Common Sire income Statements

12 Months Ended

Consolidated Statements (Abysm - WO(5)

Dee. 31. 2013

96 of Total revenue

Dec. 31. 2017

% of Iota' revenue

Dec. 31, 2016

% of Total revenue

REVENUES:

Royalty fees

$     376,676.000

35.17%

$  341.745,000

3&31%

5 317,6991000

39.32%

initial franchise and rel sensing fees

$       26,072.000

2.50%

5   23,038.000

2.45%

5   19,720,000

2.44%

Procurement services

$       52,088.000

5.00%

5   40.451.000

4.30%

5    35344,000

4.44%

Marketing and reservation system

$     543,677.000

52.21%

$  499,621030

53.08%

5  409,120,000

50.64%

Other

$       42,791.000

4.11%

5   36.438,000

3.87%

5   25.526,000

3.16%

Total revenues

$   1,041,304,000

100.00%

5  941297,000

100.00%

5  807,909,000

100.00%

OPERATING EXPENSES:

Se¹¹¹rt. Eenera I and administrative

$     170,027,000

16.33%

5  165,821,000

17.62%

5  154.720 000

19.15%

Depreciation and amortization

$       14.330.000

1.38%

$  6.680.000

0.71%

5      6.996100

0.87%

Marketing and reservation system

$     534,266,000

51.31%

$  419,400,000

5093%

5  459,765,000

56.91%

Total operating expenses

$     718.623.000

69.01%

5  651.901.000

69.26%

5  621.481.000

76.92%

Impairment of goodwill

$       (4,289,0001

-0.41%

5

0.00%

5

0.00%

Gain on sale of asses. net

$           82.000

0.01%

S     257.000

0.03%

5     627.000

0.08%

Operating income

$     318,474,000

3058%

5  289,653,000

3077%

$  187,055,000

23.15%

OTHER P900S1E AND EXPENSES, NET:

interest expense

5    45,908,000

441%

5   45,039,000

4.78%

$   44,446,000

5.50%

Interest income

5      17.4521:031

-012%

S        (⁵3²⁰.⁰⁰⁰1

-0.63%

5     (3333000)

-0.44%

Other (gain) loss

$      1,437,000

0.14%

$    (3,229,000)

-0.34%

5    (1,504,000)

-019%

Eouitv in net (Income) loss of affiliates

$      5.323.003

031%

S      4346.000

0.48%

S     1492.000)

-0.06%

Total other income and expenses, net

$    45,216,000

4.34%

5   40,436,000

430%

5  311915,000

4.82%

Income before Income taxes

$      273258.003

26.24%

$  249.217.000

26.48%

5  148.140.000

1834%

income taxes

$       56,903,000

S46%

$  126,890,000

1348%

5    41,420100

5.13%

Net income

$     216.355.003

20.78%

$  122.327.000

13.00%

5  106.712.000

13.21%

Bask comings per share:

Basic earnings per share _in dollars per share)

5                383

$            216

$           1.90

Diluted earnings per share (in dollars per share)

S                380

$            215

S           1.89

REVENUES

Base management fees

5     1,140

5.49%

5     1,102

5.39%

$        806

5.23%

Franchise fees

$     1,849

1191%

S     1,586

7.75%

S     1,157

7.51%

Incentive management fees

5        649

3.13%

5        607

2.97%

$        425

2.76%

Gross tee revenues

$     3,638

17.53%

5     3,295

16.11%

S     2,388

15.50%

Contract investment amortization

5        (58)

-0.28%

5       ISO)

-024%

$       (40)

-0.26%

Net fee revenues

$     3,580

17.25%

5     3,245

15.87%

5     2,3⁴8

35.24%

Owned, leased. and other revenue

$      1635

7.88%

5     1,752

857%

$     1,125

7.30%

Cost reimbursement revenue

5   15,543

74.88%

5   15,455

75.57%

5   11,934

77.46%

Total revenues

$   20,758

100.00%

5   20,452

10000%

$   15.407

M00%

OPERATING COSTS AND EXPENSES

Owned, leased, and other-direct

$     1,306

6.29%

5     1,411

6.90%

S        901

5.85%

Depreciation, amortization, and other

5        226

1.09%

$        229

1.12%

5        119

0.77%

General. administrative, and other

$        927

4.47%

5        921

4.50%

5        743

4.82%

Mergerrelated costs and charges

5        155

0.75%

$        159

0.78%

5        386

2.51%

Reimbursed expenses

$   15.778

76.01%

5   15.228

74.46%

5    11234

76.81%

Toni operating expenses

5   18,392

IMO%

$   17,948

87.76%

$   13,983

90.76%

OPERATING INCOME

$     2.366

11.40%

5     2,501

12.24%

$      1424

9.24%

Gains and other income, net

$        294

0.93%

$        688

3.36%

$            5

0.03%

Interest expense

$      (340)

-1E4%

S     (288)

-141%

$     (234)

-1.52%

Interest income

$          22

0.11%

$          38

0.19%

$          35

0.23%

Eau's in earnings

S        103

030%

S          40

0.20%

$            9

0.06%

INCOME BEFORE INCOME TAXES

$     2,345

11.30%

S     2,982

14.58%

5     1,239

8.04%

Provision fix Income taxes

$      (438)

-2.11%

5     (1323)

-7.45%

$      1431)

-2.80%

NET INCOME

$     1 907

9.19%

5     1,459

7.13%

5        808

5.24%

EARNINGS PER SNARE

Earnings per share-bask

$       5.45

5       3.89

5       2.78

Earnings per share-diluted

S       5.38

5       3.84

$       2.73