- Worldwide RevPAR rose 6.5 percent in Q3.
- EPS outlook raised from $12.07 to $12.14.
- Pipeline reached a record 634,000-plus rooms.
MARRIOTT INTERNATIONAL RAISED raised its full-year outlook on Monday after worldwide RevPAR rose 6.5 percent in the third quarter on higher room rates and occupancy. Net income rose 9 percent to $794 million from $728 million.
Revenue increased 8 percent to $7.005 billion and adjusted diluted earnings per share rose 22 percent to $3.02 from $2.47 a year earlier, Marriott said in a statement. RevPAR and adjusted EPS both exceeded the company’s August guidance, which projected RevPAR growth of 3.5 to 4 percent and adjusted EPS of $2.74 to $2.82.
"Our strong Q3 results reflected business momentum, global scale, and powerful brands," said Anthony Capuano, Marriott’s president and CEO.Photo credit: iStock
“Our excellent third quarter results reflected continued momentum across our business, the benefits of our global scale, and the power of our brands and revenue engines,” said Anthony Capuano, Marriott’s president and CEO. “In the U.S. and Canada, RevPAR rose over 7 percent, with broad-based growth across customer segments and chain scales.”
RevPAR in the U.S. and Canada increased 7.4 percent, and international RevPAR rose 4.4 percent, the statement said. Asia-Pacific excluding China led international markets with growth of more than 9 percent, while RevPAR in Europe, the Middle East and Africa rose more than 4 percent. Marriott said Middle East performance improved from the second quarter despite the ongoing conflict in the region.
Reported diluted EPS rose to $3.04 from $2.67. Adjusted net income increased to $790 million from $674 million, and adjusted EBITDA rose 12 percent to $1.512 billion from $1.349 billion.
Gross fee revenue increased 14 percent to $1.522 billion, Marriott said. Base management and franchise fees rose 13 percent to $1.341 billion, driven mainly by higher co-branded credit card fees, RevPAR and room growth. Incentive management fees rose 22 percent to $181 million, with growth in all regions.
Rooms and pipeline
In June, Marriott Chairman David Marriott celebrated the opening of its 10,000th property with JW Marriott Ranthambore associates in Rajasthan. Photo credit: Marriott International
Marriott added about 20,100 net rooms in the quarter, including more than 13,400 in international markets. Net rooms grew 4.6 percent from a year earlier, and the system reached more than 10,200 properties with nearly 1.834 million rooms.
The development pipeline reached a record 4,209 properties and more than 634,000 rooms, with more than half in international markets, the statement said. Including pending conversions, 1,750 properties with more than 278,000 rooms, or 44 percent of pipeline rooms, were under construction.
Conversions accounted for more than one-third of signings and more than 40 percent of openings in the first nine months of 2026. Organic signings reached a year-to-date record through September. Marriott Bonvoy membership reached about 309 million, which the company attributed to its brand portfolio and partnerships with Uber, Starbucks and others.
The company recently named Daniel Dubowski senior vice president and chief information security officer.
Outlook and shareholder returns
Marriott raised RevPAR growth guidance to 4.5 percent to 5 percent, boosting EBITDA and EPS forecasts. Photo credit: Marriott International
Marriott raised its full-year worldwide RevPAR growth forecast to 4.5 percent to 5 percent from 3 to 3.5 percent and expects the same range for the fourth quarter. It now projects full-year adjusted EBITDA of $6.075 billion to $6.098 billion and adjusted diluted EPS of $12.07 to $12.14, up from $11.64 to $11.81.
The company expects fourth-quarter adjusted diluted EPS of $3.14 to $3.21 and full-year net rooms growth toward the low end of its 4.5 to 5 percent range. On its earnings call, Marriott said it expects full-year co-branded credit card fees to rise in the high-30 percent range.
Marriott repurchased 3.5 million shares for about $1.3 billion in the quarter. Through Oct. 28, it had returned about $4 billion to shareholders through dividends and buybacks, and it expects full-year returns of at least $4.8 billion.
Marriott's RevPAR increased 3.4 percent in the second quarter, while net income edged up to $766 million from $763 million a year earlier.
