Q3 2026 Non-GAAP Reconciliation

Reconciliation of Non-GAAP Financial Measures (unaudited)

Percentages on the following schedules may not recompute due to rounding. Not meaningful percentage changes are presented as "NM".

(in millions)

Nine Months Ended September 30,

1. Includes amounts recognized in general and administrative expenses, owned and leased expenses, and distribution expenses; excludes amounts recognized in transaction and integration costs.

2. During the nine months ended September 30, 2026, the Company revised its definition of Adjusted EBITDA to no longer include its pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA and recast prior-period results to provide comparability. Refer to page A-13 for an explanation of how the Company utilizes Adjusted EBITDA, why the Company presents it, and material limitations on its usefulness.

   The table below provides a breakdown for Adjusted EBITDA:

   (in millions)

   Three Months Ended September 30,

   Nine Months Ended September 30,

   	2026	2025	2026	2025
   Management and franchising	$ 270	$ 226	$ 800	$ 700
   Owned and leased	39	70	89	132
   Distribution	17	21	73	113
   Overhead	(30)	(38)	(103)	(120)
   Eliminations	(1)	(1)	(1)	-
   Adjusted EBITDA (c)	$ 295	$ 278	$ 858	$ 825

3. Results for the three and nine months ended September 30, 2025 have been recast for comparability as a result of the Company's revised definition of Adjusted EBITDA.

Results of operations as presented on the condensed consolidated statements of income (loss) include expenses recognized with respect to deferred compensation plans funded through rabbi trusts. Certain of these expenses are recognized in G&A expenses and are completely offset by the corresponding net gains (losses) and interest income from marketable securities held to fund rabbi trusts, thus having no impact to net income (loss). G&A expenses also include expenses related to stock-based compensation. Below is a reconciliation of this measure excluding the impact of our rabbi trust investments and stock-based compensation expense.

(in millions)

Nine Months Ended September 30,

Adjusted G&A Expenses $ 100 $ 103 $ 324 $ 322

(in millions, except per share amounts)

Nine Months Ended September 30,

1. Amounts were recognized in other income (loss), net on our condensed consolidated statements of income (loss).

2. We recognized expenses related to the partial utilization of the Avendra LLC sale proceeds for the benefit of our hotels. During the three and nine months ended September 30, 2026 (Q3 2026 and YTD 2026, respectively), we recognized these expenses in reimbursed costs ($6 million and

   $16 million, respectively) and depreciation and amortization expenses (an insignificant amount and $1 million, respectively) on our condensed consolidated statements of income (loss). During three and nine months ended September 30, 2025 (Q3 2025 and YTD 2025, respectively), we recognized these expenses in reimbursed costs ($4 million and $13 million, respectively) and depreciation and amortization expenses ($1 million and

   $2 million, respectively) on our condensed consolidated statements of income (loss). The gain recognized in conjunction with the sale of Avendra LLC was included as a special item during the year ended December 31, 2017.

3. During Q3 2025 and YTD 2025, we recognized impairment charges related to certain investments in unconsolidated hospitality ventures in equity earnings (losses) from unconsolidated hospitality ventures on our condensed consolidated statements of income (loss).

4. During Q3 2026, YTD 2026, and Q3 2025, we recognized net surpluses, and during YTD 2025, we recognized a net deficit, which we intend to recover in future periods on certain funds due to the timing of revenue and expense recognition. During Q3 2026 and YTD 2026, this fund activity was recognized in revenues for reimbursed costs ($258 million and $730 million, respectively), reimbursed costs ($245 million and $722 million, respectively), depreciation and amortization expenses ($4 million and $12 million, respectively), and other income (loss), net ($8 million and $22 million, respectively). During Q3 2025 and YTD 2025, this fund activity was recognized in revenues for reimbursed costs ($210 million and $622 million, respectively), reimbursed costs ($208 million and $631 million, respectively), depreciation and amortization expenses ($6 million and $15 million, respectively), and other income (loss), net ($6 million and $19 million, respectively). These figures exclude revenues and expenses related to payroll at managed properties where we are the employer and other expenses, which were recognized in revenues for reimbursed costs and reimbursed costs on our condensed consolidated statements of income (loss) but are not considered part of our fund activity.

(in millions) Fiscal Year 2025

Adjusted EBITDA As Recast (b) $ 261 $ 286 $ 278 $ 278 $ 1,103

1. Includes amounts recognized in general and administrative expenses, owned and leased expenses, and distribution expenses; excludes amounts recognized in transaction and integration costs.

2. During the nine months ended September 30, 2026, the Company revised its definition of Adjusted EBITDA to no longer include its pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA and recast prior-period results to provide comparability. Refer to page A-13 for an explanation of how the Company utilizes Adjusted EBITDA, why the Company presents it, and material limitations on its usefulness.

   (in millions) Fiscal Year 2025

   First Quarter

   Second Quarter

   Third Quarter

   Fourth Quarter

   Full Year

   2025 Adjusted EBITDA As Reported (c)	$ 273	$ 303	$ 291	$ 292	$ 1,159
   Less: Pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA	(12)	(17)	(13)	(14)	(56)
   2025 Adjusted EBITDA As Recast (d)	$ 261	$ 286	$ 278	$ 278	$ 1,103
   Adjustment to owned and leased segment Adjusted EBITDA from sold assets (e)	(2)	-	(3)	-	(5)
   Adjustment to owned and leased segment Adjusted EBITDA from sold Playa
   assets (f)	-	(14)	(27)	(32)	(73)
   Total adjustment to owned and leased segment Adjusted EBITDA from sold assets	(2)	(14)	(30)	(32)	(78)
   2025 Adjusted EBITDA Baseline	$ 259	$ 272	$ 248	$ 246	$ 1,025

3. As reported in the Company's most recent public filing in which each period was presented.

4. During the nine months ended September 30, 2026, the Company revised its definition of Adjusted EBITDA to no longer include its pro rata share of unconsolidated owned and leased hospitality ventures' Adjusted EBITDA and recast prior-period results to provide comparability. Refer to page A-13 for an explanation of how the Company utilizes Adjusted EBITDA, why the Company presents it, and material limitations on its usefulness.

5. Represents the owned and leased segment Adjusted EBITDA contribution in each period for hotels that have been sold as of September 30, 2026 and for which the company entered into long-term management or franchise agreements upon sale; excludes gross fee revenues retained following the sale. Refer to page A-11 for further details.

6. Represents the owned and leased segment Adjusted EBITDA contribution in each period for hotels acquired as part of the Playa Hotels Acquisition that were sold as part of the Playa Real Estate Transaction; excludes gross fee revenues retained following the sale. Refer to page A-11 for further details.

Results of operations as presented on the consolidated statements of income (loss) include expenses recognized with respect to deferred compensation plans funded through rabbi trusts. Certain of these expenses are recognized in G&A expenses and are completely offset by the corresponding net gains (losses) and interest income from marketable securities held to fund rabbi trusts, thus having no impact to net income (loss). G&A expenses also include expenses related to stock-based compensation. Below is a reconciliation of this measure excluding the impact of our rabbi trust investments and stock-based compensation expense.

(in millions) Year Ended December 31,

1. Includes cash paid for transaction and integration costs, interest on the delayed draw term loan facility, and other costs associated with the acquisition.

No additional disposition or acquisition activity beyond what has been completed as of the date of this release has been included in the 2026 outlook. The Company's 2026 outlook is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company's expectations may change. There can be no assurance that the Company will achieve these results. Results of operations as presented on the condensed consolidated statements of income (loss) include expenses recognized with respect to deferred compensation plans funded through rabbi trusts. Certain of these expenses are recognized in G&A expenses and are completely offset by the corresponding net gains (losses) and interest income from marketable securities held to fund rabbi trusts, thus having no impact to net income (loss). G&A expenses also include expenses related to stock-based compensation. Below is a reconciliation of this forecasted measure excluding the impact of our rabbi trust investments and forecasted stock-based compensation expense.

(in millions)

1. Reimbursed costs are presented net of revenues for reimbursed costs as the Company cannot forecast the gross amounts without unreasonable effort.

2. Includes amounts recognized in general and administrative expenses and distribution expenses; excludes amounts recognized in transaction and integration costs.

(d) The distribution was fully funded by proceeds from the sale of investments in marketable securities held in rabbi trusts, which were reflected as cash inflows from investing activities in our condensed consolidated statements of cash flows. As a result, the distribution had no net impact on the change in cash and cash equivalents.