What changed in this filing

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Item 1. Business

2024-02-13 compared with 2023-02-14 · 103 added, 103 removed, 171 unchanged (55% of the section changed)

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The following table shows our portfolio of brands at year-end 2023.

We discuss our operations in the following two operating segments, both of which meet the applicable accounting criteria for separate disclosure as a reportable business segment:

We discuss our operations in the following two operating segments, both of which meet the applicable criteria for separate disclosure as a reportable business segment:

& Canada and (2) International.

See Note 14 for more information.

In January 2024, we modified our 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, we will report the following four operating segments:

& Canada, (2) Europe, Middle East, and Africa, (3) Asia Pacific excluding China, and (4) Greater China.

Our Caribbean and Latin America operating segment will not meet the applicable criteria for separate disclosure as a reportable business segment, and as such, we will include its results in “Unallocated corporate and other.” See Note 14 for more information.

Company-Operated Properties

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Our lease agreements also vary, but may include fixed annual rentals plus additional rentals based on a specified percentage of annual revenues that exceed a fixed amount.

Many of our Operating Agreements are subordinated to mortgages or other liens securing indebtedness of the owners.

In many jurisdictions, our Operating Agreements may be subordinated to mortgages or other liens securing indebtedness of the owners.

Many of our Operating Agreements also permit the owners to terminate the agreement if we do not meet certain performance metrics, financial returns fail to meet defined levels for a period of time, and we have not cured those deficiencies.

In certain circumstances, some of our management agreements allow owners to convert company-operated properties to franchised properties under our brands.

For the lodging facilities we operate, we generally are responsible for hiring, training, and supervising the managers and employees needed to operate the facilities and for purchasing supplies, and owners are required to reimburse us for those costs.

For the lodging properties we operate, we generally are responsible for hiring, training, and supervising the employees needed to operate the properties and for incurring operational and administrative costs related to the operation of the properties, and owners are required to reimburse us for those costs.

We provide centralized programs and services, such as our Marriott Bonvoy loyalty program, reservations, and marketing, as well as various accounting and data processing services, and owners are required to reimburse us for those costs as well.

Franchised and Licensed Properties

We have franchising and licensing arrangements that permit hotel owners and operators to use many of our lodging brand names and systems.

Under our hotel franchising arrangements, we generally receive an initial application fee and continuing royalty fees, which typically range from four to seven percent of room revenues for all brands, plus two to three percent of food and beverage revenues for certain full-service brands.

We have franchising and licensing arrangements that permit property owners and operators to use many of our lodging brand names and systems.

Under our hotel franchising arrangements, we generally receive 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 our centralized programs and services, such as our Marriott Bonvoy loyalty program, reservations, and marketing.

We also receive royalty fees under license agreements with Marriott Vacations Worldwide Corporation, our former timeshare subsidiary that we spun off in 2011, and its affiliates (collectively, “MVW”), for certain brands, including Marriott Vacation Club, Grand Residences by Marriott, The Ritz-Carlton Destination Club, Westin, Sheraton, and for certain existing properties, St.

Regis and The Luxury Collection.

We receive license fees from MVW consisting of a fixed annual fee, adjusted for inflation, plus certain variable fees based on sales volumes.

Finally, we receive royalty fees under agreements for The Ritz-Carlton Yacht Collection ® , which first set sail in 2022, combining the luxury lifestyle of The Ritz-Carlton with a yachting experience.

The license fees we receive from MVW consist of a fixed annual fee, adjusted for inflation, plus certain variable fees based on sales volumes.

Finally, we receive royalty fees under agreements for The Ritz-Carlton Yacht Collection ® .

At year-end 2023, we had 6,563 franchised and licensed properties (994,354 rooms and timeshare units).

We use or license our trademarks for the sale of residential real estate, often in conjunction with hotel development, and receive branding fees for sales of such branded residential real estate by others.

Third-party owners typically construct and sell residences with limited amounts, if any, of our capital at risk.

We have used or licensed the JW Marriott, The Ritz-Carlton, Ritz-Carlton Reserve, W, The Luxury Collection, St.

Regis, EDITION, Bvlgari, Renaissance, Le Méridien, Marriott, Sheraton, Westin, Four Points, Delta Hotels by Marriott, Autograph Collection, and Tribute Portfolio brand names and trademarks for residential real estate sales.

At year-end 2022, we had 113 branded residential communities (11,481 residential units), for which we typically manage the related homeowners’ associations.

We use or license certain of our trademarks for the sale of residential real estate, often in conjunction with hotel development.

We receive 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 our capital at risk.

We also typically receive continuing management fees for managing the related homeowners’ association.

At year-end 2023, we had 126 branded residential communities (13,948 residential units).

Intellectual Property

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Our brands are categorized by style of offering - Classic and Distinctive.

Our Classic brands offer time-honored hospitality for the modern traveler, and our Distinctive brands offer memorable experiences with a unique perspective - each of which we group into three quality tiers:

Luxury, Premium, and Select.

Luxury, Premium, Select, and Midscale.

Luxury offers bespoke and superb amenities and services.

Our Classic Luxury hotel brands include JW Marriott, The Ritz-Carlton, and St.

Distinctive Luxury hotel brands in our portfolio include W Hotels, The Luxury Collection, EDITION, and Bvlgari.

Our Classic Luxury brands include JW Marriott, The Ritz-Carlton, and St.

Distinctive Luxury brands in our portfolio include The Luxury Collection, W Hotels, EDITION, and Bvlgari.

Premium offers sophisticated and thoughtful amenities and services.

Our Classic Premium hotel brands include Marriott Hotels, Sheraton, Delta Hotels by Marriott, Marriott Executive Apartments, and Marriott Vacation Club.

Our Distinctive Premium hotel brands include Westin, Renaissance Hotels, Le Méridien, Autograph Collection Hotels, Gaylord Hotels, Tribute Portfolio, and Design Hotels.

Our Classic Premium brands include Marriott Hotels, Sheraton, Delta Hotels by Marriott, Marriott Executive Apartments, and Marriott Vacation Club.

Our Distinctive Premium brands include Westin, Autograph Collection Hotels, Renaissance Hotels, Le Méridien, Tribute Portfolio, Gaylord Hotels, Design Hotels, and Apartments by Marriott Bonvoy.

Select offers smart and easy amenities and services, with our longer stay brands offering amenities that mirror the comforts of home.

Our Classic Select hotel brands include Courtyard, Residence Inn, Fairfield, SpringHill Suites, Four Points, TownePlace Suites, and Protea Hotels.

Our Distinctive Select hotel brands include Aloft Hotels, AC Hotels by Marriott, Element Hotels, and Moxy Hotels.

Our Classic Select hotel brands include Courtyard, Fairfield, Residence Inn, SpringHill Suites, Four Points, TownePlace Suites, and Protea Hotels.

Our 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.

Our 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 .

The following table shows the geographic distribution of our brands at year-end 2023:

Europe Middle East & Africa Asia Pacific Caribbean & Latin America Total

Europe Middle East & Africa Asia Pacific Excluding China Greater China

Caribbean & Latin America Total

JW Marriott ®

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Rooms 12,787 2,703 3,979 4,544 5,159 2,007 31,179

The Luxury Collection ®

Properties 17 40 13 28 5 10 113

Rooms 5,408 5,756 2,493 6,822 1,488 1,461 23,428

The Luxury Collection ® (1)

Properties 25 10 7 11 11 7 71

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Rooms 54,820 5,787 2,030 10,813 10,360 4,347 88,157

Autograph Collection ®

Properties 153 77 15 19 3 37 304

Rooms 31,321 10,010 2,402 4,277 426 12,448 60,884

Renaissance ® Hotels

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Rooms 5,489 5,156 6,841 7,756 5,225 562 31,029

Autograph Collection ® Hotels (1)

Delta Hotels by Marriott ® (Delta Hotels ® )

Properties 92 31 6 — 4 2 135

Rooms 21,730 5,446 1,443 — 1,529 366 30,514

Delta Hotels by Marriott ® (Delta Hotels ® )

Tribute Portfolio ®

Properties 66 25 5 11 4 7 118

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Rooms 10,220 — — — — — 10,220

Marriott Executive Apartments ®

Design Hotels ®

Properties 11 65 8 6 4 17 111

Rooms 1,605 4,782 750 389 783 393 8,702

Tribute Portfolio ® (1)

Marriott Executive Apartments ®

Properties — 3 13 9 11 2 38

Rooms — 212 1,841 1,297 1,735 240 5,325

Design Hotels ®

Apartments by Marriott Bonvoy TM

Properties — — — — — 1 1

Rooms — — — — — 107 107

& Canada Europe Middle East & Africa Asia Pacific Caribbean & Latin America Total

& Canada Europe Middle East & Africa Asia Pacific Excluding China Greater China Caribbean & Latin America Total

Courtyard by Marriott ® (Courtyard ® )

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Rooms 147,091 13,984 2,304 12,107 13,865 7,609 196,960

Residence Inn by Marriott ® (Residence Inn ® )

Fairfield by Marriott ® (Fairfield ® )

Properties 1,153 — — 71 48 18 1,290

Rooms 109,445 — — 9,527 7,834 2,576 129,382

Fairfield by Marriott ® (Fairfield ® )

Residence Inn by Marriott ® (Residence Inn ® )

Properties 861 27 7 — — 8 903

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Rooms 19,386 12,529 286 1,775 135 2,867 36,978

Protea Hotels ® by Marriott (Protea Hotels ® )

Moxy ® Hotels

Properties 35 87 — 8 8 — 138

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Rooms 11,522 160 1,189 572 1,151 — 14,594

Moxy ® Hotels

Protea Hotels ® by Marriott

Properties — 1 62 — — — 63

Rooms — 72 6,539 — — — 6,611

City Express by Marriott TM

Properties — — — — — 150 150

Rooms — — — — — 17,431 17,431

Residences Properties 69 11 14 17 2 13 126

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Total Rooms 1,597,380

(1) Includes properties acquired when we purchased Elegant Hotels Group plc in December 2019, which we currently intend to re-brand under the following brands after the completion of planned renovations:

The Luxury Collection (one property), Autograph Collection Hotels (four properties), and Tribute Portfolio (two properties).

(1) We exclude geographical data for Timeshare and Yacht as these offerings are captured within “Unallocated corporate and other.”

In the above table, The Luxury Collection, Autograph Collection, and Tribute Portfolio include seven total properties that we acquired when we purchased Elegant Hotels Group plc in December 2019, which we currently intend to re-brand under such brands after the completion of planned renovations.

Loyalty and Credit Card Programs

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Members can earn points for stays at our hotels and other lodging offerings, such as Homes & Villas by Marriott Bonvoy TM , a global offering focusing on the premium and luxury tiers of rental homes, as well as through purchases with co-branded credit cards and our travel partners.

Members can redeem their points for stays at most of our 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 TM .

We refer to our Marriott Bonvoy loyalty program throughout this report as “Marriott Bonvoy” or our “Loyalty Program.”

We believe that Marriott Bonvoy generates substantial repeat business that might otherwise go to competing hotels.

In 2022, over half of our global room nights were booked by Marriott Bonvoy members.

In 2023, over 60% of our global room nights were booked by Marriott Bonvoy members.

We strategically market to this large and growing guest base to generate revenue.

See the “Loyalty Program” caption in Note 2 for more information.

We have co-branded credit cards associated with Marriott Bonvoy in nine countries.

We have co-branded credit cards associated with Marriott Bonvoy in 11 countries.

In the U.S., we have multi-year agreements with JPMorgan Chase and American Express.

We also license credit card programs internationally, including in Japan, Canada, the United Kingdom, United Arab Emirates, Saudi Arabia, South Korea, Mexico, and China.

We also license credit card programs internationally in Japan, Canada, the United Kingdom, United Arab Emirates, Saudi Arabia, South Korea, Mexico, China, India, and Qatar.

We generally earn fixed amounts that are payable at contract inception and variable amounts that are paid to us monthly over the term of the agreements primarily based on card usage.

We believe that our co-branded credit cards contribute to the success of Marriott Bonvoy and reflect the quality and value of our portfolio of brands.

We believe that our co-branded credit cards create a diverse revenue stream for the Company, reflect the quality and value of our portfolio of brands, and contribute to the strength of Marriott Bonvoy by creating value for our customers and property owners and franchisees.

Payments received under our co-branded credit card agreements represent a significant funding source for the Loyalty Program.

See the “Loyalty Program” caption in Note 2 for more information about our Loyalty Program and co-branded credit cards.

Sales and Marketing and Reservation Systems

Marriott.com, our international websites, and our mobile application allow for a seamless booking experience and easy enrollment in Marriott Bonvoy to book our exclusive Member Rates and participate in program benefits.

Our Best Rate Guarantee ensures best rate integrity, strengthening consumer confidence in our brand and giving guests access to the best rates when they book hotel rooms through our direct channels.

We remain focused on creating digital experiences that better connect our customers to travel, namely through our mobile application, which offers contactless check-in and check-out, chat, service requests, mobile key, and more.

Our digital strategy remains focused on growing customer engagement via these elevated digital experiences to drive bookings to our direct channels, which generally deliver more profitable business to hotels in our system compared to bookings made through intermediary channels.

We aim to create frictionless digital experiences for our guests, from inspiration to stay, to generate superior guest satisfaction and grow our loyal customer base.

In addition, we are focused on driving digital engagement and direct bookings through improved search engine optimization, merchandising placements, increased destination-based content for leisure travelers, and additional language availability across our digital channels.

At year-end 2022, we operated 20 customer care and reservation centers, seven in the U.S.

Marriott.com, the Marriott Bonvoy mobile app, and our other digital direct channels offer seamless digital experiences that complement the experience our customers enjoy at Marriott’s extensive portfolio of properties.

We deliver customer-minded enhancements, including powerful in-stay capabilities through our mobile app, such as contactless check-in and check-out, Mobile Key, chat, service requests, mobile dining, and more.

In addition, we are focused on strengthening the Loyalty Program by attracting more members and localizing our experiences to reach new customers around the world.

Our focus on creating frictionless experiences throughout our digital direct channels is foundational to our long-term digital and technology transformation, which aims to grow our loyal customer base and drive more direct bookings and more business to our hotels.

At year-end 2023, we operated 19 customer engagement centers, seven in the U.S.

and 12 in other countries and territories.

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We believe our global sales and revenue management organizations are a key competitive advantage due to our focus on optimizing our investment in people, processes, and systems.

Our above-property sales deployment strategy aligns our sales efforts around how the customer wants to buy, reducing duplication of efforts by individual hotels and allowing us to cover a larger number of accounts.

Our above-property sales deployment strategy is designed around the way the customer wants to buy and the strategic priorities of our hotels globally.

Our strategy is focused on driving efficiencies, profitable revenue, and customer loyalty by leveraging customer relationships and reducing duplication of efforts at the hotel level.

We also utilize innovative and sophisticated revenue management systems, many of which are proprietary, which we believe provide a competitive advantage in pricing decisions, increasing efficiency and optimizing property-level revenue for hotels in our portfolio.

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We compete for guests in many areas, including brand recognition and reputation, location, guest satisfaction, room rates, quality of service, amenities, quality of accommodations, safety and security, and the ability to earn and redeem loyalty program points.

Our direct digital channels also compete for guests with large companies that offer online travel services as part of their business model, such as Expedia.com, Priceline.com, Booking.com, Travelocity.com, and Orbitz.com and search engines such as Google, Bing, Yahoo, and Baidu.

Our 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.

Affiliation with a brand is common in the U.S.

lodging industry, and we believe that our strong brand recognition assists us in attracting and retaining guests, owners, and franchisees.

lodging industry.

In 2023, approximately 72 percent of U.S.

hotel rooms were brand-affiliated.

Most of the branded properties in the U.S.

are franchises, under which the owner pays the franchisor a fee for use of its brand name and reservation system.

In the franchising business, we face many competitors that have strong brands and guest appeal, including Hilton, IHG Hotels & Resorts, Hyatt, Wyndham Hotels & Resorts, Accor, Choice Hotels, Best Western Hotels & Resorts, and others.

Although we believe that our strong brand recognition assists us in attracting and retaining guests, owners, and franchisees, we compete 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.

Outside the U.S., branding is less prevalent, and many markets are served primarily by independent operators, although branding is more common for new hotel development compared to the past.

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(based on number of rooms).

We believe that our hotel brands are attractive to hotel owners seeking a management company or franchise affiliation because our hotels typically generate higher RevPAR than our

direct competitors in most market areas.

We believe that our hotel brands are attractive to hotel owners seeking a management company or franchise or other licensing affiliation because our hotels typically generate higher RevPAR than our direct competitors in most market areas.

We attribute this performance premium to our success in achieving and maintaining strong guest preference.

We believe that the location and quality of our lodging facilities, our marketing programs, our reservation systems, Marriott Bonvoy, and our emphasis on guest service and guest and associate satisfaction contribute to guest preference across all our brands.

In general, business at company-operated and franchised properties fluctuates moderately with the seasons.

We believe that the location and quality of our lodging facilities, our marketing programs, our reservation systems, our Loyalty Program, and our emphasis on guest service and guest and associate satisfaction contribute to guest preference across all our brands.

In general, business at our properties fluctuates moderately with the seasons.

Business at some resort properties may be more seasonal depending on location.

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Marriott’s long history of service, innovation, and growth is built on a culture of putting people first.

We are committed to investing in our associates, with a focus on leadership development, recognition, compensation, career opportunity, and skills training.

Over the past several years, we faced a number of staffing challenges, including the continuing impact of the COVID-19 pandemic, evolving work environment, and competitive talent landscape.

To address these challenges, we are focused on our talent attraction and retention strategies and reinforcing our culture to position us for future growth.

We are committed to investing in our associates , with a focus on leadership development, competitive compensation, and creating a sense of well-being and belonging for all.

At year-end 2023, Marriott managed the employment of approximately 411,000 associates.

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These numbers do not include hotel personnel employed by our franchisees or management companies hired by our franchisees.

Marriott encourages our independent franchisees to develop responsible human capital management practices.

Marriott is committed to conducting its business in accordance with high ethical and legal standards and expects our independent franchisees to develop responsible human capital management practices.

We are focused on maintaining Marriott’s position as an employer of choice both for job seekers and our existing associates.

To attract talent, we are targeting new labor pools, optimizing our recruiting practices, and sharing our story of long-term career potential.

With the opening of our new global headquarters in Bethesda, Maryland, we adopted a hybrid work model to allow for increased flexibility and choice, to meet the evolving needs of our corporate workforce.

For hotel-based associates, we are innovating the way hotel jobs are structured with the goal of increasing associate satisfaction and providing better service for our guests.

We encourage continual feedback discussions with our associates at all levels, and measure associate satisfaction through our Associate Engagement Survey, which gives all associates the opportunity to provide feedback about their work experience, providing us with valuable insights to drive improvements in our culture.

Our associate engagement scores exceeded the “Best Employer” external benchmark in 2022, as they have in 10 prior years, and we were recognized as one of the Fortune Best Companies to Work for in 2022 for the 25th consecutive year.

At our headquarters in Bethesda, Maryland, we utilize a hybrid work model to allow for flexibility and choice to meet the needs of our corporate workforce.

For hotel-based associates, we are innovating the way hotel jobs are structured, introducing more flexibility and choice through our integrated jobs program, which allows associates to have more cross-training and engaging roles.

We encourage continual feedback from our associates at all levels.

We measure associate satisfaction through our Associate Engagement Survey, which gives all associates the opportunity to provide feedback about their work experience, providing valuable insights to drive improvements in our culture.

Our associate engagement scores exceeded the “Best Employer” external benchmark in 2023, and we were recognized as a top 10 company on the Fortune Best Companies to Work for in 2023, a list we have been on for 26 consecutive years.

Our human capital strategy is based on three signature elements – Growing Great Leaders, Investing in Associates, and Access to Opportunity.

Growing Great Leaders

We believe that all associates, at every level, can inspire others through great leadership.

Our framework is designed to help us grow great leaders and starts with competencies that clearly define what great leadership means at Marriott.

These competencies have been integrated into our performance management process and leadership development programs.

Our talent development strategy is designed to provide opportunities for our associates to develop and grow their careers.

It includes a variety of skills training, professional development, and other learning opportunities.

Our Leadership Performance Acceleration program encourages managers and associates to have regular career and development conversations in order to provide actionable feedback and to help associates set and achieve career goals.

These programs and opportunities provide associates with career development and personal growth options and support our leadership development culture.

We believe that associates at every level can inspire others through great leadership.

In 2023, we launched our new Leadership Framework, designed to help us grow great leaders.

It starts with leadership essentials that clearly define what great leadership means at Marriott, at all levels of the organization.

We have also refreshed our leadership competencies, which have been integrated into our performance management process and leadership development programs.

Our talent development strategy is designed to provide opportunities for our associates to develop and grow their careers with Marriott for the long term while driving the performance of our business.

Investing in Associates

We are focused on providing our associates with the tools, resources, and support they need to thrive – both personally and professionally.

We have comprehensive compensation and benefits offerings designed to invest in our associates, and we regularly evaluate these programs for competitiveness against the external talent market.

In addition, pay equity is foundational

to our compensation structures and practices.

In the U.S., we conduct pay equity audits at least annually and make adjustments as needed.

We provide our eligible U.S.

associates and their families with access to health care coverage, work/life support benefits, as well as other benefits, such as a retirement savings plan, employee stock purchase plan, paid time off, paid parental leave, and financial assistance to help with adoption fees.

Outside the U.S., we also offer comprehensive compensation and benefit programs that vary based on the geographic market.

Our TakeCare program provides associates with tools and resources to support their physical, mental, and financial wellbeing.

associates and their families with access to comprehensive compensation and benefits offerings, such as health care coverage, work/life support benefits, and other offerings, such as a retirement savings and employee stock purchase plan.

Outside the U.S., we also offer comprehensive compensation and benefit programs that vary based on the geographic market and we regularly evaluate these programs for competitiveness against the external talent market.

Our TakeCare program provides associates with tools and resources to support their physical, mental, and financial

In addition, pay equity is foundational to our compensation structures and practices.

In the U.S., we conduct pay equity audits at least annually and make adjustments as needed.

Access to Opportunity

Our company-wide diversity, equity, and inclusion (“DEI”) efforts include a range of initiatives and programs to support our goal to make all stakeholders (including associates, guests, owners, and suppliers) feel welcome and valued.

The Inclusion and Social Impact Committee of our Board of Directors (the “ISI Committee”), established 20 years ago, helps drive accountability for these efforts across the Company.

The ISI Committee assists the Board in providing oversight of the Company’s strategy, efforts, and commitments related to its people-first culture, associate well-being, inclusion, and other environmental, social and governance (“ESG”) matters.

As part of our efforts to continue to diversify our senior leadership, we have established a goal to achieve global gender parity at the Vice President level and above by the end of 2023.

We also have established an objective to increase the representation of people of color at the Vice President level and above in the U.S.

to twenty-five percent by year-end 2025.

To better meet the needs of our diverse and changing workforce, we are continuing to evolve our hospitality jobs through workforce innovation.

As part of this effort, we are blending certain hotel jobs to enhance the employment experience for our associates as well as providing scheduling flexibility.

Our company-wide diversity, equity, and inclusion efforts include a range of initiatives and programs to support our goal to make all stakeholders (including associates, guests, owners, and suppliers) feel welcome and valued.

The Inclusion and Social Impact Committee (“ISIC”) of our Board of Directors (“Board”), established over 20 years ago, helps drive accountability for these efforts across the Company.

The ISIC assists the Board in providing oversight of the Company’s strategy, efforts, and commitments related to our people-first culture, associate well-being, inclusion, and other environmental, social and governance matters.

Sustainability and Social Impact

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These targets reflect our goals to (1) support the resiliency and sustainable development of the communities and environments where we do business, (2) work to reduce our environmental impacts, design and operate sustainable hotels, and source responsibly, while mitigating climate-related risk, (3) facilitate workplace readiness and access to opportunity in our business, and (4) create a safe, welcoming world, including by working with organizations to educate and advocate on issues related to human rights throughout and beyond our business.

Although the COVID-19 pandemic and certain other factors have impacted our progress in some areas, we remain focused on advancing our sustainability and social impact goals and initiatives.

Our climate action efforts include committing to set a near-term science-based emissions reduction target (“SBT”) and set a long-term science-based target to reach net-zero value chain greenhouse gas (“GHG”) emissions by no later than 2050.

We are currently preparing our SBT and net-zero targets for submission and developing longer-term strategies to support those targets.

Our sustainability strategy and initiatives focus on a wide range of issues, including designing resource-efficient hotels, implementing technologies to track and reduce energy and water consumption, as well as waste and food waste, increasing the use of renewable energy, managing climate and water-related risks, driving third-party certifications at the hotel-level, supporting innovative ecosystem restoration initiatives, and focusing on responsible and local sourcing.

Our sustainability strategy and initiatives focus on a wide range of issues, including designing resource-efficient hotels, implementing technologies to track and reduce energy and water consumption, as well as waste and food waste, increasing the use of renewable energy, managing water-related risks, focusing on third-party sustainability certifications at the hotel-level, supporting innovative ecosystem restoration initiatives, focusing on responsible and local sourcing, and driving climate action.

Our climate action efforts include committing to set a near-term science-based emissions reduction target and a long-term science-based target to reach net-zero value chain greenhouse gas emissions by no later than 2050.

In September 2023, we submitted our emissions reduction targets to the Science Based Targets initiative and are awaiting validation of the targets, which we expect later in 2024.

In response to humanitarian crises, like war and natural disasters, our hotels often look to support their local communities in need by donating funds, hotel stays, food, supplies, and volunteer hours.

We also deploy our Marriott Disaster Relief Fund to support associates and their families impacted by crises, such as the war in Ukraine, as well as charitable organizations providing relief on the ground.

In 2022, to further our human rights efforts, we reached the milestone of training one million associates in human trafficking awareness, a major step toward our goal to train 100 percent of on-property associates by 2025.

Additionally, in collaboration with leading anti-trafficking and hospitality organizations, we donated our recently updated training to the lodging industry and made it available to other individuals and organizations outside the industry, such as travelers and non-profit organizations.

We also deploy our Marriott Disaster Relief Fund to support associates and their families impacted by crises, such as the earthquakes in Türkiye and Syria and fires in Maui, as well as charitable organizations providing relief on the ground.

We also continue to focus on our efforts to advance human rights, and we have trained 1.2 million associates in human trafficking awareness between 2016 and year-end 2023.

We have also donated our training program to the broader lodging industry, and the training has been completed 1.6 million times by non-Marriott individuals between 2020 and year-end 2023.

Additionally, in 2023, Marriott became a member of the Internet Watch Foundation and deployed technology to block websites with illegal child sexual abuse material from guest network access in most of its U.S.

& Canada hotels.

Government Regulations

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Some of the regulations that most affect us include those related to employment practices;

environment, health, and safety;

marketing and advertising efforts;

trade and economic sanctions;

anti-bribery and anti-corruption;

cybersecurity;

data privacy, data localization, and the handling of personally identifiable information;

the offer and sale of franchises;

and liquor sales.

anti-bribery, anti-corruption, and anti-money laundering;

intellectual property;

cybersecurity, data privacy, data localization, data transfers, and the handling of personally identifiable information;

climate and the environment;

health and safety;

liquor sales;

and the offer and sale of franchises.

Internet Address and Company SEC Filings

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business