Hotel operator Marriott International reported better-than-expected second-quarter earnings on Monday, signalling resilient global travel demand despite geopolitical headwinds in parts of its international business.
The Bethesda, Maryland-based hospitality giant, reported a 3.4% year-on-year increase in Global Revenue Per Available Room (RevPAR), a key industry metric that combines room rates and occupancy. In the US and Canada, RevPAR rose 5%, driven primarily by higher average daily room rates.
However, the international business remained mixed. International RevPAR declined 0.5% during the quarter as the impact of the conflict in the Middle East outweighed solid growth across other overseas markets.
Commenting on performance, Anthony Capuano, President and Chief Executive Officer, said, ‘In EMEA, RevPAR declined more than 5%, with gains in Europe more than offset by a 43% decline in the Middle East. APEC RevPAR increased over 5%, supported by strong leisure demand and robust intra-regional travel, while Greater China RevPAR rose more than 3%, driven by our luxury portfolio and strong performance in key markets such as Hong Kong, Taiwan and Hainan.”
Marriott continued to expand its global footprint during the quarter, adding approximately 17,900 net rooms, taking net room growth to 4.5% compared with the end of the second quarter of 2025.
The company also reported a record development pipeline at the end of the quarter, comprising nearly 4,200 properties and around 629,000 rooms worldwide, with 44% of the pipeline currently under construction, including hotels awaiting conversion.
On the financial front, reported operating income stood at $1.229 billion, compared with $1.236 billion a year ago. Net income remained broadly flat at $766 million, versus $763 million in the corresponding quarter last year.
At the operating level, adjusted EBITDA increased 13% year-on-year to $1.592 billion, compared with $1.415 billion in the year-ago period, reflecting strong operating performance despite regional challenges.
Marriott reported its earnings after rivals Hilton Worldwide Holdings and Hyatt Hotels posted solid quarterly results, reinforcing expectations that resilient travel demand continues to support the global lodging industry.
Marriott Bonvoy membership crosses 295 million
Marriott said its Marriott Bonvoy loyalty programme continued to be a key growth driver during the quarter, with membership surpassing 295 million at the end of June. According to the company, the programme continues to boost travel demand, deepen customer engagement, and create long-term value across its global hotel portfolio.
The company also announced new long-term agreements for its co-branded credit card programme in the United States with JPMorgan Chase and American Express. Marriott said the partnerships are expected to further strengthen the Marriott Bonvoy ecosystem while delivering incremental value to hotel owners, cardholders, loyalty members, and shareholders.
Marriott raises RevPAR outlook for 2026
Looking ahead, Marriott raised its outlook and now expects full-year 2026 RevPAR growth of 3% to 3.5%, compared with its previous forecast of 2% to 3%.
However, the company issued a softer earnings outlook for the current quarter. Marriott expects adjusted earnings per share (EPS) to be between $2.74 and $2.82, below analysts’ consensus estimate of $2.87, according to Reuters, citing LSEG data.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
