What is the purpose of the Marketing Fund administered by Delta Hotels By Marriott?

or should not be maintained (Franchise Agreement – Section 11.1.A.2); and indemnify you against claims that your proper use of the Proprietary Marks infringes the rights of any third party unrelated to you if you satisfy certain conditions (Franchise Agreement – Section 11.1.B).

• (4) Make our standards available to you (Franchise Agreement Section 10). As discussed above, our standards are subject to change at any time.
• (5) Offer certain training programs for the hotel's or your management personnel (Franchise Agreement – Section 9.1). We may charge tuition, fees, or reimbursements for some or all of these training programs (Franchise Agreement – Sections 3.3 and 9.1).
• (6) Provide for an association of system franchisees, who are in compliance with certain membership requirements, to consider and make recommendations on matters relating to the

operation of the system (Franchise Agreement – Section 10.3). Franchisees of Delta hotels and we are members of the association, together with franchisees of other full-service Company Brand Hotels.

• (7) Direct the Marketing Fund activities, including the placement and allocation of such funds (Franchise Agreement – Section 3.7.B).
• (8) Review your plans for upgrading and remodeling the hotel for the limited purpose of assessing compliance with the standards and any applicable property improvement plan (Franchise Agreement – Section 4.4.C).

Marketing and Advertising

We administer a marketing fund (the "Marketing Fund") for advertising, sales and marketing, promotional programs, and research for franchised and managed hotels in the United States and Canada.

You must pay to us a Marketing Fund Contribution in an amount equal to 1.5% of gross room sales for the previous month, which will be charged as part of the Program Services Contribution (Franchise Agreement – Section 3.7.B; Exhibit A – Item 12). All sums that we receive under the Marketing Fund are deposited in an account under our control and may be commingled with other funds (Franchise Agreement – Section 3.7.E). We have no obligation to separate income or expenditures between the various Company Brand marketing funds. We may change the allocation and amount of the Marketing Fund Contribution, and you will be bound by any such change (Franchise Agreement – Section 3.7.B). All franchisees contribute to the Marketing Fund, but the contribution amounts and rates vary. Hotels operated by us and our affiliates are generally required to contribute to the Marketing Fund, but may not be required to do so on the same basis as franchisees.

We administer the Marketing Fund for managed and franchised Company Brand Hotels located in the United States and Canada together. We have the right to: (i) merge or operate separate Marketing Funds for hotels located in the United States and Canada; (ii) combine the Marketing Fund with marketing funds in other regions or countries; (iii) add or remove Company Brands from the Marketing Fund; (iv) discontinue the Marketing Fund or Marketing Fund Activities (as defined below); and (v) establish other methods of funding Marketing Fund Activities (Franchise Agreement – Section 3.7.B). We also have the right to pool monies from various Company Brand marketing funds to engage in global, multi-brand marketing activities. Participating Company Brands and Company Brand Hotels may not benefit on a prorata basis from such activities. We intend that the Marketing Fund will also include contributions from, and expenditures for, any "sibling" brand that we may use or develop in lieu of "Delta" hotels in jurisdictions where we may not have the legal right to use the "Delta" name or trademarks. Such brand is expected to be used in tandem with the Delta Hotels name and trademarks in advertising, sales and marketing materials, and other channels, so that the two brands are understood by consumers to represent one and the same hotel system. The Marketing Fund is not required to be audited. At your request, we will provide to you an accounting of Marketing Fund revenues and expenditures for any fiscal year if such request is made between 90 and 180 days after the end of such fiscal year (Franchise Agreement – Section 3.7.E).

In 2024, including both managed and franchised hotels, monies spent from the Marketing Fund Contributions were allocated to the following categories: 57% to generate awareness, trial and loyalty (including: 4% for global marketing development and execution of the marketing plan and strategies through all marketing channels; and 53% for marketing programs – advertising, public relations, collateral, and promotions); 5% on strategic planning and product positioning (including global brand, consumer insights, and research, and guest tracking); 31% to drive and capture demand through sales and channels (including global sales, planning and services, digital, and continent sales and marketing management); and

3% on distribution and revenue management strategies (global distribution strategy and revenue management). Contribution percentages and amounts may vary by region.

The cost of administering the Marketing Fund (including, but not limited to, finance, accounting, human resource management, data privacy, and sustainability and social impact initiatives) totaled approximately 4% of the monies spent from the Marketing Fund in 2024. Each of the categories of expenditures of the Marketing Fund includes an allocation for all or a portion of the salaries of personnel involved in the production and provision of the services related to such category. For example, the salaries of personnel responsible for the development, execution, and management of the marketing plan and strategies are allocated to the global marketing category. Primary factors used in determining the portion of a person's salary allocated to the Marketing Fund include the amount of time spent by such person performing services related to Marketing Fund Activities relative to the Marketing Funds of other Company Brands and other services performed by such person, the dollar amount of gross room sales for the brand relative to other Marriott Brands, and/or the number of booked room nights of the brand relative to the other Marriott Brands.

Marketing Fund monies may be used by us to cover the cost of various activities and programs, including: brand communication; brand strategy and brand development activities;

Source: Item 10 — FINANCING (FDD pages 82–101)