MAR

A month has gone by since the last earnings report for Marriott International (MAR). Shares have lost about 3.1% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Marriott due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Marriott International reported second-quarter 2026 results, with adjusted earnings beating the Zacks Consensus Estimate but revenues missing the same.Adjusted earnings of $3.19 per share surpassed the consensus estimate of $3.06 by 4.2% and increased 20.4% year over year. Revenues of $7,071 million missed the consensus mark of $7,260 million by 2.6% but rose 4.8%. The results benefited from higher fee revenues, room growth and improved worldwide RevPAR, which increased 3.4%. Adjusted net income amounted to $844 million, up 16% from $728 million in the prior-year quarter. Adjusted operating income increased 12% year over year to $1.33 billion.Gross fee revenues totaled $1.58 billion, reflecting an increase of 13% from the year-ago quarter. Franchise fees rose 19% to $1.02 billion, primarily driven by higher co-branded credit card fees, room growth and increased RevPAR.Base management fees were $343 million, up 1% year over year. Incentive management fees increased 6% to $212 million, aided by strong growth in the United States and Canada, partly offset by declines in Europe, the Middle East and Africa. Worldwide comparable systemwide RevPAR increased 3.4% in constant dollars year over year. The upside was backed by a 3.5% increase in average daily rate, while occupancy declined 0.1 percentage points to 71.6%.Comparable systemwide RevPAR in the United States and Canada rose 5%. Average daily rate increased 4.7%, while occupancy improved 0.2 percentage points to 74%. The luxury category led the region, with composite luxury RevPAR advancing 9.1%.International comparable systemwide RevPAR declined 0.5%. Europe RevPAR rose 4.2%, while Greater China and Asia Pacific excluding China increased 3.2% and 5.3%, respectively. Caribbean and Latin America RevPAR gained 3%.Middle East and Africa RevPAR fell 33.1%, reflecting conflict-related headwinds. Occupancy in the region declined 15.8 percentage points, while average daily rate decreased 12.1%. General and administrative expenses totaled $220 million compared with $210 million in the prior-year quarter. The increase reflected higher compensation costs, partly driven by timing.Depreciation, amortization and other expenses increased to $115 million from $53 million. The rise primarily resulted from a $68 million impairment charge related to the sale of a U.S. and Canada hotel.Adjusted operating margin expanded to 66% from 65% a year ago. Adjusted EBITDA amounted to $1.59 billion, up 13% from $1.42 billion in the second quarter of 2025. At the end of the second quarter, Marriott's total debt was $16.9 billion compared with $16.2 billion at the end of 2025. Cash and equivalents totaled $0.5 billion, up from $0.4 billion at the end of 2025.The company repurchased 3 million shares for $1.1 billion during the quarter. Year to date through July 29, 2026, Marriott repurchased 6.2 million shares for $2.2 billion.The company returned approximately $2.6 billion to shareholders through dividends and share repurchases during the same period. Marriott added roughly 17,900 net rooms during the quarter, including approximately 11,000 net rooms in international markets. Net rooms grew 4.5% from the end of the second quarter of 2025.At quarter-end, the company's global system comprised more than 10,000 properties and nearly 1.81 million rooms. Marriott Bonvoy membership exceeded 295 million.The worldwide development pipeline reached a record 4,186 properties and approximately 629,000 rooms. The pipeline included 1,757 properties with more than 279,000 rooms under construction.Conversions remained an important growth driver, representing more than one-third of signings and 40% of openings in the first half of 2026. For the third quarter of 2026, Marriott expects worldwide RevPAR growth of 3.5-4%. Gross fee revenues are projected between $1.47 billion and $1.48 billion. Adjusted EBITDA is anticipated in the range of $1.44-$1.47 billion. Adjusted earnings are expected between $2.74 and $2.82 per share.For 2026, management raised its worldwide RevPAR growth forecast to 3-3.5%. Gross fee revenues are expected between $6.03 billion and $6.06 billion, while adjusted EBITDA is projected in the range of $5.97-$6.03 billion.The company expects adjusted earnings of $11.64-$11.81 per share. Net room growth is anticipated at the low end of the 4.5-5% range, while capital returns to shareholders are projected to exceed $4.5 billion. In the past month, investors have witnessed a downward trend in estimates revision. Currently, Marriott has a nice Growth Score of B, a score with the same score on the momentum front. However, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Marriott has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marriott International, Inc. (MAR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Viking Holdings Ltd.? Here are five stocks we like better. Viking Holdings delivered another strong quarter, with revenue, EBITDA and earnings all improving year over year. Strong 2026 and 2027 bookings show demand holding up even as Viking Holdings continues to expand capacity. Viking Holdings still trades at a premium, but its Moderate Buy consensus shows Wall Street remains broadly constructive. Viking Holdings (NYSE: VIK) gave an answer to investors who may have been concerned about its high premium. The results from Q2 2026 suggest that the premium isn’t just warranted; it may even expand. In the immediate aftermath of the report, VIK turned down just over 1%. But that was after the stock spiked over 1.5% when trading opened. That kind of price action usually indicates algorithmic activity, which is likely to smooth over the next few trading sessions. It also means that investors who may have been hoping for a deeper dip in VIK may be disappointed. → Datavault AI Locks Down CyberCatch in $94M Security Rollup Viking's Q2 2026 report was the continuation of a familiar theme. Analysts set a high bar, and Viking climbs over it. In this case, revenue was up 16.5% year-over-year (YOY) to $2.19 billion, while adjusted EBITDA increased 18.2% year-over-year to $748.4 million. Net Yield rose 6.2% to $645, and adjusted earnings per share (EPS) of $1.31 beat the consensus of $1.26. Net Leverage stood at 1.2x as of June 30, 2026, and the company continued adding to its fleet even as it worked through a heavy capital-spending cycle. CEO Leah Talactac credited the quarter to the continued execution of Viking's long-term strategy and the strength of the Viking brand, while CFO Linh Banh pointed to the 2027 booking position as reinforcing confidence in the company's growth trajectory. → Tesla's Cybercab Launch Could Reshape Margins for Uber and Lyft The strength of this report went beyond the headline numbers. Viking announced that as of Aug. 9, it had sold 96% of capacity passenger cruise days for its core products for the 2026 season. Advanced bookings for 2026 were $6.39 billion, a 13% year-over-year increase. Advanced bookings per passenger cruise day in 2026 were $833, up 6% YOY. But this isn’t just a 2026 story. Management also reported that it had sold 53% of its capacity passenger cruise days for 2027. Advanced bookings for 2027 are at $4.71 billion, up 21% compared to the same point in 2026. Advanced bookings per passenger cruise day for 2027 are at $958, up 10% YOY. → The Pre-IPO Playbook: How to Cash in on Anthropic Before the Bell For its part, Viking is increasing operating capacity to meet that demand. Operating capacity in 2026 is 7% higher YOY. The company plans to increase that figure by an additional 15% in 2027. None of this suggests that the company’s core consumer is anxious about travel. That’s not surprising. Viking caters to an older, more affluent traveler. In colloquial terms, these consumers live in the upper leg of the K-shaped economy. Even with evidence that many of these consumers are turning to Walmart (NASDAQ: WMT) for their discretionary purchases, that’s not impacting their desire to travel. According to Yardeni Research, the average forward price-to-earnings (P/E) ratio of a company in the Hotels, Resorts, and Cruise Line sector is 19.4x. The average of the S&P 500 currently sits around 29.65x. That’s the context for understanding Viking’s forward P/E, which was 29.74x following the earnings report. That means VIK is on par with the broader market, and at a premium to its sector. However, the same could be said of a company like Marriott International (NYSE: MAR), which has a forward P/E of around 31x as of this writing. For investors seeking a more granular comparison, Royal Caribbean Cruises (NYSE: RCL) has a forward P/E of approximately 17x. The takeaway for investors is that VIK trades at a premium. But it’s a premium that seems well deserved when compared to the industry average. VIK has been in a bullish pattern of higher highs and higher lows with support at the 50-day simple moving average. That pattern is being tested as the stock is near the low it reached in mid-July. Should VIK fail to hold that level, it could test an area around $88 or even fall as low as $80. That seems like an overreaction to a solid report. Any booking softness around geopolitical events appears to be reversing and was largely limited to the company’s river cruise business. Analysts were raising their price targets before the report, with Stifel Nicolas issuing a price target of $125 and Wells Fargo raising its price target to $128 from $109. Overall, Viking carries a Moderate Buy consensus rating from 19 analysts, with an average price target of $107.39. Further revisions could follow as analysts digest the latest results. There may be reasons for genuine concern about the economy. But in a market where winners and losers are becoming more easily identified, Viking looks like a company that continues to grow into its valuation. The article "Viking Stock Fell After Earnings, But the Numbers Tell a Different Story" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

SKYX Reports over $27.7 Million in Cash and Cash Equivalents as of June 30, 2026, Management Believes It Has Sufficient Cash to Achieve Its Goals Including Becoming Cash Flow Positive as It Exits 2026 39% Reduction in Cash Used in Operating Activities to $3.7 million in Q-2 of 2026 from $6.0 million in Q-1 of 2026 Gross Profit Continues to Grow with 4% Increase to $7.3 Million in Q-2 of 2026 Compared to Q-2 of 2025 and a 10% Increase to $13.9 Million for the First Half of 2026 Compared to $12.7 Million for the First Half of 2025 SKYX Recently Announced it Will Supply Its Technologies During a Renovation of a Marriott City Center Hotel in Durham, NC In May 2026 SKYX Announced Its Technology Will Become Brand Standard for European Hotel Developers Group OTT, Developer Over 250 Hotels and Buildings Across Europe                         In May 2026 SKYX Announced Its First European Hotel in France During a Renovation of an Historical Architectural Preservation Hotel, The Grand Hotel du Parc (formerly The Grand Medicis Hotel) In June 2026 SKYX Announced It Will Deploy Its Technologies to Its Second European Hotel During a Renovation of 5-Star Accor Hospitality Group Hotel Mozart Prague SKYX Signed Additional Agreement with Group OTT Heritage Hospitality Group to Deploy and Market Its Technologies to Vast European Hotel Market of Over 132,000 Hotels In May 2026 SKYX Signed a Licensing Agreement for Its Advanced Technologies with U.S., Canada, and Global Leading Lighting Company Eurofase SKYX Is Expected to Deploy Over 1-Million Units of Its Products including Its Advanced Smart Home Plug-and-Play Technologies During the Course of Its Projects and to Over 100,000 Units/Homes by the End of 2026 Through Its Pro and Retail Segments SKYX’s Future Projects in the U.S. and Globally Include Projects in North Carolina, Austin, San Antonio, South Florida (Including Miami’s New $4 Billion Smart City), New York, Europe, Saudi Arabia, and Egypt Despite One of the Hottest Summers on Record, SKYX’s Sales of Its Patented Turbo Heater Fan are Continuing to Grow and Company Expects Sales to Significantly Grow Towards Fall and Winter Seasons and Will Provide Additional Products in New Designs and Larger Sizes SKYX’s Technology Expansion Provides Additional Opportunities for Future Recurring Revenues Through Interchangeability, Upgrades, AI Services, Monitoring, Subscriptions, and More SKYX’s Enhanced Safety Code Standardization Team Continues Its Progress Toward Its Goal of a Safety-Mandated Standardization in Homes/Buildings of Its Life-Saving Ceiling Outlet/Receptacle Technology MIAMI, Aug. 12, 2026 (GLOBE NEWSWIRE) -- SKYX Platforms Corp. (NASDAQ: SKYX) (d/b/a SKYX Technologies) (the “Company” or “SKYX”), a highly disruptive advanced smart home and AI platform technology company with over 100 pending and issued patents globally and 60 lighting and home décor websites, with a mission to make homes and buildings become safe and smart as the new standard, today reported its financial and operational results for the second quarter ended June 30, 2026. SKYX will hold a conference call today, August 12, 2026, at 4:30 pm, Eastern Time, to discuss the results. See below for dial-in information. Second Quarter 2026 Highlights and Recent Events Generated an increase of 14% in revenues to a record $25.3 million in second quarter 2026 compared to $22.1 million in revenues in first quarter 2026 and an increase of 10% compared to $23.1 million for the second quarter of 2025. As of June 30, 2026, Company reported $27.7 million in total cash, cash equivalents, and restricted cash compared to $10.1 million as of December 31, 2025. Reporting 10 consecutive YoY quarters of growth. Revenues for the six months ended June 30, 2026, increased 10% to a record $47.4 million compared to $43.2 million for the six months ended June 30, 2025. SKYX continues to leverage the rapid conversion of its e-commerce sales into cash, advancing it’s cash position often referred to as the “Dell Working Capital Model”, lowering its cost of capital. Management believes it has sufficient cash to achieve its goals including becoming cash flow positive exiting 2026. The gross profit for the second quarter ending June 30, 2026, increased comparatively to the second quarter of 2025 by 4% to $7.3 million. Gross profit for the six months ended June 30, 2026, increased comparatively by 10% to $13.9 million, compared to $12.7 million for the six months ended June 30, 2025. Net loss decreased by $0.6 million to $8.2 million in the second quarter of 2026 compared to $8.8 million in the second quarter of 2025 and decreased by $1.1 million sequentially compared to $9.3 million in the first quarter of 2026. Net loss per share was $0.06 per share in the second quarter of 2026 compared to $0.08 in the second quarter of 2025. Adjusted EBITDA loss, a non-GAAP measure, improved sequentially to $3.5 million in the second quarter of 2026 from $3.9 million in the first quarter of 2026, as compared to $2.6 million in the second quarter of 2025. Net cash used in operating activities was reduced by 39% to $3.7 million in the second quarter of 2026 from $6.0 million in the first quarter of 2026. The Company reduced interest-bearing debt by $2.0 million as of June 30, 2026. The Company maintains a structurally favorable working capital profile, with customers paying in advance of supplier payment obligations. This results in a net working capital deficit representing 9.8% of revenues and supports rapid conversion of e-commerce sales into operating cash flow. Builder / Hotel Segments and General Market Acceptance SKYX Is Expected to Deploy Over 1-Million Units of Its Products including Its Advanced Smart Home Plug-and-Play Technologies During the Course of Its Projects and to Over 100,000 Units/Homes by the End of 2026 Through Its Pro and Retail Segments. SKYX’s Future Projects in the U.S. and Globally Include Projects in North Carolina, Austin, San Antonio, South Florida (Including Miami’s New $4 Billion Smart City), New York, Europe, Saudi Arabia, and Egypt. SKYX announced the launch of its patented advanced SKYFAN and Turbo Heater to the leading U.S. retailer The Home Depot, including a new SkyPlug branding page on HomeDepot.com. SKYX recently announced the launch of its Turbo Heater fan at leading U.S. retailers Target, Walmart, and Lowe’s, and on its e-commerce platform across 60 websites. Based on the Growing Sales of its patented Turbo Heater fan, SKYX is expanding the category of the “All-Season Ceiling Fan” — heat in winter and cool in summer — to provide additional products in new designs and larger sizes. Technology Roadmap SKYX’s technologies expansion provides additional opportunities for future recurring revenues through interchangeability, upgrades, AI services, monitoring, subscriptions, and more. SKYX will be launching a new AI-driven system and infrastructure for its e-commerce platform of 60 websites, expected to significantly increase its conversion rate and sales. The Company secured U.S. and global strategic manufacturing partnerships with premier manufacturers including in the U.S., Vietnam, Taiwan, China, and Cambodia. SKYX announced a collaboration with the NVIDIA AI Ecosystem Connect Program. SKYX expects to grow its collaboration with NVIDIA through its existing and future smart home projects. Safety Standardization Mandatory Code and Insurance Exposure SKYX's Safety Code Standardization Team is receiving support from a new significant prominent leader with its government safety agency’s process for a safety mandatory standardization of its electrical ceiling outlet/receptacle technology. SKYX’s code team is led by industry veterans Mark Earley, former head of the National Electrical Code (NEC), and Eric Jacobson, former President and CEO of the American Lighting Association (ALA). The Company’s Safety Code Standardization team believes it will garner assistance from additional safety organizations with its code mandatory safety standardization efforts based on the product’s significant safety aspects. Mr. Earley and Mr. Jacobson were instrumental in numerous code and safety changes in both the electrical and lighting industries. Both strongly believe that, considering the Company’s standardization progress including its product specification approval voting for by ANSI / NEMA (American National Standardization Institute / National Electrical Manufacturers Association) and being voted into 10 segments in the NEC Code Book, it has met the necessary safety conditions for becoming a ceiling safety standardization requirement for homes and buildings. The Company strongly believes its products can save insurance companies many billions of dollars annually by minimizing risks (e.g., reducing fires, ladder fall injuries, and electrocutions). Management expects that insurance companies will use the Company’s range and variations of its safe advanced plug & play products to reduce its exposure and minimize its risks. Financing Highlights SKYX cash, cash equivalents and restricted cash increased to $27.7 million as of June 30, 2026, as compared to $10.1 million as of December 31, 2025, as we raised $29 million in straight equity, with no warrants during January 2026 through two fundamental institutional investors, $25 million at $2.50 per share and $4 million at $2.00 per share. In 2025 we extended $13.5 million in notes coming due with maturity out to 5 years until 2030. Second Quarter 2026 Financial Results The Company’s financial statements for the quarter ended June 30, 2026, are filed with the SEC and are available on the Company’s investor relations website. https://ir.skyplug.com/sec-filings/ Management Commentary Company’s Management, Board members, and Senior Advisors include former CEO’s and executives from Fortune 100 companies including Nielsen, Microsoft, Disney, GE, The Home Depot, Office Depot, Chrysler, among others. The Company is trending positively, generating record second quarter 2026 revenues of $25.3 million representing a 14% increase compared to $22.1 million and a 10% increase as compared to $23.1 million for the second quarter of 2025, and record first half 2026 revenues of $47.4 million as compared to $43.2 million for the first half of 2025. The Company generated a gross profit for the second quarter ending June 30, 2026, increasing by 4% to $7.3 million, compared to the second quarter ending June 30, 2025, and a 9% increase to $13.9 million for the first half of 2026 compared to $12.7 million for the first half of 2025. We believe our positive trends will continue to accelerate through the balance of 2026 as we build out and execute on our channel strategy. We are encouraged by the recently announced initiatives where we could supply hundreds of thousands of units in Europe, the Middle East including Saudi Arabia and Egypt, the $4 billion mixed-use smart city development in the Little River District in the heart of Miami, and projects in Pittsford, New York; North Carolina; Austin, Texas; and San Antonio, Texas. We continue to address the builder/commercial segments, large online and brick-and-mortar retail partners as well as our future potential to realize incremental licensing, subscription, and AI/data aggregation revenues. Furthermore, our e-commerce website platform with 60 websites enhances the acceleration of marketing and distribution channels, collaborations, licensing, and sales to both professional and retail segments. Our websites include banners, videos, and educational materials regarding the simplicity, cost savings, time-saving, and life-saving aspects of the Company’s patented technologies. We have accelerated our pace of sales and strategic initiatives with a robust gross margin profile, notably reducing the net loss, the adjusted EBITDA loss, and the net cash used in operating activities of SKYX on a sequential quarterly basis. Our e-commerce platform with 60 websites is expected to continue to provide additional cash flow to the Company. About SKYX Platforms Corp. As electricity is a standard in every home and building, our mission is to make homes and buildings become safe-advanced and smart as the new standard. SKYX has a series of highly disruptive advanced smart home and AI platform technologies, with over 100 U.S. and global patents and patent pending applications. Additionally, the Company owns 60 lighting and home decor websites for both retail and commercial segments. Our technologies place an emphasis on high quality and ease of use, while significantly enhancing both safety and lifestyle in homes and buildings. We believe that our products are a necessity in every room in both homes and other buildings in the U.S. and globally. For more information, please visit our website at https://skyplug.com/ or follow us on LinkedIn. Forward-Looking Statements Certain statements made in this press release are not based on historical facts but are forward-looking statements. These statements can be identified by the use of forward-looking terminology such as “aim,” “anticipate,” “believe,” “can,” “could,” “continue,” “estimate,” “expect,” “evaluate,” “forecast,” “guidance,” “intend,” “likely,” “may,” “might,” “objective,” “ongoing,” “outlook,” “plan,” “potential,” “predict,” “probable,” “project,” “seek,” “should,” “target” “view,” “will,” or “would,” or the negative thereof or other variations thereon or comparable terminology, although not all forward-looking statements contain these words. These statements reflect the Company’s reasonable judgment with respect to future events and are subject to risks, uncertainties and other factors, many of which have outcomes difficult to predict and may be outside our control, that could cause actual results or outcomes to differ materially from those in the forward-looking statements. Such risks and uncertainties include statements relating to the Company’s ability to successfully launch, commercialize, develop additional features and achieve market acceptance of its products and technologies and integrate its products and technologies with First-party platforms or technologies; the Company’s efforts and ability to drive the adoption of its products and technologies as a standard feature, including their use in homes, hotels, offices and cruise ships; the Company’s ability to capture market share; the Company’s estimates of its potential addressable market and demand for its products and technologies; the Company’s ability to raise additional capital to support its operations as needed, which may not be available on acceptable terms or at all; the Company’s ability to continue as a going concern; the Company’s ability to execute on any sales and licensing or other strategic opportunities; the possibility that any of the Company’s products will become National Electrical Code (NEC)-code or otherwise code mandatory in any jurisdiction, or that any of the Company’s current or future products or technologies will be adopted by any state, country, or municipality, within any specific timeframe or at all; risks arising from mergers, acquisitions, joint ventures and other collaborations; the Company’s ability to attract and retain key executives and qualified personnel; guidance provided by management, which may differ from the Company’s actual operating results; the potential impact of unstable market and economic conditions, including recent measures adopted by the federal government, on the Company’s business, financial condition, and stock price; and other risks and uncertainties described in the Company’s filings with the Securities and Exchange Commission, including its periodic reports on Form 10-K and Form 10-Q. There can be no assurance as to any of the foregoing matters. Any forward-looking statement speaks only as of the date of this press release, and the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by U.S. federal securities laws. Non-GAAP Financial Measures Management considers earnings (loss) before interest, taxes, depreciation and amortization, or EBITDA, as adjusted, an important indicator in evaluating the Company’s business on a consistent basis across various periods. Due to the significance of non-recurring items, EBITDA, as adjusted, enables management to monitor and evaluate the business on a consistent basis. The Company uses EBITDA, as adjusted, as a primary measure, among others, to analyze and evaluate financial and strategic planning decisions regarding future operating investments and potential acquisitions. The Company believes that EBITDA, as adjusted, eliminates items that are not part of the Company’s core operations, such as interest expense and amortization expense associated with intangible assets, or items that do not involve a cash outlay, such as share-based payments and non-recurring items, such as transaction costs. EBITDA, as adjusted, should be considered in addition to, rather than as a substitute for, pre-tax income (loss), net income (loss) and cash flows used in operating activities. This non-GAAP financial measure excludes significant expenses that are required by GAAP to be recorded in the Company’s financial statements and is subject to inherent limitations. Investors should review the reconciliation of this non-GAAP financial measure to the comparable GAAP financial measure. Investors should not rely on any single financial measure to evaluate the Company’s business. Investor Relations Contact: Jeff RamsonPCG [email protected] Ronald A. BothEncore Investor [email protected] Dial-In Information: Participating Management SKYX Participating Members will Include: Rani Kohen, Founder and Executive Chairman Lenny Sokolow, CEO Steve Schmidt, SKYX President (former CEO of Nielsen Data Corporation and former President of Office Depot International) Marc Boisseau, CFO Conference Call and Webcast Details Call me™: https://callme.viavid.com/viavid/?callme=true&passcode=13760591&h=true&info=company&r=true&B=6 Participants may use the dial-in numbers above and be assisted by an operator or use the Call me™ link for instant telephone access. The Call me™ link will become active 15 minutes before the scheduled start time. Please connect at least 10 minutes before the start of the call to ensure timely participation. Telephone Replay A telephone replay is expected to be available approximately three hours after the conference call and will remain available through Friday, September 11, 2026, at 11:59 p.m. Eastern Time. Replay dial-in: 1-844-512-2921 or 1-412-317-6671

Marriott’s second quarter results were met with a negative market reaction, as the company’s revenue fell short of Wall Street expectations despite solid year-on-year growth. Management pointed to strong performance in the U.S. and Canada, particularly in luxury and resort segments, which benefited from major sporting events and robust leisure demand. However, international results were weighed down by weakness in the Middle East, and a property-related litigation accrual impacted profit margins. CEO Anthony Capuano acknowledged external pressures, stating, “The conflict in the Middle East weighed on results, with EMEA RevPAR down just over 5%.” Is now the time to buy MAR? Find out in our full research report (it’s free). Revenue: $7.07 billion vs analyst estimates of $7.21 billion (4.8% year-on-year growth, 2% miss) Adjusted EPS: $3.19 vs analyst estimates of $3.08 (3.6% beat) Adjusted EBITDA: $1.59 billion vs analyst estimates of $1.55 billion (22.5% margin, 2.6% beat) Management raised its full-year Adjusted EPS guidance to $11.73 at the midpoint, a 1.9% increase EBITDA guidance for the full year is $6.00 billion at the midpoint, in line with analyst expectations Operating Margin: 17.4%, in line with the same quarter last year RevPAR: $150.10 at quarter end, up 5.1% year on year Market Capitalization: $92.29 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Shaun Kelley (Bank of America) asked about the new ITR incentive for owners. CEO Anthony Capuano stressed the program's goal to improve owner economics and guest satisfaction, while CFO Jennifer Mason explained the phased financial impact starting in the back half of the year. Stephen Grambling (Morgan Stanley) questioned the ramp-up of the renewed co-branded credit card deals. Capuano explained full benefits will be realized over several years as new products launch, estimating $100–$125 million annual impact by 2028. Raymond Bowers (Wells Fargo) pressed on fee outlook and potential offsets. Mason detailed headwinds from FX, explained the uneven impact of events like the World Cup, and reiterated that Q4 faces Middle East revenue pressure. Michael Bellisario (Baird) inquired about net room growth trends and owner sentiment. Capuano highlighted record deal signings in the first half of 2026 and continued strong multi-year growth, despite construction delays in the Middle East. Daniel Politzer (JPMorgan) asked about rising investment spend and digital transformation. Capuano and Mason clarified that spending will remain elevated due to contract acquisition costs and ongoing technology upgrades, but that investment intensity may moderate over time. Our analysts will watch (1) further ramp-up in co-branded credit card fee revenue and loyalty program engagement, (2) stabilization or improvement in EMEA performance as geopolitical risks evolve, and (3) evidence that owner- and guest-focused initiatives like the ITR incentive are enhancing satisfaction and hotel-level profitability. Progress in the digital transformation program will also be a key area of focus. Marriott currently trades at $354.50, down from $372.83 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Monday, Aug. 3, 2026 at 8:30 a.m. ET President and Chief Executive Officer - Anthony Capuano Executive Vice President and Chief Financial Officer - Jennifer Mason Senior Director of Investor Relations - Pilar Fernandez Investor Relations - Jackie Burka McConagha Operator: Hello, and welcome, everyone, joining today's Marriott International Q2 2026 Earnings Call. [Operator Instructions] Please note, this call is being recorded. We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to Jackie Burka McConagha. Please go ahead. Jackie McConagha: Good morning, everyone, and welcome to Marriott's Second Quarter 2026 Earnings Call. On the call with me today are Tony Capuano, our President and Chief Executive Officer; Jen Mason, our Executive Vice President and Chief Financial Officer; and Pilar Fernandez, Senior Director of Investor Relations. Before we begin, I would like to remind everyone that many of our comments today are not historical facts and are considered forward-looking statements under federal securities laws. These statements are subject to numerous risks and uncertainties as described in our SEC filings, which could cause future results to differ materially from those expressed in or implied by our comments. Unless otherwise stated, our RevPAR, occupancy, average daily rate and property-level revenues comments reflect system-wide constant currency results for comparable hotels and all changes refer to year-over-year changes for the comparable period. Statements in our comments and the press release we issued earlier today are effective only today and will not be updated as actual events unfold. You can find our earnings release and reconciliations of all non-GAAP financial measures referred to in our remarks today on our Investor Relations website. And now I will turn the call over to Tony. Anthony Capuano: Thanks, Jackie, and good morning, everyone. We reported a very strong second quarter this morning with RevPAR and financial results above our prior expectations. We grew net rooms by 4.5% over the 12 months ending June 30, further expanding our industry-leading global portfolio to over 1.8 million rooms across more than 10,000 properties. Second quarter global RevPAR rose 3.4%. RevPAR in the U.S. and Canada region rose 5%, the highest quarterly increase in 13 quarters, with strength in World Cup and non-World Cup markets. Excluding the World Cup, second quarter RevPAR rose 4%. Luxury and resort hotels continued to lead in the region in the quarter with luxury RevPAR up over 9%. Importantly, strength was pervasive across chain scales with select service RevPAR increasing over 4%. With the conflict in the Middle East weighing on results, second quarter international RevPAR declined slightly year-over-year. RevPAR in EMEA declined just over 5% as solid performance in Europe was offset by a meaningful decline in the Middle East. RevPAR in Europe rose over 4% in the second quarter, driven by strength in leisure, particularly in the Mediterranean countries, including Italy, Spain and Greece. Middle East RevPAR declined 43% in the quarter, a bit better than prior expectations on better-than-expected domestic leisure demand. Second quarter RevPAR in APEC rose over 5%. While Middle East travel corridor disruptions did weigh on select APEC markets in April, RevPAR surpassed our previous expectations in May and June, thanks to improved flight capacity as well as strong intra-regional demand. RevPAR in Greater China rose over 3%, led by strong inbound leisure demand recovery as our hotels continued to gain share in an uneven consumer spending environment. Luxury, Hong Kong, Taiwan and Hainan remain the key drivers. RevPAR in CALA rose 3% in the second quarter, driven by strong luxury and leisure demand across the Caribbean. Looking ahead, as Jen will discuss further, with strong broad-based demand generally expected to continue, we are raising our full year 2026 guidance range to 3% to 3.5% global RevPAR growth. Now let's turn to results by customer segment. In the second quarter, leisure RevPAR rose 5% globally and 7% in the U.S. and Canada. Group RevPAR rose 3% globally and 4% in the U.S. and Canada. Second quarter business transient RevPAR rose 2% globally and 3% in the U.S. and Canada. Within business transient in the U.S. and Canada, government RevPAR increased 5%, benefiting from easier year-over-year comparisons, while nongovernment business transient RevPAR rose 3% with mid-single-digit ADR increases offsetting slight declines in room nights. On the development front, we experienced record global signings in the first half of the year. Our global pipeline grew nearly 7% year-over-year to a new record of approximately 629,000 rooms at the end of June. We led the industry with over 279,000 rooms under construction, including pending conversions. Conversions, including multiunit deals remain a significant driver of growth, representing 34% of signings and 40% of openings in the first half of the year. One multiunit deal to highlight. In June, we announced a strategic agreement to introduce Series by Marriott to Greater China, with plans to add approximately 100 hotels under this collection brand with the first openings expected later this year. With our growing pipeline and strong momentum in conversions, we still expect net rooms to grow in the mid-single-digit range over the next few years. In fact, our compound annual growth rate since the end of 2023 is 5.2%. Our full year 2026 net rooms growth is now more likely to be towards the low end of our previous 4.5% to 5% range, primarily due to construction delays in the Middle East and including our typical assumption of between 1% and 1.5% room deletions. As we grow our global portfolio, we are also intensely focused on working with our hotel owners who are foundational to our business, to help strengthen hotel level economics and drive owner returns and long-term value across the system. As part of these efforts, we've implemented productivity enhancements from our prior enterprise-wide efficiency exercise, and we continue to identify ways to enhance top line performance and improve productivity at the hotel level. Let me outline some of the specific steps we've taken. At the beginning of the year, we lowered loyalty charge-out rates across our global system by roughly 5% to what we believe are the lowest in the industry across all chain scales. In addition, earlier this year, we enhanced owner reimbursement for Bonvoy redemption stays on high-demand nights. We have also introduced streamlined brand standards, which simplify operations and reduce costs, and we have rolled out flexible renovation scopes that focus on customer-facing elements of the hotels. As Jen will discuss further, we are also now planning to roll out a new ITR or intent to recommend incentive in the U.S. and Canada that will provide a fee discount for top hotels that receive strong guest satisfaction scores. I am also pleased to announce that we recently executed new long-term agreements for our co-branded credit card program in the U.S. with our valued long-standing market-leading partners, JPMorgan Chase and American Express. These agreements reflect the strength of the Marriott Bonvoy brand and the extraordinary value of our brand portfolio, the continued growth of our global lodging system and the powerful combination of scale and engagement represented by our cardholders and more than 295 million loyalty program members. We expect the new economics and cardholder benefits to drive significant value across the Marriott Bonvoy ecosystem, including to our hotel owners, cardholders and loyalty program members. Additionally, we continue to make great progress in our multiyear technology transformation while increasingly leveraging AI across the enterprise to help deliver revenue to owners more efficiently as well as elevating the guest experience and automating workflows for associates. In June, we began our phased rollout of Ask Bonvoy, our AI-powered conversational search experience on marriott.com and the Marriott Bonvoy app, reflecting our commitment to using technology to enhance the customer experience, strengthen engagement with our members and drive greater operational efficiency. With our well-respected brands and industry-leading scale, we are also working closely with Google and other leading AI platform providers as their travel search and commerce tools evolve. Before I end my prepared remarks, I want to thank our Marriott teams around the world. Our results today would not have been possible without their hard work and dedication. And now I will turn the call over to Jen for more details on our financial results. Jen? Jennifer Mason: Thanks, Tony. I'll start by reviewing our strong second quarter results. Second quarter total gross fee revenues increased 13% year-over-year to $1.58 billion, reflecting higher RevPAR, rooms growth and increases in co-branded credit card fees and residential branding fees. Incentive management fees, or IMF, rose 6% to $212 million in the second quarter, led by a significant increase in the U.S. and Canada, which more than offset a meaningful decline in EMEA due to the Middle East. Owned, leased and other revenue, net of owned, leased and other expenses totaled $49 million compared to $78 million in the second quarter of last year, primarily due to a $27 million property-related litigation accrual as well as lower termination fees. Second quarter G&A rose 5% year-over-year, primarily due to timing of compensation costs. Adjusted EBITDA increased 13% to $1.59 billion and adjusted diluted EPS rose 20% to $3.19. Now let's talk about our outlook for the third quarter and the full year. We are raising our full year global RevPAR guidance to 3% to 3.5% growth, reflecting our second quarter global outperformance as well as stronger outlook for the second half of the year for all regions. Note that the strong World Cup performance in June and July provided a slightly larger boost to full year global RevPAR than expected at closer to 45 basis points globally, above our prior expectation of 30 to 35 basis points. Third quarter global RevPAR is expected to increase 3.5% to 4%. In the U.S. and Canada, we expect the strong demand trends that extended into July across chain scales and customer segments to continue. Third quarter RevPAR is expected to be helped by the strong World Cup performance, while the fourth quarter could see a small negative impact from November's midterm elections. In Greater China, full year RevPAR is expected to be up 2% to 3%. In APEC, we anticipate continued strength in the back half of the year, driven by solid domestic and international demand, especially from the U.S. CALA performance continues to be led by strong leisure demand across the Caribbean, offsetting weakness in Mexico. EMEA is expected to continue to be impacted by the conflict in the Middle East, though to a lesser extent than previously anticipated. Year-over-year RevPAR in EMEA is expected to improve in the third quarter relative to the second quarter before moderating again in the fourth quarter. In the fourth quarter, the Middle East faces difficult comparisons from the fourth quarter of 2025, where several large events drove meaningful ADR increases. In addition, because the Middle East enters its peak tourism season in October, the region's performance will have a greater impact on EMEA's fourth quarter results than it did in the third quarter. We are also raising our full year 2026 gross fee guidance. For the full year, gross fee revenues could rise 11% to $6.03 billion to $6.06 billion. IMF are now expected to rise 3% to 5% year-over-year. The sensitivity of 1% change in full year 2026 RevPAR versus 2025, could be around $55 million to $65 million of RevPAR-related fees. Turning to our co-branded credit card fees. The improved economics from our new U.S. agreements with JPMorgan Chase and American Express are expected to benefit the overall loyalty program. Our owners and franchisees, our cardholders and loyalty program members and our co-branded credit card fee stream. As a reminder, Marriott recognizes a portion of the global credit card funding as co-branded credit card fees in our franchise fee line, reflecting the royalty or compensation Marriott takes for licensing Marriott's intellectual property to the credit card issuers. The expected incremental impact to our 2026 co-branded credit card fees solely from a partial year of the new terms of our cards under the Chase and Amex agreements in the U.S. is approximately $30 million. We are now expecting global credit card fees to rise in the high 30% range this year, reflecting the terms of the new deals, partially offset by lower expectations for fees in Japan due to the decline in the yen. The benefit to the loyalty program and to our fees from our new U.S. co-branded card deals is expected to build over time as new and refreshed U.S. card products with new cardholder benefits are introduced, supporting anticipated growth in new accounts and cardholder spend. Full year residential branding fees are now expected to increase 55% to 65% due to the timing of unit sales. Timeshare fees are still expected to be relatively in line with the prior year at $110 million to $115 million. Owned, leased and other revenue, net of owned, leased and other expenses is now anticipated to total $175 million to $185 million in 2026. Full year results are expected to be impacted by the timing of renovations at certain large hotels in the portfolio, a slower expected ramp-up of Marriott Media Networks, the second quarter litigation accrual and the second quarter sale of a hotel in the U.S. that will remain in the portfolio under a new long-term management agreement. Additionally, this updated outlook includes the impact from the ITR incentive that Tony discussed, which will be paid for by Marriott and not the system fund and will be in our owned, leased and other expenses. We view this as a reinvestment in our business that benefits our owners, enhances the experience of our guests and further strengthens Marriott's brand equity. 2026 G&A expense is still anticipated to increase just 1% to 3% compared to 2025 levels as year-over-year comparisons are expected to benefit from timing in the second half of the year, particularly in the fourth quarter. Full year adjusted EBITDA could increase between 11% and 12% to $5.97 billion to $6.03 billion. Our 2026 adjusted effective tax rate is expected to remain between 26% and 26.5%. Our underlying core tax rate for cash is anticipated to remain in the low 20% range. Strong adjusted EBITDA growth, combined with a meaningful reduction in share count leads to the expected full year adjusted diluted EPS growth between 16% and 18%. In the third quarter, gross fees are expected to rise 10% to 11%, even with residential branding fees expected to be down 15% to 20%. Third quarter IMF are expected to rise in the high single-digit to 10% range. Adjusted EBITDA is expected to increase 7% to 9%. We now expect 2026 investment spending to be $1.25 billion to $1.35 billion, an increase versus our prior expectations with slightly higher expectations across most categories. Contract acquisition costs are now expected to be around 40% to 45% of the total spending. The second largest bucket at around 25% of the total is expected to come from continued spending on our digital tech transformation, the overwhelming portion of which is expected to be reimbursed over time as well as corporate systems. The remaining portion is spending related to renovations at owned and leased hotels as well as other investing activities. Our capital allocation philosophy has not changed. We are committed to our investment-grade rating and investing in growth that is accretive to shareholder value. Excess capital is returned to shareholders through a combination of share repurchases and a modest cash dividend, which has risen meaningfully over time. We now expect to return over $4.5 billion to shareholders in 2026. Full year guidance details for the third quarter and the full year are in the press release. Tony and I are now happy to take your questions. Operator? Operator: [Operator Instructions] We'll take our first question from Shaun Kelley with Bank of America. Shaun Kelley: Tony and Jen, just wondering if we could dig in a little bit on some of the commentary around the kind of the owner reinvestment here. For Tony, if you could just talk a little bit about especially the new ITR program, sort of what kind of in your mind, are you thinking about just trying to kind of get across to owners through this? Any feedback you've had thus far? And then, Jen, if you could just elaborate a little bit on kind of the timing of how this may flow through. It sounds like maybe a partial year impact that's starting to be factored in here in the owned and leased line, but maybe help us think a little bit more holistically as we look out at our models beyond 2026. Anthony Capuano: Thanks for the question, Shaun. As I think you know, we're deeply appreciative of the engagement we've had with our owners. We have, for as long as I've been around certainly and probably decades before that, believe that our success and our owners' success is inexorably linked. Our owners are foundational to our business and the health and owner of that owner and franchisee community is of paramount importance, and it's always a big focus area for us. That long-standing recognition leads to regular constructive discussions with that community on a whole range of issues, sometimes and most of the time, proactively and sometimes reactively. But that's reflective of the way we approach the business broadly and the way we approach the partnership. We're very focused on hotel level economics. And that really means looking at every variable in the equation and looking for opportunities both to drive improvement in top line and look at every element of expenses and see if there are opportunities to drive margins and as a result, ultimately drive returns. I think the ITR incentive that Jen talked about in her prepared remarks is just one step in that process to both look for opportunities to improve owner economics. And as Jen said, an ITR incentive, I think, benefits all the constituents we serve. Jennifer Mason: Yes. And Shaun, a bit of a follow-up on your question. We are launching the ITR incentive this week to our owners. It's up to 50 basis points of gross room revenue, fee reimbursement for achieving defined ITR thresholds. And so that will start to be baked in for the back half of the year. As a reminder, though, there's multiple things impacting our owned, leased and other revenue, as I talked about in my prepared remarks. We also have the timing of renovations at large hotels, media network, the litigation accrual and the sale of a U.S. hotel asset. Operator: We'll move on now to Stephen Grambling with Morgan Stanley. Stephen Grambling: Maybe another follow-up just on the co-brand side. Just wondering if there's anything that investors should be thinking about in terms of how that will ramp over time? And also if there's any changes to the agreement as we think about either new cards being launched, new geographies or other factors that may be different versus prior agreements? Anthony Capuano: Yes. Great. Thank you, Stephen. The -- as Jen said, the $30 million number she referenced, that is solely from the new credit card terms for the balance of this year. The full benefit to the program is really expected to build over time as new and refreshed card products are introduced. Our experience in the past is the development and introduction of those new cards take several quarters. But I think the way you should be thinking about it is by full year 2028, the impact on Marriott's co-brand card fees from these new deals could be somewhere between $100 million and $125 million at our current royalty rate of 26%. Jennifer Mason: Yes. And I would just add a reminder that the majority of the benefits do go into our loyalty program that benefits owners and guests and our loyalty program members. Operator: We'll move on now to Trey Bowers with Wells Fargo. Raymond Bowers: Just a bit of a modeling question for the balance of the year. As I look at the new fee revenue growth, about $60 million higher than where it was before. Just the credit card fee and the branded license fee alone kind of explain a lot of that increase, especially with a nice beat in Q2. So is this just conservatism? Or is there any kind of offsets to fees we should think about for the balance of the year? Jennifer Mason: Yes. So a few things. As a reminder on the credit card fees, we have the new credit card deal of about $30 million, but we have some FX headwinds with our Japanese card because of the decline in the yen. And -- but the rest of the RevPAR pull-through, you see that in our beat. We do expect that Q4 RevPAR is a bit lower than Q3. I would say there are two primary drivers of that. First, we still see very strong global demand around the world other than the Middle East. But U.S. and Canada does not benefit, obviously, from the World Cup in Q4. And the Middle East has a more significant impact in Q4 than it did in Q3. We are definitely seeing that when the conflict resolves, that business picks up quickly, but -- and we are seeing ramping occupancy impact. The challenge in Q4 is that is by far the -- in the Middle East, that is the largest quarter for revenue. It's something like 35% of the Middle East full year revenue happens in Q4. And while we're expecting recovering occupancy, ADR is up against a very impactful Q4 of last year where we had multiple events that were compressing ADR. Operator: We'll move on now to Michael Bellisario with Baird. Michael Bellisario: Just on the net rooms outlook, any initial thoughts on trends into '27? And then what's the recent feedback been from developers regarding their appetite to sign deals and put shovels in the ground now that the demand backdrop is a little bit more favorable today? Anthony Capuano: Great. Thanks for the question, Michael. The -- as we mentioned in the prepared remarks, the guide to the lower end of the range is largely driven by perhaps not terribly unanticipated project delays in the Middle East given the conflict. As we've talked about in prior calls, to me, looking at a multiyear CAGR on NUG is a little more instructive rather than a single quarter. And I'm quite encouraged by the 30-month CAGR of 5.2%, which is right in line with the broad guidance we've provided in the past about mid-single-digit growth. And then on the second part of your question on owner sentiment, I think the best illustration of owner sentiment, not that they are immune to some of the economic factors and headwinds that are out there, but we signed more deals in the first half of 2026, than in any first half of the year ever. And so I think that is a great testament to the confidence that the owner and franchisee community has investing in our portfolio of brands long term. Operator: We'll move on now to Dan Politzer with JPMorgan. Daniel Politzer: I wanted to touch on the investment spend. I think it ticked up a few hundred million. And I think in the prepared remarks, you mentioned the contract acquisition cost and digital tech transformation. I guess a couple of things there. Can you maybe unpack the trends that you are seeing in terms of the key money front? And then in terms of the digital tech transformation, I guess, what inning are we in? And going forward, how should we think about that net investment spend in the next couple of years? Anthony Capuano: Great. Thank you. The competitive environment gets more and more fierce. Whether we like it or not, key money seems to be the weapon of choice in many of those competitive circumstances. I think for Marriott, nearly 40% of our pipeline rooms are in the top 2 quality tiers, luxury and full service, which tend to have more key money, but in parallel, generate much higher fees and value. Maybe the one emerging trend, we are seeing some small amounts of key money being used in some of our newer mid-scale brands as we prove out the value proposition for those brands. And the momentum we're seeing is really encouraging to us. And then maybe the only other comment I would make from a trend -- a broader trend perspective, if you compare back to 2019, of course, the proportion and the absolute money of key money is up, which you would expect given the growth of the system size, but we are using less key money per signed deal. And this is anecdotal. But when we review transactions in our development committees, it feels like we are able to negotiate a bit less key money than some of our peers are offering, which I think is reflective of the strength and performance of the brands in the portfolio. Jennifer Mason: Yes. And I'll take your next two questions. On DTT, we're making excellent progress. We're still in the early phases of deployment. We have over 2,000 select service in U.S. Canada hotels that have transitioned. And as you think about your third question in terms of what to expect for investment spending going forward, obviously, we're too early to talk about 2027, but maybe a little bit of color on each of the buckets. On tech and DTT spend, that over time will go down, but we will continue to invest in technology given the critical importance that it has in our business. Key money, as Tony talked about, as our system rises, right, you're likely to see key money grow with that. And owned, leased and other is the next big category. We're never done with owned, leased, right? We're renovating hotels, and we have others that are there. So just big picture, that's where we are. Operator: We'll move on now to Lizzie Dove with Goldman Sachs. Elizabeth Dove: Thinking about the U.S., I'm curious kind of how you're thinking about the rest of the year in terms of group versus business and leisure. And I suppose even longer term, we heard from one of your peers some building blocks in terms of how to think about 2027 RevPAR. I appreciate it's early, but anything you'd share in terms of how you're thinking about that longer term? Jennifer Mason: Yes. So I'll start with '26, and then Tony will jump in on '27. So we continue to expect all segments to be up for the full year with leisure continuing to lead, followed by group and then BT. So think about similar trends to what we saw in Q2. Leisure has been especially strong, especially in the U.S., but across all of our regions outside of the Middle East. Full year group pace is up about 5%. That's the same as a quarter ago, but could moderate over the year given fewer in the year, for the year bookings. And then BT revenue, which was up 2% in Q2, we expect kind of similar for the rest of the year. Anthony Capuano: And then let me try to tackle '27, acknowledging it's a little early given that we're just starting work on '27 budgets and the ability to have great clarity is further compounded by the short transient booking window we see around the world. But with that said, we continue to be quite bullish on the global outlook. We could see continued strong global RevPAR growth next year. And I think the thing that's most encouraging is the broad-based strength we're seeing in both rate potential and demand. Both across chain scales and across geographies outside the Middle East. Now we will have the challenge of the comp of the World Cup next year. But I think the flip side of that coin is we could see strong year-over-year growth in EMEA as the Middle East recovers. Operator: We'll move now to Patrick Scholes with Truist Securities. Charles Scholes: A question, Tony, for you that I'm sure you and counsel are well prepared for. You certainly have alluded to a number of positive changes to currently and upcoming to help owners. But I'm wondering if you could give a specific official public response directly to that owner letter at this time. Anthony Capuano: Well, yes, I'm not going to give an official response. That's a matter between us and our owners. But maybe I'll reiterate what I said earlier. The success and financial strength of our owner and franchisee community is closely tied to Marriott's success. Given our asset-light model, we continue to work every day to address issues, concerns and opportunities with the broad owner and franchisee community around the world. And those discussions have gone on for decades and will continue to go on for decades. The letter that we received, I think, is reflective of the passion and commitment that, that group of owners has to the relationship and to -- and is an acknowledgment of that linkage between our mutual success. And we have had a number of meetings already with that group, continue to have those discussions and are encouraged with the progress we're making. Operator: We'll move on now to David Katz with Jefferies. David Katz: Along the same lines, one of the conversations we've been having, and I think to the degree that you can discuss it here is helpful are the ongoing updates and/or changes within platform fees or reimbursed elements versus what you've talked about taking on some of your own P&L, right? I assume that there's ongoing evolution in both of those. And I think, frankly, just understanding how much you're doing that passes through versus how much you're taking on. Again, if you can discuss it here, it would be, I think, helpful or instructive for everybody. Anthony Capuano: Sure, David. Thanks for the question. The -- as I've said now a couple of times, the discussions are collaborative and constructive and ongoing. In terms of potential impact to the Marriott P&L, our guidance is reflective of our expectations of the impact of those discussions on Marriott's P&L going forward. Operator: We'll move on now to Brandt Montour with Barclays. Brandt Montour: So I want to circle back on net rooms growth. I know that the guidance update was related to the Middle East. But just sort of as it relates to '27 and the momentum that you have in conversions, we see contract acquisition costs coming up a little bit. RevPAR in those middle chain scales where you've launched conversion brands, RevPAR has kind of flipped positively in a meaningful way. So the question is, is there any sort of countercyclicality or risk to net rooms growth as you see that segment do better on a fundamental basis and maybe those -- the brands and distribution are needed a little bit less on the margin by those hotel owners. Anthony Capuano: Yes. Brandt, I would actually respectfully say what we see and what we hear from the owner community is just the opposite. As they look at the impact of affiliation with our revenue engines and our loyalty platform and the impact that has on performance, we're actually seeing a strengthening in the interest. You look at the performance we've seen with platforms like Autograph and Tribute. I think that illustrates that the power of that affiliation continues to drive developer interest and that developer interest manifests itself in the strongest first half of the year of signings we've ever experienced. Operator: We'll move on now to Duane Pfennigwerth with Evercore ISI. Duane Pfennigwerth: I understand the revised credit card agreements will build out with new products and new cards. But just in trying to get to the underlying run rate, can you confirm this is 2 full quarters or 6 months of impact here in 2026? And then relatedly, have you sized full year impact from the Middle East to both EBITDA and RevPAR? Jennifer Mason: So on your first question, yes, the $30 million of incremental fees is for 2 quarters of 2026. I had mentioned before that we are seeing some headwinds from the Japanese cards because of the decline in the yen that somewhat impacts the overall credit card fees. In terms of the Middle East, we are now expecting the impact to our full year global RevPAR to be about 100 basis points. Last quarter, we said between 100 and 125 basis points. So a bit better than our last guide. And as we talked about, those hotels are predominantly managed and certainly have an impact on our IMF, but that's all reflected in our updated guidance that we provided. Operator: We'll move next to Robin Farley with UBS. Robin Farley: I wanted to ask about the conversions. You mentioned that signings in the quarter were about 1/3, about 40% of openings. Should we think about conversions being a smaller or bigger percent of net unit growth when we think about next year and this year, kind of how that's trending as a percent of total? Anthony Capuano: Sure. So thank you for the question, Rob. We've talked about this a few times. Maybe I'll reiterate some comments I've made in the past. Early in my career in development, you tended to see an ebb and flow when new build ramped up, conversions receded. When you found yourself in a softer economic environment where there was less new build activity, you saw conversions ramp up. I don't personally believe that will be the trend going forward. And I don't believe that for a few reasons. I think number one, from an approach perspective, in terms of the dedicated resources we've put in place around the world to chase both individual asset conversions and portfolio conversions in terms of the responsiveness on things like PIPs and time line to get them into the system. And when I look across the composition of the portfolio, I would submit to you, we've never had a stack of brands across quality tiers that are better suited to conversions than what we have today. And so it's a long-winded way of saying when you throw all of that into the blender, even when we find ourselves in a market where new build activity ramps up sharply, I don't think it's binary. I don't think that will be at the expense of conversions. I think the approach and the tools that we have in place today should drive conversion volume for the foreseeable future. Operator: We'll move now to Conor Cunningham with Melius Research. Conor Cunningham: You've covered a lot today. But I was hoping you could talk a little bit about the growth on the international pipeline. I mean I totally understand the Middle East construction issue that you're facing. But are you seeing that linger like that impact at all in Asia? And maybe you could just talk a little bit about what you're seeing specifically in Asia and China just in terms of growth. Anthony Capuano: Sure. So the answer to your first question is we really aren't. I think in terms of business conditions, as we mentioned, the first month of the quarter, we saw a bit of a ripple impact in APEC as the load factors for some of the big Middle East carriers going into markets like India and the Maldives had some impact on operating performance, but the team pivoted quickly to focus on intra-region travel, and you saw really strong May and June across APEC. From a deal perspective, we continue to see very strong both MOU approvals and signings across both APEC and China. And I think one of the facets of our China growth that is particularly encouraging is the select brand momentum that we have. I mentioned in my prepared remarks, the launch of Series across China, which we think will generate something on the order of 100 incremental hotels starting with openings later this year. So really good news across the board in terms of development momentum in the Asia Pacific region. Operator: We'll move now to Aryeh Klein with BMO Capital Markets. Aryeh Klein: The luxury segment has continued to outperform. Did that segment benefit more from the World Cup than select service? And what's your view on just K-shape versus C-shaped more broadly? And do you think the high-end piece of the market can sustainably outperform? Anthony Capuano: Yes. I think we saw the upside impact from World Cup across chain scales, which was really encouraging. Your opening comment is spot on. Despite rumors that eventually we're going to run out of steam in terms of luxury demand, the momentum that we continue to see and take advantage of given our industry-leading portfolio in luxury is really encouraging. To get to almost double-digit RevPAR growth in our luxury business in U.S. and Canada is a great illustration of that continued strength. Operator: We'll move next to Smedes Rose with Citi. Bennett Rose: I was just wondering if you could talk a little bit more about what you're seeing specifically in the group segment for 2027, if you could share revenue pace and if you're seeing just really for the U.S., any kind of change in composition between kind of larger corporates booking, larger groups or if it's more sort of smaller business enterprises or kind of anything you can share on how that's shaping up for next year? Jennifer Mason: Sure. So I'll start with '26, which we touched on briefly. It's a good group year. We have paced up 5% which is flat to a quarter ago. In the U.S. specifically, pace is up about 6% versus 5% a quarter ago. To your question on 2027, as we look out, it looks flattish, rate up and room nights down slightly. But just a reminder, right, as we sit here today, about 40% to 55% of the following year's group is usually on the books by midyear of the current year. So we still see, obviously, a lot of runway on group for 2027. And one other point I would just make is that we've seen a lot of strength in the select service space, and that definitely tends to book closer in. Operator: We've reached our allotted time for questions. I'll now turn the call back to Tony Capuano. Anthony Capuano: Great. Well, thank you all again for your interest and your continued coverage. We appreciate all the effort and the thoughtful questions and look forward to talking to you a quarter from now. Have a great day. Operator: Thank you. This does conclude today's program. You may now disconnect your lines. We appreciate your time and participation. Have a good day. Before you buy stock in Marriott International, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Marriott International wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $399,832!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,374,595!* Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 10, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Marriott International. The Motley Fool has a disclosure policy. Marriott (MAR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved RevPAR growth of over 5% driven by broad-based improvements in both business and leisure travel demand across approximately three-quarters of the portfolio. Weekday occupancy gains outpaced weekend improvements, signaling a significant strengthening in business travel fundamentals across multiple industries and geographies. Converted 58 cents of every incremental revenue dollar into adjusted hotel EBITDA, resulting in 120 basis points of margin expansion through disciplined expense management. Transitioned 13 Marriott-managed hotels to third-party franchise operators, yielding 7% RevPAR growth and over 300 basis points of margin expansion for that group. Maintained a defensive supply position with 55% of the portfolio having no new upper-midscale to upper-upscale product under construction within a five-mile radius. Successfully executed a series of refinancings in July that extended weighted average debt maturity to nearly five years and increased revolving credit capacity to $700 million. Raised full-year RevPAR growth guidance to a midpoint of 3.25% and adjusted hotel EBITDA margin guidance by 75 basis points at the midpoint. Guidance assumes more modest growth in the second half of 2026 compared to the first half, which management characterized as potentially conservative. Anticipates potential upside from lapping prior-year periods negatively impacted by government travel reductions and the 2025 government shutdown. Expects to reinvest between $85 million and $95 million in capital expenditures for 2026, including comprehensive renovations at 18 hotels. Forward purchase contracts for development projects in Anchorage and Las Vegas are scheduled for delivery in late 2027 and Q2 2028, respectively. Completed the sale of a Hampton Inn and Suites in Rochester, Minnesota at a 5% cap rate to redeploy capital into higher-value opportunities. Initiated a rebranding of the Seattle Residence Inn, which is expected to require a ramp-up period following renovation completion. Management noted that while Middle East conflicts have not yet impacted consumer spending, the portfolio's value proposition historically performs well during economic uncertainty. Acknowledged a 5% RevPAR decline in the Phoenix market due to a pullback in semiconductor-related business, though long-term fundamentals remain supported by new investments. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that GDS channel bookings grew for the first time in years, indicating a shift from negotiated corporate rates to higher-rated retail segments. Group business reached 18% of the occupancy mix, driven by a combination of corporate and leisure small groups at attractive rates. The gap between seller expectations and buyer willingness remains at approximately 200 to 300 basis points in cap rate terms depending on the market. Management indicated the gap is narrowing as operating performance improves, making current yields more attractive relative to the company's cost of capital. Rapid increases in construction costs and interest rates have made new development deals difficult to pencil, which management believes limits competitive supply growth. The company prefers signing existing deals over new forward commitments for the next 6 to 12 months due to current market valuations. Projected increases in cost per occupied room (CPOR) for the second half are driven by fixed-cost hurdles, including a large real estate tax appeal credit from Q4 2025. Variable costs are expected to remain consistent with first-half performance, supported by moderating wage growth.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Global RevPAR growth of 3.4% was driven by a 5% increase in the U.S. and Canada, marking the region's highest quarterly growth in 13 quarters due to robust World Cup and luxury demand. International performance remained resilient despite Middle East conflict headwinds, with Europe seeing 4% growth led by Mediterranean leisure demand and Greater China benefiting from inbound travel recovery. Management attributed record first-half signings to strong owner confidence, with conversions representing 34% of signings as the company leverages its scale to capture existing assets. The company is proactively addressing hotel-level economics through productivity enhancements, including a 5% reduction in loyalty charge-out rates and streamlined brand standards to drive owner returns. A new 'Intent to Recommend' (ITR) incentive program was introduced to reward top-performing hotels with fee discounts, viewed by management as a strategic reinvestment in brand equity. New long-term U.S. co-branded credit card agreements with JPMorgan Chase and American Express are expected to enhance the Marriott Bonvoy ecosystem and drive significant value for cardholders and owners. Full-year 2026 global RevPAR guidance was raised to 3%–3.5%, assuming continued broad-based demand strength and a 45 basis point total contribution from the World Cup. Net rooms growth for 2026 is now expected at the low end of the 4.5%–5% range, primarily due to construction delays in the Middle East resulting from regional conflict. Co-branded credit card fees are projected to grow in the high 30% range for the year, with new U.S. deal terms contributing approximately $30 million in the second half of 2026. Management anticipates 2027 RevPAR could see continued growth, supported by a potential Middle East recovery, though results will face difficult comparisons against 2026 World Cup performance. Capital allocation remains focused on returning over $4.5 billion to shareholders in 2026 through repurchases and dividends, supported by an asset-light model and strong EBITDA growth. Middle East RevPAR declined 43% in the quarter due to regional conflict, with management expecting the region to have a more significant impact on EMEA's fourth-quarter results during peak season. Owned and leased revenue was impacted by a $27 million property-related litigation accrual and costs associated with the new ITR owner incentive program. Investment spending guidance increased to $1.25 billion–$1.35 billion, driven by higher contract acquisition costs (key money) and ongoing digital technology transformation efforts. The company noted a slower-than-expected ramp-up of Marriott Media Networks and timing impacts from renovations at large owned hotels as headwinds to the 'owned and leased' segment. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The program offers up to 50 basis points of gross room revenue fee reimbursement for hotels meeting specific guest satisfaction thresholds. Management views this as a collaborative step to improve owner economics and guest experience, funded by Marriott rather than the system fund. The full benefit of the new Chase and Amex deals is expected to build over several quarters as new card products are launched. By 2028, the incremental impact on co-brand card fees could reach $100 million to $125 million annually at current royalty rates. Marriott is seeing increased use of key money in the industry, particularly for luxury and full-service tiers which comprise 40% of their pipeline. Management noted they often negotiate lower key money amounts per deal than peers due to the inherent performance strength of Marriott's brands. Tony Capuano acknowledged the 'passion and commitment' of the owner group and confirmed that multiple constructive meetings have already taken place. He emphasized that Marriott's asset-light model makes the financial health of franchisees paramount to corporate success.

Interested in Marriott International, Inc.? Here are five stocks we like better. Marriott exceeded second-quarter expectations: Global RevPAR rose 3.4%, gross fee revenue increased 13% to $1.58 billion, adjusted EBITDA grew 13% to $1.59 billion, and adjusted EPS climbed 20% to $3.19. The company raised its 2026 outlook, including global RevPAR growth of 3% to 3.5%, adjusted EBITDA of $5.97 billion to $6.03 billion, and adjusted EPS growth of 16% to 18%. Marriott expects to return more than $4.5 billion to shareholders. Growth remains supported by demand and expansion: U.S. and Canada RevPAR rose 5%, while Marriott’s development pipeline reached a record approximately 629,000 rooms; however, Middle East conflict and construction delays are weighing on international performance and room-growth expectations. CleanSpark Inks a $6.6B AI Lease to Become a Digital Landlord Marriott International (NASDAQ:MAR) reported second-quarter results that exceeded its prior expectations, driven by global revenue per available room growth, expanding fee revenue and continued portfolio growth. The company raised its full-year 2026 outlook for global RevPAR, gross fee revenue, adjusted EBITDA and adjusted diluted earnings per share. President and Chief Executive Officer Tony Capuano said global RevPAR increased 3.4% in the second quarter, while the company added net rooms at a 4.5% rate over the 12 months ended June 30. Marriott’s global system surpassed 1.8 million rooms across more than 10,000 properties. → Lost in Space: Why Aerospace Valuations Are Plummeting Right Now Marriott vs. Viking: Why the Better Quarter Doesn't Mean the Better Decade “We reported a very strong second quarter this morning, with RevPAR and financial results above our prior expectations,” Capuano said. RevPAR in the U.S. and Canada rose 5%, the company’s strongest quarterly increase in 13 quarters. Capuano said both World Cup and non-World Cup markets contributed to the gain; excluding the World Cup, regional RevPAR increased 4%. → MarketBeat Week in Review – 07/27- 07/31 Iran Ceasefire or Not, These 3 Companies Could Win Luxury and resort properties remained the strongest categories in the U.S. and Canada, where luxury RevPAR rose more than 9%. Select-service RevPAR increased more than 4%, which Capuano said reflected broad-based strength across chain scales. Global leisure RevPAR rose 5% in the quarter, including a 7% increase in the U.S. and Canada. Group RevPAR increased 3% globally and 4% in the U.S. and Canada, while business-transient RevPAR rose 2% globally and 3% in the U.S. and Canada. Non-government business-transient RevPAR in the U.S. and Canada benefited from mid-single-digit average daily rate growth, though room nights declined slightly. → GE HealthCare Stock Climbs on Vital Diagnostics Demand International performance was constrained by the conflict in the Middle East. EMEA RevPAR declined just over 5%, as more than 4% RevPAR growth in Europe was offset by a 43% decline in the Middle East. Europe benefited from leisure demand in Mediterranean markets including Italy, Spain and Greece. APAC RevPAR increased more than 5%, recovering from travel disruptions that affected certain markets in April. Greater China RevPAR rose more than 3%, led by inbound leisure demand, particularly in luxury properties and in Hong Kong, Taiwan and Hainan. RevPAR in the Caribbean and Latin America region increased 3%, supported by luxury and leisure demand in the Caribbean. Chief Financial Officer Jen Mason said Marriott raised its full-year global RevPAR outlook to growth of 3% to 3.5%. Third-quarter global RevPAR is expected to rise 3.5% to 4%. The World Cup’s benefit to full-year global RevPAR is now expected to be about 45 basis points, above Marriott’s prior expectation of 30 to 35 basis points. Mason said the U.S. and Canada should continue to see strong demand across customer segments and chain scales in the third quarter, though November midterm elections could create a modest fourth-quarter headwind. The company expects Greater China full-year RevPAR growth of 2% to 3%. APAC is expected to maintain strength through the second half, while Caribbean leisure demand is expected to offset weakness in Mexico. Marriott expects EMEA to remain affected by Middle East conditions, although less severely than previously anticipated. Marriott now expects the Middle East to reduce full-year global RevPAR by about 100 basis points, an improvement from its prior estimate of a 100- to 125-basis-point impact. Mason noted that the region’s fourth quarter is particularly important because it represents roughly 35% of Middle East full-year revenue and faces difficult comparisons with 2025, when large events supported average daily rates. Full-year gross fee revenue is projected at $6.03 billion to $6.06 billion, up about 11%. Incentive management fees are expected to grow 3% to 5% for the year. Adjusted EBITDA is expected to increase 11% to 12%, to $5.97 billion to $6.03 billion. Adjusted diluted EPS is expected to increase 16% to 18% for the full year. Marriott expects to return more than $4.5 billion to shareholders in 2026. Second-quarter total gross fee revenue increased 13% year over year to $1.58 billion, supported by higher RevPAR, room growth, co-branded credit card fees and residential branding fees. Incentive management fees rose 6% to $212 million, as gains in the U.S. and Canada more than offset a decline in EMEA. Adjusted EBITDA increased 13% to $1.59 billion, while adjusted diluted earnings per share rose 20% to $3.19. General and administrative expense increased 5%, primarily due to the timing of compensation costs. Owned, leased and other revenue, net of related expenses, totaled $49 million, down from $78 million a year earlier. Mason cited a $27 million property-related litigation accrual and lower termination fees. Marriott also announced new long-term U.S. co-branded credit card agreements with JPMorgan Chase and American Express. Mason said the partial-year impact from the new terms is expected to add approximately $30 million to 2026 co-branded credit card fees. Capuano said the annual impact on Marriott’s co-brand card fees could reach $100 million to $125 million by full-year 2028, based on the current 26% royalty rate, as refreshed products are introduced. Marriott recorded its highest first-half signing volume on record, according to Capuano. Its development pipeline grew nearly 7% from a year earlier to approximately 629,000 rooms at the end of June, including more than 279,000 rooms under construction, inclusive of pending conversions. Conversions represented 34% of signings and 40% of openings during the first half. Marriott also announced an agreement to introduce its Series by Marriott collection brand in Greater China, with plans for approximately 100 hotels and first openings anticipated later this year. The company expects full-year net rooms growth toward the low end of its previous 4.5% to 5% range, principally because of construction delays in the Middle East. Capuano said Marriott continues to expect mid-single-digit net rooms growth over the next several years, citing a 5.2% compound annual growth rate since the end of 2023. Marriott increased its 2026 investment spending forecast to $1.25 billion to $1.35 billion. Contract acquisition costs are expected to account for roughly 40% to 45% of spending, while about 25% is expected to go toward digital and technology transformation and corporate systems. Capuano said Marriott has reduced global loyalty charge-out rates by roughly 5%, enhanced reimbursement for Bonvoy redemption stays on high-demand nights, streamlined brand standards and introduced flexible renovation scopes. The company is also launching an Intent to Recommend incentive program in the U.S. and Canada. The program offers eligible hotels up to 50 basis points of gross room revenue in fee reimbursement for meeting defined guest-satisfaction thresholds. Mason said the incentive will begin affecting results during the second half of 2026 and will be recorded in Marriott’s owned, leased and other expenses rather than paid from system funds. Marriott also began a phased rollout in June of Ask Bonvoy, an artificial intelligence-powered conversational search feature on Marriott.com and the Marriott Bonvoy app. Capuano said the company is deploying technology and AI to improve revenue generation, guest experiences and associate workflows. Marriott International is a global lodging company that develops, manages and franchises a broad portfolio of hotels and related lodging facilities. Its core activities include hotel and resort management, franchise operations, property development and the provision of centralized services such as reservations, marketing and loyalty program management. The company's brand architecture spans market segments from luxury and premium to select-service and extended-stay, enabling it to serve a wide range of business and leisure travelers as well as corporate and group customers. The company traces its roots to the hospitality business founded by J. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Marriott International Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Revenue (Gross Fee Revenues): Q2 total gross fee revenues increased 13% year-over-year to $1.58 billion. Incentive Management Fees (IMF): Rose 6% to $212 million in Q2, led by a significant increase in the US and Canada. Owned, Leased, and Other Revenue (Net): Totaled $49 million in Q2, compared to $78 million in the prior year, impacted by a $27 million litigation accrual and lower termination fees. Adjusted EBITDA: Increased 13% to $1.59 billion in Q2. Adjusted Diluted EPS: Rose 20% to $3.19 in Q2. Global RevPAR: Increased 3.4% in Q2; US and Canada RevPAR rose 5%, international RevPAR declined slightly, EMEA declined over 5%, APEC rose over 5%, Greater China rose over 3%, and CALA rose 3%. Net Rooms Growth: Grew 4.5% over the 12 months ending June 30, with a global pipeline of approximately 629,000 rooms. Full Year 2026 Gross Fee Guidance: Raised to rise 11%, reaching $6.03 billion to $6.06 billion. Full Year 2026 Adjusted EBITDA Guidance: Expected to increase between 11% and 12% to $5.97 billion to $6.03 billion. Full Year 2026 Adjusted Diluted EPS Guidance: Expected growth between 16% and 18%. Co-Branded Credit Card Fees: Expected to rise in the high 30% range for the full year, with an incremental impact of approximately $30 million from new US agreements. G&A Expense: Rose 5% year-over-year in Q2; full year 2026 expected to increase just 1% to 3%. Warning! GuruFocus has detected 4 Warning Sign with SBH. Is MAR fairly valued? Test your thesis with our free DCF calculator. Release Date: August 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Marriott International Inc (NASDAQ:MAR) reported strong Q2 2026 results with global RevPAR up 3.4%, exceeding expectations, and US & Canada RevPAR up 5%, the highest quarterly increase in 13 quarters. The company raised its full-year 2026 global RevPAR guidance to 3%-3.5% growth, reflecting broad-based demand strength and a stronger second-half outlook. Marriott International Inc (NASDAQ:MAR) achieved record global signings in the first half of 2026, with the pipeline growing nearly 7% year-over-year to a record ~629,000 rooms. New long-term co-branded credit card agreements with JPMorgan Chase and American Express are expected to drive significant value, with incremental 2026 fees of ~$30 million and a potential $100-$125 million annual impact by 2028. Marriott International Inc (NASDAQ:MAR) continues to enhance owner economics through initiatives like lowering loyalty charge-out rates by ~5%, introducing streamlined brand standards, and rolling out an ITR incentive for top-performing hotels. Adjusted EBITDA grew 13% in Q2 to $1.59 billion, and adjusted diluted EPS rose 20% to $3.19, with full-year EPS growth expected at 16%-18%. International RevPAR declined slightly year-over-year in Q2, with EMEA down over 5% due to a 43% decline in the Middle East, impacted by the ongoing conflict. The Middle East conflict is expected to have a ~100 basis point negative impact on full-year global RevPAR, with Q4 facing difficult comparisons and a larger seasonal impact. Full-year 2026 net rooms growth is now expected to be at the low end of the 4.5%-5% range, primarily due to construction delays in the Middle East. Owned, leased, and other revenue declined in Q2 to $49 million from $78 million, impacted by a $27 million litigation accrual and lower termination fees. The company faces headwinds from a decline in the Japanese yen, which is expected to lower credit card fee expectations in Japan. Investment spending for 2026 is expected to increase to $1.25-$1.35 billion, with higher contract acquisition costs and continued spending on digital transformation. Q: Can you elaborate on the new ITR (intent to recommend) incentive program for owners, including feedback and how it will impact the P&L?A: Tony Capuano (CEO) emphasized that owner success is foundational to Marriott's business, and the company is focused on improving hotel-level economics through top-line growth and expense management. The ITR incentive is one step in this process. Jen Mason (CFO) detailed that the program, launching this week, offers up to 50 basis points of gross room revenue fee reimbursement for hotels achieving defined ITR thresholds. The impact is baked into the back half of 2026 guidance, alongside other items like renovation timing and a litigation accrual. Q: What is the expected financial impact of the new US co-branded credit card agreements with JPMorgan Chase and American Express, and how will it ramp up?A: Jen Mason (CFO) confirmed the $30 million incremental impact in 2026 is solely from two quarters of the new terms. Tony Capuano (CEO) added that the full benefit will build over time as new card products are introduced, estimating the impact on Marriott's co-brand card fees could reach $100 million to $125 million by full year 2028 at the current 26% royalty rate. The majority of benefits will flow into the loyalty program, benefiting owners and guests. Q: What is driving the increased investment spending guidance, and how should we think about key money and the digital tech transformation (DTT) going forward?A: Tony Capuano (CEO) noted the competitive environment is fierce, with key money being a common tool, particularly for luxury and full-service deals, though Marriott is using less key money per deal than peers. Jen Mason (CFO) stated that DTT is still in early deployment phases, with over 2,000 US/Canada select service hotels transitioned. While tech spending will decrease over time, key money is likely to grow with the system size, and owned/leased renovations will continue. Q: How are you thinking about the rest of 2026 for group, business transient, and leisure, and what are your initial thoughts on 2027 RevPAR?A: Jen Mason (CFO) expects all segments to be up for the full year, with leisure leading, followed by group and business transient. Full-year group pace is up about 5%. Tony Capuano (CEO) provided an early, cautious outlook for 2027, citing broad-based strength in rate and demand across chain scales and geographies. While the World Cup comp will be a challenge, he noted potential for strong growth in EMEA as the Middle East recovers. Q: Can you provide an official public response to the recent owner letter?A: Tony Capuano (CEO) declined to give an official response, stating it's a matter between Marriott and its owners. He reiterated that the success of the owner community is closely tied to Marriott's success, and the company works daily to address their concerns. He characterized the letter as reflective of the owners' passion and commitment, noting that constructive meetings have already taken place and progress is being made. Q: What is the full-year impact of the Middle East conflict on RevPAR and EBITDA, and can you confirm the credit card fee impact is for two quarters?A: Jen Mason (CFO) confirmed the $30 million credit card fee impact is for two quarters of 2026. She revised the Middle East impact on full-year global RevPAR to approximately 100 basis points, an improvement from the prior estimate of 100-125 basis points. The impact on IMF is reflected in the updated guidance. Q: Should we expect conversions to become a smaller or bigger percentage of net unit growth going forward?A: Tony Capuano (CEO) argued that the historical ebb and flow between new builds and conversions is changing. He cited dedicated resources for conversions, responsiveness on PIPs, and a brand portfolio well-suited for conversions. He believes conversion volume will remain strong for the foreseeable future, even if new build activity ramps up, as the approach and tools are now in place to sustain it. Q: Is the Middle East conflict impacting development or performance in Asia, and what is the growth outlook for China?A: Tony Capuano (CEO) stated there is no lingering impact on development in Asia. While April saw some ripple effects on load factors for Middle East carriers in markets like India and the Maldives, the team pivoted to intra-regional travel, resulting in strong May and June. Development momentum is strong in both APEC and China, highlighted by the new Series by Marriott deal expected to add approximately 100 hotels in Greater China. Q: Did the luxury segment benefit more from the World Cup, and can the high-end market sustainably outperform?A: Tony Capuano (CEO) noted the World Cup upside was seen across all chain scales. He confirmed the luxury segment's continued strength, citing nearly double-digit RevPAR growth in the US and Canada, which he attributes to Marriott's industry-leading luxury portfolio. He expressed confidence in the sustained momentum of luxury demand. Q: What is the group revenue pace for 2027, and are you seeing any changes in the composition of group bookings?A: Jen Mason (CFO) stated that 2027 group pace looks "flattish" with rate up and room nights down slightly. She reminded that only 40-55% of next year's group business is typically on the books by mid-year, leaving significant runway. She also noted strength in the select service space, which tends to book closer in. For the complete transcript of the earnings call, please refer to the full earnings call transcript.