Marriott International (MAR) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 6% to $6.65 billion, with net income at $648 million (down 3% year-over-year) and adjusted net income up 13% to $726 million; adjusted EBITDA grew 15% to $1.4 billion, and adjusted diluted EPS increased 17% to $2.72.

• Worldwide RevPAR increased 4.2% year-over-year, with U.S. & Canada up 4.0% and International up 4.6%, led by APEC and Greater China, despite Middle East disruptions.

• Net rooms grew 4.5% year-over-year, with 15,900 net rooms added globally in the quarter; system reached 9,926 properties and nearly 1.8 million rooms.

• Marriott Bonvoy membership reached nearly 283 million, and technology transformation, including AI initiatives and natural language search rollout, is progressing.

• Record development pipeline of 618,000 rooms (43% under construction), with over 35% of signings and 40% of openings as conversions.

Financial highlights

• Gross fee revenues rose 12% year-over-year to $1.43 billion, driven by higher RevPAR, rooms growth, and strong credit card and residential branding fees.

• Franchise and base management fees increased 13% to $1,211 million; incentive management fees rose 9% to $222 million.

• Operating income rose 12% to $1.06 billion, with an adjusted operating income margin of 64%.

• Owned, leased, and other revenue, net, rose 21% due to higher termination fees and strong hotel performance.

• Cash from operations was $858 million, and capital and technology expenditures were $130 million.

Outlook and guidance

• Full-year 2026 global RevPAR growth guidance raised to 2%-3%, with net rooms growth expected at 4.5%-5.0%.

• Adjusted EBITDA for 2026 projected at $5.88-$5.97 billion (up 9%-11%); adjusted diluted EPS forecasted at $11.38-$11.63.

• Investment spending for 2026 expected at $1.05-$1.15 billion, mainly for Lefay and digital transformation.

• Over $4.4 billion expected to be returned to shareholders in 2026 via buybacks and dividends.

• Guidance assumes continued Middle East conflict impact and excludes unannounced asset sales or acquisitions.