By Anshuman Tripathy
Nov 2 (Reuters) – Hotel operator Marriott International raised its full-year room revenue growth forecast on Monday, betting on strong travel demand to drive bookings across its properties and sending its shares up 7% in morning trading.
Wealthier consumers splurged on luxury experiences and business travel remained robust, while demand for mid-scale and budget hotels improved during the quarter as leisure travel held up despite still-high inflation and geopolitical uncertainty.
“While the ongoing conflict in the Middle East continued to impact results in that region, trends improved meaningfully from the second quarter,” CEO Anthony Capuano said.
Room revenue from the Middle East and Africa region for the reported quarter was down 5.3%, while that for the US and Canada rose 7.4%.
The Middle East will remain a drag in the fourth quarter, the company said, citing ongoing regional tensions and the cancellation of some large events in Saudi Arabia.
Rival Hilton had also warned of the Middle East conflict weighing on its fourth-quarter results, even though revenue loss from the region had eased compared with its prior quarter.
Bethesda, Maryland-based Marriott expects 2026 revenue per available room (revPAR) – a key lodging metric that tracks average daily rate and occupancy – to grow between 4.5% and 5%, compared with its prior forecast of a 3% to 3.5% increase.
Jefferies analyst David Katz said continued strength in earnings coupled with concerns over the net rooms growth forecast should alleviate some of the perceived negativity on Marriott going into the quarter.
The company reaffirmed its 2026 net rooms growth forecast at the low end of 4.5% to 5%.
It posted an adjusted profit per share of $3.02 for the quarter ended September 30, beating analysts’ estimates of $2.84, according to data compiled by LSEG.
Total revenue for the third quarter came in at about $7 billion, compared with expectations of $6.92 billion.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Devika Syamnath)
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