Demand for travel is strong! Marriott Hotels (MAR.US) Q3 profit and RevPAR exceeded expectations, raising full-year outlook

The Zhitong Finance App learned that the hotel operator Marriott Hotels (MAR.US) announced the financial results for the third quarter of fiscal year 2026 (ending September 30) in advance of the US stock market on Monday. Financial reports show that the company's adjusted diluted earnings per share for the quarter were $3.02, up 22% year on year, significantly higher than the market's consensus forecast of $2.85; GAAP net profit of US$794 million (US$3.04 per share), up 9% year over year.

Analysts pointed out that despite high levels of inflation and uncertainty about the geographical situation, demand for leisure travel remains strong: high-income groups are spending more on high-end experiences, and demand for mid-range and budget hotels is also picking up this quarter. Demand for business travel also remained strong, and hotel operators such as Marriott benefited as a result.

As a core indicator for measuring the prosperity of the hotel industry, the global RevPAR (revenue per available room) increased 6.5% year-on-year during the quarter, far exceeding the company's previous quarterly guidance of 3.5% to 4.0%. The growth was driven by both higher housing prices (ADR) and occupancy rates. Looking at the subregion, the US and Canada RevPAR grew by 7.4%, and customer segments and chain levels were generally strengthened; the international market grew by 4.4%, with Asia Pacific (APEC) leading the way in growth of more than 9%, supported by strong international entry demand; Europe, the Middle East and Africa (EMEA) grew by more than 4%, and Europe's performance was steady. The Middle East region continued to be affected by the conflict, but the trend has improved markedly from the second quarter.

Fee revenue continues to grow in double digits. Total revenue for the quarter was US$1,522 million, up 14% year over year, including franchise fees of US$1,007 million (+15%, benefiting from increased co-branded credit card fees, rising RevPAR and room growth), US$334 million (+6%), and incentive management fees of US$181 million (+22%, with positive growth in all regions).

Adjusted EBITDA was US$1,512 million, up 12% year over year. GAAP's total revenue was $7.05 billion, up 8% year over year, including significant cost reimbursement revenue transferred to hotel owners.

In terms of scale expansion, there was a net increase of about 20,100 guest rooms during the quarter, with a net year-on-year increase of 4.6%. The global system surpassed 10,200 hotels and nearly 1,834 million guest rooms, covering 148 countries and regions; development reserves reached 4,209 hotels and more than 634,000 guest rooms, a record high, accounting for more than half of the rooms in the international market. Transformation (brand transformation) continues to be an important growth engine, accounting for more than one-third of the number of contracts signed in the first nine months and more than 40% of the number of businesses opened.

CEO Anthony Capuano said, “Our excellent third quarter results reflect the continued momentum of the business, the strength of our global scale, and the strength of our brand and revenue engine.” He also pointed out that the number of Marriott Bonvoy (Marriott Bonvoy) members reached about 309 million at the end of the quarter, and partnerships with Uber, Starbucks, etc. continued to drive membership growth.

Looking ahead, in view of strong performance in the third quarter and continued healthy demand expectations, the company raised its full-year guidance, betting that strong travel demand will drive the increase in bookings for its properties. The company said that global RevPAR growth in 2026 was raised to 4.5% — 5.0% from the previous 3% — 3.5%; the full-year adjusted diluted earnings per share guide was $12.07—12.14, and the adjusted EBITDA was US$60.75—6.098 billion; the net growth rate of guest rooms for the whole year is expected to be at the low end of the 4.5% to 5.0% range. The company expects to return at least $4.8 billion of capital to shareholders throughout the year. The adjusted diluted EPS guideline for the fourth quarter was $3.14-3.21.

After the earnings report was announced, Marriott hotels rose nearly 3% in the premarket.