Marriott International Chief Development Officer Eric Jacobs explains the culture and power of Marriott.

1. Eric Jacobs
Chief Development Officer, Marriott International

2. Marriott International Confidential and Proprietary Information
BRANDS. LOYALTY.
PARTNERSHIPS. RESULTS.
MADE HERE.
COURTYARD PRINCE GEORGE

3. Agenda
• Marriott update
• INTEGRATION HIGHLIGHTS
• State of the industry
• Partnership with PEG
Development
• Peg Development portfolio

4. Marriott International Confidential and Proprietary Information
CREATING A
GREAT CULTURE
4

5. Marriott Update

6. Todays Marriott Provides
Greater Value to Hotel Owners
• Largest, most powerful portfolio of brands that deliver
unprecedented choice and performance
• More loyal guests with 120M Marriott Bonvoy
members who stay more often and spend more
• Industry leading sales and marketing platform that
drives awareness and revenue
• Increased scale yielding cost efficiencies that drive
economic returns
• Access to the best talent in the industry

7. Marriott’s combination with Starwood
Hotels in 2016 enhanced our position
as the world’s favorite travel company
6,900+
Hotels
120
Million combined
Loyalty members
30
Brands
130
Countries

8. Global Portfolio
Our global portfolio provides guests unprecedented choice, value, and access and
provides owners significant economies of scale
6,900+ Properties
130 Countries
NORTH AMERICA
5,104 Properties | 2 Countries
CARIBBEAN & LATIN AMERICA
249 Properties | 33 Countries
EUROPE
582 Properties | 41 Countries
MIDDLE EAST & AFRICA
252 Properties | 30 Countries
ASIA PACIFIC
719 Properties | 24 Countries

9. GUESTS HAVE MORE
CHOICES EVERY WHERE
THEY’RE TRAVELING
OWNERS HAVE MORE
CHOICES BASED ON
MARKET AND PROJECT
CLASSIC
LUXURY
UPPER UPSCALE
UPSCALE
UPPER MIDSCALE
DISTINCTIVE
LUXURY
UPPER UPSCALE
UPSCALE
UPPER MIDSCALE
LONGER STAYS
LONGER STAYS
LONGER STAYS
LONGER STAYS
Our powerful brand portfolio offers the right brand in the right place

10. The Power of Marriott
An increasingly powerful network
of channels drives bookings at
lower costs
Best-in-class pricing strategies, inventory
management, and demand forecasting
tools maximize hotel revenue
Industry leading websites and
mobile apps allow guests to book
direct on our lowest cost channels
Fully integrated platform
with revenue management,
eCommerce, PMS and GDS
Largest hotel loyalty platform with
members who stay more often and
spend more
Global, regional and property based
sellers fill hotels through deep customer
relationships and in-depth market knowledge

11. Most Recognized Hotel Loyalty Program
Delivers High-Value Guests
• Largest and most recognized
loyalty program
o 120+ million members
o 1+ million added each month
• Members account for 50% of sold
room nights, globally
• Members have a higher ADR
premium than non-members
• Lower program costs and charge
out rates
STAY MORE PAY MORE COST LESS120M+ MEMBERS

12. Integration Highlights

13. Integration Highlights
For hotel owners, we continue to improve productivity as well as recognize synergy
savings from the Starwood acquisition
• Combined loyalty program/reductions in charge-out rates
• Full portfolio inventory on Marriott’s direct channels
• Reduced commission rates for intermediary group business
• Unified reservations system
• 2019 Program Services Fee
• Brand efficiencies and cost-savings to SW legacy brands

14. State of the Industry

15. 0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 YTD
Sep
17
YTD
Sep
18
RevPAR ADR Occ
NATIONAL OCCUPANCY, ADR, AND REVPAR GREW
 0.5% 2.5% 3.1%
Source: STR

16. HISTORICAL CHANGE OF SUPPLY & DEMAND
Recessions
Source: STR, HVS
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
Supply Demand Occupancy ADR

17. 0.9%
2.6%
1.7%
4.2%
6.0%
1.6% 1.7%
0.1%
3.1% 3.2%
1.8%
2.7%
0.9%
2.1%
3.0%
2.0%
2.9%
0.8%
2.6%
3.5%
Supply Demand Occupancy ADR RevPAR
2015 2016 2017 YTD Aug 18
LIMITED SUPPLY COMING ONLINE, DEMAND INCREASING
Source: STR

18. Construction
Financing
Challenging
MARKET HEADWINDS
Land and
Construction
Costs Elevated
Market
Perception
Labor Concerns

19. CONSTRUCTION TRENDS
3%
10%
29%
32%
10%
1%
2% 13%
CONSTRUCTION PIPELINE BY CHAIN SCALE (% OF TOTAL ROOMS)
Luxury
Upper Upscale
Upscale
Upper Midscale
Midscale
Economy
Casino
Unbranded
Source: Lodging Econometrics, YE 2018

20. CONSTRUCTION TRENDS
99,935
117,865
112,050
116,357
125,559
- 20,000 40,000 60,000 80,000 100,000 120,000 140,000
2016
2017
2018
2019 (F)
2020 (F)
RoomsHOTELS
1,136
1,022
947
985
850
FORECAST FOR NEW HOTEL OPENINGS (ROOMS)
Source: Lodging Econometrics, YE 2018

21. CONSTRUCTION TRENDS
CONSTRUCTION PIPELINE BY PROJECT STAGE (ROOMS)
223,977
209,208
95,900
53,991
57,675
80,740
101,735
136,442
168,428
196,409
200,632
215,047
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Under Construction Starts Next 12 months Early Planning
341,204
718,387
669,456
623,695
334,712
372,813
430,460
598,688
546,135
382,958
460,551
686,516
Source: Lodging Econometrics, YE 2018

22. INDUSTRY FORECAST
Source: STR/Tourism Economics
OUTLOOK
2019 Forecast 2020 Forecast
Supply +1.9% +1.9%
Demand +1.9% +1.7%
Occupancy +0.0% -0.2%
ADR +2.3% +2.2%
RevPAR +2.3% +1.9%

23. Partnership with PEG Companies

24. Relationship with PEG
• Holistic approach to development
• Focus on market needs and what MI brand
best fits
• Open to managed and franchised depending
on the deal
• Thorough consideration on deals and open
to Marriott’s opinions
• Partnership based on respect and open
communication
• Great management company
(In-Group)

25. Strategic Partnership

26. PEG Companies Portfolio

27. Marriott International Confidential and Proprietary Information
COURTYARD OGDEN

28. Marriott International Confidential and Proprietary Information
COURTYARD OGDEN

29. Marriott International Confidential and Proprietary Information
COURTYARD OGDEN

30. Marriott International Confidential and Proprietary Information
COURTYARD OGDEN

31. Marriott International Confidential and Proprietary Information
COURTYARD OGDEN

32. Marriott International Confidential and Proprietary Information
SPRINGHILL SUITES JACKSON HOLE

33. Marriott International Confidential and Proprietary Information
SPRINGHILL SUITES JACKSON HOLE

34. Marriott International Confidential and Proprietary Information
SPRINGHILL SUITES JACKSON HOLE

35. Marriott International Confidential and Proprietary Information
SPRINGHILL SUITES JACKSON HOLE

36. Marriott International Confidential and Proprietary Information
FAIRFIELD INN & SUITES AFTON STAR VALLEY

37. Marriott International Confidential and Proprietary Information
FAIRFIELD INN & SUITES AFTON STAR VALLEY

38. Marriott International Confidential and Proprietary Information
SPRINGHILL SUITES GALLUP

39. Marriott International Confidential and Proprietary Information
SPRINGHILL SUITES GALLUP

40. Marriott International Confidential and Proprietary Information
SPRINGHILL SUITES GALLUP

41. Marriott International Confidential and Proprietary Information
AC HOTEL SALT LAKE CITY DOWNTOWN

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AC HOTEL SALT LAKE CITY DOWNTOWN

43. Marriott International Confidential and Proprietary Information
AC HOTEL SALT LAKE CITY DOWNTOWN

44. Marriott International Confidential and Proprietary Information
AC HOTEL SALT LAKE CITY DOWNTOWN

45. Marriott International Confidential and Proprietary Information
AC HOTEL SALT LAKE CITY DOWNTOWN

46. Marriott International Confidential and Proprietary Information
COURTYARD PRINCE GEORGE

47. Marriott International Confidential and Proprietary Information
COURTYARD PRINCE GEORGE

48. Marriott International Confidential and Proprietary Information
COURTYARD PRINCE GEORGE

49. Marriott International Confidential and Proprietary Information
COURTYARD PRINCE GEORGE

50. Marriott International Confidential and Proprietary Information
COURTYARD PRINCE GEORGE