BETHESDA, Md., Nov. 5, 2018 /PRNewswire/ --

HIGHLIGHTS

• Third quarter reported diluted EPS totaled $1.38, a 7 percent increase from prior year results. Third quarter adjusted diluted EPS totaled $1.70, a 62 percent increase over third quarter 2017 adjusted results. Adjusted results exclude merger-related adjustments, cost reimbursement revenue, and reimbursed expenses
• During the 2018 third quarter, EPS included $0.26 from gains on asset sales ($71 million pretax reflected in Gains and other income, net and Equity in earnings);
• Third quarter 2018 comparable systemwide constant dollar RevPAR rose 1.9 percent worldwide, 5.4 percent outside North America and 0.6 percent in North America;
• The company added more than 18,000 rooms during the third quarter, including over 1,500 rooms converted from competitor brands and approximately 10,000 rooms in international markets;
• At quarter-end, Marriott's worldwide development pipeline increased to roughly 471,000 rooms, including nearly 50,000 rooms approved, but not yet subject to signed contracts;
• Third quarter reported net income totaled $483 million, flat compared to prior year results. Third quarter adjusted net income totaled $598 million, a 51 percent increase over prior year adjusted results;
• Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) totaled $900 million in the quarter, a 12 percent increase over third quarter 2017 adjusted EBITDA. Third quarter 2018 gross fee revenues totaled $932 million, a 13 percent increase from prior year gross fee revenues;
• Marriott repurchased 6.7 million shares of the company's common stock for $841 million during the third quarter. Year-to-date through November 5, the company has repurchased 20.8 million shares for $2.7 billion.

Marriott International, Inc. (NASDAQ: MAR) today reported third quarter 2018 results.

Arne M. Sorenson, president and chief executive officer of Marriott International, said, "It's been just over two years since the completion of the Starwood acquisition. We are in the home stretch on integrating the companies and are pleased with the results. On August 18, we integrated our loyalty programs creating one powerful, unified program, allowing our 120 million members to earn, book, and redeem across more than 6,700 hotels. At the time of the acquisition, we stated our goal to recycle assets totaling more than $1.5 billion by the end of 2018. We have already exceeded that goal, recycling more than $1.8 billion since the deal closed.

"In the third quarter, we were pleased to post gross fee revenues growth of 13 percent and adjusted EBITDA growth of 12 percent, as worldwide comparable systemwide hotel RevPAR increased roughly 2 percent. Our results in the third quarter highlight the resiliency of our asset light model and our ability to generate cash. Year-to-date through November 5, we have already returned more than $3.1 billion to shareholders through dividends and share repurchases and now believe we could return roughly $3.7 billion in 2018.

"It has been gratifying to see broad associate participation in Marriott's retirement savings plans. Approximately 80 percent of eligible associates participated in and will receive a supplemental, one-time company match of up to $1,000. Our associates are our most important assets, serving our guests every day. We recognize their extraordinary efforts and, with this incentive, encourage them to save for the future.

"We expect Marriott's fourth quarter 2018 comparable systemwide RevPAR on a constant dollar basis will increase roughly 2 percent worldwide, roughly 1 percent in North America, and 5 to 6 percent outside North America. Our forecast for RevPAR in North America reflects an estimated 110-basis-point headwind due to the 2017 hurricane relief efforts in Texas and Florida and it also reflects the slightly weaker than expected transient demand the industry experienced during September. Trends in most international markets are expected to remain strong.

"For full year 2019, based on our early budgeting analysis, we expect comparable systemwide RevPAR on a constant dollar basis will increase 2 to 3 percent worldwide, 1 to 3 percent in North America, and 3 to 5 percent outside North America.

"For the full year 2018, we anticipate our number of rooms will increase nearly 7 percent gross while room deletions should total nearly 2 percent, resulting in net rooms growth of roughly 5 percent for the year. For the full year 2019, we anticipate gross room additions will increase at a rate similar to 2018, but deletions should moderate to 1 to 1.5 percent for the year, resulting in net rooms growth acceleration to roughly 5.5 percent."

Third Quarter 2018 Results In the 2018 first quarter, the company adopted Accounting Standards Update 2014-09. Please see the "Accounting Standards Update" section of this release for more information.

Marriott's reported net income totaled $483 million in the 2018 third quarter, compared to 2017 third quarter reported net income of $485 million. Reported diluted earnings per share (EPS) totaled $1.38 in the quarter, a 7 percent increase from reported diluted EPS of $1.29 in the year-ago quarter.

Third quarter 2018 adjusted net income totaled $598 million, a 51 percent increase over 2017 third quarter adjusted net income of $397 million. Adjusted net income excludes merger-related adjustments, cost reimbursement revenue, and reimbursed expenses. Adjusted diluted EPS in the third quarter totaled $1.70, a 62 percent increase from adjusted diluted EPS of $1.05 in the year-ago quarter. See page A-3 for the calculation of adjusted results.

Base management and franchise fees totaled $781 million in the 2018 third quarter, a 14 percent increase over base management and franchise fees of $688 million in the year-ago quarter. The year-over-year increase in these fees is primarily attributable to higher RevPAR, unit growth, and higher credit card and residential branding fees.

Third quarter 2018 incentive management fees totaled $151 million, a 9 percent increase compared to incentive management fees of $138 million in the year-ago quarter. The year-over-year increase is largely due to higher net house profit at properties in Europe and the Asia Pacific region.

Owned, leased, and other revenue, net of direct expenses, totaled $82 million in the 2018 third quarter, flat compared to the year-ago quarter. Compared to the year-ago quarter, results largely reflect higher termination fees and stronger results at several owned and leased hotels in North America, offset by the $23 million negative impact from hotels sold during or after the third quarter of 2017.

General, administrative, and other expenses for the 2018 third quarter totaled $221 million, compared to $205 million in the year-ago quarter. The year-over-year $16 million increase largely reflects $7 million of incremental profit-sharing contributions in the 2018 third quarter and the unfavorable comparison to a $6 million state tax incentive recognized in the 2017 third quarter.

Gains and other income, net, totaled $18 million, compared to $6 million in the year-ago quarter. The year-over-year $12 million increase largely reflects an adjustment to the gain on the 2018 second quarter sale of two hotels in Fiji.

Equity in earnings for the third quarter totaled $61 million, compared to $6 million in the year-ago quarter. The 2018 third quarter includes a $55 million gain on a joint venture's sale of the JW Marriott hotel in Mexico City.

Interest expense, net, totaled $81 million in the third quarter compared to $64 million in the year-ago quarter. The increase is largely due to higher interest rates and debt balances, and lower interest income.

The provision for income taxes totaled $85 million in the third quarter, a 14.9 percent effective tax rate, compared to $253 million in the year-ago quarter, a 34.3 percent effective tax rate. The lower effective rate in the 2018 third quarter largely reflects the effects of the U.S. Tax Cuts and Jobs Act of 2017, benefits relating to the sale of two hotels in Fiji, a joint venture's sale of the JW Marriott hotel in Mexico City, and $11 million of favorable discrete items.

For the third quarter, adjusted EBITDA totaled $900 million, a 12 percent increase over third quarter 2017 adjusted EBITDA of $806 million. Compared to the prior year, adjusted EBITDA for the third quarter of 2018 reflects the $19 million negative impact from sold hotels. See page A-11 for the adjusted EBITDA calculations.

Third Quarter 2018 Results Compared to August 6, 2018 Guidance

On August 6, 2018, the company estimated gross fee revenues for the third quarter would be $915 million to $935 million. Actual gross fee revenues of $932 million in the quarter were towards the high end of the estimate, largely reflecting greater than expected credit card and residential branding fees, partially offset by weaker than expected RevPAR and unfavorable foreign exchange.

Marriott estimated owned, leased, and other revenue, net of direct expenses, for the third quarter would total approximately $65 million. Actual results of $82 million in the quarter were higher than estimated, largely due to higher than expected termination fees.

The company estimated general, administrative, and other expenses for the third quarter would total $235 million to $240 million. Actual expenses of $221 million in the quarter were lower than expected, largely due to timing and lower than anticipated incremental profit-sharing contributions.

The company estimated gains and other income for the third quarter would total approximately $3 million. Actual gains of $18 million in the quarter were higher than expected, due to an adjustment to the gain on the 2018 second quarter sale of two hotels in Fiji.

The company estimated equity in earnings for the third quarter would total approximately $7 million. Actual equity in earnings of $61 million in the quarter were higher than expected, largely reflecting a $55 million gain on a joint venture's sale of the JW Marriott hotel in Mexico City.

The company estimated adjusted EBITDA for the third quarter would total $845 million to $870 million. Actual adjusted EBITDA of $900 million was higher than expected due to strong credit card and residential branding fee revenue, higher than expected termination fees, and lower than expected general, administrative, and other expenses.

Selected Performance Information

The company added 106 new properties (18,121 rooms) to its worldwide lodging portfolio during the 2018 third quarter, including The Barcelona EDITION, the W Kuala Lumpur, and the JW Marriott Panama. Forty properties (6,520 rooms) exited the system during the quarter. At quarter-end, Marriott's lodging system encompassed 6,782 properties and timeshare resorts with nearly 1,299,000 rooms.

At quarter-end, the company's worldwide development pipeline totaled 2,790 properties with roughly 471,000 rooms, including 1,139 properties with more than 212,000 rooms under construction and 293 properties with nearly 50,000 rooms approved for development, but not yet subject to signed contracts.

In the 2018 third quarter, worldwide comparable systemwide constant dollar RevPAR increased 1.9 percent (a 1.2 percent increase using actual dollars). North American comparable systemwide constant dollar RevPAR increased 0.6 percent (a 0.4 percent increase using actual dollars), and international comparable systemwide constant dollar RevPAR increased 5.4 percent (a 3.2 percent increase using actual dollars) for the same period.

Worldwide comparable company-operated house profit margins increased 20 basis points in the third quarter, largely due to solid cost controls and synergies from the Starwood acquisition, despite modest RevPAR growth and higher wages. House profit margins for comparable company-operated properties outside North America rose 50 basis points and North American comparable company-operated house profit margins decreased 10 basis points in the third quarter.

Balance Sheet

At quarter-end, Marriott's total debt was $9,327 million and cash balances totaled $373 million, compared to $8,238 million in debt and $383 million of cash at year-end 2017.

Marriott Common Stock

Weighted average fully diluted shares outstanding used to calculate both reported and adjusted diluted EPS totaled 350.6 million in the 2018 third quarter, compared to 376.6 million shares in the year-ago quarter.

The company repurchased 6.7 million shares of common stock in the 2018 third quarter for $841 million at an average price of $125.78 per share. Year-to-date through November 5, the company has repurchased 20.8 million shares for $2.7 billion at an average price of $131.19 per share.

Accounting Standards Update

In the 2018 first quarter, the company adopted Accounting Standards Update 2014-09 (the new revenue standard), which changes the GAAP reporting for revenue and expense recognition for franchise application and relicensing fees, contract investment costs, the quarterly timing of incentive fee recognition, and centralized programs and services, among other items. While the new revenue standard results in changes to the reporting of certain revenue and expense items, Marriott's cash flow and business fundamentals are not impacted. A discussion of revenue recognition changes can be found in the 2017 Form 10-K the company filed on February 15, 2018, which is available on Marriott's Investor Relations website at http://www.marriott.com/investor.

The company has elected to use the full retrospective method in the adoption of the new revenue standard. As such, the company's financial statements in SEC filings will show prior year quarterly and full year results as if the new revenue standard had been adopted on January 1, 2016. The company furnished a Form 8-K on July 25, 2018, which presented the effect of adoption of the new revenue standard on Marriott's 2017 quarterly and full year unaudited results of operations and related financial measures.

2018 Outlook

The following outlook for fourth quarter and full year 2018 does not include merger-related costs and charges, cost reimbursement revenue, or reimbursed expenses, which the company cannot accurately forecast (except for depreciation classified in reimbursed expenses) and which may be significant. Full year 2018 outlook also excludes the net tax charge and the increase in the Avendra gain, which were reported in the first half of 2018.

For the 2018 fourth quarter, Marriott expects comparable systemwide RevPAR on a constant dollar basis in North America will increase roughly 1 percent, reflecting an estimated 110-basis-point headwind to last year's hurricane relief efforts. Compared to the estimate the company provided on August 6, this fourth quarter RevPAR guidance for North America reflects some uncertainty related to transient demand weakness the industry experienced in September. The company expects fourth quarter comparable systemwide RevPAR on a constant dollar basis will increase 5 to 6 percent outside North America and roughly 2 percent worldwide.

The company assumes fourth quarter 2018 gross fee revenues will total $900 million to $910 million, a 4 to 6 percent increase over fourth quarter 2017 gross fee revenues of $862 million. Compared to the estimate the company provided on August 6, this estimate largely reflects unfavorable foreign exchange impact and lower than previously expected worldwide comparable systemwide constant dollar RevPAR.

The company assumes fourth quarter 2018 general, administrative, and other expenses could total $245 million to $250 million, including a $6 million expense for incremental profit-sharing contributions. Compared to the estimate the company provided on August 6, this general, administrative, and other expenses estimate reflects the unfavorable timing of spending that had been expected in the 2018 third quarter.

Marriott expects fourth quarter 2018 adjusted EBITDA could total $847 million to $862 million, a 7 to 9 percent increase over fourth quarter 2017 adjusted EBITDA of $789 million. This estimate reflects the roughly $11 million negative impact from sold hotels but does not reflect additional asset sales that may occur. See page A-12 for the adjusted EBITDA calculation.

For the full year 2018, Marriott expects comparable systemwide RevPAR on a constant dollar basis will increase roughly 2 percent in North America, roughly 6 percent outside North America, and roughly 3 percent worldwide.

Marriott anticipates gross room additions of nearly 7 percent, or roughly 5 percent, net of deletions, for full year 2018.

The company assumes full year 2018 gross fee revenues will total $3,628 million to $3,638 million, a 10 percent increase over 2017 gross fee revenues of $3,295 million. Full year 2018 estimated gross fee revenues include $370 million to $380 million of credit card branding fees, compared to $242 million for full year 2017. The company anticipates full year 2018 incentive management fees will increase at a mid to high single-digit rate over 2017 full year incentive management fees of $607 million.

Marriott expects full year 2018 owned, leased, and other revenue, net of direct expenses, could total approximately $331 million. This estimate reflects the $80 million negative impact from sold hotels, stronger results at owned and leased hotels, and higher year-over-year termination fees, but does not reflect additional asset sales that may occur.

The company assumes full year 2018 general, administrative, and other expenses could total $930 million to $935 million. This estimate assumes a $50 million expense for the company's investments in its workforce, in large part the supplemental, one-time retirement savings match of up to $1,000 per eligible participating associate. This expense will not recur in 2019.

Marriott expects full year 2018 gains and other income could total approximately $188 million, reflecting assets sold to date.

Marriott expects full year 2018 adjusted EBITDA could total $3,456 million to $3,471 million, a 10 to 11 percent increase over 2017 adjusted EBITDA of $3,131 million. This estimate reflects the roughly $68 million negative impact from hotels sold in 2017 and to date in 2018 but does not reflect additional asset sales that may occur in 2018. See page A-13 for the adjusted EBITDA calculation.

1The outlook provided in this table does not include merger-related costs and charges, cost reimbursement revenue or reimbursed expenses, which the company cannot accurately forecast (except for depreciation classified in reimbursed expenses) and which may be significant. Full year 2018 outlook excludes the net tax charge resulting from the Tax Act and the increase in the Avendra gain, which were reported in the first half of 2018. 2Guidance for Full Year 2018 reflects the impact of employee stock-based compensation excess tax benefits. The company expects the effective tax rate will be 19.2 percent for Fourth Quarter 2018 and 19.8 percent for Full Year 2018.

The company expects investment spending in 2018 will total approximately $750 million to $850 million, including approximately $200 million for maintenance capital and $255 million for the purchase of the Sheraton Grand Phoenix. Investment spending also includes other capital expenditures (including property acquisitions), new mezzanine financing and mortgage notes, contract acquisition costs, and equity and other investments. Assuming this level of investment spending and no additional asset sales, roughly $3.7 billion could be returned to shareholders through share repurchases and dividends in 2018.

Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings review for the investment community and news media on Tuesday, November 6, 2018 at 10:00 a.m. Eastern Time (ET). The conference call will be webcast simultaneously via Marriott's investor relations website at http://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 6, 2019.

The telephone dial-in number for the conference call is 706-679-3455 and the conference ID is 5388797. A telephone replay of the conference call will be available from 1:00 p.m. ET, Tuesday, November 6, 2018 until 8:00 p.m. ET, Tuesday, November 13, 2018. To access the replay, call 404-537-3406. The conference ID for the recording is 5388797.

Note on forward-looking statements: This press release and accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including our RevPAR, profit margin and earnings outlook and assumptions; the number of lodging properties we expect to add to or remove from our system in the future; our expectations regarding the estimates of the impact of new accounting standards and the new tax law; our expectations about investment spending and tax rate; 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 risks and uncertainties, including those we identify below and other risk factors that we identify in our most recent quarterly report on Form 10-Q or annual report on Form 10-K. Risks that could affect forward-looking statements in this press release include changes in market conditions; changes in global and regional economies; supply and demand changes for hotel rooms; competitive conditions in the lodging industry; relationships with clients and property owners; the availability of capital to finance hotel growth and refurbishment; the extent to which we can continue to successfully integrate Starwood and realize the anticipated benefits of combining Starwood and Marriott; changes to our provisional estimates of the impact of the U.S. Tax Cuts and Jobs Acts of 2017; and changes to our estimates of the impact of the new accounting standards. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release. We make these forward-looking statements as of November 5, 2018. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Marriott International, Inc. (NASDAQ: MAR) is the world's largest hotel company based in Bethesda, Maryland, USA, with more than 6,700 properties in 129 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts. The company's 30 leading brands include: Bulgari®, The Ritz-Carlton® and The Ritz-Carlton Reserve®, St. Regis®, W®, EDITION®, JW Marriott®, The Luxury Collection®, Marriott Hotels®, Westin®, Le Méridien®, Renaissance® Hotels, Sheraton®, Delta Hotels by MarriottSM, Marriott Executive Apartments®, Marriott Vacation Club®, Autograph Collection® Hotels, Tribute Portfolio™, Design Hotels™, Gaylord Hotels®, Courtyard®, Four Points® by Sheraton, SpringHill Suites®, Fairfield Inn & Suites®, Residence Inn®, TownePlace Suites®, AC Hotels by Marriott®, Aloft®, Element®, Moxy® Hotels, and Protea Hotels by Marriott®. The company also operates award-winning loyalty programs: Marriott Rewards®, which includes The Ritz-Carlton Rewards®, and Starwood Preferred Guest®. For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com and @MarriottIntl.

IRPR#1

Tables follow

MARRIOTT INTERNATIONAL, INC. EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES

In our press release and schedules, and on the related conference call, we report certain financial measures that are not required by, or presented in accordance with, United States generally accepted accounting principles ("GAAP"). We discuss management's reasons for reporting these non-GAAP measures below, and the press release schedules reconcile the most directly comparable GAAP measure to each non-GAAP measure that we refer to. Although management evaluates and presents these non-GAAP measures for the reasons described below, please be aware that these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for revenue, operating income, income from continuing operations, 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, Starwood merger costs presented in the "Merger-related costs and charges" caption of our Income Statements, and net purchase accounting revisions. 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 EPS. Adjusted net income and Adjusted diluted EPS reflect our net income and diluted earnings per share excluding the impact of cost reimbursement revenue, reimbursed expenses, merger-related costs, charges, and other merger-related adjustments due to purchase accounting, the gain on the sale of our ownership interest in Avendra, and the income tax effect of these adjustments, and our provisional estimate of the impact of the U.S. Tax Cuts and Jobs Act of 2017. We calculate the income tax effect of the adjustments using an estimated tax rate applicable to each adjustment. We believe that these measures are meaningful indicators of our performance because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.

Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("Adjusted EBITDA"). Adjusted EBITDA reflects net income excluding the impact of the following items: cost reimbursement revenue and reimbursed expenses, interest expense, depreciation (including depreciation classified in "Reimbursed expenses," as discussed below), amortization, and provision for income taxes, pre-tax transaction and transition costs associated with the Starwood merger, and share-based compensation expense for all periods presented. When applicable, Adjusted EBITDA also excludes gains and losses on asset dispositions made by us or by our joint venture investees.

In our presentations of Adjusted operating income and Adjusted operating income margin, Adjusted net income, and Adjusted diluted EPS, we exclude transaction and transition costs associated with the Starwood merger, which we record in the "Merger-related costs and charges" caption of our Income Statements, and other merger-related adjustments due to purchase accounting, to allow for period-over period comparisons of our ongoing operations before the impact of these items. We exclude cost reimbursement revenue and reimbursed expenses, which relate to property-level and centralized programs and services that we operate for the benefit of our hotel owners. We do not operate these programs and services to generate a profit over the contract term, and accordingly, when we recover the costs that we incur for these programs and services from our hotel owners, we do not seek a mark-up. For property-level services, our owners typically reimburse us at the same time that we incur expenses. However, for centralized programs and services, our owners may reimburse us before or after we incur expenses, causing temporary 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.

A-14

MARRIOTT INTERNATIONAL, INC. EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES

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

RevPAR. In addition to the foregoing non-GAAP financial measures, we present Revenue per Available Room ("RevPAR") as a performance measure. We believe RevPAR is a meaningful indicator of our performance because it measures the period-over-period change in room revenues for comparable properties. RevPAR may not be comparable to similarly titled measures, such as revenues. We calculate RevPAR by dividing room sales (recorded in local currency) for comparable properties by room nights available for the period. We present growth in comparative pro forma combined company 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.

A-15

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SOURCE Marriott International, Inc.