Financial Information

Financial Table

In 2018, across our North American Limited-Service segment we added 281 properties (33,418 rooms) and 38 properties (3,415 rooms) left our system.

North American Limited-Service segment profits decreased by $41 million, primarily due to the following:

$100 million of lower cost reimbursement revenue, net of direct expenses; and
$63 million of higher base management and franchise fees, primarily reflecting $56 million from unit growth, $7 million from RevPAR growth, and $5 million of higher relicensing and application fees, partially offset by $6 million of lower fees from properties that were terminated.

In 2017, across our North American Limited-Service segment we added 270 properties (33,128 rooms) and 26 properties (2,875 rooms) left our system.

North American Limited-Service segment profits increased by $125 million, primarily due to the following:

$22 million of higher cost reimbursement revenue, net of reimbursed expenses;
$102 million of higher base management and franchise fees, primarily reflecting $50 million of higher Legacy-Starwood fees, $42 million from Legacy-Marriott unit growth, and $11 million of stronger RevPAR at Legacy-Marriott hotels; and
$6 million of lower incentive management fees, primarily driven by softer performance and a change in the specified owner return at a Legacy-Marriott portfolio of managed hotels.