Marriott Lifts FY26 Outlook After Higher Q3; Shares Rise

(RTTNews) - Marriott International, Inc., while reporting higher third-quarter profit, revenues and global RevPAR, on Monday issued outlook for its fourth quarter, and raised fiscal 2026 view citing expectations for continued healthy demand.

In pre-market activity on Nasdaq, the hospitality major's shares were gaining around 3.18 percent, trading at $412.00.

Anthony Capuano, President and Chief Executive Officer, said, "For full year 2026, given our strong third quarter performance and expectations for continued healthy demand, we are raising our global RevPAR outlook... Our global scale, compelling portfolio of brands, industry-leading Marriott Bonvoy loyalty program and dedicated associates, together with our robust development pipeline and disciplined execution, give us confidence in our ability to deliver sustainable, long-term growth."

Looking ahead for the fourth quarter, the company expects adjusted earnings per share of $3.14 to $3.21, and adjusted EBITDA between $1.573 billion and $1.596 billion.

Gross fee revenues are expected to be in a range of $1.604 billion to $1.612 billion for the quarter, with Worldwide RevPAR growth of 4.5 percent to 5.0 percent.

For fiscal 2026, the company now projects adjusted earnings in a range of $12.07 to $12.14 per share and Adjusted EBITDA of $6.075 billion to $6.098 billion, on gross fee revenues between $6.137 billion and $6.145 billion, with worldwide RevPAR growth of 4.5 to 5 percent.

The company previously expected adjusted earnings in a range of $11.64 to $11.81 per share on gross fee revenues between $6.025 billion and $6.055 billion, with worldwide RevPAR growth of 3.0 to 3.5 percent.

In the third quarter, Marriott's earnings came in at $794 million or $3.04 per share, higher than $728 million or $2.67 per share last year.

Adjusted earnings were $790 million or $3.02 per share for the period, compared to $674 million or $2.47 per share in the year-ago quarter.

Adjusted EBITDA totaled $1.512 billion, a 12 percent increase from $1.349 billion last year.

The company's revenue for the period rose 8.0 percent to $7.005 billion from $6.489 billion last year.

Gross fee revenues and net fee revenues climbed 14 percent each to $1.522 billion and $1.489 billion, respectively.

Global RevPAR increased 6.5 percent in the quarter, on higher ADR and occupancy. In the U.S. & Canada, RevPAR rose over 7 percent, with broad-based growth across customer segments and chain scales.

International RevPAR increased over 4 percent in the quarter, led by APEC, which delivered over 9 percent RevPAR growth.

EMEA RevPAR rose over 4 percent mainly with solid growth in Europe.

In the Middle East, trends improved meaningfully from the second quarter even as the ongoing conflict in the Middle East continued to impact results.

Franchise and base management fees grew 13 percent, primarily driven by higher co-branded credit card fees, higher RevPAR and rooms growth.

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