Marriott shares fall on revenue miss despite earnings beat

Investing.com -- Marriott International Inc. (NASDAQ: MAR) reported second-quarter results before the open on Monday, beating earnings expectations but falling short on revenue, sending shares down 3.4% premarket.

The hotel giant posted adjusted earnings per share of $3.19, surpassing the analyst estimate of $3.05 by $0.14. However, revenue of $7.07 billion missed the consensus estimate of $7.17 billion, though it increased from the prior year period.

The company reported global revenue per available room (RevPAR) growth of 3.4% in the quarter, with U.S. & Canada RevPAR rising 5.0% while international markets declined 0.5%. The international weakness stemmed from headwinds in the Middle East, where RevPAR plunged 43%, more than offsetting solid growth in other regions.

For the full year 2026, Marriott issued adjusted EPS guidance of $11.64 to $11.81, with a midpoint of $11.73 that matches the analyst consensus of $11.64. The company raised its full-year global RevPAR growth outlook to 3.0% to 3.5% from previous expectations. For the third quarter, Marriott expects worldwide RevPAR growth of 3.5% to 4.0%.

"We delivered another quarter of excellent results, reflecting strong travel demand, the power of our brands, and sustained development momentum," said Anthony Capuano, President and Chief Executive Officer. "With the outperformance in the second quarter and strong broad-based demand generally expected to continue, we are raising our full year expectation to 3 to 3.5% global RevPAR growth."

The company added approximately 17,900 net rooms during the quarter, bringing total net rooms growth to 4.5% YoY. Marriott's development pipeline reached a record 629,000 rooms across nearly 4,200 properties at quarter-end, with 44% of pipeline rooms under construction. Adjusted EBITDA totaled $1,592 million, up 13% from $1,415 million in the prior year quarter.

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