Key facts
- Marriott International raised its full-year room revenue growth forecast to 3%-3.5% for 2026.
- The company's first-quarter adjusted profit of $2.72 per share beat analysts' estimates.
- Luxury properties in the U.S. and Canada saw a 6.8% RevPAR increase in Q1.
- The Middle East and Africa region experienced a 1.9% decrease in room revenue and a 5.4% drop in occupancy in Q1.
- Marriott forecast third-quarter profit below expectations due to softer demand in the Middle East.
Marriott International has raised its full-year forecast for room revenue growth, now anticipating 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%. The company's first-quarter results showed a profit of $2.72 per share, surpassing analysts' average estimate of $2.55. 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, Marriott forecast third-quarter profit below Wall Street expectations due to softer demand in the Middle East. CEO Anthony Capuano noted that RevPAR in Europe, the Middle East and Africa (EMEA) fell over 5%, with a 43% decline in the Middle East outweighing an increase in Europe. The company's outlook 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. New CFO Jen Mason noted signs of recovery in booking activity.