The system grew from 8,288 properties at year-end 2022 to 8,785 properties at year-end 2023. Gross additions of 558 properties included 149 properties from the City Express acquisition and roughly 16,300 rooms converted from competitor brands.

The development pipeline includes nearly 3,400 hotels and 573,000 rooms, with over 232,000 rooms under construction. Contracts signed in 2023 reflected strength in the luxury tier, with 58 luxury hotel agreements signed, and included nearly 65,000 conversions.

The development pipeline includes approximately 37,000 rooms from the exclusive, long-term strategic licensing agreement with MGM Resorts International. The first of such MGM properties joined the system in January 2024.

The company is focused on optimizing its investment in people, processes, and systems. Capital and technology expenditures increased by $120 million in 2023 compared to 2022, primarily due to higher spending on worldwide technology systems transformation.

The company is focused on strengthening the Loyalty Program by attracting more members and localizing experiences to reach new customers. Focus is on creating frictionless experiences throughout digital direct channels to grow loyal customer base and drive more direct bookings.

The company's global sales and revenue management organizations are a key competitive advantage due to focus on optimizing investment in people, processes, and systems. The company utilizes innovative and sophisticated revenue management systems to increase efficiency and optimize property-level revenue.

The company operates in markets that contain many competitors, including major hotel chains, regional hotel chains, independent hotels, and home sharing and rental services. The ability to remain competitive depends on success in distinguishing and driving preference for lodging products and services.

The company is affected by changes in global, national, or regional economies, governmental policies, and geopolitical, public health, social and other conditions and events. These conditions and events have in the past materially negatively impacted, and could in the future materially negatively impact, the company's business, operations, and financial results.

Hotel management and franchise agreements may be subject to premature termination in certain circumstances, such as the bankruptcy of a hotel owner or franchisee, the failure of a hotel owner or franchisee to comply with its payment or other obligations under the agreement, or a failure under some agreements to meet specified financial or performance criteria.

The company believes that its strong brand recognition assists it in attracting and retaining guests, owners, and franchisees. The company competes against other companies with strong brands and guest appeal.

Affiliation with a brand is common in the U.S. lodging industry, with approximately 72% of U.S. hotel rooms being brand-affiliated in 2023, indicating a competitive environment with many branded chains.

Outside the U.S., branding is less prevalent, but the company believes that chain affiliation will continue to become more attractive in many overseas markets as local economies grow, trade barriers decline, and international travel accelerates.

The company's above-property sales deployment strategy is designed around the way the customer wants to buy and the strategic priorities of the hotels globally. The strategy is focused on driving efficiencies, profitable revenue, and customer loyalty.

Most of the hotels in the company's portfolio utilize web-based programs to effectively manage the rate set-up and modification processes, providing greater pricing flexibility, reducing time spent on rate program creation and maintenance, and increasing the speed to market of new products and services.

Cost reimbursements, net (cost reimbursement revenue, net of reimbursed expenses) varies due to timing differences between the costs we incur for centralized programs and services and the related reimbursements we receive from property owners and franchisees.

The company has underway a multi-year initiative to upgrade certain of its core technologies and systems, as these and other technologies and systems must be refined, updated, and/or replaced with more advanced systems on a regular basis.

The company's focus on creating frictionless experiences throughout its digital direct channels is foundational to its long-term digital and technology transformation, which aims to grow its loyal customer base and drive more direct bookings and more business to its hotels.

The company utilizes innovative and sophisticated revenue management systems, many of which are proprietary, which it believes provide a competitive advantage in pricing decisions, increasing efficiency and optimizing property-level revenue for hotels in its portfolio.

The company repurchased 21.5 million shares of its common stock for $3.9 billion in 2023. The company also declared quarterly cash dividends totaling $0.52 per share in 2023.

The company expects capital expenditures and other investments to total approximately $1.0 billion to $1.2 billion for 2024, including capital and technology expenditures, loan advances, contract acquisition costs, and other investing activities.

The company's long-term financial objectives include maintaining diversified financing sources, optimizing the mix and maturity of its long-term debt, and reducing its working capital. At year-end 2023, the company's long-term debt had a weighted average interest rate of 4.5 percent and a weighted average maturity of approximately 5.0 years.

Guided by the 2025 sustainability and social impact goals, as well as the United Nations Sustainable Development Goals, the company is focused on creating a positive and sustainable impact wherever they do business.

The company's climate action efforts include committing to set a near-term science-based emissions reduction target and a long-term science-based target to reach net-zero value chain greenhouse gas emissions by no later than 2050.

The company-wide diversity, equity, and inclusion efforts include a range of initiatives and programs to support the goal to make all stakeholders feel welcome and valued. The Inclusion and Social Impact Committee of the Board helps drive accountability for these efforts.

Based on lodging industry data, the company has an approximately 16% share of the U.S. hotel market and a four percent share of the hotel market outside the U.S. (based on number of rooms).

In general, business at the company's properties fluctuates moderately with the seasons. Business at some resort properties may be more seasonal depending on location.

As a company with global operations, the company is subject to a wide variety of laws, regulations, and government policies in the U.S. and in jurisdictions around the world. Some of the regulations that most affect the company include those related to employment practices; marketing and advertising efforts; trade and economic sanctions; anti-bribery, anti-corruption, and anti-money laundering; intellectual property; cybersecurity, data privacy, data localization, data transfers, and the handling of personally identifiable information; competition; climate and the environment; health and safety; liquor sales; and the offer and sale of franchises.