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The call conveyed solid operational and financial momentum — above-guidance Q1 RevPAR, double-digit fee and earnings growth, robust development activity and technology/AI initiatives — while acknowledging a significant near-term headwind from the Middle East conflict (material March Q1 decline and an expected Q2 trough) and some regional softness (Mexico, APAC airlift effects). Management raised full-year revenue and earnings targets and reiterated strong capital return plans, but flagged ongoing uncertainty tied to conflict-related demand and pending credit-card deal timing.
Marriott raised full-year 2026 global RevPAR guidance to +2.0%–3.0% and now expects net rooms growth of 4.5%–5.0% (with typical 1.0%–1.5% deletions), a global pipeline of ~618,000 rooms (up >5% YoY) with 43% under construction, and record signings up 9% YoY; full-year gross fees were raised to $5.93B–$5.99B (up ~9%–10%), IMFs are expected to be roughly flat, co‑branded credit‑card fees ≈ +35%, residential branding fees +45%–50%, timeshare fees $110M–$115M, and owned/leased & other net $215M–$225M. Management expects 2026 adjusted EBITDA of $5.88B–$5.97B, adjusted diluted EPS $11.38–$11.63 (≈ +14%–16%), an adjusted effective tax rate of 26.0%–26.5% (core tax rate in the low‑20s), G&A up ~1%–3%, investment spend $1.05B–$1.15B (≈35%–40% on contract investment, ~30%–35% on tech), and >$4.4B returned to shareholders; a 1‑ppt change in full‑year RevPAR is roughly $55M–$65M in RevPAR‑related fees. Near‑term, Q2 RevPAR is guided to +1.5%–2.5%, Q2 gross fees +10%–11%, Q2 IMFs down mid‑single digits, Q2 adjusted EBITDA +8%–10% (with Q2 G&A up mid‑to‑high single digits), while guidance assumes the Middle East conflict could shave ~100–125 bps from full‑year RevPAR and the World Cup will add ~30–35 bps.
Global RevPAR rose 4.2% in Q1 and management raised full-year global RevPAR guidance to +2% to +3% (up from prior guidance), reflecting outperformance in Q1 and continued strength in U.S. & Canada and Greater China.
RevPAR in the U.S. & Canada increased 4.0% in Q1 with luxury up nearly 7% and select service up 3.5% (a meaningful improvement from down >1% in Q4), indicating broad-based recovery across tiers.
International RevPAR rose 4.6% in Q1; APAC RevPAR increased over 7% driven by ADR growth and stronger demand from Chinese guests; Greater China RevPAR rose nearly 6%, with Hong Kong and Hainan up ~20% YoY.
Total gross fee revenues rose 12% YoY to $1.43 billion in Q1. Adjusted EBITDA increased 15% to $1.4 billion and adjusted diluted EPS grew 17% to $2.72.
Record Q1 global signings were up 9% YoY; net rooms growth was 4.5% on a trailing 12-month basis through March; global pipeline grew >5% YoY to ~618,000 rooms with 43% of pipeline rooms under construction.
Conversions remained a significant growth driver, representing over 35% of signings and over 40% of openings in the quarter, supporting expectations for 4.5%–5% net rooms growth for the year.
Co-branded credit card fees increased ~37% in Q1 and are expected to increase ~35% for the full year; residential branding fees rose >70% in Q1 and full-year guidance raised to +45% to +50%.
Marriott Bonvoy reached nearly 283 million members. Management highlighted ongoing card rollouts (37 cards across 13 countries) and tech/AI initiatives to drive direct bookings and guest personalization.
Marriott migrated its 1,000th hotel to the new tech ecosystem and plans a phased rollout of natural language/conversational search on marriott.com and the app by end of Q2; AI pilots in customer engagement and sales tools are underway.
Full-year gross fee guidance increased to $5.93–$5.99 billion (up ~9%–10%); adjusted EBITDA guidance raised to ~$5.88–$5.97 billion (+9%–11%); full-year adjusted diluted EPS guidance $11.38–$11.63 (+14%–16%); expected shareholder returns >$4.4 billion in 2026.
Hello, and welcome, everyone, joining today's Marriott International Q1 2026 Earnings Call. [Operator Instructions] Please note, this call is being recorded. We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to Jackie McConagha, Senior Vice President of Investor Relations. Please go ahead.
Thank you. Good morning, everyone, and welcome to Marriott's First Quarter 2026 Earnings Call. On the call with me today are Tony Capuano, our President and Chief Executive Officer; Jen Mason, our new Executive Vice President and Chief Financial Officer; and Pilar Fernandez, Senior Director of Investor Relations. Before we begin, I would like to remind everyone that many of our comments today are not historical facts and are considered forward-looking statements under federal securities laws. These statements are subject to numerous risks and uncertainties as described in our SEC filings, which could cause future results to differ materially from those expressed in or implied by our comments. Unless otherwise stated, our RevPAR, occupancy, average daily rate and property level revenue comments reflect system-wide constant currency results for comparable hotels and all changes refer to year-over-year changes for the comparable period. Statements in our comments and the press release we issued earlier today are effective only today and will not be updated as actual events unfold. You can find our earnings release and reconciliations of all non-GAAP financial measures referred to in our remarks today on our Investor Relations website.
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