Key facts
- Marriott International raised its full-year room revenue growth forecast.
- The company now expects 2026 revenue per available room (revPAR) to grow between 3% and 3.5%.
- This is an increase from the prior forecast of a 2% to 3% growth.
- Marriott reported a first-quarter adjusted profit of $2.72 per share, beating analysts' estimates.
- US and Canada luxury properties saw a 6.8% increase in RevPAR in the first quarter.
- The Middle East and Africa region experienced a 1.9% decrease in room revenue in the first quarter.
Hotel operator Marriott International has raised its full-year forecast for room revenue growth, citing strong travel demand. The company now anticipates revenue per available room (revPAR) to increase between 3% and 3.5% in 2026, an upward revision from its previous projection of 2% to 3%.
Marriott's first-quarter results showed a profit of $2.72 per share, surpassing analysts' average estimate of $2.55. The company's luxury properties in the U.S. and Canada experienced a 6.8% rise in RevPAR, while its budget segment saw a 3.5% increase in room revenue.
Despite the positive outlook, the company's forecast assumes continued impact from the Middle East conflict, which affected first-quarter room revenue in the Middle East and Africa, leading to a 1.9% decrease and a 5.4% drop in occupancy. Peer companies like Hilton and Booking Holdings have also flagged potential impacts from the conflict.
CEO Anthony Capuano highlighted that travel and experiences remain a priority across demographics, a trend visible even in lower-income households. New CFO Jen Mason noted signs of recovery in booking activity, with domestic versus international travel bookings from the U.S. returning to pre-conflict trends.