Marriott International Inc. (NASDAQ:MAR) reported second-quarter results before Monday’s market open that topped earnings forecasts but missed Wall Street’s revenue expectations, sending the hotel operator’s shares down 3.4% in pre-market trading.
Earnings Outperform While Revenue Misses Estimates
Marriott posted adjusted earnings of $3.19 per share for the quarter, exceeding analysts’ consensus estimate of $3.05 by $0.14.
Revenue totaled $7.07 billion, below the market forecast of $7.17 billion, although it remained higher than the level reported in the same quarter last year.
RevPAR Growth Remains Positive Despite Middle East Weakness
Global revenue per available room (RevPAR) increased 3.4% during the second quarter.
The company’s U.S. and Canada business delivered strong performance, with RevPAR rising 5.0%, while international RevPAR declined 0.5%.
Marriott said the weaker international performance was largely driven by conditions in the Middle East, where RevPAR dropped 43%, offsetting healthy growth across several other international markets.
Company Raises Full-Year RevPAR Outlook
Marriott reaffirmed confidence in its outlook by increasing its full-year forecast for global RevPAR growth.
The company now expects worldwide RevPAR to increase between 3.0% and 3.5% during 2026, compared with its previous guidance.
For the third quarter, Marriott projects global RevPAR growth of between 3.5% and 4.0%.
Adjusted earnings per share for the full year are expected to range from $11.64 to $11.81. The midpoint of $11.73 is broadly in line with analysts’ consensus estimate of $11.64.
Management Highlights Continued Travel Demand
President and Chief Executive Officer Anthony Capuano said the company’s operating momentum remained strong.
“We delivered another quarter of excellent results, reflecting strong travel demand, the power of our brands, and sustained development momentum,” said Anthony Capuano, President and Chief Executive Officer. “With the outperformance in the second quarter and strong broad-based demand generally expected to continue, we are raising our full year expectation to 3 to 3.5% global RevPAR growth.”
Development Pipeline Reaches Record Level
During the quarter, Marriott added approximately 17,900 net rooms, bringing total net room growth to 4.5% compared with a year earlier.
The company’s development pipeline expanded to a record 629,000 rooms across nearly 4,200 properties, with 44% of those rooms already under construction.
Adjusted EBITDA increased to $1.592 billion from $1.415 billion in the second quarter of last year, representing year-over-year growth of 13%.