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.

The brand offers concept-driven, turn-key customization of guest room and public 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 model and site plan.

With over 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. The special tools and support owners and franchisees receive around talent recruiting and training, service standards, and local marketing and PR positions them to take advantage of this brand’s unique chemistry and seamlessly grow their hotel business around the world.

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.

RECENT OPENINGSAC Hotel Marriott New York Downtown, NY Opened October 2018

AC Hotel Pittsburgh Downtown, PA Opened July 2018

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

COMPETITIVE FEE STRUCTURE*

OPTIMIZED COST PLAN*

Application Fee: The greater of $75,000 or $500 per guest room

Royalty Fee: 5.5% of Gross Room Sales

Marketing Fund Fee: 2.5% of Gross Room Sales

100 –150 keys Average Cost Per Key: $108,000 – $190,000 151 – 200 keys Average Cost Per Key: $108,000 – $175,000

*2018 AC Hotels by Marriott Franchise Disclosure Document. For all other costs and fees, refer to the FDD.

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KEY COMPETITORS Hotel Indigo, Canopy by Hilton, Kimpton, Public, Joie de Vivre,

independent boutique hotels

AC Hotel Cleveland Beachwood, OH

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 HOTELS DESIGN ATTRIBUTES

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.

• 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.

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.

• 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.

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

AC Hotel Portland Downtown, OR

AC Hotel Phoenix Tempe/Downtown, AZ

AC Hotel Irvine, CA

AC Hotel Bloomington Mall of America, MN

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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 delectablebar bites • The AC Lounge defines the local bar scene

EXTERIOR Signature AC Hotel logo on top corner of the building • Signature channel lettering at main entrance with location name

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 KITCHENHealthy 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

AC MEETING ROOM | AC MEDIA SALONTwo AC Media Salons with integrated technology • One medium-sized room for business or social events (optional)

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

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

AC STORESleek retail displays adjacent to registration • Innovative shelving with vibrant lighting • Features speciality waters, sweet treats and delectable snacks

A

F

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D

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FG

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PUBLIC SPACE

REGISTRATION

AC STORE

AC LOUNGE

AC LIBRARY

MEDIA SALON

FITNESS

MEETINGS

PROTOTYPICAL GROUND LEVEL LOBBY ADJACENCIES + ZONING PLAN

AC Hotel Phoenix Tempe/Downtown

Double/Double King

GUEST ROOM LAYOUT

AC Hotel Portland Downtown/Waterfront

The information released by Marriott® International in this communication with respect to the AC Hotels by Marriott project is provided to the owner and franchise community merely as a guide and all information and supporting documentation serves solely as guidelines and is not, and should not be considered final. All plans regarding this project are routinely updated and remain subject to revision and clarification. Comply with all governing regulations for size, percentage and quantity of accessible guestrooms. November 2018

Administration General Manager Office Sales Office Work Room Luggage Employee Areas Break Room Employee Restrooms Engineering & Maintenance Engineer Maintenance Office Food & Beverage Back-of-House Food Preparation Food Preparation StorageLaundry Laundry Room Housekeeping Linen and Linen Chute Rooms StorageElevators Elevators Elevator Equipment Room Property Technology Computer/Telecom Mechanical, Plumbing & Electrical Mechanical ElectricalBack-of-House Circulation

Lobby AreasLobby Front Desk AC Library Media Salon Public Circulation Public Restrooms

Lobby Areas Total 4,050Food & Beverage Front-of-House

AC Lounge + Bar 2,600AC Kitchen 350

Food & Beverage Front-of-House Total 2,950Recreation Facilities

Fitness Center 1,000Swimming Pool - Optional (Not Included)

RetailAC Market 100

Meeting Spaces Media Salon (2) 300Meeting Room 650Meeting Room Storage 50

Meeting Spaces Total 1,000Guestrooms Standard King 53 316 16,748 Metro King 26 248 6,448 Accessible King* 5 378 1,890 Standard Double/Double 45 316 14,220 Accessible Double/Double* 3 378 1,134 Guestroom Total 132 40,440Guestroom Corridors & Support Corridors/Elevator Lobby Stairs Hydration StationGuestroom Corridors & Support Total 6,740

BACK-OF-HOUSE TOTAL NET (SF)GUEST SPACES QUANTITY PERCENTAGE UNIT AREA TOTAL NET (SF)

TOTAL BACK-OF-HOUSE 6,200

TOTAL GUEST SPACES 72,638

60-65%

35-40%

TOTAL GUEST SPACES 56,280

AC HOTELS BY MARRIOTTCRITERIA FACILITIES PROGRAM

Administration General Manager Office Sales Office Work Room Luggage Employee Areas Break Room Employee Restrooms Engineering & Maintenance Engineer Maintenance Office Food & Beverage Back-of-House Food Preparation Food Preparation StorageLaundry Laundry Room Housekeeping Linen and Linen Chute Rooms StorageElevators Elevators Elevator Equipment Room Property Technology Computer/Telecom Mechanical, Plumbing & Electrical Mechanical ElectricalBack-of-House Circulation

Total Number of Guestroom Room Floors 4 Total Number of Floors 5 Guest Spaces 56,280 Back-of-House 6,200 Total Net Building Area 62,480 Walls and Shafts (Estimated) 4,374 Total Gross Building Area 66,854 Total Square Feet per Room 506

SUMMARY QUANTITY TOTAL (SF)

Total Number of Guestroom Room Floors 4 Total Number of Floors 5 Guest Spaces 52,676 Back-of-House 6,200 Total Net Building Area 58,876 Walls and Shafts (Estimated) 4,121 Total Gross Building Area 62,997 Total Square Feet per Room 477

SUMMARY QUANTITY TOTAL (SF)

Alternate King

GUEST ROOM LAYOUT

Alternate/Metro King Program

AC Hotel Bloomington Mall of America

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AC HOTELS BY MARRIOTTFor the discerning traveler, AC Hotels provides an elevated experience by removing friction from their everyday lives and bringing into focus small moments of beauty through sleek modern design and elegant European touches—all at a smart value. The AC guests, the Curators, are defined by their worldview and appreciation for other cultures, their discerning eye for good design, and their self-assuredness and lack of pretense.

DEVELOP WITH MARRIOTTAC Hotels leverage the best of both worlds -- the economics of a select service model while attracting premium lifestyle oriented business travelers through the experiences delivered on property by on strategy talents. And by developing with Marriott International, owners and franchisees harness the power of our industry leading sales, marketing, and loyalty engines.

Visit marriottdevelopment.com to learn more about developing your next AC Hotel by Marriott.

AC Hotel New York Downtown AC Hotel Tampa Airport