Marriott International (NASDAQ:MAR) shares rose more than 3% in pre-market trading on Monday after the hotel group raised its full-year 2026 revenue and earnings forecasts, supported by stronger demand in the United States and improving international trading conditions.
The company increased its global revenue per available room (RevPAR) growth forecast to between 4.5% and 5%, compared with its previous projection of 3% to 3.5% issued in August.
Third-quarter global RevPAR increased 6.5%, including growth of 7.4% in the United States and Canada and 4.4% across international markets.
Quarterly Earnings and Hotel Performance Improve
Marriott reported third-quarter adjusted earnings of $3.02 per share, up from $2.47 a year earlier and above its previous guidance of $2.74 to $2.82.
Net income increased 9% to $794 million from $728 million, while adjusted EBITDA rose 12% to $1.51 billion.
Franchise and base management fees climbed 13% to $1.34 billion, supported by higher co-branded credit card fees, improved RevPAR and growth in the company’s room portfolio.
However, net revenue from owned, leased and other operations declined to $41 million from $70 million, reflecting weaker hotel performance and additional costs associated with a third-party agreement. These factors were partly offset by an anticipated $12 million insurance recovery.
Chief Executive Officer Anthony Capuano acknowledged that the Middle East conflict continued to affect regional operations, although trading trends “improved meaningfully from the second quarter.”
Marriott Raises Earnings Guidance and Shareholder Returns
For the fourth quarter, Marriott expects global RevPAR growth of 4.5% to 5%, alongside adjusted earnings of $3.14 to $3.21 per share.
The company also increased its full-year adjusted earnings forecast to between $12.07 and $12.14 per share, compared with its previous range of $11.64 to $11.81.
Net room growth is expected to finish 2026 at the lower end of the company’s 4.5% to 5% target range.
Marriott repurchased approximately 3.5 million shares for $1.3 billion during the third quarter. Total shareholder returns through dividends and buybacks reached approximately $4 billion through October 28.
The group now expects to return at least $4.80 billion to shareholders during 2026, compared with its previous forecast of more than $4.50 billion.
Outlook
Marriott’s upgraded guidance reflects stronger hotel demand, particularly in North America, alongside improving international performance despite continued disruption in the Middle East.
Investors will be monitoring fourth-quarter RevPAR growth, progress towards the company’s revised earnings targets and the pace of room expansion as Marriott approaches the end of 2026.