Second Quarter 2026
Filed Aug 3, 2026Marriott International Reports Second Quarter 2026 Results
Worldwide RevPAR increased 3.4 percent, U.S. & Canada RevPAR increased 5.0 percent, adjusted operating income, adjusted net income, adjusted diluted EPS, and Adjusted EBITDA all increased from the year-ago quarter. International RevPAR declined 0.5 percent, while reported operating income declined and owned, leased, and other revenue, net of expense declined.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Worldwide RevPAR growthother | 3.4 percent | – | 3.4 percent |
| Worldwide RevPAR growth using actual dollarsother | 3.9 percent | – | 3.9 percent |
| Franchise and base management feesGAAP | $1,366 million | – | 14 percent |
| Incentive management feesGAAP | $212 million | – | – |
| Owned, leased, and other revenue, net of owned, leased, and other expenseGAAP | $49 million | – | – |
| Depreciation, amortization, and other expensesGAAP | $115 million | – | – |
| General and administrative expensesGAAP | $220 million | – | – |
| Interest expense, netGAAP | $201 million | – | – |
| Provision for income taxesGAAP | $278 million | – | – |
| Reported operating incomeGAAP | $1,229 million | – | – |
| Reported net incomeGAAP | $766 million | – | flat |
| Reported diluted EPSGAAP | $2.90 | – | – |
| Adjusted operating incomenon-GAAP | $1,329 million | – | – |
| Adjusted net incomenon-GAAP | $844 million | – | – |
| Adjusted diluted EPSnon-GAAP | $3.19 | – | – |
| Adjusted EBITDAnon-GAAP | $1,592 million | – | 13 percent |
| Net rooms addedother | roughly 17,900 net rooms | – | – |
| Net rooms growthother | 4.5 percent | – | 4.5 percent |
| Worldwide development pipelineother | 4,186 properties with approximately 629,000 rooms | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. & CanadaRevPAR rose 5 percent, driven by broad-based increases across chain scales and customer segments. | not reported | – | 5.0 percent |
| International marketsHeadwinds from the conflict in the Middle East more than offset solid RevPAR growth across other international regions. | not reported | – | 0.5 percent decline |
| EMEAAn increase in Europe was outweighed by a 43 percent decline in the Middle East. | not reported | – | declined over 5 percent |
| APECSupported by solid leisure demand and robust intra-regional travel. | not reported | – | increased over 5 percent |
| Greater ChinaDriven by strong performance across the luxury portfolio and key markets like Hong Kong, Taiwan and Hainan. | not reported | – | increased over 3 percent |
Third Quarter 2026 and Full Year 2026 outlook
- RevenueThird Quarter 2026 gross fee revenues: $1,474 to $1,483; Full Year 2026 gross fee revenues: $6,025 to $6,055
- Operating expensesThird Quarter 2026 general and administrative expenses: $220 to $210; Full Year 2026 general and administrative expenses: $895 to $875
- Tax rateThird Quarter 2026 Adjusted effective tax rate: Approx. 26.7%; Full Year 2026 Adjusted effective tax rate: 26.0% to 26.5%
- NoteThird Quarter 2026 Worldwide RevPAR growth: 3.5% to 4.0%
- NoteFull Year 2026 Worldwide RevPAR growth: 3.0% to 3.5%
- NoteYear-End 2026 net rooms growth: Low end of 4.5% to 5%
- NoteThird Quarter 2026 owned, leased, and other revenue, net of owned, leased, and other expense: $30 to $40
- NoteFull Year 2026 owned, leased, and other revenue, net of owned, leased, and other expense: $175 to $185
- NoteThird Quarter 2026 Adjusted EBITDA: $1,439 to $1,468
- NoteFull Year 2026 Adjusted EBITDA: $5,965 to $6,025
- NoteThird Quarter 2026 Adjusted EPS – diluted: $2.74 to $2.82
- NoteFull Year 2026 Adjusted EPS – diluted: $11.64 to $11.81
- NoteFull Year 2026 investment spending: $1,250 to $1,350
- NoteFull Year 2026 capital return to shareholders: Over $4,500
Capital returns
- The company repurchased 3.0 million shares of common stock in the 2026 second quarter for $1.1 billion.
- Year-to-date through July 29, the company has repurchased 6.2 million shares for $2.2 billion.
- Year-to-date through July 29, the company has returned approximately $2.6 billion to shareholders through dividends and share repurchases.
- Full Year 2026 capital return to shareholders: Over $4,500.
What drove it
- Franchise and base management fee growth was primarily driven by higher co-branded credit card fees, rooms growth and higher RevPAR.
- Incentive management fees were driven by strong year-over-year growth in the U.S. & Canada, partially offset by declines in EMEA.
- Managed hotels in international markets contributed over half of the incentive fees earned in the quarter.
- The company added roughly 17,900 net rooms during the quarter, including approximately 11,000 net rooms in international markets.
- Conversions represented over a third of signings and 40 percent of openings in the first half of the year.
- Marriott Bonvoy grew to more than 295 million members at quarter-end.
Concerns
- International RevPAR declined 0.5 percent, as Middle East conflict headwinds more than offset growth in other international regions.
- EMEA RevPAR declined over 5 percent, with a 43 percent decline in the Middle East.
- Owned, leased, and other revenue, net of owned, leased, and other expense declined to $49 million, primarily reflecting a $27 million property-related litigation accrual and lower termination fees.
- Depreciation, amortization, and other expenses increased to $115 million, driven by a $68 million impairment charge recorded in connection with the sale of a U.S. & Canada hotel.
- Interest expense, net increased to $201 million, primarily due to higher interest expense associated with higher debt balances.
What to watch
- Third Quarter 2026 worldwide RevPAR growth guidance of 3.5% to 4.0%.
- Full Year 2026 worldwide RevPAR growth guidance of 3.0% to 3.5%.
- The expected partial-year incremental impact of new U.S. co-branded credit card program agreements with JPMorgan Chase and American Express.
- International market trends, particularly Middle East and EMEA RevPAR.
- Development execution against year-end 2026 net rooms growth at the low end of 4.5% to 5%.
- Progress toward full-year capital return to shareholders of over $4,500.
Balance sheet and cash flow
- At the end of the quarter, Marriott’s total debt was $16.9 billion and cash and equivalents totaled $0.5 billion.
- At year-end 2025, debt was $16.2 billion and cash and equivalents were $0.4 billion.
- Full Year 2026 investment spending: $1,250 to $1,350.
Analysis
Marriott reported broad operating momentum in the second quarter. Worldwide RevPAR increased 3.4 percent, supported by continued ADR strength, while U.S. & Canada RevPAR increased 5.0 percent on broad-based growth across chain scales and customer segments. Franchise and base management fees increased 14 percent to $1,366 million, with higher co-branded credit card fees, rooms growth and higher RevPAR identified as the primary drivers.
Profitability was stronger on an adjusted basis. Adjusted operating income was $1,329 million versus $1,186 million in the year-ago quarter, Adjusted net income was $844 million versus $728 million, Adjusted diluted EPS was $3.19 versus $2.65, and Adjusted EBITDA was $1,592 million versus $1,415 million. Reported operating income was $1,229 million versus $1,236 million. Reported net income was $766 million and reported diluted EPS was $2.90.
International performance was the principal geographic offset. International RevPAR declined 0.5 percent, as Middle East conflict headwinds more than offset growth elsewhere. EMEA RevPAR declined over 5 percent, including a 43 percent decline in the Middle East. APEC RevPAR increased over 5 percent and Greater China RevPAR increased over 3 percent. Owned, leased, and other revenue, net of expense was also pressured by a $27 million property-related litigation accrual and lower termination fees, while depreciation, amortization, and other expenses included a $68 million impairment charge.
Development and loyalty indicators remained strong. Marriott added roughly 17,900 net rooms, including approximately 11,000 in international markets, and net rooms grew 4.5 percent from the end of the second quarter of 2025. The worldwide development pipeline totaled 4,186 properties with approximately 629,000 rooms, while Marriott Bonvoy grew to more than 295 million members. Conversions represented over a third of signings and 40 percent of openings in the first half of the year.
The company raised its full-year worldwide RevPAR growth expectation to 3.0% to 3.5% and guided third-quarter RevPAR growth to 3.5% to 4.0%. Full-year guidance includes expected partial-year incremental impact from recently executed U.S. co-branded credit card agreements with JPMorgan Chase and American Express. Marriott repurchased 3.0 million shares for $1.1 billion during the quarter, and year-to-date through July 29 returned approximately $2.6 billion through dividends and share repurchases. Total debt was $16.9 billion and cash and equivalents were $0.5 billion at quarter-end.
Management, verbatim
We delivered another quarter of excellent results, reflecting strong travel demand, the power of our brands, and sustained development momentum. Global RevPAR increased 3.4 percent in the second quarter, with continued ADR strength. In the U.S. & Canada, RevPAR rose 5 percent, driven by broad-based increases across chain scales and customer segments.
Anthony Capuano, President and Chief Executive Officer
International RevPAR declined 0.5 percent in the quarter, as headwinds from the conflict in the Middle East more than offset solid RevPAR growth across our other international regions.
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 percent global RevPAR growth.
Anthony Capuano, President and Chief Executive Officer
Not in the filing
stated, not guessed- Period-end date
- Total revenue
- Gross margin
- Segment revenue by geography
- Operating cash flow
- Free cash flow
- Dividend amount
- Prior-quarter comparisons for reported and adjusted income statement metrics
- Prior outlook for comparison with actual results
- Full detail of guidance footnotes and exclusions, as the provided filing text is truncated
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.