TOWNEPLACE SUITES BY MARRIOTT® TownePlace Suites by Marriott is designed to appeal to extended-stay travelers who want to feel at home and stay productive. Featuring compelling economics and strong performance in Average Daily Rate (ADR), Occupancy, and Extended Stay Occupancy, the brand also appeals to owners, franchisees and investors looking for an excellent ROI opportunity. Backed by Marriott’s robust demand generation engine that drives top-line revenue while maximizing bottom-line savings and featuring the best Extended Stay sales tool in the industry, TownePlace Suites® is primed to perform.

The current prototype design offers guests extraordinary value and features modern spacious suites with full kitchens, larger public spaces and a complimentary hot 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 Weber® grills, creating unique opportunities to spark interest and drive demand.

With many superior development opportunities available in the U.S. and Canada, and the newly designed, flexible prototype that easily adapts to markets ranging from cities to airports to suburbs, TownePlace Suites is ready to grow with you.

franchise hotel performance*

competitive fee structure*

optimized cost plan*

DISTRIBUTION (Q1 2016)

With 279 locations and 179 projects in the pipeline, TownePlace Suites continues to identify urban, secondary and tertiary markets throughout the U.S. and Canada.

Loyal Customer Base: Marriott Rewards® Member Paid Nights represent 59% of total TownePlace Suites Nights

Lower Cost Bookings: Marriott’s channels generate 63.9% of TownePlace Suites’ reservations

Application Fee: $50,000 or $400 per guest room

Royalty Fee: 5% of Gross Room Sales

Marketing Fund Fee: 2% of Gross Room Sales

80 – 110 keys Average Cost Per Key: $85,200 – $131,800 120 – 150 keys Average Cost Per Key: $82,000 – $125,100

*2016 TownePlace Suites Franchise Disclosure Document. For all other costs and fees, refer to the FDD.

recent openings

TownePlace Suites Boynton Beach, FL Opened February 2016

TownePlace Suites Ottawa Kanata, Ontario Opened February 2016

U.S. AND CANADA (Units / Rooms)

Open: 279 / 28,115

Pipeline: 179 / 18,112

$KEY COMPETITORS: Home2 Suites by Hilton, Staybridge Suites, Candlewood Suites

Average Occupancy: 74.9%

Average Extended Stay Occupancy: 40%

Average Daily Room Rate: $101.74

Average RevPAR: $76.21

Average Extended Stay RevPAR: $39.60

Average RevPAR Index: 109.0%

TOWNEPLACE SUITES FRANCHISE DISCLOSURE:The data above reflects the performance of all 197 franchised TownePlace Suites by Marriott hotels open and operating in North America for 24 months as of December 31, 2015, for which Smith Travel Research, Inc. has data and which did not undergo material renovations or expansions during the 24 months preceding December 31, 2015. Of the 197 TownePlace Suites hotels, 105 (53.3%) achieved an average occupancy rate equal to or greater than 74.9%; 78 (39.6%) achieved an average daily room rate equal to or greater than $101.74; 77 (39.1%) achieved or exceeded the average RevPAR of $76.20; and 97 (49.2%) achieved an average RevPAR Index equal to or greater than 109.5%. For the 198 N.A. Included Franchised Hotels that represent the one-year period ended December 31, 2015, 89 (44.9%) achieved or exceeded the average ESOcc of 40.0% and 83 (41.9%) achieved or exceeded the average ESRevPAR of $39.60. There were 198 franchised TownePlace Suites by Marriott hotels open and operating in North America for at least two years and that satisfied each of the Conditions (the “N.A. Included Franchised Hotels”). Of the 504 TownePlace Suites, 251 (49.8%) had at least 65.4% of their gross room nights booked through the Marriott Channels and 305 (60.5%) achieved or exceeded the average percentage of Marriott Rewards contribution to Occupancy of 65%. 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, 2016, for additional details.

TOWNEPLACE SUITES PROTO MODEL ATTRIBUTES

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.

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.

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.

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