Financial Analysis

COMMITMENTS AND CONTINGENCIES Guarantees We issue guarantees to certain lenders and hotel owners, chiefly to obtain long-term franchise and management contracts. The guarantees generally have a stated maximum funding amount and a term of three to 10 years. The terms of guarantees to lenders generally require us to fund if cash flows from hotel operations are inadequate to cover annual debt service or to repay the loan at maturity. The terms of the guarantees to hotel owners generally require us to fund if the hotels do not attain specified levels of operating profit. Guarantee fundings to lenders and hotel owners are generally recoverable out of future hotel cash flows and/or proceeds from the sale or refinancing of hotels. We present the maximum potential amount of our future guarantee fundings and the carrying amount of our liability for our debt service, operating profit, and other guarantees for which we are the primary obligor at year-end 2025 in the following table: (in millions) Guarantee Type Maximum Potential Amount of Future Fundings Recorded Liability for Guarantees Debt service $ 62 $ 6 Operating profit 142 85 Other 21 5 $ 225 $ 96 Our liability at year-end 2025 for guarantees for which we are the primary obligor is reflected in our Balance Sheets as $12 million of Accrued expenses and other and $84 million of Other noncurrent liabilities. Our maximum potential guarantees listed in the preceding table include $73 million of operating profit guarantees that will no …

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STOCK-BASED COMPENSATION RSUs and PSUs We granted RSUs in 2025 to certain officers and employees, and those units vest generally over four years in equal annual installments commencing one year after the grant date. We also granted performance-based RSUs (PSUs) in 2025 to certain executives, which are earned subject to continued employment and the satisfaction of certain performance and market conditions based on the degree of achievement of pre-established targets for 2027 adjusted EBITDA performance and relative total stockholder return over the 2025 to 2027 performance period. We had deferred compensation costs for unvested awards for RSUs, including PSUs, of approximately $173 million at year-end 2025. The weighted average remaining term for RSUs outstanding at year-end 2025 was 2.2 years. The following table provides additional information on RSUs, including PSUs, for the last three fiscal years: 2025 2024 2023 Stock-based compensation expense (in millions) $ 196 $ 203 $ 179 Weighted average grant-date fair value (per unit) $ 267 $ 222 $ 167 Aggregate intrinsic value of distributed RSUs (in millions) $ 331 $ 340 $ 297 The following table presents the changes in our outstanding RSUs, including PSUs, during 2025 and the associated weighted average grant-date fair values: Number of RSUs (in millions) Weighted Average Grant-Date Fair Value (per unit) Outstanding at year-end 2024 2.6 $ 178 Granted 0.8 267 Distributed (1.2) 157 Forfeited (0.1) 218 Outstanding at year-end 2025 …

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FAIR VALUE OF FINANCIAL INSTRUMENTS We believe that the fair values of our current assets and current liabilities approximate their reported carrying amounts. We present the carrying amounts and the fair values of noncurrent financial assets and liabilities that qualify as financial instruments in the following table: At Year-End 2025 At Year-End 2024 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Notes receivable $ 151 $ 149 $ 136 $ 133 Total noncurrent financial assets $ 151 $ 149 $ 136 $ 133 Senior Notes $ (13,686) $ (13,836) $ (11,419) $ (11,083) Commercial paper (1,177) (1,177) (1,582) (1,582) Total noncurrent financial liabilities $ (14,863) $ (15,013) $ (13,001) $ (12,665) Our notes receivable include mezzanine and other loans to hotel owners, generally to facilitate the development or renovation of a hotel and sometimes to facilitate brand programs or initiatives. We estimate the fair value of our notes receivable by discounting cash flows using risk-adjusted rates, both of which are Level 3 inputs. We determine the fair value of our Senior Notes using quoted market prices, which are directly observable Level 1 inputs. The carrying amount of our commercial paper borrowings approximate fair value due to their short maturity and because they bear interest at a market rate. See the Fair Value Measurements caption of Note 2 for more information on the input levels we use in determining fair value. …

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INTANGIBLE ASSETS AND GOODWILL The following table details the composition of our intangible assets at year-end 2025 and 2024: (in millions) At Year-End 2025 At Year-End 2024 Definite-lived Intangible Assets Costs incurred to obtain contracts with customers $ 2,899 $ 2,538 Acquired contracts and other 1,964 1,918 Software 1,932 792 6,795 5,248 Accumulated amortization (2,607) (1,471) 4,188 3,777 Indefinite-lived Intangible Brand Assets 6,148 5,711 $ 10,336 $ 9,488 We capitalize direct costs that we incur to obtain contracts with customers, which we amortize on a straight-line basis over the initial term of the agreements, generally ranging from 15 to 30 years. For contracts acquired in business combinations and asset acquisitions, we record a definite-lived intangible asset at the acquisition date, which is amortized on a straight-line basis over the remaining life of the contract. We capitalize costs incurred to develop internal-use software and acquire software licenses and begin amortizing these costs when the software is substantially ready for its intended use on a straight-line basis over its estimated useful life, generally ranging from two to seven years. For acquired contracts, software, and other intangible assets, we recorded amortization expense of $313 million in 2025, $255 million in 2024, and $226 million in 2023 (of which $206 million in 2025, $158 million in 2024, and $122 million in 2023 was included in the Reimbursed expenses caption of our Income Statement …

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INCOME TAXES The components of our earnings before income taxes for the last three fiscal years consisted of: (in millions) 2025 2024 2023 U.S. $ 2,021 $ 1,717 $ 2,113 Non-U.S. 1,373 1,434 1,265 $ 3,394 $ 3,151 $ 3,378 Our (provision) benefit for income taxes for the last three fiscal years consisted of: (in millions) 2025 2024 2023 Current -U.S. Federal $ (409) $ (447) $ (431) -U.S. State (70) (124) (158) -Non-U.S. (252) (282) (249) (731) (853) (838) Deferred -U.S. Federal 8 125 94 -U.S. State 4 19 16 -Non-U.S. (74) (67) 433 (62) 77 543 $ (793) $ (776) $ (295) Unrecognized Tax Benefits The following table reconciles our unrecognized tax benefit balance for each year from the beginning of 2023 to the end of 2025: (in millions) Amount Unrecognized tax benefit at beginning of 2023 $ 255 Change attributable to tax positions taken in prior years (90) Change attributable to tax positions taken during the current period 16 Decrease attributable to settlements with taxing authorities (9) Unrecognized tax benefit at year-end 2023 172 Change attributable to tax positions taken in prior years (4) Change attributable to tax positions taken during the current period 17 Decrease attributable to settlements with taxing authorities (2) Unrecognized tax benefit at year-end 2024 183 Change attributable to tax positions taken in prior years 1 Change attributable to tax positions taken during the current period 16 Decrease attributable to lapse of statute of limitations (106) Unrecognized tax b …

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LEASES We enter into operating and finance leases primarily for hotels, offices, and equipment. Most leases have initial terms of up to 20 years, and contain one or more renewals at our option, generally for five - or 10-year periods. We have generally not included these renewal periods in the lease term as it is not reasonably certain that we will exercise the renewal option. The following table details the composition of lease expense and supplemental cash flow information for 2025, 2024, and 2023: (in millions) 2025 2024 2023 Operating lease cost $ 139 $ 143 $ 155 Variable lease cost 122 122 128 Operating cash outflows for operating leases 152 154 240 Operating lease assets obtained in exchange for lease obligation 160 37 25 The following table presents our future minimum lease payments at year-end 2025: (in millions) Operating Leases Finance Leases 2026 $ 144 $ 16 2027 125 16 2028 118 17 2029 102 17 2030 96 18 Thereafter 668 60 Total minimum lease payments $ 1,253 $ 144 Less: Amount representing interest 275 24 Present value of minimum lease payments $ 978 $ 120 The following table presents the composition of our current and noncurrent lease liability at year-end 2025 and 2024: (in millions) December 31, 2025 December 31, 2024 Operating Leases Finance Leases Operating Leases Finance Leases Current (1) $ 99 $ 11 $ 104 $ 9 Noncurrent (2) 879 109 794 115 $ 978 $ 120 $ 898 $ 124 (1) Operating leases are recorded in the Accrued expenses and other and finance leases are recorde …

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LONG-TERM DEBT We provide detail on our long-term debt balances, net of discounts, premiums, and debt issuance costs, in the following table at year-end 2025 and 2024: ($ in millions) Interest Rate Effective Interest Rate Face Amount Balance as of December 31, 2025 Balance as of December 31, 2024 Senior Notes: Series P Notes, matured October 1, 2025 3.8 % 4.0 % $ 350 $ $ 349 Series R Notes, maturing June 15, 2026 3.1 % 3.3 % 750 749 749 Series V Notes, matured March 15, 2025 3.8 % 2.8 % 318 319 Series W Notes, maturing October 1, 2034 4.5 % 4.1 % 278 287 287 Series X Notes, maturing April 15, 2028 4.0 % 4.2 % 450 448 447 Series AA Notes, maturing December 1, 2028 4.7 % 4.8 % 300 299 298 Series EE Notes, matured May 1, 2025 5.8 % 6.0 % 600 599 Series FF Notes, maturing June 15, 2030 4.6 % 4.8 % 1,000 992 991 Series GG Notes, maturing October 15, 2032 3.5 % 3.7 % 1,000 990 989 Series HH Notes, maturing April 15, 2031 2.9 % 3.0 % 1,100 1,094 1,093 Series II Notes, maturing October 15, 2033 2.8 % 2.8 % 700 695 695 Series JJ Notes, maturing October 15, 2027 5.0 % 5.4 % 1,000 994 990 Series KK Notes, maturing April 15, 2029 4.9 % 5.3 % 800 790 788 Series LL Notes, maturing September 15, 2026 5.5 % 5.9 % 450 449 447 Series MM Notes, maturing October 15, 2028 5.6 % 5.9 % 700 694 693 Series NN Notes, maturing May 15, 2029 4.9 % 5.3 % 500 493 491 Series OO Notes, maturing May 15, 2034 5.3 % 5.6 % 1,000 982 980 Series PP Notes, maturing March 15, 2030 4.8 % 5.0 % 500 496 495 Series QQ N …

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New Accounting Standards Adopted Accounting Standards Update (ASU) 2023-09 - Improvements to Income Tax Disclosures (Topic 740). ASU 2023-09 requires enhanced income tax disclosures, including additional disaggregated information related to the effective tax rate reconciliation, the underlying nature and category of individual reconciling items, and income taxes paid by jurisdictions. We adopted ASU 2023-09 prospectively in the 2025 fourth quarter for the disclosures presented in Note 6. New Accounting Standards Not Yet Adopted ASU 2025-06 - Targeted Improvements to the Accounting for Internal-Use Software (Topic 350). ASU 2025-06 eliminates references to software development project stages and revises the criteria that must be met to begin capitalizing internal-use software costs. The standard permits entities to adopt the guidance using a prospective, retrospective, or modified transition approach and becomes effective for us beginning January 1, 2028, with early adoption permitted. We are currently assessing the potential impact that ASU 2025-06 will have on our financial statements and disclosures. …

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RELATED PARTY TRANSACTIONS Equity Method Investments We have equity method investments in entities that own or lease properties for which we provide management services and receive fees. In addition, in some cases we provide loans, preferred equity, or guarantees to these entities. The following table presents Income Statement data resulting from transactions with these related parties. This table does not include our Financial Statement captions with insignificant related party activity. (in millions) 2025 2024 2023 Cost reimbursement revenue $ 133 $ 131 $ 122 Reimbursed expenses (138) (135) (126) Equity in earnings 11 8 9 The carrying amount of our equity method investments was $298 million at both year-end 2025 and year-end 2024. This value exceeded our share of the book value of the investees net assets by $216 million at year-end 2025 and $223 million at year-end 2024, primarily due to the value that we assigned to land, contracts, and buildings owned by the investees. Other Related Parties We earned gross fee revenues plus reimbursement of certain expenses from franchised and managed properties in which members of the Marriott family hold varying interests. These amounts are not material to our Financial Statements. …

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BUSINESS SEGMENTS We discuss our operations in the following four reportable business segments: (1) U.S. & Canada, (2) Europe, Middle East & Africa (EMEA), (3) Greater China, and (4) Asia Pacific excluding China (APEC). Our Caribbean & Latin America (CALA) operating segment does not meet the applicable accounting criteria for separate disclosure as a reportable business segment, and as such, we include its results in Unallocated corporate and other. Our President and Chief Executive Officer, who is our chief operating decision maker (CODM), evaluates the performance of our operating segments using segment profits, which is based largely on the results of the segment without allocating corporate expenses, income taxes, indirect general and administrative expenses, or restructuring and merger-related recoveries/charges, and other expenses. We assign gains and losses, equity in earnings or losses, and direct general and administrative expenses to each of our segments. Unallocated corporate and other includes a portion of our revenues (such as fees we receive from our credit card programs and timeshare licensing agreements), revenues and expenses for our Loyalty Program, indirect general and administrative expenses, restructuring and merger-related recoveries/charges, and other expenses, equity in earnings or losses, and other gains or losses that we do not allocate to our segments, as well as results of our CALA operating segment. Our CODM uses segment profits to all …

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revenue Recognition Franchise Fee and Royalty Fee Revenue : For our franchised properties, we have a performance obligation to provide franchisees a license to our intellectual property for use of certain of our brand names. As compensation for such services, we are typically entitled to initial application fees and ongoing royalty fees. Our ongoing royalty fees represent variable consideration, as the transaction price is based on a percentage of certain revenues of the properties, as defined in each contract. We recognize royalty fees on a monthly basis over the term of the agreement as those amounts become payable. Initial application and relicensing fees are fixed consideration payable upon submission of a franchise application or renewal and are recognized on a straight-line basis over the initial or renewal term of the franchise agreements. Base Management and Incentive Management Fees : For our managed properties, we have performance obligations to provide hotel management services and a license to our intellectual property for the use of our brand names. As compensation for such services, we are generally entitled to receive base management fees, which are a percentage of the revenues of properties, and incentive management fees, which are generally based on a measure of hotel profitability. Both the base management and incentive management fees are variable consideration, as the transaction price is based on a percentage of …

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ACCUMULATED OTHER COMPREHENSIVE LOSS The following table details the accumulated other comprehensive loss activity for 2025, 2024, and 2023: (in millions) Foreign Currency Translation Adjustments Other Adjustments Accumulated Other Comprehensive Loss Balance at year-end 2022 $ (740) $ 11 $ (729) Other comprehensive income (loss) (1) 86 (4) 82 Balance at year-end 2023 $ (654) $ 7 $ (647) Other comprehensive (loss) income (1) (437) 21 (416) Balance at year-end 2024 $ (1,091) $ 28 $ (1,063) Other comprehensive income (loss) (1) 442 (21) 421 Balance at year-end 2025 $ (649) $ 7 $ (642) (1) Other comprehensive income (loss) includes intra-entity foreign currency transactions that are of a long-term investment nature, which resulted in (losses) gains of $(71) million for 2025, $30 million for 2024, and $(28) million for 2023.

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