Marriott Beats on Q3 Adjusted EPS of $3.02 and Raises 2026 RevPAR Outlook to 4.5-5%

MAR reported third-quarter 2026 adjusted EPS of $3.02, beating the Zacks consensus estimate of $2.86 by 5.6% and up from $2.47 a year earlier. Total revenue rose 8% year over year to $7.01 billion but missed the $7.04 billion consensus by 0.5%; about $5.08 billion of that total is cost reimbursement revenue, which Zacks said increased 7%. In its release, Marriott said worldwide RevPAR rose 6.5%, with 7.4% growth in the U.S. and Canada and 4.4% internationally, driven by higher average daily rates and occupancy.

The fee lines carried the quarter. Franchise and base management fees rose 13% to $1,341 million and incentive management fees rose 22% to $181 million, according to the release, while adjusted EBITDA increased 12% to $1,512 million. Marriott said it had record global organic signings year to date through September, with conversions making up more than a third of signings and over 40% of openings in the first nine months, and its Bonvoy loyalty program reached about 309 million members.

On the back of the quarter, Marriott raised its 2026 worldwide RevPAR growth outlook to 4.5-5% from 3-3.5% and lifted its adjusted EPS guidance to $12.07-$12.14 from $11.64-$11.81. On the earnings call, management gave a preliminary view that 2027 global RevPAR growth could be 3.5-4.5%, a slower pace than the raised 2026 range, as the company laps World Cup demand and assumes continued Middle East travel disruption with gradual improvement.

What to watch: fourth-quarter RevPAR against the 4.5-5% guide, and the cost of growth. Management said key money is expected to be 40-45% of $1.25-1.35 billion of investment spending and is likely to keep rising, while noting that deals using key money have historically carried a higher value per room than deals without it.