01—Abstract
Summary
Summary of the 8-K filed August 3, 2026. Cited figures are marked; the original filing is the authoritative source.
Marriott International (MAR) reported second quarter 2026 results on August 3, 2026, showing broad-based top-line strength, with worldwide RevPAR up 3.4% (U.S. & Canada up 5.0%, international down 0.5%) and gross fee revenues up 13% to $1,578 milliona.
Franchise and base management fees rose 14% to $1,366 millionb, helped by higher co-branded credit card fees, rooms growth, and higher RevPAR. Adjusted diluted EPS rose 20% to $3.19 from $2.65, and Adjusted EBITDA increased 13% to $1,592 million. Reported diluted EPS was $2.90 versus $2.78, and reported net income was flat at $766 million, weighed down by a $68 million impairment tied to the sale of a U.S. & Canada hotel and a $27 million property-related litigation accrual.
Management raised its full-year 2026 worldwide RevPAR growth outlook to 3.0% to 3.5% (from the prior range, which the filing does not state here) and guided full-year Adjusted EBITDA to $5,965 million to $6,025 millionc and Adjusted EPS to $11.64 to $11.81. The company also expects over $4.5 billion in capital returned to shareholders in 2026. Year-to-date through July 29, Marriott has returned approximately $2.6 billion via dividends and buybacks.
Development momentum remained strong, with a record pipeline of about 629,000 rooms and net rooms growth of 4.5%d year over year. Key risks flagged in the release include the Middle East conflict, which drove a 43% RevPAR decline in that market and pulled EMEA RevPAR down more than 5%, and the partial-year effect of renegotiated U.S. co-branded credit card agreements with JPMorgan Chase and American Express.
Total debt rose to $16.9 billion from $16.2 billion at year-end 2025. Investors should note that Adjusted results exclude cost reimbursement revenue and reimbursed expenses, so the gap between GAAP and non-GAAP earnings is material.
02—Key points
Key Highlights
- Gross fee revenues rose 13% to $1,578 million, and franchise fees grew 19% to $1,023 million, driven by co-branded credit card fees, rooms growth, and higher RevPAR.
- Adjusted diluted EPS grew 20% to $3.19 versus $2.65, while reported diluted EPS was $2.90 versus $2.78, a 4% increase.
- Adjusted EBITDA reached $1,592 million, up 13%; reported net income was flat at $766 million due to a $68 million impairment and a $27 million litigation accrual.
- Worldwide RevPAR rose 3.4%, with U.S. & Canada up 5.0% and International down 0.5%; Middle East & Africa RevPAR fell 35.1% and the Middle East fell 43%.
- Full-year 2026 worldwide RevPAR growth guidance was raised to 3.0% to 3.5%, and full-year Adjusted EPS guidance is $11.64 to $11.81.
- The development pipeline hit a record of about 629,000 rooms (up nearly 7% year over year), with 17,900 net rooms added in the quarter and system size at about 1.81 million rooms.
- Shareholder returns were strong: $1.1 billion of buybacks in Q2 and $2.6 billion year to date, with full-year capital return guidance of over $4.5 billion; total debt rose to $16.9 billion.
03—Questions
Frequently Asked Questions
Why did reported net income stay flat while Adjusted net income rose 16%?
Reported net income of $766 million was roughly flat because of a $68 million impairment tied to the sale of a U.S. & Canada hotel and a $27 million property-related litigation accrual ($20 million after tax). Adjusted net income excludes these items, along with cost reimbursement revenue and reimbursed expenses, and rose to $844 million.
What is driving the growth in fee revenue?
Franchise fees rose 19% to $1,023 million, reflecting higher co-branded credit card fees, net rooms growth of 4.5%, and higher RevPAR. Base management fees rose 1% and incentive management fees rose 6% to $212 million, led by U.S. & Canada strength and partly offset by EMEA declines.
How significant is the international weakness, particularly in the Middle East?
International RevPAR declined 0.5% in the quarter. The Middle East RevPAR fell 43%, which outweighed solid growth in Europe and APEC, and EMEA RevPAR declined over 5%. Management attributed the decline to the regional conflict, and the company still expects strong broad-based demand to continue.
Is Marriott's full-year outlook improving, and what does it assume?
Yes. Full-year worldwide RevPAR growth was raised to 3.0% to 3.5%, and full-year Adjusted EBITDA is projected at $5,965 million to $6,025 million, roughly 11% to 12% above 2025. The outlook assumes the current macroeconomic environment continues, includes a partial-year effect from the new co-branded credit card agreements, and excludes unannounced asset sales or acquisitions.
How much capital is Marriott returning to shareholders, and how is it funded?
Marriott repurchased 3.0 million shares for $1.1 billion in Q2 and has returned about $2.6 billion year to date through July 29. Full-year 2026 capital return is expected to exceed $4.5 billion, assuming investment spending of $1.25 billion to $1.35 billion for the third quarter alone. Total debt increased to $16.9 billion from $16.2 billion at year-end 2025.
04—Continue