Marriott International Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 3 August 2026: press release. Guidance figures: 6 raised, 1 lowered, 7 new, 2 kept. The quarter’s numbers.

Read the filing

Key takeaways

• Adjusted diluted EPS rose to $3.19: Adjusted diluted EPS was $3.19 against $2.65 a year earlier. Reported diluted EPS was $2.90, against $2.78. Adjusted net income was $844 million, against $728 million. Source
• Adjusted EBITDA up 13 percent: Adjusted EBITDA was $1,592 million, against $1,415 million a year earlier. First-half Adjusted EBITDA was $2,990 million, up 14 percent from the first half of 2025. Source
• Worldwide RevPAR up 3.4 percent: Worldwide RevPAR rose 3.4 percent in constant dollars and 3.9 percent in actual dollars. Systemwide ADR rose 3.5 percent, while occupancy was down 0.1 points. Source
• International RevPAR declined on Middle East: Management attributed the international decline to conflict-related headwinds in the Middle East, which more than offset growth in its other international regions. Source
• Hotel sale impairment of $68 million: Depreciation, amortization and other rose to $115 million from $53 million. The increase reflects a $68 million impairment on a U.S. & Canada hotel sale, excluded from Adjusted results. Source
• Litigation accrual reduced owned-hotel income: Owned, leased and other revenue net of expense fell to $49 million from $78 million, reflecting lower termination fees and a $27 million property-related litigation accrual. Source
• Pipeline reached a new record: Management said record global signings occurred in the first six months. The pipeline grew nearly 7 percent from a year earlier, and 44 percent of pipeline rooms were under construction. Source
• Full-year RevPAR guidance raised: Full-year worldwide RevPAR growth guidance moved to 3.0% to 3.5% from 2.0% to 3.0%. Management linked the change to second-quarter performance and expected broad-based demand. Source
• Owned-hotel line guidance lowered: Full-year net owned, leased and other revenue guidance is $175 million to $185 million, down from $215 million to $225 million. Third-quarter guidance is $30 million to $40 million. Source

“Supported by our robust pipeline and disciplined execution, we remain confident in our ability to deliver sustainable, long-term growth.”

Anthony Capuano, President and Chief Executive Officer

Guidance

What changed from last quarter

• Guidance raised: Full-year worldwide RevPAR growth guidance raised to 3.0% to 3.5% from 2.0% to 3.0%. Source
• Guidance raised: Full-year Adjusted EBITDA guidance raised to $5,965 million to $6,025 million from $5,880 million to $5,970 million. Source
• Guidance raised: Full-year Adjusted diluted EPS guidance raised to $11.64 to $11.81 from $11.38 to $11.63. Full-year gross fee revenue guidance also rose. Source
• Guidance raised: Full-year investment spending guidance raised to $1,250 million to $1,350 million; full-year capital return guidance raised to over $4,500 million. Source
• Guidance lowered: Full-year net owned, leased and other revenue guidance lowered to $175 million to $185 million from $215 million to $225 million. Source
• New guidance: Third-quarter 2026 guidance provided for the first time, covering RevPAR, gross fee revenues, Adjusted EBITDA, Adjusted EPS, tax rate and other lines. Source
• Guidance kept: Full-year general and administrative expense and Adjusted effective tax rate guidance are kept at the same ranges as the prior release. Source
• New: The company executed new long-term U.S. co-branded credit card agreements with JPMorgan Chase and American Express; the full-year guidance includes their partial-year impact. Source
• New: The company sold a U.S. & Canada hotel and made its investment in Lefay, both in the second quarter. Source

Earnings and Adjusted results

• Adjusted diluted EPS rose to $3.19: Adjusted diluted EPS was $3.19 against $2.65 a year earlier. Reported diluted EPS was $2.90, against $2.78. Adjusted net income was $844 million, against $728 million. Source
• Adjusted EBITDA up 13 percent: Adjusted EBITDA was $1,592 million, against $1,415 million a year earlier. First-half Adjusted EBITDA was $2,990 million, up 14 percent from the first half of 2025. Source
• Adjusted operating margin rose to 66 percent: Adjusted operating income was $1,329 million, against $1,186 million. Adjusted operating margin was 66 percent, against 65 percent, on Adjusted total revenues of $2,013 million. Source
• Reported net income was flat: Reported operating income was $1,229 million, against $1,236 million. Reported net income was $766 million, against $763 million a year earlier. Source

Fees, loyalty and card economics

• Franchise and base fees up 14 percent: Franchise and base management fees were $1,366 million. Management attributed the increase mainly to higher co-branded credit card fees, rooms growth and higher RevPAR. Source
• Incentive fees grew on U.S. & Canada: Incentive management fees were $212 million, against $200 million, driven by U.S. & Canada growth and partly offset by EMEA declines. Managed international hotels provided over half of the incentive fees. Source
• Card agreements add value to members: Management said the new card agreements strengthen Marriott Bonvoy and add incremental value for hotel owners, cardholders, loyalty members and shareholders. Source

“We recently executed new long-term agreements for our co-branded credit card program in the U.S. with JPMorgan Chase and American Express.”

Anthony Capuano, President and Chief Executive Officer

RevPAR by region

• Worldwide RevPAR up 3.4 percent: Worldwide RevPAR rose 3.4 percent in constant dollars and 3.9 percent in actual dollars. Systemwide ADR rose 3.5 percent, while occupancy was down 0.1 points. Source
• U.S. & Canada RevPAR up 5 percent: Management said U.S. & Canada growth was broad-based across chain scales and customer segments. Composite systemwide U.S. & Canada luxury RevPAR rose 9.1 percent. Source
• International RevPAR declined on Middle East: Management attributed the international decline to conflict-related headwinds in the Middle East, which more than offset growth in its other international regions. Source
• Asia-Pacific and Greater China grew: APEC RevPAR rose over 5 percent on leisure and intra-regional travel. Greater China RevPAR rose over 3 percent, led by the luxury portfolio and Hong Kong, Taiwan and Hainan. Source

Costs, charges and interest

• Hotel sale impairment of $68 million: Depreciation, amortization and other rose to $115 million from $53 million. The increase reflects a $68 million impairment on a U.S. & Canada hotel sale, excluded from Adjusted results. Source
• Litigation accrual reduced owned-hotel income: Owned, leased and other revenue net of expense fell to $49 million from $78 million, reflecting lower termination fees and a $27 million property-related litigation accrual. Source
• G&A rose on compensation timing: General and administrative expenses were $220 million, up from $210 million, with higher compensation costs partly reflecting timing. Source
• Interest expense rose with debt: Interest expense, net, was $201 million, against $191 million, mainly from higher debt balances and partly offset by higher interest income. Provision for income taxes was $278 million, against $291 million. Source

“The Marriott Bonvoy loyalty program, which grew to more than 295 million members at quarter-end, continues to drive demand, deepen member engagement and create value across our global portfolio.”

Anthony Capuano, President and Chief Executive Officer

Development pipeline and rooms

• Net rooms added about 17,900: Roughly 11,000 of the net rooms added were in international markets. Net rooms grew 4.5 percent from the end of the second quarter of 2025. Source
• Pipeline reached a new record: Management said record global signings occurred in the first six months. The pipeline grew nearly 7 percent from a year earlier, and 44 percent of pipeline rooms were under construction. Source
• Conversions drove growth: Conversions were over a third of signings and 40 percent of openings in the first half. A further 253 properties with over 34,000 rooms were approved but not yet under signed contracts. Source

Capital, cash and returns

• Repurchases of $1.1 billion this quarter: The company repurchased 3.0 million shares in the quarter. Year to date through July 29 it has returned about $2.6 billion through dividends and repurchases. Source
• Debt higher, cash little changed: Total debt was $16.9 billion, up from $16.2 billion at year-end 2025 and $16.5 billion at the end of the first quarter. Cash and equivalents were $0.5 billion. Source
• Capital return guidance raised: Full-year capital return to shareholders is guided to exceed $4,500 million, assuming the investment spending level and no other asset sales, property acquisitions or brand acquisitions. Source

Full-year guidance and assumptions

• Full-year RevPAR guidance raised: Full-year worldwide RevPAR growth guidance moved to 3.0% to 3.5% from 2.0% to 3.0%. Management linked the change to second-quarter performance and expected broad-based demand. Source
• EBITDA and EPS ranges moved up: Full-year Adjusted EBITDA guidance is $5,965 million to $6,025 million, from $5,880 million to $5,970 million. Full-year Adjusted diluted EPS guidance is $11.64 to $11.81. Source
• Owned-hotel line guidance lowered: Full-year net owned, leased and other revenue guidance is $175 million to $185 million, down from $215 million to $225 million. Third-quarter guidance is $30 million to $40 million. Source
• Guidance assumptions and basis: Guidance rests on the current macroeconomic environment continuing. The hotel sale, the Lefay investment and partial-year card terms are included in the figures. Source

Asset actions, card terms and exclusions

• Hotel sale and Lefay closed in quarter: The company sold a U.S. & Canada hotel and made its Lefay investment, both in the second quarter. The first-quarter release had assumed the sale would occur later in that quarter. Source
• Card terms now included in guidance: The renegotiated U.S. co-branded card terms with JPMorgan Chase and American Express were excluded from first-quarter guidance and are now included, with partial-year impact in 2026. Source
• Sonder and gain adjustments excluded: Full-year guidance excludes first-half Sonder termination adjustments of $2 million and an $8 million adjustment to a gain on an asset disposition, along with the related impairment. Source

Figures management reported

Risks management discussed

• Demand: Management cited the Middle East conflict as a headwind, with RevPAR in the Middle East down 43 percent while Europe increased. Source
• External: Guidance rests on an assumption that the current macroeconomic environment continues, as management stated. Source

Earlier plans management reported on

• Met: The first-quarter release assumed the hotel sale would occur later in the second quarter and Lefay later in 2026. Management now says both occurred in the second quarter. Source
• Not stated: The first-quarter release excluded the card renegotiation because discussions were ongoing. The second-quarter release says new agreements were executed.

Other quarters

• Q1 FY2026 earnings call
• Q4 FY2025 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.