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Marriott's Q3 adjusted EPS rose to $3.02, beating estimates by 5.6%, while revenues grew 8% to $7.01 billion.
Worldwide RevPAR rose 6.5%, driven by higher room rates and occupancy, while franchise fees climbed 15%.
Marriott raised its 2026 RevPAR growth outlook to 4.5-5%, backed by healthy demand and strong room growth.
Marriott International, Inc. (MAR - Free Report) reported third-quarter 2026 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
Marriott delivered strong operational performance, supported by higher franchise and management fees, improved pricing and healthy room demand. Global RevPAR increased, led by solid performance in the United States & Canada and Asia Pacific, excluding China. Strong co-branded credit card fees and continued rooms growth further supported results.
Marriott maintained robust development momentum, with record year-to-date organic room signings and conversions contributing significantly to portfolio expansion. The Marriott Bonvoy loyalty program reached approximately 309 million members worldwide. Backed by solid third-quarter performance and expectations for continued healthy demand, management raised its worldwide RevPAR growth outlook for 2026.
MAR's Q3 Earnings & Revenue Discussion
Marriott's adjusted earnings per share (EPS) of $3.02 beat the Zacks Consensus Estimate of $2.86 by 5.6%. It reported adjusted earnings of $2.47 per share in the prior-year quarter.
Quarterly revenues of $7.01 billion missed the consensus mark of $7.04 billion by 0.5%. The top line increased 8% on a year-over-year basis.
Marriott International, Inc. Price, Consensus and EPS Surprise
Revenues from base management and franchise fees were $334 million and $1.01 billion, up 6% and 15% year over year, respectively. Higher co-branded credit card fees, improved RevPAR and rooms growth supported the increase. Our model projected the metric to be $323.9 million.
Incentive management fees totaled $181 million, reflecting an increase of 22% from $148 million reported in the prior-year quarter. Our model projected the metric to be $157.5 million.
Owned, leased and other revenues totaled $436 million, up 4% year over year. Cost reimbursement revenues increased 7% to $5.08 billion.
Marriott's Q3 RevPAR & Margins
RevPAR for worldwide comparable system-wide properties rose 6.5% (in constant dollars) year over year. This upside was backed by a 4.8% increase in average daily rate (ADR) and a 1.1-percentage-point improvement in occupancy.
Comparable system-wide RevPAR in the United States & Canada increased 7.4% year over year. Occupancy improved 1.7 percentage points, while ADR increased 4.9%.
On a constant-dollar basis, international comparable system-wide RevPAR increased 4.4% year over year. Asia Pacific, excluding China, recorded 9.3% growth, while Europe witnessed a 6.4% increase. RevPAR in the Caribbean & Latin America rose 3.2%.
However, comparable system-wide RevPAR in the Middle East & Africa declined 5.3% year over year, while Greater China witnessed a 0.3% decrease.
Total operating expenses during the third quarter came in at $5.73 billion compared with $5.31 billion reported in the prior-year quarter.
Adjusted operating income increased 13% year over year to $1.27 billion. Adjusted operating margin improved to 66% from 65% a year ago.
Adjusted EBITDA amounted to $1.51 billion compared with $1.35 billion reported in the prior-year quarter, reflecting an increase of 12%.
Balance Sheet of MAR
At the third-quarter end, Marriott's total debt stood at $16.8 billion compared with $16.2 billion at 2025-end. Cash and cash equivalents, as of Sept. 30, 2026, totaled $0.5 billion compared with $0.4 billion at 2025-end.
During the third quarter, Marriott repurchased 3.5 million shares worth $1.3 billion. Year to date (through Oct. 28, 2026), the company repurchased 9.6 million shares for $3.4 billion.
Marriott's Unit Developments
During the third quarter, Marriott added approximately 20,100 net rooms globally, including more than 13,400 rooms in international markets. Net rooms increased 4.6% from the year-ago quarter. At quarter-end, the company's global portfolio comprised 10,241 properties with approximately 1.83 million rooms.
At the end of the third quarter, Marriott's worldwide development pipeline reached a record 4,209 properties with more than 634,000 rooms. The pipeline included 1,750 properties with more than 278,000 rooms under construction, including hotels undergoing conversion.
Conversions accounted for more than one-third of signings and more than 40% of openings during the first nine months of 2026.
MAR's Q4 & 2026 Outlook
For the fourth quarter of 2026, management anticipates gross fee revenues in the range of $1.60-$1.61 billion. Adjusted EBITDA is expected to be between $1.57 billion and $1.60 billion. Marriott estimates fourth-quarter adjusted EPS to be between $3.14 and $3.21.
The company projects worldwide system-wide RevPAR to increase 4.5-5% year over year in 2026, up from its earlier forecast of 3-3.5%. Net rooms growth is expected at the lower end of the 4.5-5% range.
For 2026, Marriott anticipates gross fee revenues of $6.14-$6.15 billion. General and administrative expenses are projected in the range of $880-$890 million. Marriott expects investment spending between $1.25 billion and $1.35 billion and capital returns to shareholders of at least $4.8 billion in 2026.
Adjusted EBITDA in 2026 is expected to be between $6.08 billion and $6.10 billion, up from the prior expectation of $5.965 billion to $6.025 billion. The company envisions 2026 adjusted EPS in the band of $12.07-$12.14, up from the prior outlook of $11.64 to $11.81.
MAR’s Zacks Rank & Key Picks
Marriott currently carries a Zacks Rank #3 (Hold).
Cinemark delivered a trailing four-quarter earnings surprise of 10.9%, on average. The stock has surged 68.6% in the year-to-date period. The Zacks Consensus Estimate for CNK’s 2026 sales and EPS implies growth of 17.7% and 155.8%, respectively, from the year-ago levels.
AMC Entertainment presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 321.7%, on average. The stock has rallied 96.2% in the year-to-date period.
The Zacks Consensus Estimate for AMC’s 2026 sales and EPS indicates an increase of 18.8% and 91.7%, respectively, from the year-ago levels.
OneSpaWorld currently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings beat of 1.6%, on average. The stock has gained 45.7% in the year-to-date period.
The Zacks Consensus Estimate for OSW’s 2026 sales and EPS indicates growth of 7.9% and 17.2%, respectively, from the year-ago period’s levels.
View the Zacks #1 Rank List
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Marriott Q3 Earnings Beat Estimates, Revenues Increase Y/Y
Key Takeaways
Marriott International, Inc. (MAR - Free Report) reported third-quarter 2026 results, with adjusted earnings beating the Zacks Consensus Estimate and revenues missing the same. The top and bottom lines increased on a year-over-year basis.
Marriott delivered strong operational performance, supported by higher franchise and management fees, improved pricing and healthy room demand. Global RevPAR increased, led by solid performance in the United States & Canada and Asia Pacific, excluding China. Strong co-branded credit card fees and continued rooms growth further supported results.
Marriott maintained robust development momentum, with record year-to-date organic room signings and conversions contributing significantly to portfolio expansion. The Marriott Bonvoy loyalty program reached approximately 309 million members worldwide. Backed by solid third-quarter performance and expectations for continued healthy demand, management raised its worldwide RevPAR growth outlook for 2026.
MAR's Q3 Earnings & Revenue Discussion
Marriott's adjusted earnings per share (EPS) of $3.02 beat the Zacks Consensus Estimate of $2.86 by 5.6%. It reported adjusted earnings of $2.47 per share in the prior-year quarter.
Quarterly revenues of $7.01 billion missed the consensus mark of $7.04 billion by 0.5%. The top line increased 8% on a year-over-year basis.
Marriott International, Inc. Price, Consensus and EPS Surprise
Marriott International, Inc. price-consensus-eps-surprise-chart | Marriott International, Inc. Quote
Revenues from base management and franchise fees were $334 million and $1.01 billion, up 6% and 15% year over year, respectively. Higher co-branded credit card fees, improved RevPAR and rooms growth supported the increase. Our model projected the metric to be $323.9 million.
Incentive management fees totaled $181 million, reflecting an increase of 22% from $148 million reported in the prior-year quarter. Our model projected the metric to be $157.5 million.
Owned, leased and other revenues totaled $436 million, up 4% year over year. Cost reimbursement revenues increased 7% to $5.08 billion.
Marriott's Q3 RevPAR & Margins
RevPAR for worldwide comparable system-wide properties rose 6.5% (in constant dollars) year over year. This upside was backed by a 4.8% increase in average daily rate (ADR) and a 1.1-percentage-point improvement in occupancy.
Comparable system-wide RevPAR in the United States & Canada increased 7.4% year over year. Occupancy improved 1.7 percentage points, while ADR increased 4.9%.
On a constant-dollar basis, international comparable system-wide RevPAR increased 4.4% year over year. Asia Pacific, excluding China, recorded 9.3% growth, while Europe witnessed a 6.4% increase. RevPAR in the Caribbean & Latin America rose 3.2%.
However, comparable system-wide RevPAR in the Middle East & Africa declined 5.3% year over year, while Greater China witnessed a 0.3% decrease.
Total operating expenses during the third quarter came in at $5.73 billion compared with $5.31 billion reported in the prior-year quarter.
Adjusted operating income increased 13% year over year to $1.27 billion. Adjusted operating margin improved to 66% from 65% a year ago.
Adjusted EBITDA amounted to $1.51 billion compared with $1.35 billion reported in the prior-year quarter, reflecting an increase of 12%.
Balance Sheet of MAR
At the third-quarter end, Marriott's total debt stood at $16.8 billion compared with $16.2 billion at 2025-end. Cash and cash equivalents, as of Sept. 30, 2026, totaled $0.5 billion compared with $0.4 billion at 2025-end.
During the third quarter, Marriott repurchased 3.5 million shares worth $1.3 billion. Year to date (through Oct. 28, 2026), the company repurchased 9.6 million shares for $3.4 billion.
Marriott's Unit Developments
During the third quarter, Marriott added approximately 20,100 net rooms globally, including more than 13,400 rooms in international markets. Net rooms increased 4.6% from the year-ago quarter. At quarter-end, the company's global portfolio comprised 10,241 properties with approximately 1.83 million rooms.
At the end of the third quarter, Marriott's worldwide development pipeline reached a record 4,209 properties with more than 634,000 rooms. The pipeline included 1,750 properties with more than 278,000 rooms under construction, including hotels undergoing conversion.
Conversions accounted for more than one-third of signings and more than 40% of openings during the first nine months of 2026.
MAR's Q4 & 2026 Outlook
For the fourth quarter of 2026, management anticipates gross fee revenues in the range of $1.60-$1.61 billion. Adjusted EBITDA is expected to be between $1.57 billion and $1.60 billion. Marriott estimates fourth-quarter adjusted EPS to be between $3.14 and $3.21.
The company projects worldwide system-wide RevPAR to increase 4.5-5% year over year in 2026, up from its earlier forecast of 3-3.5%. Net rooms growth is expected at the lower end of the 4.5-5% range.
For 2026, Marriott anticipates gross fee revenues of $6.14-$6.15 billion. General and administrative expenses are projected in the range of $880-$890 million. Marriott expects investment spending between $1.25 billion and $1.35 billion and capital returns to shareholders of at least $4.8 billion in 2026.
Adjusted EBITDA in 2026 is expected to be between $6.08 billion and $6.10 billion, up from the prior expectation of $5.965 billion to $6.025 billion. The company envisions 2026 adjusted EPS in the band of $12.07-$12.14, up from the prior outlook of $11.64 to $11.81.
MAR’s Zacks Rank & Key Picks
Marriott currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Cinemark Holdings, Inc. (CNK - Free Report) , AMC Entertainment Holdings, Inc. (AMC - Free Report) and OneSpaWorld Holdings Limited (OSW - Free Report) .
Cinemark presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cinemark delivered a trailing four-quarter earnings surprise of 10.9%, on average. The stock has surged 68.6% in the year-to-date period. The Zacks Consensus Estimate for CNK’s 2026 sales and EPS implies growth of 17.7% and 155.8%, respectively, from the year-ago levels.
AMC Entertainment presently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 321.7%, on average. The stock has rallied 96.2% in the year-to-date period.
The Zacks Consensus Estimate for AMC’s 2026 sales and EPS indicates an increase of 18.8% and 91.7%, respectively, from the year-ago levels.
OneSpaWorld currently carries a Zacks Rank #2. The company delivered a trailing four-quarter earnings beat of 1.6%, on average. The stock has gained 45.7% in the year-to-date period.
The Zacks Consensus Estimate for OSW’s 2026 sales and EPS indicates growth of 7.9% and 17.2%, respectively, from the year-ago period’s levels.