Marriott Q2 2026 Earnings: Conflict Cuts Middle East RevPAR
Marriott Q2 2026 earnings showed EPS beat but revenue missed and a 43% Middle East RevPAR drop clouded Q3 EPS guidance, tightening near-term positioning.
KEY TAKEAWAYS
- Q2 revenue rose to $7.07 billion but missed Street estimates by about $100-$120 million.
- Adjusted diluted EPS was $3.19, beating consensus and rising roughly 20% year over year.
- Management guided Q3 adjusted EPS to $2.74-$2.82, attributing the shortfall to a 43% Middle East RevPAR decline.
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Marriott International (MAR) reported adjusted EPS above consensus in its Q2 2026 earnings release on Aug. 3, 2026, while revenue fell short of forecasts. Management said a steep decline in Middle East revenue per available room (RevPAR) tied to regional conflict would weigh on Q3 adjusted EPS guidance.
Earnings, Regional Performance, and Guidance
Marriott posted second-quarter revenue of $7.07 billion, up 5% year over year but about $100–$120 million below analyst estimates, a shortfall of roughly 1.4%–1.7%. Adjusted diluted EPS rose about 20% to $3.19, exceeding Street estimates. Net income was approximately $766 million, or $2.90 per diluted share, compared with $763 million, or $2.78, in the prior-year quarter.
Global RevPAR increased 3.4% year over year, led by a 5% gain in the U.S. and Canada. International RevPAR declined 0.5%, with EMEA (Europe, Middle East, and Africa) down more than 5%. This regional drop reflected a 43% decline in Middle East RevPAR linked to ongoing conflict, which offset gains in Europe and weighed heavily on international results.
Management set Q3 adjusted EPS guidance at $2.74–$2.82, below analyst expectations, citing continued war-related disruption in the Middle East. Despite this, the company raised its full-year outlook, projecting global RevPAR growth of 3.0%–3.5%. It also lifted guidance for gross fee revenue to about $6.03–$6.06 billion, adjusted EBITDA to roughly $5.97–$6.03 billion, and adjusted diluted EPS to approximately $11.64–$11.81.
Development Pipeline and Room Growth
Marriott reported a record development pipeline of about 629,000 rooms as of Q2 2026, driven by strong conversion activity. The Middle East accounts for a small portion of Marriott’s portfolio—roughly 3% of open rooms, 7% of pipeline rooms, and about 3% of global gross fees. Management said construction slowdowns in the region would push net room growth toward the low end of the prior 4.5%–5% target range. This will trim near-term supply growth even as fee-driven revenue expansion supports the raised full-year outlook.
