What Marriott International (MAR) Said on Its Q3 Earnings Call

Key Points

• Strong third-quarter performance: Global comparable RevPAR rose 6.5%, while gross fee revenue increased 14% to $1.52 billion. Adjusted EBITDA climbed 12% to $1.51 billion and adjusted EPS rose 22% to $3.02.
• Raised outlook and shareholder returns: Marriott now expects 2026 global RevPAR growth of 4.5% to 5%, with adjusted EPS growth of 20% to 21%, and plans to return at least $4.8 billion to shareholders through buybacks and dividends.
• Development pipeline remains strong: The record pipeline surpassed 634,000 rooms, with conversions accounting for more than one-third of signings and over 40% of openings through the first nine months of 2026. Management also projects 2027 RevPAR growth of 3.5% to 4.5%.

Marriott International NASDAQ: MAR reported third-quarter results that exceeded its prior expectations, supported by broad-based travel demand, higher room rates and continued development activity. The company raised its full-year global RevPAR outlook and said it expects demand trends to remain strong into 2027.

President and Chief Executive Officer Tony Capuano said global comparable systemwide RevPAR increased 6.5% year over year in the third quarter. RevPAR rose 7.4% in the U.S. and Canada, or 6.2% excluding the World Cup, while international RevPAR increased more than 4%.

“Travel demand has been remarkably robust this year despite geopolitical uncertainty,” Capuano said. Marriott now expects 2026 global RevPAR growth of 4.5% to 5%, up from its prior outlook and well above the 1.5% to 2.5% range it initially forecast at the end of 2025.

Luxury, Leisure and U.S. Demand Support Results

Luxury and resort hotels led U.S. and Canada performance, with luxury RevPAR up 12% during the quarter. Select-service RevPAR increased more than 6%, marking its third consecutive quarter of year-over-year growth.

By customer segment, global leisure RevPAR rose 7%, including a 9% increase in the U.S. and Canada. Global group RevPAR increased 6%, while business transient RevPAR rose 4%. In the U.S. and Canada, group RevPAR grew 7% and business transient RevPAR climbed 5%.

Chief Financial Officer Jen Mason said business transient revenue increased about 4%, driven predominantly by rate growth. She said Marriott continued to see strength across group, business transient and leisure demand, as well as across small, medium and large business customers.

International results were led by the Asia-Pacific region, where RevPAR rose more than 9%, reflecting sustained regional demand and both intra-regional and long-haul international travel. Greater China RevPAR was approximately flat, as strength in luxury properties and markets including Hong Kong, Taiwan and Hainan was offset by softer domestic leisure spending on the Chinese mainland and the effects of major typhoons.

RevPAR in the Caribbean and Latin America rose more than 3%, driven by luxury and leisure demand in the Caribbean despite continued softness in Mexico. EMEA RevPAR increased more than 4%, with Europe up more than 6%. Middle East RevPAR declined 12%, though that represented a significant improvement from a decline of more than 40% in the second quarter.

Fees, EBITDA and Earnings Increase

Third-quarter gross fee revenue rose 14% year over year to $1.52 billion, supported by RevPAR growth, room growth and higher co-branded credit-card fees. The increase came despite a 35% decline in residential branding fees due to the timing of unit sales.

Incentive management fees increased 22% to $181 million, aided by U.S. and Canada RevPAR growth and improved hotel margins. Incentive fees also grew in every international region, including EMEA, where European performance more than offset a Middle East decline.

Adjusted EBITDA rose 12% to $1.51 billion, while adjusted diluted earnings per share increased 22% to $3.02. General and administrative expense increased 2%, which Mason attributed to cost controls and lower litigation expense.

Marriott expects fourth-quarter global RevPAR growth of 4.5% to 5% and adjusted EBITDA growth of 12% to 14%. The company said EMEA growth is expected to turn negative in the fourth quarter, as Europe’s expected strength is offset by a more substantial Middle East decline. Marriott cited difficult comparisons against large events in late 2025 and cancellations of some large Saudi Arabian events amid heightened regional tensions.

For 2026, Marriott forecasts gross fees will increase about 13%, adjusted EBITDA will rise about 13%, and adjusted diluted EPS will grow 20% to 21%. It also expects to return at least $4.8 billion to shareholders during the year through share repurchases and a cash dividend.

Pipeline Reaches Record as Conversions Remain a Priority

Marriott’s global development pipeline grew more than 6% from a year earlier to a record of more than 634,000 rooms at the end of September. The company had 278,000 rooms under construction, including pending conversions, and grew net rooms 4.6% over the 12 months ended Sept. 30.

Conversions accounted for more than one-third of signings and more than 40% of openings in the first nine months of 2026. Capuano said Marriott expects conversions to remain a major growth driver even if new construction accelerates.

“We have built this supertanker that is really built to take advantage of the wide range of conversion opportunities that are out there,” Capuano said.

Marriott continues to expect full-year net rooms growth toward the low end of its prior 4.5% to 5% range, including its typical assumption for 1% to 1.5% room deletions. In the U.S. and Canada, new-build construction starts were up 20% through the first three quarters, following a 7% increase in 2025, Capuano said.

Technology, Loyalty and 2027 View

The company said it is advancing a multiyear technology transformation, including a new property-management technology ecosystem. Capuano said more than 3,000 hotels had moved to the platform as of the day before the call, with deployment waves continuing through 2027.

Marriott is also testing AI-related travel search and commerce initiatives, including conversational AI features such as Ask Bonvoy and integrations with Google and OpenAI. Capuano said AI is currently affecting travel discovery more than booking, and it remains early to determine its eventual effect on distribution costs.

Marriott Bonvoy had approximately 309 million members worldwide. The company is beta testing an in-app complimentary upgrade list designed to provide eligible elite members with visibility into possible upgrades before arrival while preserving premium-room upsell opportunities for hotel owners.

Looking ahead, Marriott’s preliminary view is for 2027 global RevPAR growth of 3.5% to 4.5%. Management said the comparison against the World Cup should be offset by easier EMEA comparisons, though the company is still in its budgeting process and did not provide detailed segment or regional assumptions for next year.

About Marriott International (NASDAQ:MAR)

Marriott International, Inc is a global hospitality company that develops, franchises, licenses and manages hotels, resorts, residences and other lodging properties. Its portfolio includes brands such as Marriott Hotels, Sheraton, Westin, W Hotels, The Ritz-Carlton, St. Regis, JW Marriott, Courtyard, Fairfield by Marriott, Residence Inn and Element. The company also operates Marriott Bonvoy, a travel loyalty program that provides members with benefits and rewards across participating properties and travel experiences.

Marriott traces its origins to 1927, when J.

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