Updated Version 2 - Correction - Marriott raises annual room revenue growth forecast due to resilient travel demand

The full text supplements detailed information and background

Reuters, November 2 - Hotel operator Marriott International (MAR.O) on Monday raised its full-year forecast for room revenue growth, betting that strong travel demand will drive bookings across its hotels.

The company’s share price rose by 3.4% in pre-market trading.

This quarter, despite persistently high inflation and geopolitical uncertainty, leisure travel demand remained robust, with affluent consumers spending heavily on luxury experiences, and business travel also staying strong, while demand for midscale and economy hotels also improved.

“While ongoing conflict in the Middle East continues to impact performance in the region, trends have improved significantly compared to the second quarter,” said CEO Anthony Capuano.

This quarter, room revenue in the Middle East and Africa fell by 5.3%, while room revenue in the US and Canada grew by 7.4%.

The Israel-Iran war (link) has impacted hotel operators’ room revenues in the Middle East but, despite project delays and ongoing risks, the conflict showed signs of easing in July (link).

Last week, peer Hilton Group (link) warned that Middle East conflict would put pressure on its fourth-quarter results, although revenue losses in the region were smaller than in the prior quarter.

The Maryland-based company expects revenue per available room (revPAR) — a key hotel industry metric tracking daily rate and occupancy — to grow by 4.5% to 5% in 2026, up from a previously forecast 3% to 3.5% rise.

Marriott’s luxury segment (which includes brands such as Ritz-Carlton and St. Regis) reported revPAR in the US and Canada grew by 11.9%.

In the quarter ended September 30, the company reported adjusted earnings per share of $3.02, compared with $2.47 a year earlier. Analysts on average expected $2.84, according to LSEG data.

Third-quarter total revenue was around $7.0 billion, compared to Wall Street expectations of $6.92 billion.

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