mar-20200810
falseMARRIOTT INTERNATIONAL INC /MD/000104828600010482862020-08-102020-08-100001048286exch:XNGS2020-08-102020-08-100001048286exch:XCHI2020-08-102020-08-10

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________ 
FORM 8-K
_______________________________________  
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 10, 2020
 _______________________________________ 
MARRIOTT INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
 _______________________________________ 
Delaware 1-1388152-2055918
(State or other jurisdiction
of incorporation)
 (Commission
File Number)
(IRS Employer
Identification No.)
10400 Fernwood Road,Bethesda,Maryland20817
(Address of principal executive offices)
(Zip Code)
Registrant’s telephone number, including area code: (301380-3000
 _______________________________________ 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Class A Common Stock, $0.01 par valueMAR
Nasdaq Global Select Market
Class A Common Stock, $0.01 par valueMAR
Chicago Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.





Item 2.02.Results of Operations and Financial Condition.
Financial Results for the Quarter Ended June 30, 2020
Marriott International, Inc. (Marriott) issued a press release reporting financial results for the quarter ended June 30, 2020.
A copy of Marriott’s press release is attached as Exhibit 99 and incorporated by reference.

Item 9.01.Financial Statements and Exhibits.

(d) Exhibits. The following exhibit is furnished with this report:
Exhibit 99
104The cover page to this Current Report on Form 8-K, formatted in inline XBRL.

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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
   MARRIOTT INTERNATIONAL, INC.
Date: August 10, 2020   By:  /s/ Bao Giang Val Bauduin
    Bao Giang Val Bauduin
    Principal Accounting Officer

3
Document
Exhibit 99

https://cdn.kscope.io/5495dfae07088ea50b830c1efeac286d-marq22020primage1a11.jpg https://cdn.kscope.io/5495dfae07088ea50b830c1efeac286d-marq22020primage2a11.jpg
NEWS

MARRIOTT INTERNATIONAL REPORTS SECOND QUARTER 2020 RESULTS

Second quarter 2020 comparable systemwide constant dollar RevPAR declined 84.4 percent worldwide, 83.6 percent in North America and 86.7 percent outside North America;

Second quarter reported diluted loss per share totaled $0.72, compared to reported diluted EPS of $0.69 in the year-ago quarter. Second quarter adjusted diluted loss per share totaled $0.64, compared to second quarter 2019 adjusted diluted EPS of $1.56. Second quarter 2020 impairment charges and bad debt expense related to COVID-19 impacted reported and adjusted diluted loss per share by $0.19 and $0.17, respectively;

Second quarter reported net loss totaled $234 million, compared to reported net income of $232 million in the year-ago quarter. Second quarter adjusted net loss totaled $210 million, compared to second quarter 2019 adjusted net income of $525 million. Second quarter 2020 impairment charges and bad debt expense related to COVID-19 impacted reported and adjusted net loss by $61 million after-tax and $54 million after-tax, respectively;

Adjusted EBITDA totaled $61 million in the 2020 second quarter, compared to second quarter 2019 adjusted EBITDA of $952 million. Second quarter 2020 adjusted EBITDA included $36 million of bad debt expense related to COVID-19;

The company added more than 11,400 rooms globally during the second quarter, including roughly 2,000 rooms converted from competitor brands and approximately 4,700 rooms in international markets. Net rooms grew 4.1 percent from a year ago;

At quarter-end, Marriott’s worldwide development pipeline totaled nearly 3,000 hotels and approximately 510,000 rooms, including roughly 28,000 rooms approved, but not yet subject to signed contracts. Over 230,000 rooms in the pipeline were under construction as of the end of the second quarter;

As of the end of the second quarter, the company’s net liquidity totaled approximately $4.4 billion, representing roughly $2.3 billion in cash and cash equivalents, and $2.9 billion of unused borrowing capacity under its revolving credit facility, less $0.8 billion of commercial paper outstanding.

BETHESDA, MD - August 10, 2020 - Marriott International, Inc. (NASDAQ: MAR) today reported second 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 our business continues to be profoundly impacted by COVID-19, we are seeing steady signs of demand
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returning. Worldwide RevPAR1 has climbed steadily since its low point of down 90 percent for the month of April, to a decline of 70 percent for the month of July. Worldwide occupancy rates, which bottomed at 11 percent for the week ended April 11, have improved each week, reaching nearly 34 percent for the week ended August 1. Currently, 91 percent of our worldwide hotels are now open compared to 74 percent in April, and 96 percent are open today in North America.

“Greater China continues to lead the recovery. As of early May, all our hotels in the region are open, and occupancy levels are now reaching 60 percent, compared to 70 percent the same time last year, and a marked improvement from single-digit levels in February. While Greater China’s recovery was originally led by demand from leisure travelers, particularly in resorts and drive-to destinations, we are now seeing more widespread business demand, including some group activity.

“The improvement we have seen in Greater China exemplifies the resilience of travel demand once there is a view that the virus is under control and travel restrictions have eased. Our other regions around the world have also experienced steady improvements in demand and RevPAR over the last couple of months, though the pace varies and tends to be slower in regions that depend more on international travelers.

“Over the last few months, we have moved quickly and decisively to mitigate the impact of COVID-19 on our business. We have implemented measures to help our owners manage through the crisis and strengthened our financial position by increasing our liquidity, extending our average debt maturity, and reducing our cash outlays significantly.

“Our pipeline remains strong with approximately 510,000 rooms, 45 percent of which are under construction. We are gratified to see owners continuing to choose our brands. In the first half of the year, we signed 30 percent more deals in the Asia Pacific region than we did in the same period last year. By the end of the second quarter, our rooms distribution around the world had grown by 4.1 percent, net, compared to one year prior. With the restrictions related to the pandemic slowing construction timelines, there is uncertainty surrounding future rooms growth. Given current trends, we estimate rooms could grow by 2 to 3 percent, net, for the full year.
1 All occupancy and RevPAR statistics are comparable systemwide constant dollar and include hotels that have been temporarily closed due to COVID-19. Unless otherwise stated, all changes refer to year-over-year changes for the comparable period.
2


“While the full recovery from COVID-19 will clearly take time, the current trends we are seeing reinforce our view that when people feel safe traveling, demand returns quickly. My thoughts continue to be with all who have been impacted by the pandemic.”

Second Quarter 2020 Results
Marriott’s reported operating loss totaled $154 million in the 2020 second quarter, compared to 2019 second quarter reported operating income of $409 million. Reported net loss totaled $234 million in the 2020 second quarter, compared to 2019 second quarter reported net income of $232 million. Reported diluted loss per share totaled $0.72 in the quarter, compared to reported diluted earnings per share (EPS) of $0.69 in the year-ago quarter. Reported results in the 2020 second quarter included impairment charges and bad debt expense of $77 million pretax ($61 million after-tax and $0.19 per share), related to COVID-19.

Adjusted operating loss in the 2020 second quarter totaled $109 million, compared to 2019 second quarter adjusted operating income of $786 million. Adjusted operating loss in the 2020 second quarter included impairment charges and bad debt expense of $60 million, related to COVID-19.

Second quarter 2020 adjusted net loss totaled $210 million, compared to 2019 second quarter adjusted net income of $525 million. Adjusted diluted loss per share in the second quarter totaled $0.64, compared to adjusted diluted EPS of $1.56 in the year-ago quarter. These 2020 second quarter adjusted results included impairment charges and bad debt expense of $54 million after-tax ($0.17 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 $222 million in the 2020 second quarter, compared to base management and franchise fees of $834 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 franchises fees in the 2020 second quarter of $107 million declined $39 million compared to the year-ago quarter, largely due to lower credit card branding fees.

Incentive management fees totaled $12 million in the 2020 second quarter, compared to incentive management fees of $165 million in the year-ago quarter. The year-over-year decline in these fees is
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primarily attributable to lower net house profits at many hotels related to COVID-19. Most of the incentive management fees recognized in the quarter were earned at hotels in the Asia Pacific region.

Contract investment amortization for the 2020 second quarter totaled $21 million, compared to $15 million in the year-ago quarter. The year-over-year change largely reflects impairments of investments in management and franchise contracts.

Owned, leased, and other revenue, net of direct expenses, totaled a $72 million loss in the 2020 second quarter, compared to $87 million of profit in the year-ago quarter as a result of RevPAR declines related to COVID-19.

Depreciation, amortization, and other expenses for the 2020 second quarter totaled $72 million, compared to $56 million in the year-ago quarter. The year-over-year change largely reflects a $15 million impairment charge related to COVID-19 associated with several limited-service leased hotels in North America and impairments of investments in management and franchise contracts.

General, administrative, and other expenses for the 2020 second quarter totaled $178 million, compared to $229 million in the year-ago quarter. Expenses in the 2020 second quarter reflect the company’s cost reduction efforts and include $34 million of bad debt expense due to higher projected losses related to COVID-19.

Restructuring and merger-related charges totaled $6 million in the second quarter compared to $173 million in the second quarter of 2019. Charges in the second quarter of 2019 reflected a $126 million non-tax deductible accrual for the fine proposed by the U.K. Information Commissioner’s Office in July 2019 in relation to the data security incident and a $34 million asset impairment for a legacy-Starwood office building.

Interest expense, net, totaled $119 million in the second quarter compared to $96 million in the year-ago quarter. The increase is largely due to higher debt balances.

Equity in losses for the second quarter totaled $30 million, largely reflecting the decline in results at joint venture properties due to COVID-19 and an $8 million asset impairment.

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Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $61 million in the 2020 second quarter, compared to second quarter 2019 adjusted EBITDA of $952 million. Second quarter 2020 adjusted EBITDA included $36 million of bad debt expense related to COVID-19. See page A-11 for the adjusted EBITDA calculation.

Selected Performance Information
The company added 75 new properties (11,407 rooms) to its worldwide lodging portfolio during the 2020 second quarter, including roughly 2,000 rooms converted from competitor brands and approximately 4,700 rooms in international markets. Eleven properties (2,669 rooms) exited the system during the quarter. At quarter-end, Marriott’s global lodging system totaled roughly 7,500 properties and timeshare resorts, with nearly 1,401,000 rooms.

At quarter-end, the company’s worldwide development pipeline totaled 2,997 properties with approximately 510,000 rooms, including 1,240 properties with over 230,000 rooms under construction and 164 properties with roughly 28,000 rooms approved for development, but not yet subject to signed contracts.

In the 2020 second quarter, worldwide RevPAR declined 84.4 percent (an 84.6 percent decline using actual dollars). North American RevPAR declined 83.6 percent (an 83.6 percent decline using actual dollars), and international RevPAR declined 86.7 percent (an 87.1 percent decline using actual dollars).

Balance Sheet and Liquidity
At quarter-end, Marriott’s total debt was $11.8 billion and cash balances totaled $2.3 billion, compared to $10.9 billion in debt and $225 million of cash at year-end 2019.

In the second quarter, the company issued $1.6 billion of Series EE Senior Notes due in 2025 with a 5.75 percent interest rate coupon and $1.0 billion of Series FF Senior Notes due in 2030 with a 4.625 percent interest rate coupon. In early May, Marriott raised $920 million in additional liquidity through amendments to its co-brand credit card agreements with JPMorgan Chase & Co. and American Express.

In June 2020, Marriott completed a cash tender offer and retired $853 million aggregate principal amount of Senior Notes maturing in 2022. The company used proceeds from the Series FF Senior Notes offering to complete the repurchase of such notes, including the payment of accrued interest and other costs incurred.
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The company’s net liquidity was approximately $4.4 billion as of the end of the second quarter, representing roughly $2.3 billion in cash and cash equivalents, and $2.9 billion of unused borrowing capacity under its revolving credit facility, less $0.8 billion 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.

The company expects to provide additional information about the current impact of COVID-19 on its business on its call later this morning.

Marriott International, Inc. (NASDAQ: MAR) will conduct its quarterly earnings review for the investment community and news media on Monday, August 10, 2020 at 8:30 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 August 10, 2021.

The telephone dial-in number for the conference call is 706-679-3455 and the conference ID is 5581216. A telephone replay of the conference call will be available from 11:00 a.m. ET, Monday, August 10, 2020 until 8:00 p.m. ET, Monday, August 17, 2020. To access the replay, call 404-537-3406. The conference ID for the recording is 5581216.

Note on forward-looking statements:
All statements in this press release and the accompanying schedules are made as of August 10, 2020. 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 the expected effects on our business of the COVID-19 pandemic and efforts to contain it (COVID-19); future performance of the company's hotels; RevPAR, occupancy and demand estimates and trends; our development pipeline and room openings; our liquidity expectations; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these
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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 those we identify below and other risk factors that we identify in our Securities and Exchange Commission filings, including our most recent Quarterly Report on Form 10-Q. Risks that could affect forward-looking statements in this press release include the duration and scope of COVID-19, including whether, where and to what extent resurgences of the virus occur; its short and longer-term impact on the demand for travel, transient and group business, and levels of consumer confidence; actions governments, businesses and individuals have taken or may take in response to the pandemic, including limiting or banning travel and/or in-person gatherings or imposing occupancy or other restrictions on lodging or other facilities; the impact of the pandemic and actions taken in response to the pandemic on global and regional economies, travel, and economic activity, including the duration and magnitude of COVID-19’s impact on unemployment rates and consumer discretionary spending; the ability of our owners and franchisees to successfully navigate the impacts of COVID-19; the pace of recovery when the pandemic subsides or effective treatments or vaccines become available; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the effects of steps we and our property owners and franchisees take to reduce operating costs and/or enhance certain health and cleanliness protocols at our hotels; the impacts of our employee furloughs and reduced work week schedules, our voluntary transition program and other restructuring activities; 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 experience adverse effects from data security incidents; and changes in tax laws in countries in which we operate. 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 more than 7,400 properties under 30 leading brands spanning 135 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. 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 Twitter and Instagram.

Marriott may post updates about COVID-19 and other matters on its investor relations website at www.marriott.com/investor or Marriott's news center website at www.marriottnewscenter.com. Marriott encourages investors, the media, and others interested in the company to review and subscribe to the information Marriott posts on these websites, 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 SEC, and any references to the websites are intended to be inactive textual references only.

CONTACT: Connie Kim
Corporate Relations
(301) 380-4028
connie.kim@marriott.com

Jackie Burka McConagha
Investor Relations
(301) 380-5126
jackie.burka@marriott.com


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Betsy Dahm
Investor Relations
(301) 380-3372
betsy.dahm@marriott.com

IRPR#1

Tables follow
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MARRIOTT INTERNATIONAL, INC.
PRESS RELEASE SCHEDULES
TABLE OF CONTENTS
QUARTER 2, 2020
Consolidated Statements of Income - As Reported
Non-GAAP Financial Measures
Total Lodging Products
Key Lodging Statistics
Adjusted EBITDA
Explanation of Non-GAAP Financial and Performance Measures




MARRIOTT INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED
SECOND QUARTER 2020 AND 2019
(in millions except per share amounts, unaudited)
As ReportedAs ReportedPercent
Three Months EndedThree Months EndedBetter/(Worse)
June 30, 2020June 30, 2019Reported 2020 vs. 2019
REVENUES
Base management fees$40  $309  (87) 
Franchise fees 1
182  525  (65) 
Incentive management fees12  165  (93) 
   Gross Fee Revenues234  999  (77) 
Contract investment amortization 2
(21) (15) (40) 
   Net Fee Revenues213  984  (78) 
Owned, leased, and other revenue 3
49  418  (88) 
Cost reimbursement revenue 4
1,202  3,903  (69) 
   Total Revenues1,464  5,305  (72) 
OPERATING COSTS AND EXPENSES
Owned, leased, and other - direct 5
121  331  63  
Depreciation, amortization, and other 6
72  56  (29) 
General, administrative, and other 7
178  229  22  
Restructuring and merger-related charges 173  97  
Reimbursed expenses 4
1,241  4,107  70  
   Total Expenses1,618  4,896  67  
OPERATING (LOSS) INCOME(154) 409  (138) 
Gains and other income, net 8
  400  
Interest expense(127) (102) (25) 
Interest income   33  
Equity in (losses) earnings 9
(30) —  *
(LOSS) INCOME BEFORE INCOME TAXES(298) 314  (195) 
Benefit (provision) for income taxes64  (82) 178  
NET (LOSS) INCOME$(234) $232  (201) 
(LOSS) EARNINGS PER SHARE
   (Loss) earnings per share - basic$(0.72) $0.70  (203) 
   (Loss) earnings per share - diluted$(0.72) $0.69  (204) 
Basic Shares325.6  333.8  
Diluted Shares10
325.6  336.4  

*Calculated percentage is not meaningful.
1Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, and residential branding fees.
2Contract investment amortization includes amortization of capitalized costs to obtain contracts with our owner and franchisee customers, and any related impairments, accelerations, or write-offs.
3Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue.
4Cost 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.
5Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses.
6Depreciation, 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.
7General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses.
8Gains 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.
9Equity in (loss) earnings include our equity in earnings or losses of unconsolidated equity method investments.
10Basic 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.

A-1


MARRIOTT INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME - AS REPORTED
SECOND QUARTER 2020 AND 2019
(in millions except per share amounts, unaudited)
As ReportedAs ReportedPercent
Six Months EndedSix Months EndedBetter/(Worse)
June 30, 2020
June 30, 2019
Reported 2020 vs. 2019
REVENUES
Base management fees$254  $591  (57) 
Franchise fees 1
597  975  (39) 
Incentive management fees12  328  (96) 
   Gross Fee Revenues863  1,894  (54) 
Contract investment amortization 2
(46) (29) (59) 
   Net Fee Revenues817  1,865  (56) 
Owned, leased, and other revenue 3
329  793  (59) 
Cost reimbursement revenue 4
4,999  7,659  (35) 
   Total Revenues6,145  10,317  (40) 
OPERATING COSTS AND EXPENSES
Owned, leased, and other - direct 5
393  656  40  
Depreciation, amortization, and other 6
222  110  (102) 
General, administrative, and other 7
448  451   
Restructuring and merger-related charges 182  98  
Reimbursed expenses 4
5,118  7,999  36  
   Total Expenses6,185  9,398  34  
OPERATING (LOSS) INCOME(40) 919  (104) 
Gains and other income, net 8
  (83) 
Interest expense(220) (199) (11) 
Interest income 14  12  17  
Equity in (losses) earnings 9
(34)  (525) 
(LOSS) INCOME BEFORE INCOME TAXES(279) 746  (137) 
Benefit (provision) for income taxes76  (139) 155  
NET (LOSS) INCOME$(203) $607  (133) 
(LOSS) EARNINGS PER SHARE
   (Loss) earnings per share - basic$(0.63) $1.80  (135) 
   (Loss) earnings per share - diluted$(0.63) $1.79  (135) 
Basic Shares325.5  336.7  
Diluted Shares10
325.5  339.6  

1Franchise fees include fees from our franchise agreements, application and relicensing fees, licensing fees from our timeshare, credit card programs, and residential branding fees.
2Contract investment amortization includes amortization of capitalized costs to obtain contracts with our owner and franchisee customers, and any related impairments, accelerations, or write-offs.
3Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue.
4Cost 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.
5Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses.
6Depreciation, 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.
7General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses.
8Gains 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.
9Equity in (loss) earnings include our equity in earnings or losses of unconsolidated equity method investments.
10Basic 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.

A-2


MARRIOTT INTERNATIONAL, INC.
NON-GAAP FINANCIAL MEASURES
($ in millions except per share amounts)


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

Three Months EndedSix Months Ended
June 30, 2020June 30, 2019Percent Better/(Worse)June 30, 2020June 30, 2019Percent Better/(Worse)
Total revenues, as reported$1,464  $5,305  $6,145  $10,317  
Less: Cost reimbursement revenue(1,202) (3,903) (4,999) (7,659) 
Adjusted total revenues**262  1,402  1,146  $2,658  
Operating (loss) income, as reported(154) 409  (40) 919  
Less: Cost reimbursement revenue(1,202) (3,903) (4,999) (7,659) 
Add: Reimbursed expenses1,241  4,107  5,118  7,999  
Add: Restructuring and merger-related charges 173   182  
Adjusted operating (loss) income **(109) 786  -114 %83  1,441  -94 %
Operating (loss) income margin-11 %%-1 %%
Adjusted operating (loss) income margin **-42 %56 %%54 %
Net (loss) income, as reported(234) 232  (203) 607  
Less: Cost reimbursement revenue(1,202) (3,903) (4,999) (7,659) 
Add: Reimbursed expenses1,241  4,107  5,118  7,999  
Add: Restructuring and merger-related charges 173   182  
Income tax effect of above adjustments(21) (84) (45) (122) 
Adjusted net (loss) income **(210) 525  -140 %(125) 1,007  -112 %
Diluted (loss) earnings per share, as reported$(0.72) $0.69  $(0.63) $1.79  
Adjusted diluted (loss) earnings per share**$(0.64) $1.56  -141 %$(0.38) $2.97  -113 %

**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.

A-3


MARRIOTT INTERNATIONAL, INC.
TOTAL LODGING PRODUCTS
As of June 30, 2020

North AmericaTotal InternationalTotal Worldwide
UnitsRoomsUnitsRoomsUnitsRooms
Managed761  240,275  1,257  323,978  2,018  564,253  
Marriott Hotels119  64,049  177  51,890  296  115,939  
Marriott Hotels Serviced Apartments—  —   154   154  
Sheraton 28  23,609  190  64,098  218  87,707  
Sheraton Serviced Apartments—  —   212   212  
Courtyard233  37,020  104  22,705  337  59,725  
Westin42  22,861  71  21,786  113  44,647  
JW Marriott18  11,210  59  22,108  77  33,318  
Renaissance28  12,019  59  18,312  87  30,331  
The Ritz-Carlton39  11,538  61  15,928  100  27,466  
The Ritz-Carlton Serviced Apartments—  —   713   713  
Le Méridien 570  75  20,844  78  21,414  
Four Points 134  79  20,498  80  20,632  
Residence Inn108  16,498   701  114  17,199  
W Hotels24  6,902  31  8,148  55  15,050  
The Luxury Collection 2,236  51  9,241  56  11,477  
Gaylord Hotels 9,918  —  —   9,918  
St. Regis10  1,968  34  7,819  44  9,787  
St. Regis Serviced Apartments—  —   70   70  
Aloft 330  40  9,193  41  9,523  
AC Hotels by Marriott 901  68  8,323  73  9,224  
Delta Hotels25  6,770   360  26  7,130  
Fairfield by Marriott 1,539  33  5,335  40  6,874  
SpringHill Suites30  4,896  —  —  30  4,896  
Marriott Executive Apartments—  —  33  4,756  33  4,756  
Autograph Collection 1,970  15  2,321  22  4,291  
Protea Hotels—  —  35  4,270  35  4,270  
EDITION 1,209   1,282  10  2,491  
TownePlace Suites17  1,948  —  —  17  1,948  
Element 180   1,421   1,601  
Moxy—  —   599   599  
Tribute Portfolio—  —   453   453  
Bulgari—  —   438   438  
 Franchised 4,570  657,347  644  131,261  5,214  788,608  
Courtyard807  107,588  87  16,074  894  123,662  
Fairfield by Marriott1,022  95,184  25  4,187  1,047  99,371  
Residence Inn727  86,781  12  1,473  739  88,254  
Marriott Hotels220  69,314  58  16,707  278  86,021  
Sheraton158  47,465  65  18,403  223  65,868  
SpringHill Suites440  50,699  —  —  440  50,699  
TownePlace Suites416  42,005  —  —  416  42,005  
Westin88  29,452  24  7,436  112  36,888  
Autograph Collection105  21,127  65  12,612  170  33,739  
Four Points158  23,948  53  8,474  211  32,422  
Renaissance58  16,657  28  7,691  86  24,348  
Aloft124  18,160  18  2,977  142  21,137  
AC Hotels by Marriott63  10,614  34  5,973  97  16,587  
Moxy21  4,149  38  7,685  59  11,834  
Delta Hotels47  10,447   1,067  53  11,514  
The Luxury Collection11  2,565  46  8,601  57  11,166  
Le Méridien18  3,910  17  4,240  35  8,150  
JW Marriott12  5,643   1,624  18  7,267  
Element48  6,527   293  50  6,820  
Tribute Portfolio22  3,942  15  1,840  37  5,782  
Protea Hotels—  —  38  3,059  38  3,059  
Design Hotels 741   694   1,435  
The Ritz-Carlton 429  —  —   429  
Bulgari—  —   85   85  
Marriott Executive Apartments—  —   66   66  
A-4


MARRIOTT INTERNATIONAL, INC.
TOTAL LODGING PRODUCTS
As of June 30, 2020
North AmericaTotal InternationalTotal Worldwide
UnitsRoomsUnitsRoomsUnitsRooms
Owned/Leased26  6,483  40  9,161  66  15,644  
Courtyard19  2,814   894  23  3,708  
Marriott Hotels 1,308   1,631   2,939  
Sheraton—  —   1,830   1,830  
W Hotels 779   665   1,444  
Protea Hotels—  —   1,168   1,168  
Westin 1,073  —  —   1,073  
Renaissance 317   505   822  
Autograph Collection 1
—  —   705   705  
The Ritz-Carlton—  —   550   550  
JW Marriott—  —   496   496  
The Luxury Collection 2
—  —   417   417  
Residence Inn 192   140   332  
St. Regis—  —   160   160  
 Residences 61  6,334  34  3,099  95  9,433  
The Ritz-Carlton Residences 36  4,080  11  938  47  5,018  
W Residences 10  1,089   519  15  1,608  
St. Regis Residences  703   598  15  1,301  
Westin Residences  266   264   530  
Bulgari Residences —  —   448   448  
The Luxury Collection Residences 151   112   263  
Marriott Hotels Residences—  —   108   108  
Autograph Collection Residences—  —   62   62  
Sheraton Residences—  —   50   50  
EDITION Residences  45  —  —   45  
Timeshare*72  18,905  19  3,850  91  22,755  
Grand Total5,490  929,344  1,994  471,349  7,484  1,400,693  

* 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.
2Includes 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.

A-5


MARRIOTT INTERNATIONAL, INC.
TOTAL LODGING PRODUCTS
As of June 30, 2020
North AmericaTotal InternationalTotal Worldwide
Total SystemwideUnitsRoomsUnitsRoomsUnitsRooms
Luxury184  50,547  346  80,960  530  131,507  
JW Marriott30  16,853  66  24,228  96  41,081  
The Ritz-Carlton40  11,967  63  16,478  103  28,445  
The Ritz-Carlton Residences36  4,080  11  938  47  5,018  
The Ritz-Carlton Serviced Apartments—  —   713   713  
The Luxury Collection 1
16  4,801  101  18,259  117  23,060  
The Luxury Collection Residences 151   112   263  
W Hotels26  7,681  33  8,813  59  16,494  
W Residences10  1,089   519  15  1,608  
St. Regis10  1,968  35  7,979  45  9,947  
St. Regis Residences 703   598  15  1,301  
St. Regis Serviced Apartments—  —   70   70  
EDITION 1,209   1,282  10  2,491  
EDITION Residences 45  —  —   45  
Bulgari—  —   523   523  
Bulgari Residences—  —   448   448  
Full-Service985  347,785  934  261,097  1,919  608,882  
Marriott Hotels341  134,671  240  70,228  581  204,899  
Marriott Hotels Residences—  —   108   108  
Marriott Hotels Serviced Apartments—  —   154   154  
Sheraton186  71,074  259  84,331  445  155,405  
Sheraton Residences—  —   50   50  
Sheraton Serviced Apartments—  —   212   212  
Westin131  53,386  95  29,222  226  82,608  
Westin Residences 266   264   530  
Renaissance87  28,993  89  26,508  176  55,501  
Autograph Collection 2
112  23,097  87  15,638  199  38,735  
Autograph Collection Residences—  —   62   62  
Le Méridien21  4,480  92  25,084  113  29,564  
Delta Hotels72  17,217   1,427  79  18,644  
Gaylord Hotels 9,918  —  —   9,918  
Tribute Portfolio22  3,942  20  2,293  42  6,235  
Marriott Executive Apartments—  —  34  4,822  34  4,822  
Design Hotels 741   694   1,435  
Limited-Service4,249  512,107  695  125,442  4,944  637,549  
Courtyard1,059  147,422  195  39,673  1,254  187,095  
Residence Inn836  103,471  19  2,314  855  105,785  
Fairfield by Marriott1,029  96,723  58  9,522  1,087  106,245  
SpringHill Suites470  55,595  —  —  470  55,595  
Four Points159  24,082  132  28,972  291  53,054  
TownePlace Suites433  43,953  —  —  433  43,953  
Aloft125  18,490  58  12,170  183  30,660  
AC Hotels by Marriott68  11,515  102  14,296  170  25,811  
Moxy21  4,149  42  8,284  63  12,433  
Protea Hotels