Marriott CEO RevPAR In The US And Canada Rose 5%, The Highest Quarterly Increase In 13 Quarters, With Strength In World Cup And Non-World Cup Markets- Conf. Call - MAR News | Rallies
Marriott CEO RevPAR In The US And Canada Rose 5%, The Highest Quarterly Increase In 13 Quarters, With Strength In World Cup And Non-World Cup Markets- Conf. Call
Marriott CEO said the company is intensely focused on working with hotel owners to help strengthen hotel-level economics and drive owner returns and long-term value across the system.
The company lowered loyalty charge-out rates across its global system by roughly 5% to what it believes are the lowest in the industry across all chain scales.
Marriott intends to recommend incentive in the US and Canada that will provide a fee discount for top hotels that receive strong guest satisfaction scores.
International trends, outlook, and spending plans
With the conflict in the Middle East weighing on results, Q2 international RevPAR declined slightly year over year.
RevPAR in Europe rose over 4% in Q2, driven by strength in leisure, particularly in the Mediterranean countries, including Italy, Spain, and Greece.
While Middle East travel quarter disruptions did weigh on select APEC markets in April, RevPAR surpassed prior expectations in May and June, thanks to improved flight capacity as well as strong intra-regional demand.
RevPAR in Greater China rose over 3%, led by strong inbound leisure demand recovery as hotels continued to gain share in an uneven consumer spending environment.
Marriott CFO said Q3 RevPAR is expected to be helped by the strong World Cup performance, while Q4 could see a small negative impact from November's midterm elections.
EMEA is expected to continue to be impacted by the conflict in the Middle East, though to a lesser extent than previously anticipated.
RevPAR in EMEA is expected to improve in Q3 relative to Q2 before moderating again in Q4.
In Q4, the Middle East faces difficult comparisons from Q4 of 2025, where several large events drove meaningful ADR increases.
Because the Middle East enters its peak tourism season in October, the region's performance will have a greater impact on EMEA's Q4 results than it did in Q3.
Marriott CFO expects 2026 investment spending to be $1.25 billion to $1.35 billion, an increase versus prior expectations, with slightly higher expectations across most categories.
Marriott CEO said the company could see continued strong global RevPAR growth next year and is seeing strength in rate potential and demand across chain scales and across geographies outside the Middle East.
Marriott CEO also said it is seeing some headwinds from the Japanese cards because of the decline in the yen, and that the upside impact from World Cup across chain scales was really encouraging.
Revenue per available room improved in North America and globally
Marriott CEO said RevPAR in the US and Canada region rose 5%, the highest quarterly increase in 13 quarters, with strength in World Cup and non-World Cup markets.
Luxury and resort hotels continued to lead in the region in the quarter, with luxury RevPAR up over 9%.
Strength was pervasive across chain scales, with select service RevPAR increasing over 4%.
Leisure RevPAR rose 5% globally and 7% in the US and Canada.
Group RevPAR rose 3% globally and 4% in the US and Canada.
Business transient RevPAR rose 2% globally and 3% in the US and Canada.
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