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TOWNEPLACE SUITES BY MARRIOTT® franchise performance*

TownePlace Suites by Marriott is designed to appeal to extended-stay travelers Average Occupancy: 75.4% who want to feel at home and stay productive. Featuring compelling economics and strong performance in Average Daily Rate (ADR), Occupancy, and Extended Average Extended Stay Occupancy: 38.7% Stay Occupancy, the brand also appeals to owners, franchisees and investors Average Daily Room Rate: $109.40 looking for an excellent growth opportunity. Backed by Marriott’s robust demand generation engines and featuring the best Extended Stay sales tool in the industry, Average RevPAR: $82.45 TownePlace Suites® is primed to perform. Average Extended Stay RevPAR: $41.48 The current prototype design offers guests extraordinary value and features modern spacious suites with full kitchens, larger public spaces and a complimentary hot Average RevPAR Index: 110.2 breakfast. The décor expresses today’s design trends with an emphasis on comfort and creating a sense of well-being. TownePlace Suites also features innovative partnerships with powerful brands like elfa® closets from The Container Store® and Loyal Customer Base: Weber® grills, creating unique opportunities to spark interest and drive demand. Marriott Rewards® Member Paid Nights represent 55.9% of total TownePlace Suites Nights With many superior development opportunities available in the U.S. and Canada, and the newly designed, flexible prototype that easily adapts to markets ranging Lower Cost Bookings: from cities to airports to suburbs, TownePlace Suites is ready to grow with you. Marriott’s channels generate 65.9% of TownePlace Suites’ reservations

KEY COMPETITORS: , , $ competitive fee structure*

DISTRIBUTION (Q1 2018) Application Fee: The greater of $50,000 or $400 With 345 locations and 220 projects in the pipeline, TownePlace Suites continues to per suite identify urban, secondary and tertiary markets throughout the U.S. and Canada. Royalty Fee: 5.5% of Gross Room Sales

Marketing Fund Fee: 2% of Gross Room Sales U.S. AND CANADA (Units / Rooms) Open: 345 / 34,968 optimized cost plan* Pipeline: 220 / 22,565 80 – 110 keys Average Cost Per Key: $92,000– $150,000

120 – 150 keys Average Cost Per Key: $89,000 – $143,000 recent openings

TownePlace Suites Hays, KS TownePlace Suites New Orleans Downtown/Canal Street, LA Opened March 2018 Opened March 2018 *2018 TownePlace Suites Franchise Disclosure Document. For all other costs and fees, refer to the FDD. TOWNEPLACE SUITES PROTO MODEL ATTRIBUTES

the hub • The redesigned lobby offers expansive public space with soft seating and areas to collaborate and enjoy meals.

• The lobby décor package, TurningPointS 2.0, provides warm colors and upgraded wood features.

• The Welcome Desk offers a quick check-in process and features the TowneMap® which provides a snapshot of the neighborhood and local recommendations.

• In A Pinch®, the 24/7 convenience market provides “grab and go” food offerings.

• On Us, a designated space in the lobby offers complimentary coffee and tea.

• The PC Connection Center provides a computer terminal and printer, allowing guests to print boarding passes and connect to the internet.

• A separate seating area and buffet, Morning Break, offers complimentary hot breakfast daily.

the guest suite • Flexible plans are available for studio and one bedroom suites which all have fully equipped kitchens and living areas.

• The HomeOffice features intuitive workspace with storage options and a pull-out table to work where you choose.

• The elfa® closet system, designed in partnership with The Container Store® offers guests a custom closet loaded with storage options and flexibility.

• A residential glass enclosed walk-in shower is available.

other amenities • An expanded GetFit exercise room and pool allows guests to stay in shape.

• An exclusive partnership with Weber® features grills in the front BBQ patio along with Weber® tools and spices.

• On site guest laundry offers an added convenience for extended stay guests.

• Scalable meeting space options to meet the demands of your market.

BRANDS. LOYALTY. PARTNERSHIPS. RESULTS. MADE HERE. VISIT MARRIOTTDEVELOPMENT.COM OR CALL: 301.380.3200

TOWNEPLACE SUITES FRANCHISE DISCLOSURE: The data above reflects the performance of all 253 franchised TownePlace Suites by Marriott open and operating in North America for 24 months as of December 31, 2017, for which Smith Travel Research, Inc. has data and which did not undergo material renovations or expansions during the 24 months preceding December 31, 2017. Of the 253 TownePlace Suites hotels, 144 (56.9%) achieved an average occupancy rate equal to or greater than 75.4%; 94 (37.2%) achieved an average daily room rate equal to or greater than $109.40; 105 (41.5%) achieved or exceeded the average RevPAR of $82.45; and 118 (46.6%) achieved an average RevPAR Index equal to or greater than 110.2. For the 254 N.A. Included Franchised Hotels that represent the one-year period ended December 31, 2017; 123 (48.4%) achieved or exceeded the average ESOcc of 38.7%; and 106 (41.7%) achieved or exceeded the average ESRevPAR of $41.48. There were 254 franchised TownePlace Suites by Marriott hotels open and operating in North America for at least two years as of December 31, 2017, and did not undergo any material renovations during that time. Of the 254 TownePlace Suites hotels, 140 (55.1%) had at least 65.9% of their gross room nights booked through the Marriott Channels; and 129 (50.8%) achieved or exceeded the average percentage of Marriott Rewards contribution to Occupancy of 55.9%. There is no assurance that you will do as well. OFFER AND SALE BY PROSPECTUS ONLY. See Item 19 of our Franchise Disclosure Document dated March 31, 2018, for additional details.