Marriott (NASDAQ:MAR) Raises Full-Year RevPAR Guidance After Q2 Adjusted EPS Beat

Marriott International (NASDAQ: MAR) posted adjusted EPS of $3.19 for Q2 2026, beating the $3.12 analyst consensus by 2.2%, while adjusted net income rose 15.9% year over year to $844 million. Beneath the headline beat, a $68 million hotel-sale impairment charge and a $27 million property litigation accrual held GAAP operating income essentially flat, and a 43% collapse in Middle East room revenue weighed on international results. Shares fell 6.97% on Monday, August 3, while the S&P 500 gained 1.42%.

Q2 2026 Results

• Adjusted EPS of $3.19 beat the $3.12 consensus; GAAP EPS of $2.90 rose 4.3% from $2.78 in Q2 2025.
• Adjusted net income totaled $844 million, up 15.9% year over year, versus GAAP net income of $766 million (up 0.4% YoY from $763 million).
• Adjusted EBITDA reached $1,592 million, a 13% increase from $1,415 million in Q2 2025.
• Adjusted operating income rose 12.1% to $1,329 million, while GAAP operating income slipped 0.6% to $1,229 million due to one-time charges.
• Roughly 17,900 net rooms added globally in the quarter; total system reached over 10,000 properties with nearly 1,814,000 rooms.

What Drove the Results

Adjusted EPS of $3.19 beat the $3.12 consensus by $0.07. On a GAAP basis, operating income declined $7 million to $1,229 million, as depreciation and amortization expenses jumped to $115 million from $53 million in the year-ago quarter, driven by a $68 million impairment charge related to the sale of a U.S. and Canada hotel. An additional $27 million property-related litigation accrual pushed owned, leased, and other net revenue down to $49 million from $78 million, a $29 million decline. These charges, excluded from adjusted results, masked the underlying 12.1% growth in adjusted operating income.

On the operating side, franchise and base management fees rose 14% to $1,366 million, driven by higher co-branded credit card fees, rooms growth, and higher RevPAR. U.S. and Canada RevPAR grew 5.0%, supported by broad-based increases across chain scales. International RevPAR declined 0.5%, as EMEA RevPAR fell over 5% owing to a 43% drop in Middle East room revenues, which more than offset RevPAR gains of over 5% in APEC and over 3% in Greater China.

The divergence between GAAP and adjusted results was the central story for investors. Excluding the $68 million impairment and the $27 million litigation accrual, adjusted operating income grew 12.1%, reflecting genuine fee-based business momentum rather than asset-heavy earnings volatility.

New Credit Card Agreements and Pipeline

Marriott announced new long-term co-branded credit card agreements with JPMorgan Chase and American Express for its Marriott Bonvoy loyalty program in the U.S. These new agreements are expected to add $100 million to $125 million in annual incremental revenue by 2028. The Bonvoy program grew to more than 295 million members at quarter-end. The global development pipeline reached a new record of approximately 629,000 rooms across 4,186 properties, up nearly 7% from a year ago, with 44% of pipeline rooms under construction. Conversions represented over one-third of signings and 40% of openings in the first half of 2026. The company also raised its full-year 2026 global RevPAR growth guidance to 3.0% to 3.5%, up from its prior expectation.

Wall Street View

Analyst consensus heading into the print leaned constructive, with the majority of coverage at Buy or Strong Buy. The raised full-year RevPAR guidance and record pipeline provide forward support, though the Middle East revenue drag and one-time impairment charges introduce near-term noise into GAAP results that some analysts may weigh against the adjusted beat.

Investor Takeaway

The core fee-based business, as reflected in the 13% adjusted EBITDA growth and the 14% increase in franchise and base management fees, is performing well ahead of the GAAP headline. The $100 million to $125 million annual contribution expected from the new JPMorgan Chase and American Express credit card agreements by 2028 represents a material, recurring revenue layer not yet fully reflected in current results. The primary uncertainty for the remainder of 2026 centers on whether Middle East conflict-related RevPAR pressure, responsible for a 43% regional room-revenue decline in Q2, will ease or persist into the second half.