Marriott International (NASDAQ:MAR) reported second-quarter results that exceeded its prior expectations, driven by global revenue per available room growth, expanding fee revenue and continued portfolio growth. The company raised its full-year 2026 outlook for global RevPAR, gross fee revenue, adjusted EBITDA and adjusted diluted earnings per share.
President and Chief Executive Officer Tony Capuano said global RevPAR increased 3.4% in the second quarter, while the company added net rooms at a 4.5% rate over the 12 months ended June 30. Marriott’s global system surpassed 1.8 million rooms across more than 10,000 properties.
Regional demand varied, with U.S. strength offsetting Middle East pressure
RevPAR in the U.S. and Canada rose 5%, the company’s strongest quarterly increase in 13 quarters. Capuano said both World Cup and non-World Cup markets contributed to the gain; excluding the World Cup, regional RevPAR increased 4%.
Luxury and resort properties remained the strongest categories in the U.S. and Canada, where luxury RevPAR rose more than 9%. Select-service RevPAR increased more than 4%, which Capuano said reflected broad-based strength across chain scales.
Global leisure RevPAR rose 5% in the quarter, including a 7% increase in the U.S. and Canada. Group RevPAR increased 3% globally and 4% in the U.S. and Canada, while business-transient RevPAR rose 2% globally and 3% in the U.S. and Canada. Non-government business-transient RevPAR in the U.S. and Canada benefited from mid-single-digit average daily rate growth, though room nights declined slightly.
International performance was constrained by the conflict in the Middle East. EMEA RevPAR declined just over 5%, as more than 4% RevPAR growth in Europe was offset by a 43% decline in the Middle East. Europe benefited from leisure demand in Mediterranean markets including Italy, Spain and Greece.
APAC RevPAR increased more than 5%, recovering from travel disruptions that affected certain markets in April. Greater China RevPAR rose more than 3%, led by inbound leisure demand, particularly in luxury properties and in Hong Kong, Taiwan and Hainan. RevPAR in the Caribbean and Latin America region increased 3%, supported by luxury and leisure demand in the Caribbean.
Guidance raised as World Cup contribution exceeds expectations
Chief Financial Officer Jen Mason said Marriott raised its full-year global RevPAR outlook to growth of 3% to 3.5%. Third-quarter global RevPAR is expected to rise 3.5% to 4%.
The World Cup’s benefit to full-year global RevPAR is now expected to be about 45 basis points, above Marriott’s prior expectation of 30 to 35 basis points. Mason said the U.S. and Canada should continue to see strong demand across customer segments and chain scales in the third quarter, though November midterm elections could create a modest fourth-quarter headwind.
The company expects Greater China full-year RevPAR growth of 2% to 3%. APAC is expected to maintain strength through the second half, while Caribbean leisure demand is expected to offset weakness in Mexico. Marriott expects EMEA to remain affected by Middle East conditions, although less severely than previously anticipated.
Marriott now expects the Middle East to reduce full-year global RevPAR by about 100 basis points, an improvement from its prior estimate of a 100- to 125-basis-point impact. Mason noted that the region’s fourth quarter is particularly important because it represents roughly 35% of Middle East full-year revenue and faces difficult comparisons with 2025, when large events supported average daily rates.
- Full-year gross fee revenue is projected at $6.03 billion to $6.06 billion, up about 11%.
- Incentive management fees are expected to grow 3% to 5% for the year.
- Adjusted EBITDA is expected to increase 11% to 12%, to $5.97 billion to $6.03 billion.
- Adjusted diluted EPS is expected to increase 16% to 18% for the full year.
- Marriott expects to return more than $4.5 billion to shareholders in 2026.
Fees and earnings increase in second quarter
Second-quarter total gross fee revenue increased 13% year over year to $1.58 billion, supported by higher RevPAR, room growth, co-branded credit card fees and residential branding fees. Incentive management fees rose 6% to $212 million, as gains in the U.S. and Canada more than offset a decline in EMEA.
Adjusted EBITDA increased 13% to $1.59 billion, while adjusted diluted earnings per share rose 20% to $3.19. General and administrative expense increased 5%, primarily due to the timing of compensation costs.
Owned, leased and other revenue, net of related expenses, totaled $49 million, down from $78 million a year earlier. Mason cited a $27 million property-related litigation accrual and lower termination fees.
Marriott also announced new long-term U.S. co-branded credit card agreements with JPMorgan Chase and American Express. Mason said the partial-year impact from the new terms is expected to add approximately $30 million to 2026 co-branded credit card fees. Capuano said the annual impact on Marriott’s co-brand card fees could reach $100 million to $125 million by full-year 2028, based on the current 26% royalty rate, as refreshed products are introduced.
Development pipeline reaches record level
Marriott recorded its highest first-half signing volume on record, according to Capuano. Its development pipeline grew nearly 7% from a year earlier to approximately 629,000 rooms at the end of June, including more than 279,000 rooms under construction, inclusive of pending conversions.
Conversions represented 34% of signings and 40% of openings during the first half. Marriott also announced an agreement to introduce its Series by Marriott collection brand in Greater China, with plans for approximately 100 hotels and first openings anticipated later this year.
The company expects full-year net rooms growth toward the low end of its previous 4.5% to 5% range, principally because of construction delays in the Middle East. Capuano said Marriott continues to expect mid-single-digit net rooms growth over the next several years, citing a 5.2% compound annual growth rate since the end of 2023.
Marriott increased its 2026 investment spending forecast to $1.25 billion to $1.35 billion. Contract acquisition costs are expected to account for roughly 40% to 45% of spending, while about 25% is expected to go toward digital and technology transformation and corporate systems.
Owner initiatives and technology rollout
Capuano said Marriott has reduced global loyalty charge-out rates by roughly 5%, enhanced reimbursement for Bonvoy redemption stays on high-demand nights, streamlined brand standards and introduced flexible renovation scopes. The company is also launching an Intent to Recommend incentive program in the U.S. and Canada.
The program offers eligible hotels up to 50 basis points of gross room revenue in fee reimbursement for meeting defined guest-satisfaction thresholds. Mason said the incentive will begin affecting results during the second half of 2026 and will be recorded in Marriott’s owned, leased and other expenses rather than paid from system funds.
Marriott also began a phased rollout in June of Ask Bonvoy, an artificial intelligence-powered conversational search feature on Marriott.com and the Marriott Bonvoy app. Capuano said the company is deploying technology and AI to improve revenue generation, guest experiences and associate workflows.
About Marriott International (NASDAQ:MAR)
Marriott International is a global lodging company that develops, manages and franchises a broad portfolio of hotels and related lodging facilities. Its core activities include hotel and resort management, franchise operations, property development and the provision of centralized services such as reservations, marketing and loyalty program management. The company’s brand architecture spans market segments from luxury and premium to select-service and extended-stay, enabling it to serve a wide range of business and leisure travelers as well as corporate and group customers.
The company traces its roots to the hospitality business founded by J.
