Marriott International Reports Third Quarter 2020 Results

  • Third quarter 2020 comparable systemwide constant dollar RevPAR declined 65.9 percent worldwide, 65.4 percent in North America and 67.4 percent outside North America, compared to the 2019 third quarter;
  • Third quarter reported diluted EPS totaled $0.31, compared to reported diluted EPS of $1.16 in the year-ago quarter. Third quarter adjusted diluted EPS totaled $0.06, compared to third quarter 2019 adjusted diluted EPS of $1.47. Third quarter 2020 impairment charges related to COVID-19 impacted reported and adjusted diluted EPS by $0.07;
  • Third quarter reported net income totaled $100 million, compared to reported net income of $387 million in the year-ago quarter. Third quarter adjusted net income totaled $20 million, compared to third quarter 2019 adjusted net income of $488 million. Third quarter 2020 impairment charges related to COVID-19 impacted reported and adjusted net income by $24 million after-tax;
  • Adjusted EBITDA totaled $327 million in the 2020 third quarter, compared to third quarter 2019 adjusted EBITDA of $901 million;
  • The company added more than 19,000 rooms globally during the third quarter, including roughly 1,400 rooms converted from competitor brands and approximately 7,600 rooms in international markets. Net rooms grew 3.8 percent from the year-ago quarter;
  • At quarter-end, Marriott’s worldwide development pipeline totaled nearly 2,900 hotels and more than 496,000 rooms, including roughly 25,000 rooms approved, but not yet subject to signed contracts. Approximately 228,000 rooms in the pipeline were under construction as of the end of the third quarter;
  • As of the end of the third quarter, the company’s net liquidity totaled approximately $5.1 billion, representing roughly $1.5 billion in available cash balances, and $3.6 billion of unused borrowing capacity under its revolving credit facility, less $30 million of commercial paper outstanding.

Marriott International, Inc. (NASDAQ: MAR) on Friday reported third quarter 2020 results, which were dramatically impacted by the COVID-19 global pandemic and efforts to contain it (COVID-19).

Arne M. Sorenson, president and chief executive officer of Marriott International, said, “While COVID-19 is still significantly impacting our business, our results for the third quarter showed continued improvement in demand trends around the world.  Worldwide RevPAR1 declined 66 percent in the quarter, a nearly 19-percentage point improvement from the decline in the second quarter.  Greater China continues to lead the recovery and demonstrates the resiliency of travel demand, with third quarter occupancy of 61 percent and RevPAR recovering to down 26 percent, a 35-percentage point improvement compared to the decline in the second quarter.  Third quarter occupancy at our hotels in North America reached 37 percent, nearly double occupancy in the second quarter, primarily driven by leisure, drive-to demand, with business and group recovering more slowly.  Globally, 94 percent of our hotels are now open and welcoming guests.

“The Asia Pacific region led deal signings in the third quarter, accounting for more than half of all rooms signed globally, with the vast majority of those rooms in Greater China.  During the third quarter, we added more than 19,000 rooms to our system, nearly 70 percent more than were added in the second quarter, achieving 5 percent gross rooms growth in the last 12 months.  At quarter-end, approximately 228,000 rooms of our more than 496,000-room pipeline were under construction.  Progress on projects under construction largely continues apace around the world, although we have designated a slightly higher number of projects on hold given macroeconomic uncertainty and discussions with our owners.  For full year 2020, we now expect 2.5 to 3 percent net rooms growth, including terminations of 1.5 to 2 percent.  Assuming progress is made in containing COVID-19, we would expect gross room additions in 2021 to accelerate compared to our expectations for 2020.

“Although the timing of a full recovery remains unpredictable, we are pleased with the significant progress we have made in restructuring and repositioning the company to successfully manage through these challenging times.   Financially, we have strengthened our liquidity position, realigned our cost structure, and minimized our cash burn.  We have also remained keenly focused on working with our hotel owners and franchisees to significantly reduce hotel level costs and help preserve cash in this extremely low revenue environment.  Operationally, we have elevated our health and cleanliness standards to establish trust and credibility with travelers and to enhance the safety and wellbeing of our associates and guests.  

“We still have a long road ahead, but this crisis will come to an end, and I believe travel will rebound quickly.  I am confident that the many steps we have taken this year, combined with our unrivaled global portfolio, the strength of our brands, and the power of Marriott Bonvoy position us very well now and for the future.”

Third Quarter 2020 Results
Marriott’s reported operating income totaled $252 million in the 2020 third quarter, compared to 2019 third quarter reported operating income of $607 million.  Reported net income totaled $100 million in the 2020 third quarter, compared to 2019 third quarter reported net income of $387 million.  Reported diluted earnings per share (EPS) totaled $0.31 in the quarter, compared to reported diluted EPS of $1.16 in the year-ago quarter.  Reported results in the 2020 third quarter included impairment charges of $32 million pretax ($24 million after-tax and $0.07 per share), related to COVID-19.

Adjusted operating income in the 2020 third quarter totaled $147 million, compared to 2019 third quarter adjusted operating income of $734 million.  Adjusted operating income in the 2020 third quarter included impairment charges of $32 million, related to COVID-19.

Third quarter 2020 adjusted net income totaled $20 million, compared to 2019 third quarter adjusted net income of $488 million.  Adjusted diluted EPS in the third quarter totaled $0.06, compared to adjusted diluted EPS of $1.47 in the year-ago quarter.  These 2020 third quarter adjusted results included impairment charges of $24 million after-tax ($0.07 per share), related to COVID-19.  Adjusted results exclude restructuring and merger-related charges, cost reimbursement revenue, and reimbursed expenses.  See page A-3 for the calculation of adjusted results.

Base management and franchise fees totaled $366 million in the 2020 third quarter, compared to base management and franchise fees of $821 million in the year-ago quarter.  The year-over-year decline in these fees is primarily attributable to RevPAR declines related to COVID-19 and a decrease in other non-RevPAR related franchise fees.  Other non-RevPAR related franchise fees in the 2020 third quarter of $119 million were $26 million, or 18 percent, lower than the year-ago quarter, largely due to lower credit card branding fees.

Incentive management fees totaled $31 million in the 2020 third quarter, compared to incentive management fees of $134 million in the year-ago quarter.  The year-over-year decline in these fees is primarily attributable to lower net house profits at many hotels related to COVID-19.  Roughly three-quarters of the incentive management fees recognized in the quarter were earned at hotels in the Asia Pacific region.    

Contract investment amortization for the 2020 third quarter totaled $48 million, compared to $16 million in the year-ago quarter.  The year-over-year change reflects impairments of investments in management and franchise contracts related to COVID-19.

Owned, leased, and other revenue, net of direct expenses, totaled an $18 million loss in the 2020 third quarter, compared to $67 million of profit in the year-ago quarter as a result of RevPAR declines related to COVID-19.

General, administrative, and other expenses for the 2020 third quarter totaled $131 million, compared to $220 million in the year-ago quarter.  Expenses in the 2020 third quarter reflect the company’s cost reduction efforts. 

Restructuring and merger-related charges totaled $1 million in the third quarter compared to $9 million in the third quarter of 2019.  Charges in the third quarter of 2020 reflect $40 million of costs related to the company’s organizational realignment, largely offset by a $39 million reduction of the non-tax-deductible accrual for the fine imposed by the U.K. Information Commissioner’s Office in relation to the data security incident disclosed in November 2018.

Interest expense, net, totaled $107 million in the third quarter compared to $92 million in the year-ago quarter.  The increase is largely due to higher long-term debt balances and higher interest expense associated with new debt issuances.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $327 million in the 2020 third quarter, compared to third quarter 2019 adjusted EBITDA of $901 million.  See page A-11 for the adjusted EBITDA calculation.

Selected Performance Information
The company added 127 new properties (19,064 rooms) to its worldwide lodging portfolio during the 2020 third quarter, including roughly 1,400 rooms converted from competitor brands and approximately 7,600 rooms in international markets.  Thirty-one properties (6,066 rooms) exited the system during the quarter.  At quarter-end, Marriott’s global lodging system totaled roughly 7,600 properties and timeshare resorts, with nearly 1,414,000 rooms.

At quarter-end, the company’s worldwide development pipeline totaled 2,899 properties with more than 496,000 rooms, including 1,201 properties with approximately 228,000 rooms under construction and 160 properties with roughly 25,000 rooms approved for development, but not yet subject to signed contracts.

In the 2020 third quarter, worldwide RevPAR declined 65.9 percent (a 65.9 percent decline using actual dollars).  North American RevPAR declined 65.4 percent (a 65.4 percent decline using actual dollars), and international RevPAR declined 67.4 percent (a 67.3 percent decline using actual dollars).

Balance Sheet and Liquidity
At quarter-end, Marriott’s net debt was $9.4 billion, representing total debt of $11.0 billion less cash and cash equivalents of $1.6 billion.  At year-end 2019, the company’s net debt was $10.7 billion, representing total debt of $10.9 billion less cash and cash equivalents of $0.2 billion.

In the third quarter, the company issued $1.0 billion of Series GG Senior Notes due in 2032 with a 3.5 percent interest rate coupon.

The company’s net liquidity was approximately $5.1 billion as of the end of the third quarter, representing roughly $1.5 billion in available cash balances, and $3.6 billion of unused borrowing capacity under its revolving credit facility, less $30 million of commercial paper outstanding. 

The company halted share repurchases in February of this year and suspended its quarterly dividend beginning in the second quarter.

COVID-19
Due to the numerous uncertainties associated with COVID-19, Marriott cannot presently estimate the financial impact of this unprecedented situation, which is highly dependent on the severity and duration of the pandemic and its impacts, but expects that COVID-19 will continue to be material to the company’s results.

Marriott International, Inc. (NASDAQ: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of more than 7,500 properties under 30 leading brands spanning 132 countries and territories. Marriott operates and franchises hotels and licenses vacation ownership resorts all around the world. The company offers Marriott Bonvoy™, its highly-awarded travel program.

MARRIOTT INTERNATIONAL, INC.

PRESS RELEASE SCHEDULES

TABLE OF CONTENTS

QUARTER 3, 2020

Consolidated Statements of Income – As Reported

A-1

Non-GAAP Financial Measures

A-3

Total Lodging Products

A-4

Key Lodging Statistics

A-7

Adjusted EBITDA

A-11

Explanation of Non-GAAP Financial and Performance Measures

A-12

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME – AS REPORTED

THIRD QUARTER 2020 AND 2019

(in millions except per share amounts, unaudited)

As Reported

As Reported

Percent

Three Months Ended

Three Months Ended

Better/(Worse)

September 30, 2020

September 30, 2019

Reported 2020 vs. 2019

REVENUES

Base management fees

$                                             87

$                                           291

(70)

Franchise fees 1

279

530

(47)

Incentive management fees

31

134

(77)

Gross Fee Revenues

397

955

(58)

Contract investment amortization 2

(48)

(16)

(200)

Net Fee Revenues

349

939

(63)

Owned, leased, and other revenue 3

116

393

(70)

Cost reimbursement revenue 4

1,789

3,952

(55)

  Total Revenues

2,254

5,284

(57)

OPERATING COSTS AND EXPENSES

Owned, leased, and other – direct 5

134

326

59

Depreciation, amortization, and other 6

53

52

(2)

General, administrative, and other 7

131

220

40

Restructuring and merger-related charges 

1

9

89

Reimbursed expenses 4

1,683

4,070

59

  Total Expenses

2,002

4,677

57

OPERATING INCOME

252

607

(58)

Gains and other income, net 8

2

10

(80)

Interest expense

(113)

(100)

(13)

Interest income 

6

8

(25)

Equity in (losses) earnings 9

(20)

2

(1,100)

INCOME BEFORE INCOME TAXES

127

527

(76)

Provision for income taxes

(27)

(140)

81

NET INCOME

$                                           100

$                                           387

(74)

EARNINGS PER SHARE

  Earnings per share – basic

$                                          0.31

$                                          1.17

(74)

  Earnings per share – diluted

$                                          0.31

$                                          1.16

(73)

Basic Shares

325.9

329.9

Diluted Shares

326.8

332.5

1

Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, 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 (loss) earnings include our equity in earnings or losses of unconsolidated equity method investments.

MARRIOTT INTERNATIONAL, INC.

CONSOLIDATED STATEMENTS OF INCOME – AS REPORTED

THIRD QUARTER 2020 AND 2019

(in millions except per share amounts, unaudited)

As Reported

As Reported

Percent

Nine Months Ended

Nine Months Ended

Better/(Worse)

September 30, 2020

September 30, 2019

Reported 2020 vs. 2019

REVENUES

Base management fees

$                                           341

$                                           882

(61)

Franchise fees 1

876

1,505

(42)

Incentive management fees

43

462

(91)

Gross Fee Revenues

1,260

2,849

(56)

Contract investment amortization 2

(94)

(45)

(109)

Net Fee Revenues

1,166

2,804

(58)

Owned, leased, and other revenue 3

445

1,186

(62)

Cost reimbursement revenue 4

6,788

11,611

(42)

  Total Revenues

8,399

15,601

(46)

OPERATING COSTS AND EXPENSES

Owned, leased, and other – direct 5

527

982

46

Depreciation, amortization, and other 6

275

162

(70)

General, administrative, and other 7

579

671

14

Restructuring and merger-related charges 

5

191

97

Reimbursed expenses 4

6,801

12,069

44

  Total Expenses

8,187

14,075

42

OPERATING INCOME

212

1,526

(86)

Gains and other income, net 8

3

16

(81)

Interest expense

(333)

(299)

(11)

Interest income 

20

20

Equity in (losses) earnings 9

(54)

10

(640)

(LOSS) INCOME BEFORE INCOME TAXES

(152)

1,273

(112)

Benefit (provision) for income taxes

49

(279)

118

NET (LOSS) INCOME

$                                          (103)

$                                           994

(110)

(LOSS) EARNINGS PER SHARE

  (Loss) Earnings per share – basic

$                                         (0.32)

$                                          2.97

(111)

  (Loss) Earnings per share – diluted

$                                         (0.32)

$                                          2.95

(111)

Basic Shares

325.7

334.4

Diluted Shares 10

325.7

337.2

1

Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, 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 (loss) earnings include our equity in earnings or losses of unconsolidated equity method investments.

10

Basic and fully diluted weighted average shares outstanding used to calculate (loss) earnings per share for the period in which we had a loss are the same because 

inclusion of additional equivalents would be anti-dilutive.

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 (loss), and Adjusted

diluted earnings (loss) 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

Percent

September 30,

September 30,

Better/

September 30,

September 30,

Better/

2020

2019

(Worse)

2020

2019

(Worse)

Total revenues, as reported

$          2,254

$          5,284

$          8,399

$         15,601

Less: Cost reimbursement revenue

(1,789)

(3,952)

(6,788)

(11,611)

Adjusted total revenues**

465

1,332

1,611

3,990

Operating income, as reported

252

607

212

1,526

Less: Cost reimbursement revenue

(1,789)

(3,952)

(6,788)

(11,611)

Add: Reimbursed expenses

1,683

4,070

6,801

12,069

Add: Restructuring and merger-related charges

1

9

5

191

Adjusted operating income **

147

734

-80%

230

2,175

-89%

Operating income margin

11%

11%

3%

10%

Adjusted operating income margin **

32%

55%

14%

55%

Net income (loss), as reported

100

387

(103)

994

Less: Cost reimbursement revenue

(1,789)

(3,952)

(6,788)

(11,611)

Add: Reimbursed expenses

1,683

4,070

6,801

12,069

Add: Restructuring and merger-related charges

1

9

5

191

Income tax effect of above adjustments 

25

(26)

(20)

(148)

Adjusted net income (loss)**

$               20

$             488

-96%

$            (105)

$          1,495

-107%

Diluted earnings (loss) per share, as reported

$            0.31

$            1.16

$           (0.32)

$            2.95

Adjusted diluted earnings (loss) per share**

$            0.06

$            1.47

-96%

$           (0.32)

$            4.43

-107%

**

Denotes non-GAAP financial measures. Please see pages A-12 and A-13 for information about our reasons for providing these alternative financial measures and

the limitations on their use.

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of September 30, 2020

North America

Total International

Total Worldwide

Units

Rooms

Units

Rooms

Units

Rooms

 Managed 

752

237,107

1,255

324,089

2,007

561,196

 Marriott Hotels 

115

62,210

176

51,626

291

113,836

 Marriott Hotels Serviced Apartments 

1

154

1

154

 Sheraton 

28

23,609

191

64,360

219

87,969

 Courtyard 

232

36,900

105

22,878

337

59,778

 Westin 

41

22,349

71

21,720

112

44,069

 JW Marriott 

20

12,192

61

22,692

81

34,884

 Renaissance 

25

11,051

58

18,109

83

29,160

 The Ritz-Carlton 

38

11,404

62

16,008

100

27,412

 The Ritz-Carlton Serviced Apartments 

5

713

5

713

 Le Méridien 

2

160

74

20,856

76

21,016

 Four Points 

1

134

76

20,041

77

20,175

 Residence Inn 

107

16,199

6

701

113

16,900

 W Hotels 

24

6,911

31

8,148

55

15,059

 The Luxury Collection 

5

2,236

51

9,242

56

11,478

 Gaylord Hotels 

6

9,918

6

9,918

 St. Regis 

10

1,968

34

7,819

44

9,787

 St. Regis Serviced Apartments 

1

70

1

70

 Aloft 

1

330

40

9,047

41

9,377

 AC Hotels by Marriott 

5

901

68

8,323

73

9,224

 Delta Hotels 

25

6,770

1

360

26

7,130

 Fairfield by Marriott 

7

1,539

34

5,478

41

7,017

 SpringHill Suites 

30

4,896

30

4,896

 Marriott Executive Apartments 

33

4,814

33

4,814

 Autograph Collection 

8

2,094

14

2,200

22

4,294

 Protea Hotels 

33

4,043

33

4,043

 EDITION 

4

1,209

7

1,488

11

2,697

 TownePlace Suites 

17

1,947

17

1,947

 Element 

1

180

7

1,421

8

1,601

 Moxy 

5

887

5

887

 Tribute Portfolio 

5

453

5

453

 Bulgari 

5

438

5

438

 Franchised 

4,663

670,374

657

134,448

5,320

804,822

 Courtyard 

816

108,706

88

16,264

904

124,970

 Fairfield by Marriott 

1,041

96,991

26

4,523

1,067

101,514

 Residence Inn 

737

87,980

12

1,474

749

89,454

 Marriott Hotels 

222

70,148

59

16,928

281

87,076

 Sheraton 

158

47,465

65

18,676

223

66,141

 SpringHill Suites 

449

51,708

449

51,708

 TownePlace Suites 

431

43,526

431

43,526

 Westin 

89

29,964

23

7,171

112

37,135

 Autograph Collection 

111

22,074

62

12,258

173

34,332

 Four Points 

159

24,027

55

8,722

214

32,749

 Renaissance 

62

17,823

28

7,691

90

25,514

 Aloft 

129

18,775

19

3,100

148

21,875

 AC Hotels by Marriott 

66

11,102

35

6,269

101

17,371

 Moxy 

21

4,149

45

9,002

66

13,151

 Delta Hotels 

48

10,612

7

1,706

55

12,318

 The Luxury Collection 

11

2,794

47

8,702

58

11,496

 Le Méridien 

19

4,320

16

4,225

35

8,545

 JW Marriott 

13

5,947

6

1,624

19

7,571

 Element 

52

6,954

2

293

54

7,247

 Tribute Portfolio 

23

4,027

17

1,947

40

5,974

 Protea Hotels 

37

2,961

37

2,961

 Design Hotels 

5

853

6

761

11

1,614

 The Ritz-Carlton 

1

429

1

429

 Bulgari 

1

85

1

85

 Marriott Executive Apartments 

1

66

1

66

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of September 30, 2020

North America

Total International

Total Worldwide

Units

Rooms

Units

Rooms

Units

Rooms

 Owned/Leased 

26

6,483

40

9,161

66

15,644

Courtyard

19

2,814

4

894

23

3,708

Marriott Hotels

2

1,308

5

1,631

7

2,939

Sheraton

4

1,830

4

1,830

W Hotels

2

779

2

665

4

1,444

Protea Hotels

7

1,168

7

1,168

Westin

1

1,073

1

1,073

Renaissance

1

317

2

505

3

822

Autograph Collection1

7

705

7

705

The Ritz-Carlton

2

550

2

550

JW Marriott

1

496

1

496

The Luxury Collection2

4

417

4

417

Residence Inn

1

192

1

140

2

332

St. Regis

1

160

1

160

 Residences 

60

6,318

35

2,919

95

9,237

The Ritz-Carlton Residences

35

4,064

11

938

46

5,002

W Residences

10

1,089

5

519

15

1,608

St. Regis Residences

8

703

7

598

15

1,301

Bulgari Residences

5

514

5

514

Westin Residences

3

266

3

266

The Luxury Collection Residences

2

151

3

115

5

266

Marriott Hotels Residences

1

108

1

108

Autograph Collection Residences

1

62

1

62

Sheraton Residences

1

50

1

50

EDITION Residences

2

45

2

45

Le Méridien Residences

1

15

1

15

 Timeshare* 

72

18,905

19

3,850

91

22,755

Grand Total

5,573

939,187

2,006

474,467

7,579

1,413,654

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

1Includes five 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.

2 Includes two properties 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.

MARRIOTT INTERNATIONAL, INC.

TOTAL LODGING PRODUCTS

As of September 30, 2020

North America

Total International

Total Worldwide

Total Systemwide

Units

Rooms

Units

Rooms

Units

Rooms

 Luxury 

185

51,921

352

82,001

537

133,922

JW Marriott

33

18,139

68

24,812

101

42,951

The Ritz-Carlton

39

11,833

64

16,558

103

28,391

The Ritz-Carlton Residences

35

4,064

11

938

46

5,002

The Ritz-Carlton Serviced Apartments

5

713

5

713

The Luxury Collection1

16

5,030

102

18,361

118

23,391

The Luxury Collection Residences

2

151

3

115

5

266

W Hotels

26

7,690

33

8,813

59

16,503

W Residences

10

1,089

5

519

15

1,608

St. Regis

10

1,968

35

7,979

45

9,947

St. Regis Residences

8

703

7

598

15

1,301

St. Regis Serviced Apartments

1

70

1

70

EDITION

4

1,209

7

1,488

11

2,697

EDITION Residences

2

45

2

45

Bulgari

6

523

6

523

Bulgari Residences

5

514

5

514

 Full-Service 

994

348,411

930

260,987

1,924

609,398

Marriott Hotels

339

133,666

240

70,185

579

203,851

Marriott Hotels Residences

1

108

1

108

Marriott Hotels Serviced Apartments

1

154

1

154

Sheraton

186

71,074

260

84,866

446

155,940

Sheraton Residences

1

50

1

50

Westin

131

53,386

94

28,891

225

82,277

Westin Residences

3

266

3

266

Renaissance

88

29,191

88

26,305

176

55,496

Autograph Collection2

119

24,168

83

15,163

202

39,331

Autograph Collection Residences

1

62

1

62

Le Méridien

21

4,480

90

25,081

111

29,561

Le Méridien Residences

1

15

1

15

Delta Hotels

73

17,382

8

2,066

81

19,448

Gaylord Hotels

6

9,918

6

9,918

Tribute Portfolio

23

4,027

22

2,400

45

6,427

Marriott Executive Apartments

34

4,880

34

4,880

Design Hotels

5

853

6

761

11

1,614

 Limited-Service 

4,322

519,950

705

127,629

5,027

647,579

Courtyard

1,067

148,420

197

40,036

1,264

188,456

Fairfield by Marriott

1,048

98,530

60

10,001

1,108

108,531

Residence Inn

845

104,371

19

2,315

864

106,686

SpringHill Suites

479

56,604

479

56,604

Four Points

160

24,161

131

28,763

291

52,924

TownePlace Suites

448

45,473

448

45,473

Aloft

130

19,105

59

12,147

189

31,252

AC Hotels by Marriott

71

12,003

103

14,592

174

26,595

Moxy

21

4,149

50

9,889

71

14,038

Element

53

7,134

9

1,714

62

8,848

Protea Hotels

77

8,172

77

8,172

 Timeshare* 

72

18,905

19

3,850

91

22,755

 Grand Total 

5,573

939,187

2,006

474,467

7,579

1,413,654

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

1 Includes two properties 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.

2Includes five 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.

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated North American Properties

Three Months Ended September 30, 2020 and September 30, 2019

REVPAR

Occupancy

Average Daily Rate

Brand

2020

 vs. 2019

2020

 vs. 2019

2020

 vs. 2019

JW Marriott

$49.27

-75.0%

20.6%

-59.1%

pts.

$239.49

-3.3%

The Ritz-Carlton

$101.50

-63.0%

27.2%

-44.4%

pts.

$373.43

-2.6%

W Hotels

$39.79

-81.5%

20.1%

-60.1%

pts.

$198.47

-26.0%

Composite North American Luxury1

$68.69

-72.0%

22.4%

-54.4%

pts.

$306.91

-3.9%

Marriott Hotels

$22.30

-85.4%

16.7%

-62.1%

pts.

$133.66

-31.0%

Sheraton

$18.36

-88.9%

13.8%

-68.2%

pts.

$132.85

-34.3%

Westin

$29.51

-83.2%

19.6%

-61.0%

pts.

$150.59

-30.9%

Composite North American Premium2

$23.57

-84.9%

16.6%

-62.6%

pts.

$141.69

-27.9%

North American Full-Service3 

$32.60

-81.2%

17.8%

-61.0%

pts.

$183.28

-16.9%

Courtyard

$27.30

-73.8%

28.0%

-46.2%

pts.

$97.48

-30.6%

Residence Inn

$61.60

-53.8%

48.6%

-33.5%

pts.

$126.85

-21.9%

Composite North American Limited-Service4

$36.23

-67.7%

33.4%

-43.5%

pts.

$108.45

-25.5%

North American – All5

$33.78

-78.0%

22.9%

-55.3%

pts.

$147.65

-24.9%

Comparable Systemwide North American Properties

Three Months Ended September 30, 2020 and September 30, 2019

REVPAR

Occupancy

Average Daily Rate

Brand

2020

 vs. 2019

2020

 vs. 2019

2020

 vs. 2019

JW Marriott

$48.78

-74.6%

22.3%

-56.9%

pts.

$219.09

-9.8%

The Ritz-Carlton

$98.97

-64.2%

26.8%

-45.7%

pts.

$369.90

-3.1%

W Hotels

$39.79

-81.5%

20.1%

-60.1%

pts.

$198.47

-26.0%

Composite North American Luxury1

$64.56

-72.7%

22.9%

-54.6%

pts.

$281.82

-7.6%

Marriott Hotels

$29.56

-77.8%

22.7%

-52.8%

pts.

$130.01

-26.3%

Sheraton

$25.44

-79.2%

23.2%

-53.5%

pts.

$109.64

-31.2%

Westin

$32.88

-78.9%

23.4%

-55.4%

pts.

$140.77

-28.8%

Composite North American Premium2

$31.61

-77.0%

23.5%

-53.0%

pts.

$134.44

-25.3%

North American Full-Service3 

$35.29

-76.3%

23.4%

-53.2%

pts.

$150.54

-22.4%

Courtyard

$38.42

-64.2%

37.3%

-38.3%

pts.

$102.99

-27.5%

Residence Inn

$69.28

-45.0%

58.9%

-23.7%

pts.

$117.62

-22.9%

Fairfield by Marriott

$43.63

-51.5%

46.8%

-29.3%

pts.

$93.22

-21.2%

Composite North American Limited-Service4

$48.02

-55.0%

46.3%

-31.5%

pts.

$103.80

-24.3%

North American – All5

$42.85

-65.4%

37.0%

-40.3%

pts.

$115.82

-27.6%

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, Gaylord Hotels,

  and Le Méridien.  Systemwide also includes Tribute Portfolio.

3 Includes Composite North American Luxury and Composite North American 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 North American Full-Service and Composite North American Limited-Service.

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated International Properties

Three Months Ended September 30, 2020 and September 30, 2019

REVPAR

Occupancy

Average Daily Rate

Region

2020

 vs. 2019

2020

 vs. 2019

2020

 vs. 2019

Greater China

$64.48

-24.5%

62.6%

-9.6%

pts.

$103.05

-12.9%

Rest of Asia Pacific

$26.73

-76.9%

24.3%

-51.2%

pts.

$110.24

-27.9%

Asia Pacific

$47.18

-52.4%

45.0%

-28.7%

pts.

$104.83

-22.1%

Caribbean & Latin America

$22.15

-78.2%

16.7%

-44.8%

pts.

$132.54

-19.9%

Europe

$33.34

-81.9%

18.0%

-62.5%

pts.

$185.36

-19.1%

Middle East & Africa

$34.17

-61.6%

25.8%

-40.0%

pts.

$132.30

-2.0%

International – All1

$39.97

-65.7%

33.6%

-39.3%

pts.

$118.96

-25.5%

Worldwide2

$37.09

-72.2%

28.6%

-46.7%

pts.

$129.61

-26.9%

Comparable Systemwide International Properties

Three Months Ended September 30, 2020 and September 30, 2019

REVPAR

Occupancy

Average Daily Rate

Region

2020

 vs. 2019

2020

 vs. 2019

2020

 vs. 2019

Greater China

$63.05

-25.6%

61.4%

-10.0%

pts.

$102.73

-13.4%

Rest of Asia Pacific

$31.45

-73.1%

25.4%

-49.8%

pts.

$123.86

-20.5%

Asia Pacific

$46.80

-53.8%

42.9%

-30.5%

pts.

$109.17

-21.0%

Caribbean & Latin America

$15.61

-82.0%

14.7%

-45.0%

pts.

$106.24

-26.8%

Europe

$34.36

-78.6%

20.8%

-58.7%

pts.

$165.11

-18.0%

Middle East & Africa

$31.93

-62.4%

25.3%

-40.7%

pts.

$126.03

-2.1%

International – All1

$37.42

-67.4%

30.7%

-41.9%

pts.

$122.06

-22.8%

Worldwide2

$41.24

-65.9%

35.1%

-40.8%

pts.

$117.44

-26.4%

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

2 Includes North American – All and International – All.

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated North American Properties

Nine Months Ended September 30, 2020 and September 30, 2019

REVPAR

Occupancy

Average Daily Rate

Brand

2020

 vs. 2019

2020

 vs. 2019

2020

 vs. 2019

JW Marriott

$78.89

-64.2%

28.6%

-51.0%

pts.

$275.88

-0.3%

The Ritz-Carlton

$134.18

-56.6%

31.6%

-43.1%

pts.

$424.45

2.6%

W Hotels

$65.14

-68.6%

27.3%

-49.0%

pts.

$238.44

-12.3%

Composite North American Luxury1

$104.13

-61.0%

29.4%

-47.5%

pts.

$354.32

1.9%

Marriott Hotels

$48.95

-68.6%

26.9%

-50.7%

pts.

$181.88

-9.5%

Sheraton

$45.01

-71.7%

25.5%

-53.0%

pts.

$176.84

-12.8%

Westin

$52.49

-69.0%

27.7%

-50.3%

pts.

$189.19

-13.0%

Composite North American Premium2

$48.24

-69.1%

26.5%

-51.0%

pts.

$181.95

-9.5%

North American Full-Service3 

$59.46

-66.6%

27.1%

-50.3%

pts.

$219.51

-4.7%

Courtyard

$37.53

-63.7%

30.9%

-41.6%

pts.

$121.62

-14.9%

Residence Inn

$67.13

-48.5%

47.4%

-32.8%

pts.

$141.63

-13.0%

Composite North American Limited-Service4

$45.59

-58.9%

35.5%

-39.6%

pts.

$128.43

-13.1%

North American – All5

$54.93

-64.8%

29.8%

-46.8%

pts.

$184.08

-9.7%

Comparable Systemwide North American Properties

Nine Months Ended September 30, 2020 and September 30, 2019

REVPAR

Occupancy

Average Daily Rate

Brand

2020

 vs. 2019

2020

 vs. 2019

2020

 vs. 2019

JW Marriott

$76.36

-63.2%

28.5%

-49.6%

pts.

$267.95

0.8%

The Ritz-Carlton

$130.37

-57.5%

31.0%

-43.9%

pts.

$419.97

2.5%

W Hotels

$65.14

-68.6%

27.3%

-49.0%

pts.

$238.44

-12.3%

Composite North American Luxury1

$96.77

-61.6%

29.2%

-47.6%

pts.

$331.36

1.0%

Marriott Hotels

$46.98

-64.8%

29.2%

-45.1%

pts.

$160.88

-10.6%

Sheraton

$39.79

-66.0%

29.7%

-43.7%

pts.

$134.01

-15.9%

Westin

$52.98

-65.5%

30.0%

-46.5%

pts.

$176.87

-12.0%

Composite North American Premium2

$48.27

-64.6%

29.7%

-44.9%

pts.

$162.76

-11.0%

North American Full-Service3 

$53.70

-64.0%

29.6%

-45.2%

pts.

$181.40

-9.1%

Courtyard

$43.15

-58.4%

36.6%

-36.5%

pts.

$117.85

-16.9%

Residence Inn

$68.90

-42.7%

54.6%

-25.1%

pts.

$126.21

-16.2%

Fairfield by Marriott

$41.45

-50.8%

42.0%

-30.3%

pts.

$98.76

-15.3%

Composite North American Limited-Service4

$49.43

-51.5%

43.4%

-31.5%

pts.

$113.93

-16.3%

North American – All5

$51.16

-57.7%

37.8%

-37.0%

pts.

$135.36

-16.3%

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, Gaylord Hotels,

  and Le Méridien.  Systemwide also includes Tribute Portfolio.

3 Includes Composite North American Luxury and Composite North American 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 North American Full-Service and Composite North American Limited-Service.

MARRIOTT INTERNATIONAL, INC.

KEY LODGING STATISTICS

In Constant $

Comparable Company-Operated International Properties

Nine Months Ended September 30, 2020 and September 30, 2019

REVPAR

Occupancy

Average Daily Rate

Region

2020

 vs. 2019

2020

 vs. 2019

2020

 vs. 2019

Greater China

$42.51

-49.2%

41.2%

-27.1%

pts.

$103.11

-15.9%

Rest of Asia Pacific

$42.06

-63.3%

30.6%

-42.5%

pts.

$137.40

-12.4%

Asia Pacific

$42.30

-56.8%

36.4%

-34.1%

pts.

$116.34

-16.2%

Caribbean & Latin America

$53.66

-57.8%

25.7%

-38.0%

pts.

$208.81

4.4%

Europe

$39.95

-73.9%

22.9%

-51.7%

pts.

$174.44

-15.1%

Middle East & Africa

$48.31

-50.5%

34.2%

-32.0%

pts.

$141.20

-4.2%

International – All1

$43.71

-61.0%

32.2%

-37.9%

pts.

$135.63

-15.2%

Worldwide2

$48.91

-63.1%

31.1%

-42.0%

pts.

$157.20

-13.3%

Comparable Systemwide International Properties

Nine Months Ended September 30, 2020 and September 30, 2019

REVPAR

Occupancy

Average Daily Rate

Region

2020

 vs. 2019

2020

 vs. 2019

2020

 vs. 2019

Greater China

$41.76

-49.8%

40.6%

-27.2%

pts.

$102.95

-16.1%

Rest of Asia Pacific

$43.40

-62.1%

31.0%

-41.8%

pts.

$139.82

-11.0%

Asia Pacific

$42.60

-57.1%

35.7%

-34.7%

pts.

$119.45

-15.3%

Caribbean & Latin America

$41.44

-60.9%

24.2%

-37.7%

pts.

$171.10

0.0%

Europe

$37.10

-72.0%

23.9%

-49.3%

pts.

$155.31

-14.2%

Middle East & Africa

$45.63

-51.0%

33.6%

-32.4%

pts.

$135.90

-3.6%

International – All1

$41.27

-62.1%

30.6%

-39.0%

pts.

$134.98

-13.8%

Worldwide2

$48.23

-59.0%

35.7%

-37.6%

pts.

$135.27

-15.6%

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

2 Includes North American – All and International – All.

MARRIOTT INTERNATIONAL, INC.

NON-GAAP FINANCIAL MEASURES

ADJUSTED EBITDA

($ in millions)

Fiscal Year 2020

First
Quarter

Second
Quarter

Third
Quarter

Total

Net income (loss), as reported

$                   31

$            (234)

$             100

$            (103)

Cost reimbursement revenue

(3,797)

(1,202)

(1,789)

(6,788)

Reimbursed expenses

3,877

1,241

1,683

6,801

Interest expense

93

127

113

333

Interest expense from unconsolidated joint ventures 

3

1

12

16

(Benefit) provision for income taxes

(12)

(64)

27

(49)

Depreciation and amortization

150

72

53

275

Contract investment amortization

25

21

48

94

Depreciation classified in reimbursed expenses

26

27

27

80

Depreciation and amortization from unconsolidated joint ventures 

7

16

3

26

Share-based compensation

41

50

49

140

Restructuring and merger-related (recoveries) charges

(2)

6

1

5

Adjusted EBITDA **

$                 442

$               61

$             327

$             830

Change from 2019 Adjusted EBITDA **

-46%

-94%

-64%

-69%

Fiscal Year 2019 

First
Quarter

Second
Quarter

Third
Quarter

Fourth
Quarter

Total

Net income, as reported

$                 375

$             232

$             387

$             279

$           1,273

Cost reimbursement revenue

(3,756)

(3,903)

(3,952)

(3,988)

(15,599)

Reimbursed expenses

3,892

4,107

4,070

4,370

16,439

Interest expense

97

102

100

95

394

Interest expense from unconsolidated joint ventures

2

1

3

2

8

Provision for income taxes

57

82

140

47

326

Depreciation and amortization

54

56

52

179

341

Contract investment amortization

14

15

16

17

62

Depreciation classified in reimbursed expenses

30

29

33

29

121

Depreciation and amortization from unconsolidated joint ventures

7

8

5

9

29

Share-based compensation

40

50

47

49

186

Gain on asset dispositions

(9)

(134)

(143)

Restructuring and merger-related (recoveries) charges

9

173

9

(53)

138

Adjusted EBITDA **

$                 821

$             952

$             901

$             901

$           3,575

**

Denotes non-GAAP financial measures. Please see pages A-12 and A-13 for information about our reasons for providing these alternative financial measures and

the limitations on their use.