,817

9,468

139

31,285

Le Méridien

5,060

26,050

118

31,110

Le Méridien Residences

—

Tribute Portfolio

18,253

10,566

176

28,819

MGM Collection with Marriott Bonvoy**

26,210

—

26,210

Design Hotels*

2,693

178

11,890

203

14,583

Gaylord Hotels

11,820

—

11,820

Sonder by Marriott Bonvoy

4,909

2,779

140

7,688

Marriott Executive Apartments

—

7,389

Apartments by Marriott Bonvoy

317

275

592

Select

4,926

588,738

1,134

204,652

6,060

793,390

Courtyard by Marriott

1,083

149,938

274

55,448

1,357

205,386

Fairfield by Marriott

1,188

112,754

180

26,025

1,368

138,779

Residence Inn by Marriott

888

109,180

6,022

936

115,202

Four Points by Sheraton

149

21,484

225

48,644

374

70,128

SpringHill Suites by Marriott

575

67,960

—

575

67,960

TownePlace Suites by Marriott

557

56,153

—

557

56,153

AC Hotels by Marriott

138

23,258

120

18,026

258

41,284

Aloft Hotels

169

24,408

15,085

242

39,493

Moxy Hotels

8,604

129

24,570

178

33,174

Element Hotels

13,472

3,900

119

17,372

Protea Hotels by Marriott

—

6,932

Outdoor Collection by Marriott Bonvoy

1,527

—

1,527

Midscale

627

195

24,761

201

25,388

City Express by Marriott

379

147

17,781

151

18,160

Four Points Flex by Sheraton

—

6,980

StudioRes

248

—

248

Timeshare*

18,949

3,911

22,860

Grand Total

6,456

1,079,744

3,265

673,978

9,721

1,753,722

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

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated US & Canada Properties

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

RevPAR

Occupancy

Average Daily Rate

Brand

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

JW Marriott

$ 206.00

0.4 %

67.9 %

-1.5 %

pts.

$ 303.46

2.7 %

The Ritz-Carlton

$ 309.08

4.3 %

62.5 %

-0.1 %

pts.

$ 494.16

4.5 %

W Hotels

$ 237.67

2.1 %

70.5 %

0.0 %

pts.

$ 337.32

2.2 %

Composite US & Canada Luxury 1

$ 274.83

3.4 %

67.1 %

-0.4 %

pts.

$ 409.32

4.0 %

Marriott Hotels

$ 171.64

-2.0 %

70.1 %

-2.8 %

pts.

$ 244.98

1.8 %

Sheraton

$ 164.50

2.0 %

68.0 %

-0.9 %

pts.

$ 241.95

3.4 %

Westin

$ 186.11

-0.1 %

71.7 %

-1.5 %

pts.

$ 259.72

2.0 %

Composite US & Canada Premium 2

$ 170.98

0.0 %

69.9 %

-1.5 %

pts.

$ 244.54

2.2 %

US & Canada Full-Service 3

$ 193.61

1.0 %

69.3 %

-1.3 %

pts.

$ 279.33

2.9 %

Courtyard by Marriott

$ 113.18

-2.7 %

67.7 %

-1.3 %

pts.

$ 167.07

-0.8 %

Residence Inn by Marriott

$ 150.60

-3.8 %

77.3 %

-2.1 %

pts.

$ 194.92

-1.1 %

Composite US & Canada Select 4

$ 125.63

-3.6 %

71.0 %

-1.6 %

pts.

$ 176.96

-1.5 %

US & Canada - All 5

$ 176.99

0.2 %

69.7 %

-1.4 %

pts.

$ 253.84

2.1 %

Comparable Systemwide US & Canada Properties

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

RevPAR

Occupancy

Average Daily Rate

Brand

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

JW Marriott

$ 200.86

1.6 %

69.3 %

-0.2 %

pts.

$ 290.04

1.9 %

The Ritz-Carlton

$ 313.26

4.6 %

63.6 %

0.0 %

pts.

$ 492.66

4.7 %

W Hotels

$ 237.67

2.1 %

70.5 %

0.0 %

pts.

$ 337.32

2.2 %

Composite US & Canada Luxury 1

$ 260.16

3.5 %

68.5 %

0.1 %

pts.

$ 379.95

3.3 %

Marriott Hotels

$ 147.34

-0.4 %

69.7 %

-1.4 %

pts.

$ 211.35

1.6 %

Sheraton

$ 136.38

1.1 %

69.3 %

-0.2 %

pts.

$ 196.71

1.4 %

Westin

$ 164.85

-0.5 %

71.2 %

-1.0 %

pts.

$ 231.38

0.9 %

Composite US & Canada Premium 2

$ 150.50

0.5 %

70.0 %

-0.7 %

pts.

$ 215.07

1.4 %

US & Canada Full-Service 3

$ 162.69

1.0 %

69.8 %

-0.6 %

pts.

$ 233.06

1.9 %

Courtyard by Marriott

$ 115.60

-2.4 %

70.4 %

-1.4 %

pts.

$ 164.27

-0.5 %

Residence Inn by Marriott

$ 138.69

-1.6 %

79.2 %

-0.9 %

pts.

$ 175.08

-0.5 %

Fairfield by Marriott

$ 100.97

-1.3 %

71.9 %

-1.0 %

pts.

$ 140.34

0.1 %

Composite US & Canada Select 4

$ 117.86

-1.6 %

73.7 %

-1.0 %

pts.

$ 159.83

-0.3 %

US & Canada - All 5

$ 135.85

-0.4 %

72.2 %

-0.8 %

pts.

$ 188.25

0.8 %

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

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

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

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

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

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated US & Canada Properties

Nine Months Ended September 30, 2025 and September 30, 2024

RevPAR

Occupancy

Average Daily Rate

Brand

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

JW Marriott

$ 243.36

3.2 %

71.4 %

0.2 %

pts.

$ 340.64

2.9 %

The Ritz-Carlton

$ 364.87

6.1 %

66.8 %

0.9 %

pts.

$ 546.19

4.6 %

W Hotels

$ 259.19

4.2 %

69.8 %

1.8 %

pts.

$ 371.52

1.4 %

Composite US & Canada Luxury 1

$ 313.56

4.8 %

69.8 %

0.8 %

pts.

$ 449.32

3.6 %

Marriott Hotels

$ 174.01

1.3 %

70.0 %

-1.1 %

pts.

$ 248.46

3.0 %

Sheraton

$ 166.15

0.9 %

68.0 %

-1.5 %

pts.

$ 244.31

3.1 %

Westin

$ 185.31

2.2 %

70.2 %

-0.4 %

pts.

$ 264.12

2.9 %

Composite US & Canada Premium 2

$ 172.95

2.0 %

69.7 %

-0.5 %

pts.

$ 248.17

2.8 %

US & Canada Full-Service 3

$ 203.60

2.9 %

69.7 %

-0.2 %

pts.

$ 292.06

3.3 %

Courtyard by Marriott

$ 112.88

-0.7 %

67.3 %

-0.3 %

pts.

$ 167.69

-0.3 %

Residence Inn by Marriott

$ 152.34

-0.5 %

76.8 %

-0.3 %

pts.

$ 198.33

-0.1 %

Composite US & Canada Select 4

$ 127.22

-0.7 %

70.8 %

-0.2 %

pts.

$ 179.70

-0.4 %

US & Canada - All 5

$ 184.92

2.3 %

70.0 %

-0.2 %

pts.

$ 264.26

2.6 %

Comparable Systemwide US & Canada Properties

Nine Months Ended September 30, 2025 and September 30, 2024

RevPAR

Occupancy

Average Daily Rate

Brand

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

JW Marriott

$ 234.13

2.8 %

72.1 %

0.3 %

pts.

$ 324.73

2.4 %

The Ritz-Carlton

$ 363.16

6.3 %

67.3 %

1.0 %

pts.

$ 539.85

4.7 %

W Hotels

$ 259.19

4.2 %

69.8 %

1.8 %

pts.

$ 371.52

1.4 %

Composite US & Canada Luxury 1

$ 292.47

4.5 %

70.5 %

0.8 %

pts.

$ 414.79

3.3 %

Marriott Hotels

$ 146.10

1.8 %

68.8 %

-0.3 %

pts.

$ 212.39

2.2 %

Sheraton

$ 131.82

1.0 %

67.5 %

-0.5 %

pts.

$ 195.20

1.8 %

Westin

$ 167.48

2.0 %

70.7 %

-0.1 %

pts.

$ 236.98

2.2 %

Composite US & Canada Premium 2

$ 149.33

2.1 %

68.9 %

0.0 %

pts.

$ 216.60

2.1 %

US & Canada Full-Service 3

$ 165.25

2.6 %

69.1 %

0.1 %

pts.

$ 239.09

2.4 %

Courtyard by Marriott

$ 111.56

-1.6 %

68.7 %

-1.2 %

pts.

$ 162.50

0.1 %

Residence Inn by Marriott

$ 132.57

-0.5 %

77.1 %

-0.4 %

pts.

$ 172.00

0.1 %

Fairfield by Marriott

$ 94.34

-0.7 %

69.1 %

-0.9 %

pts.

$ 136.47

0.5 %

Composite US & Canada Select 4

$ 113.13

-0.7 %

71.7 %

-0.7 %

pts.

$ 157.72

0.4 %

US & Canada - All 5

$ 134.04

0.9 %

70.7 %

-0.4 %

pts.

$ 189.65

1.5 %

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

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

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

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

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated International Properties

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

RevPAR

Occupancy

Average Daily Rate

Region

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

Europe

$ 302.51

2.1 %

79.1 %

1.9 %

pts.

$ 382.64

-0.3 %

Middle East & Africa

$ 102.91

7.5 %

66.1 %

1.9 %

pts.

$ 155.59

4.4 %

Greater China

$ 83.97

0.1 %

71.2 %

0.6 %

pts.

$ 117.92

-0.8 %

Asia Pacific excluding China

$ 121.91

3.8 %

71.4 %

0.7 %

pts.

$ 170.66

2.9 %

Caribbean & Latin America

$ 150.77

2.5 %

63.0 %

-0.3 %

pts.

$ 239.19

2.9 %

International - All 1

$ 122.90

2.8 %

70.6 %

0.9 %

pts.

$ 174.00

1.5 %

Worldwide 2

$ 145.14

1.5 %

70.3 %

0.0 %

pts.

$ 206.57

1.5 %

Comparable Systemwide International Properties

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

RevPAR

Occupancy

Average Daily Rate

Region

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

Europe

$ 201.98

0.8 %

77.2 %

0.4 %

pts.

$ 261.49

0.3 %

Middle East & Africa

$ 98.47

8.7 %

66.5 %

1.9 %

pts.

$ 147.98

5.5 %

Greater China

$ 77.24

0.0 %

69.3 %

0.3 %

pts.

$ 111.50

-0.4 %

Asia Pacific excluding China

$ 126.71

4.7 %

72.8 %

1.2 %

pts.

$ 174.00

3.0 %

Caribbean & Latin America

$ 106.99

2.8 %

61.5 %

0.7 %

pts.

$ 173.92

1.6 %

International - All 1

$ 122.66

2.6 %

70.3 %

0.8 %

pts.

$ 174.44

1.4 %

Worldwide 2

$ 131.43

0.5 %

71.5 %

-0.3 %

pts.

$ 183.71

0.9 %

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

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

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated International Properties

Nine Months Ended September 30, 2025 and September 30, 2024

RevPAR

Occupancy

Average Daily Rate

Region

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

Europe

$ 241.03

3.4 %

72.8 %

2.4 %

pts.

$ 331.09

0.0 %

Middle East & Africa

$ 127.78

8.3 %

68.3 %

2.1 %

pts.

$ 187.07

4.9 %

Greater China

$ 81.34

-0.7 %

68.2 %

0.6 %

pts.

$ 119.32

-1.6 %

Asia Pacific excluding China

$ 125.44

7.4 %

70.7 %

1.1 %

pts.

$ 177.39

5.8 %

Caribbean & Latin America

$ 193.67

7.4 %

66.2 %

0.0 %

pts.

$ 292.51

7.4 %

International - All 1

$ 123.77

4.6 %

69.2 %

1.1 %

pts.

$ 178.81

2.9 %

Worldwide 2

$ 148.94

3.4 %

69.5 %

0.6 %

pts.

$ 214.22

2.5 %

Comparable Systemwide International Properties

Nine Months Ended September 30, 2025 and September 30, 2024

RevPAR

Occupancy

Average Daily Rate

Region

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

Europe

$ 162.54

3.4 %

71.2 %

1.8 %

pts.

$ 228.21

0.7 %

Middle East & Africa

$ 118.80

9.1 %

67.9 %

2.1 %

pts.

$ 175.01

5.8 %

Greater China

$ 74.94

-0.6 %

66.7 %

0.4 %

pts.

$ 112.42

-1.3 %

Asia Pacific excluding China

$ 128.43

8.1 %

71.6 %

1.4 %

pts.

$ 179.30

5.9 %

Caribbean & Latin America

$ 128.14

4.6 %

63.2 %

-0.3 %

pts.

$ 202.74

5.1 %

International - All 1

$ 119.35

4.6 %

68.4 %

1.1 %

pts.

$ 174.48

3.0 %

Worldwide 2

$ 129.13

2.0 %

69.9 %

0.1 %

pts.

$ 184.69

1.9 %

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

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

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA

($ in millions)

Fiscal Year 2025

First

Quarter

Second

Quarter

Third

Quarter

Total

Net income, as reported

$ 665

$ 763

$ 728

$ 2,156

Cost reimbursement revenue

(4,655)

(4,932)

(4,760)

(14,347)

Reimbursed expenses

4,722

4,874

4,739

14,335

Interest expense

192

203

206

601

Interest expense from unconsolidated joint ventures

Provision for income taxes

291

266

656

Depreciation and amortization

154

Contract investment amortization

Depreciation and amortization classified in reimbursed expenses

182

Depreciation, amortization, and impairments from unconsolidated joint

ventures

Stock-based compensation

171

Restructuring and merger-related charges (recoveries), and other

(40)

(31)

Adjusted EBITDA †

$ 1,217

$ 1,415

$ 1,349

$ 3,981

Change from 2024 Adjusted EBITDA †

7 %

10 %

8 %

Fiscal Year 2024

First

Quarter

Second

Quarter

Third

Quarter

Fourth

Quarter

Total

Net income, as reported

$ 564

$ 772

$ 584

$ 455

$ 2,375

Cost reimbursement revenue

(4,433)

(4,728)

(4,617)

(4,704)

(18,482)

Reimbursed expenses

4,501

4,645

4,681

4,972

18,799

Interest expense

163

173

179

180

695

Interest expense from unconsolidated joint ventures

Provision for income taxes

163

268

202

143

776

Depreciation and amortization

183

Contract investment amortization

103

Depreciation and amortization classified in reimbursed expenses

206

Depreciation, amortization, and impairments from unconsolidated joint

ventures

Stock-based compensation

237

Restructuring and merger-related charges, and other

Gain on asset dispositions

—

(11)

Adjusted EBITDA †

$ 1,142

$ 1,324

$ 1,229

$ 1,286

$ 4,981

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

FOURTH QUARTER 2025

($ in millions)

Range

Estimated

Fourth Quarter 2025

Fourth Quarter 2024

Net income excluding certain items 1

$ 684

$ 706

Interest expense

208

Interest expense from unconsolidated joint ventures

Provision for income taxes

260

268

Depreciation and amortization

Contract investment amortization

Depreciation and amortization classified in reimbursed expenses

Depreciation, amortization, and impairments from unconsolidated joint ventures

Stock-based compensation

Adjusted EBITDA †

$ 1,371

$ 1,401

$ 1,286

Increase over 2024 Adjusted EBITDA †

7 %

9 %

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

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA FORECAST

FULL YEAR 2025

($ in millions)

Range

Estimated

Full Year 2025

Full Year 2024

Net income excluding certain items 1

$ 2,805

$ 2,827

Interest expense

809

Interest expense from unconsolidated joint ventures

Provision for income taxes

908

916

Depreciation and amortization

203

Contract investment amortization

118

Depreciation and amortization classified in reimbursed expenses

253

Depreciation, amortization, and impairments from unconsolidated joint ventures

Stock-based compensation

231

Adjusted EBITDA †

$ 5,352

$ 5,382

$ 4,981

Increase over 2024 Adjusted EBITDA †

7 %

8 %

MARRIOTT INTERNATIONAL, INC.

EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES

In our press release and schedules, on the related conference call, and in the infographic made available in connection with our press release, we report certain financial measures that are not required by, or presented in accordance with, United States generally accepted accounting principles ("GAAP"). These non-GAAP financial measures are labeled as "adjusted" and/or identified with the symbol "†". We discuss the manner in which the non-GAAP measures reported in this press release, schedules, and infographic are determined and management's reasons for reporting these non-GAAP measures below, and the press release schedules reconcile each to the most directly comparable GAAP measures (with respect to the forward-looking non-GAAP measures, to the extent available without unreasonable efforts). Although management evaluates and presents these non-GAAP measures for the reasons described below, please be aware that these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for revenue, operating income, net income, earnings per share, or any other comparable operating measure prescribed by GAAP. In addition, we may calculate and/or present these non-GAAP financial measures differently than measures with the same or similar names that other companies report, and as a result, the non-GAAP measures we report may not be comparable to those reported by others.

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

Adjusted Net Income and Adjusted Diluted Earnings Per Share. Adjusted net income and Adjusted diluted earnings per share reflect our net income and diluted earnings per share excluding the impact of cost reimbursement revenue, reimbursed expenses, restructuring and merger-related recoveries/charges, and other expenses, certain non-cash impairment charges (when applicable), and gains and losses on asset dispositions made by us or by our joint venture investees (when applicable and if above a specified threshold). Additionally, Adjusted net income and Adjusted diluted earnings per share exclude the income tax effect of the above adjustments (calculated using an estimated tax rate applicable to each adjustment) and income tax special items, which in 2025 primarily related to the release of tax reserves. We believe that these measures are meaningful indicators of our performance because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.

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

In our presentations of Adjusted operating income and Adjusted operating income margin, Adjusted net income and Adjusted diluted earnings per share, and Adjusted EBITDA, we exclude restructuring and merger-related recoveries/charges as well as charges related to legal proceedings that are outside of the ordinary course of our business, both of which we record in the "Restructuring and merger-related (recoveries) charges, and other" caption of our Consolidated Statements of Income (our "Income Statements"). 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" captions of our Income Statements. These adjustments allow for period-over period comparisons of our ongoing operations before the impact of these items. We exclude cost reimbursement revenue and reimbursed expenses, which relate to property-level and centralized programs and services that we operate for the benefit of our hotel owners and certain other counterparties, and for which we receive reimbursement under our agreements with hotel owners and certain other counterparties with no added mark-up. We do not operate these property-level and centralized programs and services to generate a profit over the long term, and accordingly, when we recover the costs that we incur for these programs and services from our hotel owners and certain other counterparties, we do not seek a mark-up. For property-level services, we recognize cost reimbursement revenue at the same time that we incur expenses, and property-level services have no net impact on our Income Statements in the reporting period. However, for centralized programs and services, we may be reimbursed before or after we incur expenses, causing timing differences between the costs we incur and the related reimbursement from hotel owners and certain other counterparties in our operating and net income. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively. Because we do not retain any such profits or losses over time, we exclude the net impact when evaluating period-over-period changes in our operating results.

We believe that Adjusted EBITDA is a meaningful indicator of our operating performance because it permits period-over-period comparisons of our ongoing operations before these items. Our use of Adjusted EBITDA also facilitates comparison with results from other lodging companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. Our Adjusted EBITDA also excludes depreciation and amortization expense, which we report under "Depreciation, amortization, and other" as well as depreciation and amortization classified in "Contract investment amortization," "Reimbursed expenses," and "Equity in earnings" of our Income Statements, because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. Depreciation and amortization classified in "Reimbursed expenses" reflects depreciation and amortization of Marriott-owned assets, for which we receive cash from hotel owners and certain other counterparties to reimburse the company for its investments made for the benefit of the system. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We exclude stock-based compensation expense in all periods presented to address the considerable variability among companies in recording compensation expense because companies use stock-based payment awards differently, both in the type and quantity of awards granted.

RevPAR. In addition to the foregoing non-GAAP financial measures, we present Revenue per Available Room ("RevPAR") as a performance measure. We believe RevPAR, which we calculate by dividing property level room revenue by total rooms available for the period, is a meaningful indicator of our performance because it measures the period-over-period change in room revenues. RevPAR may not be comparable to similarly titled measures, such as revenues, and should not be viewed as necessarily correlating with our fee revenue. We also believe occupancy and average daily rate ("ADR"), which are components of calculating RevPAR, are meaningful indicators of our performance. Occupancy, which we calculate by dividing total rooms sold by total rooms available for the period, measures the utilization of a property's available capacity. ADR, which we calculate by dividing property level room revenue by total rooms sold, measures average room price and is useful in assessing pricing levels. Comparisons to prior periods are on a constant U.S. dollar basis, which we calculate by applying exchange rates for the current period to the prior comparable period. We believe constant dollar analysis provides valuable information regarding the performance of hotels in our system as it removes currency fluctuations from the presentation of such results.

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

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

SOURCE Marriott International, Inc.