Marriott International — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported net income totaled $794 million, a 9% increase compared to $728 million in the third quarter of 2025.
• Reported diluted earnings per share (EPS) totaled $3.04, up from $2.67 in the year-ago quarter.
• Adjusted net income totaled $790 million, a 17% increase compared to $674 million in the third quarter of 2025.
• Adjusted diluted EPS totaled $3.02, up from $2.47 in the year-ago quarter.
• Adjusted EBITDA totaled $1,512 million, a 12% increase compared to $1,349 million in the third quarter of 2025.
• Franchise and base management fees totaled $1,341 million, a 13% increase compared to $1,190 million in the prior year quarter.
• Incentive management fees totaled $181 million, a 22% increase compared to $148 million in the prior year quarter.
• Owned, leased, and other revenue, net of expense, totaled $41 million, down from $70 million in the prior year quarter.
• General and administrative expenses totaled $214 million, compared to $210 million in the prior year quarter.
• Interest expense, net, totaled $219 million, compared to $194 million in the prior year quarter.
• Provision for income taxes totaled $266 million, flat compared to the prior year quarter.
• Reported operating income totaled $1,274 million, compared to $1,180 million in the prior year quarter.
• Adjusted operating income totaled $1,267 million, compared to $1,119 million in the prior year quarter.

Guidance and Future Outlook:

• For full year 2026, the company raised its global RevPAR outlook to growth of 4.5% to 5%.
• Fourth quarter 2026 vs. 2025 RevPAR growth is expected to be 4.5% to 5.0%.
• Full year 2026 vs. 2025 RevPAR growth is expected to be 4.5% to 5.0%.
• Year-end 2026 vs. 2025 net rooms growth is expected to be in the low end of 4.5% to 5%.
• Full year 2026 gross fee revenues are forecasted at $6,137 to $6,145 million.
• Full year 2026 owned, leased, and other revenue, net of expense, is forecasted at $170 to $175 million.
• Full year 2026 general and administrative expenses are forecasted at $880 to $890 million.
• Full year 2026 Adjusted EBITDA is forecasted at $6,075 to $6,098 million.
• Full year 2026 Adjusted diluted EPS is forecasted at $12.07 to $12.14.
• Full year 2026 investment spending is forecasted at $1,250 to $1,350 million.
• Full year 2026 capital return to shareholders is expected to be at least $4,800 million.
• Full year 2026 Adjusted effective tax rate is expected to be approximately 26.0%.

Business Segments and Product Lines:

• Worldwide RevPAR increased 6.5% in the third quarter, driven by higher ADR and occupancy.
• RevPAR in the U.S. & Canada increased 7.4%, with broad-based growth across customer segments and chain scales.
• RevPAR in international markets increased 4.4%, led by APEC (over 9% growth) and EMEA (over 4% growth).
• The company added roughly 20,100 net rooms globally during the quarter, including over 13,400 net rooms in international markets.
• Global system totaled over 10,200 properties with nearly 1,834,000 rooms at quarter-end.
• Worldwide development pipeline reached a record total of over 4,200 properties and more than 634,000 rooms.
• 44% of pipeline rooms were under construction, including hotels pending conversion.
• Over half of the rooms in the quarter-end pipeline were located in international markets.
• Conversions represented over a third of signings and over 40% of openings during the first nine months of the year.
• Marriott Bonvoy membership reached approximately 309 million members at quarter-end.

Market and Competitive Landscape:

• Trends in the Middle East improved meaningfully from the second quarter, though the ongoing conflict continued to impact results in that region.
• Robust international inbound demand supported growth in APEC.
• Solid growth in Europe supported EMEA RevPAR growth.

Risks and Challenges:

• The ongoing conflict in the Middle East continues to impact results in that region.
• Lower owned and leased hotel results reflected the impact of renovations and the sale of a U.S. & Canada hotel in the second quarter.
• Higher costs associated with a third-party agreement partially offset revenue declines in owned, leased, and other segments.
• Forward-looking statements are subject to risks and uncertainties including macroeconomic environment, property performance, and potential asset sales or acquisitions.

Management Commentary and Tone:

• CEO Anthony Capuano stated results reflected "continued momentum across our business, the benefits of our global scale, and the power of our brands and revenue engines."
• Management expressed confidence in delivering "sustainable, long-term growth" due to global scale, brand portfolio, loyalty program, and disciplined execution.
• Development activity remained strong with record global organic signings year-to-date through September.

Other Key Points:

• The company repurchased 3.5 million shares of common stock for $1.3 billion in the third quarter.
• Year-to-date through October 28, the company returned approximately $4.0 billion to shareholders through dividends and share repurchases.
• The company issued $250 million of Series NN Senior Notes due in 2029 at a 4.875% interest rate.
• The company issued $1.0 billion of Series YY Senior Notes due in 2036 at a 5.650% interest rate.
• The company completed the refinancing of its credit facility, extending maturity to September 2031 and increasing the facility size from $4.5 billion to $5.0 billion.
• Total debt was $16.8 billion at quarter-end, compared to $16.2 billion at year-end 2025.
• Cash and equivalents totaled $0.5 billion at quarter-end, compared to $0.4 billion at year-end 2025.
• A $12 million expected insurance recovery associated with a 2026 second quarter property-related litigation matter was recorded ($9 million after-tax impact).
• The company sold a U.S. & Canada hotel in the second quarter and plans to sell another in the fourth quarter.
• The company made an investment in Lefay in the second quarter.
• An adjustment related to the termination of a licensing agreement with Sonder Holdings Inc. resulted in a $2 million adjustment in the first three quarters of 2026.
• Asset impairment charges of $74 million were excluded from full year 2026 outlook.