AC Hotel Cleveland Beachwood, OH ® AC HOTELS BY MARRIOTT $ COMPETITIVE FEE STRUCTURE* AC Hotels by Marriott celebrates the beauty of classic modern design with its European soul and Spanish roots, born from the entrepreneurial spirit of renowned Application Fee: The greater of $75,000 or $500 hotelier Antonio Catalan. In 2011, AC Hotels and Marriott International formed a joint per guest room venture, leveraging the unique style and design of these upscale urban-inspired hotels with the portfolio and distribution power of Marriott International. Royalty Fee: 5.5% of Gross Room Sales The brand offers concept-driven, turn-key customization of guest room and public Marketing Fund Fee: 2.5% of Gross Room Sales space design. A kit of parts approach ensures delivery of the AC’s differentiated experience that keeps guest coming back for more, while also making it easy for owners and franchisees to flexibly address the needs of their specific market, financial OPTIMIZED COST PLAN* model and site plan. 100 –150 keys With over 140 hotels across Europe and North and Latin America, AC Hotels is Average Cost Per Key: $108,000 – $190,000 designed for modern travelers with an entrepreneurial mindset - they see travel as a way to collect knowledge and inspiration, as they value genuine connections to people, experiences, and ideas that excite them. The special tools and support owners and 151 – 200 keys franchisees receive around talent recruiting and training, service standards, and local Average Cost Per Key: $108,000 – $175,000 marketing and PR positions them to take advantage of this brand’s unique chemistry and seamlessly grow their hotel business around the world. *2018 AC Hotels by Marriott Franchise Disclosure KEY COMPETITORS Document. For all other costs and fees, refer to the FDD. Hotel Indigo, Canopy by Hilton, Kimpton, Public, Joie de Vivre, independent boutique hotels DISTRIBUTION (Q3 2018) With 140 open hotels (46 in the U.S.) and a strong pipeline of over 85 approved and under construction properties (64 in the U.S. and Canada), the brand continues to grow into major travel markets. U.S. AND CANADA (Units / Rooms) Open: 46 / 7,830 Pipeline: 64 / 10,301 GLOBAL (Units / Rooms) Open: 140 / 19,800 Pipeline: 87 / 14,894 RECENT OPENINGS AC Hotel Marriott New York Downtown, NY AC Hotel Pittsburgh Downtown, PA Opened October 2018 Opened July 2018 AC HOTELS DESIGN ATTRIBUTES PUBLIC SPACE • The public spaces are never prototypical; each space is considered and designed holistically. A cohesive design language is created with a combination of modern, premium materials and textures with the use of wood, metal, ceramic, fabric, steel and glass. • The AC LoungeSM, an area for guests to relax in a comfortable yet modern space while enjoying elegant design, offers perfectly made cocktails, wines and beers, and a thoughtfully curated menu of small bites ordered at the AC Bar. • The AC Kitchen, a multi-functional space with the look of a high-end residential kitchen, offers a European-Style breakfast with fresh baked goods, artisan cured meats and fresh coffee. The space is designed to facilitate the breakfast service and transform to a multi-functional table to accommodate coffee service, wine & cheese tastings and other special culinary events. AC Hotel Portland Downtown, OR • The AC Library is incorporated within the public space, and provides a location for guests to work and collaborate. A integrated computer station and printer provides guests with standard business center amenities having a more upscale feel. • The AC Media Salon features Haworth Workware digital collaboration technology, combined with modern furniture and ample amounts of workspace that can be acquired in short-order by the guest for impromptu meetings. • The AC Meeting Room offers modern materials and customizable lighting giving the feel of a corporate boardroom. • The AC Fitness room combines rich materials, unique artwork and purposeful lighting to give the feel of a high-end health club. • The AC Store offers an upscale product assortment with retail-inspired shelving and features interesting local products. AC Hotel Phoenix Tempe/Downtown, AZ GUEST ROOM AND BATHROOM • The guest room layout is meticulously planned; materials and color schemes are carefully chosen to create a harmonious space. • The guest room concepts range from a more traditional layout to a more intriguing open bathroom layout. AC Hotel Irvine, CA • Elevated furniture and hard-surface flooring provide a clean and expansive feel throughout the guest room. • A functional open wardrobe and luggage bench offer ease for guests to unpack and access clothing. • The bathroom feature a glass-enclosed walk-in shower and signature bath amenities. AC Hotel Bloomington Mall of America, MN BRANDS. PARTNERSHIPS. LOYALTY. RESULTS. MADE HERE. VISIT MARRIOTTDEVELOPMENT.COM OR CALL: 301.380.3200 AC HOTEL FRANCHISE DISCLOSURE: OFFER AND SALE BY PROSPECTUS ONLY. See Item 19 of our Franchise Disclosure Document dated March 31, 2018, for additional details. ▪ ▪ AC Hotel Atlanta Buckhead at Phipps Plaza AC HOTELS BY MARRIOTT AC Hotels by Marriott celebrates the beauty of classic modern design with its European soul and Spanish roots, born from the entrepreneurial spirit of renowned hotelier Antonio Catalan. In 2011, AC Hotels and Marriott International formed a joint venture, leveraging the unique style and design of these upscale urban-inspired hotels with the portfolio and distribution power of Marriott International. With 140+ hotels across Europe and North and Latin America, AC Hotels is designed for modern travelers with an entrepreneurial mindset - they see travel as a way to collect knowledge and inspiration, as they value genuine connections to people, experiences, and ideas that excite them. We know our guests’ daily lives are overflowing with responsibilities, so we want them to be able to draw energy from welcomed moments of pause, where they can appreciate the beauty in the small details. Everything the guest encounters within the space is triggered by purposeful, simplistic and elegant design. Ultimately we are designing experiences: we carefully curate the things that our guests need and edit what they don’t. By stripping away the superfluous, we uncover the beauty in crisp, classic design that is iconically modern and intuitive. With nearly 90 hotels in the global pipeline, AC Hotels is expected to grow rapidly in major travel markets across North America and launch in Asia, Middle East and Africa. AC Hotel Phoenix Tempe/Downtown AC HOTELS BY MARRIOTT - STANDARDS AC LOUNGE℠ Contemporary European design infused with signature lounge seating and multimedia area • Known for its dynamic atmosphere • Selective mix of beverages and delectable bar bites • The AC Lounge defines the local bar scene AC KITCHEN Healthy crafted European inspired small-plate breakfast (paid offering) including a wide range of fresh products and juices • Flexible space cross-utilized for meeting room and private events GUEST ROOM Simplistic design with consistent FF&E in all rooms • Signature closet featuring exposed design • Showers as standard • Work desk and luggage bench • Thoughtful architectural lighting • Complimentary Wi-Fi • 47” Television • Two prototype options with five color schemes REGISTRATION European sensibility with linear clean aesthetic • Tone-on-tone color palette • Gallery quality, modern art and artifacts • Flexible layout • Retail inspired lighting AC LIBRARY Collaboration area with low communal table • Reading area with carefully curated press, magazines, city guides • Wireless printer and laptop or tablet for guest use • Adjacent to the AC Lounge AC MEETING ROOM | AC MEDIA SALON Two AC Media Salons with integrated technology • One medium-sized room for business or social events (optional) AC FITNESS Complimentary state-of-the-art fitness facilities • Accessible seven days a week, 24 hours a day • Personal viewing screens (i.e., LCD TV) on all cardio equipment • 32” Flat-panel TV EXTERIOR Signature AC Hotel logo on top corner of the building • Signature channel lettering at main entrance with location name AC STORE Sleek retail displays adjacent to registration • Innovative shelving with vibrant lighting • Features speciality waters, sweet treats and delectable snacks PROTOTYPICAL GROUND LEVEL LOBBY ADJACENCIES + ZONING PLAN H B C A E D G F F A PUBLIC SPACE E AC LIBRARY B REGISTRATION F MEDIA SALON C AC STORE G FITNESS D AC LOUNGE H MEETINGS AC Hotel Phoenix Tempe/Downtown GUEST ROOM LAYOUT Double/Double King AC Hotel Portland Downtown/Waterfront AC HOTELS BY MARRIOTT CRITERIA FACILITIES PROGRAM GUEST SPACES QUANTITY PERCENTAGE UNIT AREA TOTAL NET (SF) BACK-OF-HOUSE TOTAL NET (SF) Lobby Areas Administration Lobby General Manager Office Front Desk Sales Office AC Library Work Room Media Salon Luggage Public Circulation Employee Areas Public Restrooms Break Room Lobby Areas Total 4,050 Employee Restrooms Food & Beverage Front-of-House Engineering & Maintenance AC Lounge + Bar 2,600 Engineer Maintenance Office AC Kitchen 350 Food & Beverage Back-of-House Food & Beverage Front-of-House Total 2,950 Food Preparation Recreation Facilities Food Preparation Storage Fitness Center 1,000 Laundry Swimming Pool - Optional (Not Included) Laundry Room Retail Housekeeping AC Market 100 Linen and Linen Chute Rooms Meeting Spaces Storage Media Salon (2) 300 Elevators Meeting Room 650 Elevators Meeting Room Storage 50 Elevator Equipment Room Meeting Spaces Total 1,000 Property Technology Guestrooms Computer/Telecom Standard King 53 316 16,748 Mechanical, Plumbing & Electrical Metro King 26 60-65% 248 6,448 Mechanical Accessible King* 5 378 1,890 Electrical Standard Double/Double 45 316 14,220 35-40% Back-of-House Circulation Accessible Double/Double* 3 378 1,134 TOTAL BACK-OF-HOUSE 6,200 Guestroom Total 132 40,440 The information released by Marriott® International in this communication Guestroom Corridors & Support with respect to the AC Hotels by Marriott project is provided to the Corridors/Elevator Lobby owner and franchise community merely as a guide and all information and supporting documentation serves solely as guidelines and is not, Stairs and should not be considered final.