About Marriott International

Marriott International, Inc., together with its subsidiaries, operates, franchises, and licenses hotel, residential, timeshare, and other lodging properties under various brand names worldwide. The company operates through U.S. & Canada and International segments. In January 2024, the company modified its segment structure as a result of a change in the way management intends to evaluate results and allocate resources within the company. Beginning with the 2024 first quarter, the company will report the following four operating segments: U.S. & Canada, Europe, Middle East, and Africa, Asia Pacific excluding China, and Greater China. Company-Operated Properties As of December 31, 2023, the company had 2,096 company-operated properties (589,078 rooms), which included properties under long-term management or lease agreements with property owners (management and lease agreements together, the Operating Agreements) and properties that it owns. The company provides centralized programs and services, such as its Marriott Bonvoy loyalty program, reservations, and marketing, as well as various accounting and data processing services, and owners are required to reimburse it for those costs as well. Franchised and Licensed Properties The company has franchising and licensing arrangements that permit property owners and operators to use many of its lodging brand names and systems. Under its hotel franchising arrangements, the company generally receives an initial application fee and continuing royalty fees, which typically range from four to seven percent of room revenues for all brands, plus up to four percent of food and beverage revenues for certain full-service brands. Franchisees contribute to the company’s centralized programs and services, such as its Marriott Bonvoy loyalty program, reservations, and marketing. The company also receives royalty fees under license agreements with Marriott Vacations Worldwide Corporation, its former timeshare subsidiary that it spun off in 2011, and its affiliates (collectively, MVW), for certain brands. The license fees the company receives from MVW consist of a fixed annual fee, adjusted for inflation, plus certain variable fees based on sales volumes. Finally, the company receives royalty fees under agreements for The Ritz-Carlton Yacht Collection. As of December 31, 2023, the company had 6,563 franchised and licensed properties (994,354 rooms and timeshare units). Residential The company uses or licenses certain of its trademarks for the sale of residential real estate, often in conjunction with hotel development. The company receives one-time branding fees upon the sale of each branded residential unit by the third-party developers who construct and sell the residences, with limited amounts, if any, of its capital at risk. The company also typically receives continuing management fees for managing the related homeowners’ association. As of December 31, 2023, the company had 126 branded residential communities (13,948 residential units). Brand Portfolio The company’s brands are categorized by style of offering - Classic and Distinctive. The company’s Classic brands offer time-honored hospitality for the modern traveler, and its Distinctive brands offer memorable experiences with a unique perspective - each of which it group into four quality tiers: Luxury, Premium, Select, and Midscale. Luxury offers bespoke and superb amenities and services. The company’s Classic Luxury brands include JW Marriott, The Ritz-Carlton, and St. Regis. Distinctive Luxury brands in the company’s portfolio include The Luxury Collection, W Hotels, EDITION, and Bvlgari. Premium offers sophisticated and thoughtful amenities and services. The company’s Classic Premium brands include Marriott Hotels, Sheraton, Delta Hotels by Marriott, Marriott Executive Apartments, and Marriott Vacation Club. The company’s Distinctive Premium brands include Westin, Autograph Collection Hotels, Renaissance Hotels, Le Meridien, Tribute Portfolio, Gaylord Hotels, Design Hotels, and Apartments by Marriott Bonvoy. Select offers smart and easy amenities and services, with the company’s longer stay brands offering amenities that mirror the comforts of home. The company’s Classic Select hotel brands include Courtyard, Fairfield, Residence Inn, SpringHill Suites, Four Points, TownePlace Suites, and Protea Hotels. The company’s Distinctive Select hotel brands include Aloft Hotels, AC Hotels by Marriott, Moxy Hotels, and Element Hotels. Midscale offers limited services and essential amenities at a more affordable price point. The company’s Midscale brands, which are Classic brands, include City Express by Marriott and Four Points Express by Sheraton, which opened its first hotel in the 2024 first quarter. Loyalty and Credit Card Programs Marriott Bonvoy is the company’s travel loyalty program and marketplace through which members have access to its diverse brand portfolio, rich benefits, and travel experiences. Members can earn points for stays at the company’s hotels and other lodging offerings, such as Homes & Villas by Marriott Bonvoy, a global offering focusing on the premium and luxury tiers of rental homes, as well as through purchases with co-branded credit cards and its travel partners. Members can redeem their points for stays at most of the company’s properties, airline tickets, airline frequent flyer program miles, rental cars, products from Marriott Bonvoy Boutiques, and a variety of other awards, including experiences from Marriott Bonvoy Moments. The company refers to its Marriott Bonvoy loyalty program throughout this report as Marriott Bonvoy or its Loyalty Program. In 2023, over 60% of the company’s global room nights were booked by Marriott Bonvoy members. The company strategically markets to this large and growing guest base to generate revenue. The company has co-branded credit cards associated with Marriott Bonvoy in 11 countries. In the U.S., the company has multi-year agreements with JPMorgan Chase and American Express. The company also licenses credit card programs internationally in Japan, Canada, the United Kingdom, United Arab Emirates, Saudi Arabia, South Korea, Mexico, China, India, and Qatar. The company generally earns fixed amounts that are payable at contract inception and variable amounts that are paid to it monthly over the term of the agreements primarily based on card usage. The company’s co-branded credit cards create a diverse revenue stream for it, reflect the quality and value of its portfolio of brands, and contribute to the strength of Marriott Bonvoy by creating value for its customers and property owners and franchisees. Payments received under the company’s co-branded credit card agreements represent a significant funding source for the Loyalty Program. Sales and Marketing and Reservation Systems Marriott.com, the Marriott Bonvoy mobile app, and the company’s other digital direct channels offer seamless digital experiences that complement the experience its customers enjoy at Marriott’s extensive portfolio of properties. The company delivers customer-minded enhancements, including powerful in-stay capabilities through its mobile app, such as contactless check-in and check-out, Mobile Key, chat, service requests, mobile dining, and more. In addition, the company focuses on strengthening the Loyalty Program by attracting more members and localizing its experiences to reach new customers around the world. The company’s focus on creating frictionless experiences throughout its digital direct channels is foundational to its long-term digital and technology transformation, which aims to grow its loyal customer base and drive more direct bookings and more business to its hotels. As of December 31, 2023, the company operated 19 customer engagement centers, seven in the U.S. and 12 in other countries and territories. The company owns two of the U.S. facilities and either lease the others or share space with a company-operated property. Competition The company’s direct digital channels also compete for guests with online travel services platforms, such as Expedia.com, Priceline.com, Booking.com, Travelocity.com, Orbitz.com, and Ctrip.com, and search engines such as Google, Bing, Yahoo, and Baidu. The company competes against many other companies with strong brands and guest appeal, including Hilton, IHG Hotels & Resorts, Hyatt, Wyndham Hotels & Resorts, Accor, Choice Hotels, Best Western Hotels & Resorts, and others. History Marriott International, Inc. was founded in 1927.