Marriott InternationalMAR

Marriott reported adjusted earnings of $3.19 per share, beating the $3.08 analysts expected. However, revenue of $7.07 billion came in below the $7.19 billion target. While business in the U.S. and Canada remained healthy with 5 percent growth in revenue per room, international markets saw a slight decline of about 0.5 percent.

The company continues to lean into its asset-light model, where it earns fees for its brand and systems rather than owning buildings. It added about 17,900 rooms this quarter and its pipeline of future hotels reached a record 629,000 rooms. Management also returned $1.1 billion to shareholders through buybacks, showing they still have plenty of cash to spare even as global travel demand shows some signs of cooling.

See the full quarter, and how our tracked metrics did

Source: 8-K filing

Key highlights

• Strong room additions: Marriott added 17,900 net rooms this quarter, bringing its total growth to 4.5% compared to the same time last year. This puts the company at the starting edge of its target range for growing the number of rooms in its system.
• Loyalty program expansion: The Marriott Bonvoy program grew to more than 295 million members, an increase from 271 million at the end of last year. This massive base of travelers helps the company drive more bookings directly through its own channels rather than paying fees to travel sites.
• Regional performance split: Revenue per room, a key measure of hotel health, rose 5% in the U.S. and Canada but fell 0.5% in international markets. This dip was largely due to a 43% plunge in the Middle East caused by regional conflict, which overshadowed better travel demand in Asia.
• Record development pipeline: The company reached a new record with 629,000 rooms in its development pipeline, representing 7% growth over last year. About 44% of those rooms are already under construction, which gives the company a clear path for future expansion.
• Shareholder returns continue: Marriott spent $1.1 billion to buy back 3 million shares of its own stock during the quarter. Reducing the number of shares helps increase the value of each remaining share for long term owners.
• Raised full year outlook: Management raised its full year forecast for global revenue per room growth to a range of 3% to 3.5%, up from previous expectations. The company also expects to return more than $4.5 billion to shareholders through dividends and stock buybacks by the end of 2026.

Our take: This was a strong quarter that showed Marriott can grow even when global conditions are uneven. While the 43% drop in Middle East revenue is a sharp hit, the steady 5% growth in North America and a record development pipeline prove the brand is still winning. The business remains on a very healthy path.