FRANCHISE DISCLOSURE DOCUMENT MARRIOTT INTERNATIONAL, INC. a Delaware corporation MIF, L.L.C. a Delaware limited liability company 10400 Fernwood Road Bethesda, Maryland 20817 (301) 380-3000 www.marriott.com

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ITEM 19 FINANCIAL PERFORMANCE REPRESENTATIONS The FTC’s Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned or franchisor-managed hotels if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in this Item 19 may be given only if: (1) a franchisor provides the actual records of an existing hotel you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances. 1.

Certain Metrics for Smith Travel Included Franchised Hotels

As of December 31, 2013, there were 649 North American (U.S. and Canada) open and operating Residence Inn by Marriott hotels; of these, 524 were franchised. There were 473 North American franchised hotels for which Smith Travel Research, Inc. (“Smith Travel”) data was available and which, as of December 31, 2013, were open and operating as franchised Residence Inn hotels at least two years and, in the case of U.S. hotels, satisfied each of the following conditions (the “Conditions”). They did not undergo at any time during the preceding two years: (1) a rooms renovation that resulted in five percent or more of the total number of available rooms at such hotel being taken out of service for the year in which the renovation occurred; (2) a public space renovation that resulted in revenue displacement during the year in which such renovation occurred of five percent or more of the annual available room nights at the average daily rate of the most recent year prior to the renovation during which the hotel satisfied each of the Conditions; and (3) an expansion that resulted in an increase in revenues of five percent or more of the annual available room nights (before the expansion) at the average daily rate of the most recent year prior to the expansion during which the hotel satisfied each of the Conditions. Such hotels are referred to as “Smith Travel Included Franchised Hotels.” A.

Average Occupancy Rate

For the one-year period ended December 31, 2013, the Smith Travel Included Franchised Hotels achieved an average occupancy rate of 77.8%. The occupancy rate for the Smith Travel Included Franchised Hotels ranged from a high of 94.1% to a low of 55.5%. Two hundred thirty-eight of the Smith Travel Included Franchised Hotels (50%) achieved an average occupancy rate equal to or greater than 77.8%. The “average occupancy rate” is the total occupied rooms reported divided by total available rooms for the entire period. B.

Average Daily Room Rate

For the one-year period ended December 31, 2013, the Smith Travel Included Franchised Hotels achieved an average daily room rate of $124.70. The average daily room rate for the Smith Travel Included Franchised Hotels ranged from a high of $297.38 to a low of $81.35. One hundred fifty-three of the Smith Travel Included Franchised Hotels (32%) achieved an average daily room rate equal to or greater than $124.70. The “average daily room rate” is the gross room sales divided by total occupied rooms. C.

Average RevPAR

For the one-year period ended December 31, 2013, the Smith Travel Included Franchised Hotels achieved an average revenue per available room (“RevPAR”) of $97.00. The RevPAR of the Smith Travel Included Franchised Hotels ranged from a high of $277.45 to a low of $49.11. One hundred sixty-four of the Smith Travel Included Franchised Hotels (35%) achieved or exceeded the average RevPAR of $97.00. The “average RevPAR” is the gross room sales divided by total available rooms. Residence Inn 741323v6 (03/31/2014)

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D.

RevPAR Index

For the one-year period ended December 31, 2013, the Smith Travel Included Franchised Hotels achieved an average RevPAR Index of 124.2%. The RevPAR Index of the Smith Travel Included Franchised Hotels ranged from a high of 274.3% to a low of 81.0%. Two hundred thirty-seven Smith Travel Included Franchised Hotels (50%) achieved an average RevPAR Index equal to or greater than 124.2%. “RevPAR Index” measures the fair share of the amount of available revenue a hotel (or hotel brand) receives relative to its competitive set (as defined by each hotel or brand) within a given market. 2.

Reservations

During 2013, Marriott Worldwide Reservations received 1,669,952 inquiries for Residence Inn hotels worldwide through our domestic and international reservations numbers (“Voice Reservations”), which resulted in 2,102,660 gross room nights booked for Residence Inn hotels worldwide. In addition, 14,434,185 gross room nights worldwide were generated through Marriott.com, global distribution systems (“GDS”), and certain online travel agencies such as Orbitz, Travelocity, and Expedia (“OTAs”). The total number of gross room nights booked for all Residence Inn hotels worldwide through Voice Reservations, Marriott.com, GDS, and OTAs (collectively, the “Marriott Channels”) was 16,536,845, and out of that number 16,413,203 gross room nights were booked for all North American (U.S. and Canada) Residence Inn hotels. There were 473 North American franchised Residence Inn hotels that, as of December 31, 2013, were open and operating as franchised Residence Inn hotels at least two years and, in the case of U.S. hotels, satisfied each of the Conditions (the “North American Included Franchised Hotels”). During 2013, the average number of gross room nights booked through the Marriott Channels for North American Included Franchised Hotels was 23,700 gross room nights per hotel. Gross room nights for hotels ranged from 6,652 for a small North American Included Franchised Hotel with fewer than 70 rooms to 135,017 for a North American Included Franchised Hotel with more than 350 rooms. One hundred sixty-nine of the North American Included Franchised Hotels (35.7%) had more than 23,700 gross room nights booked through the Marriott Channels. As a percentage of gross room nights per hotel, the percentage booked through the Marriott Channels for North American Included Franchised Hotels in 2013 ranged from 28.9% to 87.7%, and the average percentage was 62.6%. Two hundred fifty-six of the North American Included Franchised Hotels (54.1%) had at least 62.6% of their gross room nights booked through the Marriott Channels. 3.

Marriott Rewards

All references to Marriott Rewards include both The Ritz-Carlton Rewards and the Marriott Rewards programs. Marriott Rewards has approximately 45 million members worldwide, and over 3,700 hotels and resorts in 71 countries participate in Marriott Rewards. For the one-year period ended December 31, 2013, hotel guests at North American Included Franchised Hotels who were members of Marriott Rewards generated Marriott Rewards eligible revenue that was approximately 66% of the total room night revenue at such hotels, with an average daily spend of $121. The total of all Marriott Rewards room nights for such North American Included Franchised Hotels was approximately 10,395,000, generating approximately $1,259,562,000 in room revenue, not including taxes and tips. For such North American Included Franchised Hotels, Marriott Rewards members paid for an average of 22,000 room nights. These Marriott Rewards hotel room nights ranged from 5,800 to 57,700 and 192 North American Included Franchised Hotels (41%) achieved or exceeded the average of 22,000 paid Marriott Rewards room nights. 4.

Extended-Stay Occupancy

Residence Inn hotels are designed to accommodate extended-stay travelers. For the one-year period ending December 31, 2013, the North American Included Franchised Hotels achieved an average Residence Inn 741323v6 (03/31/2014)

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extended-stay occupancy (“ESOcc”) of 42.0%. The ESOcc of the North American Included Franchised Hotels ranged from a high of 86.2% to a low of 5.6%. Two hundred twenty-four of the North American Included Franchised Hotels (47.4%) achieved or exceeded the average ESOcc of 42.0%. The average “extended-stay occupancy” is the total extended-stay rooms (defined as any stay of five or more consecutive nights) divided by total available rooms. 5.

Extended-Stay RevPAR

For the one-year period ending December 31, 2013, the North American Included Franchised Hotels achieved an average extended-stay RevPAR (“ESRevPAR”) of $50.03. The ESRevPAR of the North American Included Franchised Hotels ranged from a high of $135.26 to a low of $15.45. One hundred seventy-four of the North American Included Franchised Hotels (36.8%) achieved or exceeded the average ESRevPAR of $50.03. The average “extended-stay RevPAR” is calculated by mutiplying the “average daily room rate for extended-stay rooms” by ESOcc. The “average daily room rate for extended-stay rooms” is the gross room sales for extended-stay rooms (defined as any stay of five or more consecutive nights) divided by total occupied extended-stay rooms. 6.

Bases and Assumptions

Smith Travel, an independent research firm servicing the travel industry, compiles occupancy rate, average daily room rate, RevPAR, RevPAR Index, and other relevant information concerning the lodging industry and is used by substantially all of the major lodging companies for tracking this data. The information in this Item 19 used in calculating average occupancy rate, average daily room rate, average RevPAR, and RevPAR Index was compiled and reported by Smith Travel, and such information has not been audited or otherwise confirmed by us. The data in this Item 19 regarding reservations, Marriott Rewards, ESOcc, and ESRevPAR was not provided by Smith Travel, but instead was drawn from Marriott’s internal databases. Because of Smith Travel’s minimum competitive set reporting requirements, some hotels that are North American Included Franchised Hotels and are reflected in Marriott’s internal databases may not be included in the Smith Travel data and, as a result, would not be Smith Travel Included Franchised Hotels. These statements relate to historical performance of franchised North American Residence Inn hotels that satisfy certain criteria as detailed above and are not guarantees of future performance. The figures above were based on hotels with at least two years of operating results. Hotels typically achieve lower results in their first year of operation. We do not claim or expect that you can or will expect to achieve the same average occupancy rate, average daily room rate, average RevPAR, RevPAR Index, reservations, Marriott Rewards room nights, ESOcc, or ESRevPAR, as these figures will vary from hotel to hotel and will depend upon many variables and factors, including size, location, seasonality, competition, general economic conditions, the length of time your hotel has been open or affiliated with us, the condition and attractiveness of the hotel, the perception of your hotel by customers utilizing our distribution channels, the reputation for quality of service at the hotel, how effectively you participate in our programs and market your affiliation with us, and the efficiency with which you operate your hotel. Operating results are subject to numerous risks and uncertainties, including economic conditions, public reaction to terrorist attacks and political unrest, supply and demand changes for hotel rooms, competitive conditions in the hospitality industry, relationships with customers and property owners, and the availability of capital. YOUR RESULTS ARE LIKELY TO DIFFER SUBSTANTIALLY FROM THE DATA AND RESULTS INDICATED ABOVE AND THERE IS NO ASSURANCE YOU WILL DO AS WELL. IF YOU RELY UPON THE DATA AND RESULTS ABOVE, YOU MUST ACCEPT THE RISK OF NOT DOING AS WELL. We will provide you with written substantiation of the data used in preparing this Item 19 upon your reasonable request. The information described above that was provided to us by third parties has not Residence Inn 741323v6 (03/31/2014)

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been audited or otherwise verified by us. We are under no obligation to disclose specific information for a particular hotel in the system. Other than the preceding financial performance representation, we do not make any financial performance representations. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor’s management by contacting Eric Jacobs, 10400 Fernwood Road, Bethesda, MD, 20817 (301) 380-3488, the Federal Trade Commission, and the appropriate state regulatory agencies.

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