Earnings
Home›Earnings›Results›Marriott shares slide after Q2 revenue miss, fee growt…
Marriott shares slide after Q2 revenue miss, fee growth offsets
Marriott reported adjusted EPS of $3.19 and lifted full year RevPAR guidance, while its gross fee revenue rose 13% to $1.578 billion.
Marriott International shares fell nearly 7% after the company posted a Q2 2026 revenue miss, even as adjusted earnings beat expectations. The lodging company reported adjusted EPS of $3.19, above the $3.08 estimate, while revenue came in at $7.07 billion versus $7.19 billion expected, down from $6.74 billion in the prior year quarter, according to MarketBeat Ratings.
The quarter highlighted stronger performance in Marriott’s fee business, which the outlet said investors may be overlooking. Gross fee revenues rose 13% to $1.578 billion, with franchise fees increasing 19% to $1.02 billion, supported by room growth, RevPAR gains, and higher co-branded credit card income. That fee strength contributed to Adjusted EBITDA of $1.592 billion, up 13% year over year.
Marriott also raised its full-year RevPAR guidance, and the outlet pointed to underlying profitability being better than the headline due to one-time items. Adjusted net income climbed to $844 million from $728 million, while reported net income was essentially flat at $766 million, weighed down by a $68 million impairment related to the sale of a U.S. and Canada hotel and a $27 million litigation accrual.
Demand patterns varied by geography, with Marriott citing a split in RevPAR performance across regions. Worldwide RevPAR rose 3.4%, driven by 5% growth in the U.S. and Canada, while international RevPAR declined 0.5% as the Middle East saw RevPAR plunge over 35% amid ongoing regional conflict. The decline was said to be broad enough to overwhelm gains in Europe, Greater China, and Asia Pacific, the latter led by strong leisure demand.