Marriott International Reports First Quarter 2026 Results
Rhea-AI Summary
Marriott International (Nasdaq: MAR) reported Q1 2026 results: reported diluted EPS $2.43 and Adjusted diluted EPS $2.72; reported net income $648M and Adjusted net income $726M. Worldwide RevPAR rose 4.2%; Adjusted EBITDA was $1,398M (+15%). The company added ~15,900 net rooms, and the development pipeline reached a record 4,107 properties / ~618,000 rooms. Marriott repurchased 2.1M shares for $0.7B in Q1 and returned over $1.2B YTD through April 29. Total debt was $16.5B with cash of $0.5B. Outlook factors continued travel disruption from the Middle East conflict and excludes potential U.S. co‑brand card renegotiation impact.
Positive
- Adjusted EBITDA +15% to $1,398M
- Adjusted diluted EPS increased to $2.72
- Development pipeline reached a record ~618,000 rooms
- Net rooms growth of roughly 15,900 added in Q1
- Share repurchases of 2.1M shares for $0.7B in Q1
Negative
- Reported net income declined 3% to $648M
- Provision for income taxes rose to $210M from $99M
- Interest expense increased to $204M, reflecting higher debt
- Cash balance of $0.5B vs total debt $16.5B
- Outlook assumes continued travel disruption from Middle East conflict
Key Figures
Market Reality Check
Peers on Argus
MAR was up 2.1% with higher volume, while key peers like IHG (+1.41%), HTHT (+1.31%), and H (+1.07%) saw smaller gains, suggesting a MAR-focused reaction rather than a broad hotels rally.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 13 | Earnings call notice | Neutral | +1.5% | Announced timing and access details for Q1 2026 earnings release and call. |
| Feb 10 | Q4/FY 2025 results | Positive | +8.5% | Reported FY 2025 RevPAR growth, strong EPS, EBITDA, and >$4.0B capital returns. |
| Jan 12 | Earnings call notice | Neutral | -0.1% | Set release date and call details for Q4 2025 earnings announcement. |
| Nov 04 | Q3 2025 results | Positive | +3.2% | Posted Q3 2025 EPS and EBITDA growth with pipeline expansion and buybacks. |
| Oct 10 | Earnings call notice | Neutral | -2.2% | Announced timing and logistics for the Q3 2025 earnings call. |
Earnings-related news for MAR has generally coincided with modestly positive or stable price reactions, especially when accompanied by solid RevPAR and EBITDA trends.
Recent earnings-related updates for MAR show a consistent focus on RevPAR growth, expanding room count, and sizeable capital returns. The Q3 2025 results highlighted RevPAR stability and rising Adjusted EBITDA, while the FY 2025 report emphasized strong EPS and over $4.0B returned to shareholders. Earnings date announcements around Q3 2025, Q4 2025, and Q1 2026 produced relatively small moves. Today’s Q1 2026 results, with higher RevPAR and Adjusted EBITDA, extend that theme of steady, fee-based growth and ongoing buybacks.
Historical Comparison
In the past year, MAR’s earnings-related headlines showed an average move of 2.17%, indicating typically moderate reactions around results and earnings dates.
Earnings updates trace a path from steady Q3 2025 RevPAR and EBITDA growth through strong FY 2025 results and guidance, now followed by Q1 2026 gains in RevPAR, Adjusted EPS, and EBITDA that build on that trajectory.
Market Pulse Summary
This announcement highlights Q1 2026 RevPAR growth of 4.2% worldwide, stronger Adjusted EPS of $2.72, and a $1,398M Adjusted EBITDA print, alongside record pipeline rooms and 15,900 net rooms added. Management reaffirmed an asset-light, fee-driven model and significant buybacks, including $0.7B repurchased in the quarter. Investors may watch how guidance for RevPAR and Adjusted EBITDA evolves, how the $16.5B debt load trends, and whether room growth and the development pipeline stay on track amid regional travel disruptions.
Key Terms
revpar financial
average daily rate (adr) financial
ebitda financial
adjusted ebitda financial
non-gaap financial
AI-generated analysis. Not financial advice.
- First quarter 2026 RevPAR1 increased 4.2 percent worldwide, with 4.0 percent growth in the
U.S. &Canada and 4.6 percent growth in international markets - First quarter reported diluted EPS totaled
$2.43 $2.72 - First quarter reported net income totaled
$648 million $726 million - First quarter Adjusted EBITDA totaled
$1,398 million - The company added roughly 15,900 net rooms globally during the quarter and net rooms grew 4.5 percent from the end of the first quarter of 2025
- At the end of the quarter, Marriott's worldwide development pipeline reached a new record and totaled over 4,100 properties and nearly 618,000 rooms, with 43 percent of pipeline rooms under construction including hotels that are pending conversion
- The company repurchased 2.1 million shares of common stock for
$0.7 billion $1.2 billion
For a summary of first quarter 2026 highlights, please visit: https://news.marriott.com/static-assets/component-resources/newscenter/earnings/2026/2026-q1-earnings-infographic.pdf.
Anthony Capuano, President and Chief Executive Officer, said, "We delivered excellent first quarter results, reflecting the strength of our brands, our unmatched global footprint, and the resilience of demand for travel. Global RevPAR increased over 4 percent, exceeding the high end of our expectations, driven by gains in both average daily rate and occupancy. RevPAR in the
"International RevPAR grew 4.6 percent in the quarter, despite the conflict in the
"Our development momentum continued, and we had record first quarter signings. Our industry-leading pipeline expanded to nearly 618,000 rooms, up over 5 percent from the year‐ago quarter. Conversions, including multi-unit deals, remained a significant driver of growth, representing over 35 percent of signings and over 40 percent of openings in the quarter.
"Our Marriott Bonvoy travel platform remains a key competitive advantage that connects members to stays, experiences, and loyalty partners throughout their journey, and delivers significant value to hotel owners. Supported by our broad portfolio of brands and experiences, loyalty program membership in Marriott Bonvoy grew to nearly 283 million members at quarter-end.
"As we look ahead to the rest of this year and beyond, we are confident that our leading global scale and strong brand portfolio, our powerful Marriott Bonvoy travel platform and loyalty program, our dedicated associates, and our asset-light business model continue to position us very well for sustainable, long-term growth."
First Quarter 2026 Results
Franchise and base management fees totaled
Incentive management fees totaled
Owned, leased, and other revenue, net of owned, leased, and other expense1, totaled
General and administrative expenses2 for the 2026 first quarter totaled
Interest expense, net, totaled
In the 2026 first quarter, the provision for income taxes totaled
Marriott's reported operating income totaled
Adjusted operating income in the 2026 first quarter totaled
First quarter 2026 Adjusted results excluded cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges, and other expenses, adjustments related to the termination of our licensing agreement with Sonder Holdings Inc., and an adjustment to a gain on an asset disposition. See the press release schedules for the calculation of Adjusted results and the manner in which the Adjusted measures are determined in this press release.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled
Income Statement Reclassification
In the 2025 fourth quarter, to enhance understanding of the company's general and administrative costs, we reclassified amounts attributable to other expenses previously reported under the "General, administrative, and other" caption to the "Owned, leased, and other expense" caption of our Income Statements. The expenses that were reclassified from "General, administrative, and other" are certain costs associated with our property-related fee revenues, such as guarantee expense, provision for credit losses, and certain brand-related or property-related expenses, as well as costs associated with certain third-party agreements. Please refer to the Expense Captions - As Reclassified section in the press release schedules for information about the affected expense captions, as reclassified, for each quarter and the full fiscal year of 2025.
Selected Performance Information
The company added roughly 15,900 net rooms during the quarter, including approximately 7,500 net rooms in international markets. At the end of the quarter, Marriott's global system totaled over 9,900 properties, with nearly 1,796,000 rooms.
At the end of the quarter, the company's worldwide development pipeline totaled 4,107 properties with nearly 618,000 rooms, including 230 properties with nearly 34,000 rooms approved for development but not yet subject to signed contracts. The quarter-end pipeline included 1,699 properties with over 268,000 rooms under construction, including hotels that are in the process of converting to our system. Over half of the rooms in the quarter-end pipeline were located in international markets.
In the 2026 first quarter, worldwide RevPAR increased 4.2 percent (a 6.0 percent increase using actual dollars) compared to the 2025 first quarter. RevPAR in the
Balance Sheet & Common Stock
At the end of the quarter, Marriott's total debt was
The company repurchased 2.1 million shares of common stock in the 2026 first quarter for
In the 2026 first quarter, the company issued
Company Outlook
The company's updated outlook assumes continued impact from the conflict in the
Second Quarter 2026 vs. Second Quarter 2025 | Full Year 2026 vs. Full Year 2025 | |
Comparable systemwide constant $ RevPAR growth | ||
Worldwide | ||
Year-End 2026 | ||
vs. Year-End 2025 | ||
Net rooms growth | ||
($ in millions, except EPS) | Second Quarter 2026 | Full Year 2026 |
Gross fee revenues | ||
Owned, leased, and other revenue, net of owned, | Approx. | |
General and administrative expenses | ||
Adjusted EBITDA1,2 | ||
Adjusted EPS – diluted2,3 | ||
Adjusted effective tax rate2 | Approx. | |
Investment spending4 | ||
Capital return to shareholders5 | Over |
1See the press release schedules for the Adjusted EBITDA calculations. |
2Adjusted EBITDA, Adjusted EPS – diluted and Adjusted effective tax rate for second quarter and full year 2026 do not include cost reimbursement revenue, reimbursed expenses, and restructuring and merger-related charges, and other expenses, each of which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant. Our outlook includes the impact of our planned sale of a |
3Assumes the level of capital return to shareholders noted above. |
4Investment spending includes capital and technology expenditures, loan advances, contract acquisition costs, and other investing activities (including our planned investment in Lefay, which we assume will occur later this year), but excludes any potential property or brand acquisitions, which we cannot forecast with sufficient accuracy, and which may be significant. |
5Assumes the level of investment spending noted above, our planned sale of a |
Marriott International, Inc. (Nasdaq: MAR) will conduct its quarterly earnings review for the investment community and news media on Wednesday, May 6, 2026, at 8:30 a.m. Eastern Time (ET). The conference call will be webcast simultaneously via Marriott's investor relations website at www.marriott.com/investor (click on "Events & Presentations" and click on the quarterly conference call link). A replay will be available at that same website until May 6, 2027.
The telephone dial-in number for the conference call is US Toll Free: 800-267-6316, or Global: +1 203-518-9783. The conference ID is MAR1Q26.
Note on forward-looking statements: All statements in this press release and the accompanying schedules are made as of May 6, 2026. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. This press release and the accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including statements related to our RevPAR, rooms growth and other financial metric estimates, outlook and assumptions; shareholder returns; our growth prospects; our development pipeline; our expectations about the conflict in the
Marriott International, Inc. (Nasdaq: MAR) is based in
Marriott encourages investors, the media, and others interested in the company to review and subscribe to the information Marriott posts on its investor relations website at www.marriott.com/investor or Marriott's news center website at www.marriottnewscenter.com, which may be material. The contents of these websites are not incorporated by reference into this press release or any report or document Marriott files with the
IRPR#1
Tables follow
1All occupancy, Average Daily Rate (ADR) and Revenue per Available Room (RevPAR) statistics and estimates are systemwide constant dollar. Unless otherwise stated, all changes refer to year-over-year changes for the comparable period. Occupancy, ADR and RevPAR comparisons between 2026 and 2025 reflect properties that are comparable in both years. | |||||||||
2In the 2025 fourth quarter, to enhance understanding of the company's general and administrative costs, we reclassified amounts attributable to other expenses previously reported under the "General, administrative, and other" caption to the "Owned, leased, and other expense" caption of our Income Statements. Please see the Income Statement Reclassification section of this press release for additional information. | |||||||||
MARRIOTT INTERNATIONAL, INC. | |
PRESS RELEASE SCHEDULES | |
TABLE OF CONTENTS | |
QUARTER 1, 2026 | |
Consolidated Statements of Income | A-2 |
Non-GAAP Financial Measures | A-3 |
Expense Captions - As Reclassified | A-4 |
Total Lodging Products by Ownership Type | A-5 |
Total Lodging Products by Tier | A-7 |
Key Lodging Statistics | A-9 |
Adjusted EBITDA | A-11 |
Adjusted EBITDA Forecast - Second Quarter 2026 | A-12 |
Adjusted EBITDA Forecast - Full Year 2026 | A-13 |
Explanation of Non-GAAP Financial and Performance Measures | A-14 |
MARRIOTT INTERNATIONAL, INC. | ||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||
FIRST QUARTER 2026 AND 2025 | ||||||
($ in millions except per share amounts, unaudited) | ||||||
Percent | ||||||
Three Months Ended | Three Months Ended | Better/(Worse) | ||||
March 31, 2026 | March 31, 2025 | 2026 vs. 2025 | ||||
REVENUES | ||||||
Franchise fees1 | $ 872 | $ 746 | 17 | |||
Base management fees | 339 | 325 | 4 | |||
Incentive management fees | 222 | 204 | 9 | |||
Gross fee revenues | 1,433 | 1,275 | 12 | |||
Contract investment amortization2 | (35) | (28) | (25) | |||
Net fee revenues | 1,398 | 1,247 | 12 | |||
Owned, leased, and other revenue3 | 412 | 361 | 14 | |||
Cost reimbursement revenue4 | 4,844 | 4,655 | 4 | |||
6,654 | 6,263 | 6 | ||||
OPERATING COSTS AND EXPENSES | ||||||
Owned, leased, and other expense5* | 377 | 332 | (14) | |||
Depreciation, amortization, and other6 | 54 | 51 | (6) | |||
General and administrative7* | 219 | 209 | (5) | |||
Restructuring and merger-related charges, and other | 4 | 1 | (300) | |||
Reimbursed expenses4 | 4,936 | 4,722 | (5) | |||
5,590 | 5,315 | (5) | ||||
OPERATING INCOME | 1,064 | 948 | 12 | |||
Gains (losses) and other income, net8 | 3 | (2) | 250 | |||
Interest expense | (214) | (192) | (11) | |||
Interest income | 10 | 9 | 11 | |||
Equity in (losses) earnings9 | (5) | 1 | (600) | |||
INCOME BEFORE INCOME TAXES | 858 | 764 | 12 | |||
Provision for income taxes | (210) | (99) | (112) | |||
NET INCOME | $ 648 | $ 665 | (3) | |||
EARNINGS PER SHARE | ||||||
Earnings per share - basic | $ 2.44 | $ 2.40 | 2 | |||
Earnings per share - diluted | $ 2.43 | $ 2.39 | 2 | |||
Basic shares (in millions) | 266.1 | 276.9 | ||||
Diluted shares (in millions) | 266.8 | 277.7 | ||||
* The 2025 first quarter reflects the reclassification of | ||||||
1 Franchise fees include fees from our franchise and license agreements for lodging properties (including our timeshare properties), application and relicensing fees, co-branded credit card fees, residential branding fees, and other brand-related fees. | ||||||
2 Contract investment amortization includes amortization of capitalized costs to obtain contracts with customers and any related impairments. | ||||||
3 Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue. | ||||||
4 Cost reimbursement revenue includes reimbursements from hotel owners and certain other counterparties for property-level and centralized programs and services that we operate for their benefit. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services that we operate for the benefit of our hotel owners and certain other counterparties. | ||||||
5 Owned, leased, and other expense includes operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses, and other expenses, such as expenses related to our Global Design services, certain costs associated with our property-related fee revenues (such as guarantee expense, provision for credit losses, and certain brand-related or property-related expenses), and costs associated with certain third-party agreements. | ||||||
6 Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of acquired contracts, software, and other definite-lived intangible assets, and any related impairments, accelerations, or write-offs. | ||||||
7 General and administrative expenses include our corporate and business segments overhead costs and general expenses. | ||||||
8 Gains (losses) and other income, net includes gains and losses on the sale of real estate, the sale of joint venture interests and other investments, and adjustments from other equity investments. | ||||||
9 Equity in (losses) earnings includes our equity in earnings or losses of unconsolidated equity method investments. |
MARRIOTT INTERNATIONAL, INC. NON-GAAP FINANCIAL MEASURES | |||||
($ in millions except per share amounts) | |||||
The following table presents our reconciliations of Adjusted operating income, Adjusted operating income margin, Adjusted net income, and Adjusted diluted earnings per share to the most directly comparable GAAP measure. Adjusted total revenues is used in the determination of Adjusted operating income margin. | |||||
Three Months Ended | |||||
Percent | |||||
March 31, | March 31, | Better/ | |||
2026 | 2025 | (Worse) | |||
Total revenues, as reported | $ 6,654 | $ 6,263 | |||
Less: Cost reimbursement revenue | (4,844) | (4,655) | |||
Adjusted total revenues† | 1,810 | 1,608 | |||
Operating income, as reported | 1,064 | 948 | |||
Less: Cost reimbursement revenue | (4,844) | (4,655) | |||
Add: Reimbursed expenses | 4,936 | 4,722 | |||
Add: Restructuring and merger-related charges, and other | 4 | 1 | |||
Less: Adjustments related to Sonder Termination1 | (2) | — | |||
Adjusted operating income† | 1,158 | 1,016 | 14 | ||
Operating income margin | 16 % | 15 % | |||
Adjusted operating income margin† | 64 % | 63 % | |||
Net income, as reported | 648 | 665 | |||
Less: Cost reimbursement revenue | (4,844) | (4,655) | |||
Add: Reimbursed expenses | 4,936 | 4,722 | |||
Add: Restructuring and merger-related charges, and other | 4 | 1 | |||
Less: Adjustments related to Sonder Termination1 | (2) | — | |||
Add: Adjustment to gain on investee's asset disposition2 | 8 | — | |||
Income tax effect of above adjustments | (24) | (17) | |||
Less: Income tax special items | — | (71) | |||
Adjusted net income† | $ 726 | $ 645 | 13 | ||
Diluted earnings per share, as reported | $ 2.43 | $ 2.39 | |||
Adjusted diluted earnings per share† | $ 2.72 | $ 2.32 | 17 | ||
† Denotes non-GAAP financial measures. Please see the Explanation of Non-GAAP Financial and Performance Measures section in these press release schedules for information about our reasons for providing these alternative financial measures and the limitations on their use. | |||||
1 Adjustments related to the termination of our licensing agreement with Sonder Holdings Inc. (the "Sonder Termination") reported in Owned, leased, and other expense. | |||||
2 Adjustment to gain on investee's asset disposition reported in Equity in (losses) earnings. |
MARRIOTT INTERNATIONAL, INC. |
EXPENSE CAPTIONS - AS RECLASSIFIED |
QUARTERLY AND FULL YEAR 2025 |
($ in millions) |
In the 2025 fourth quarter, to enhance understanding of the company's general and administrative costs, we reclassified amounts attributable to other expenses previously reported under the "General, administrative, and other" caption to the "Owned, leased, and other expense" caption of our Income Statements. The expenses that were reclassified from "General, administrative, and other" are certain costs associated with our property-related fee revenues, such as guarantee expense, provision for credit losses, and certain brand-related or property-related expenses, as well as costs associated with certain third-party agreements. The following table includes the affected expense captions, as reclassified, for each quarter and the full fiscal year of 2025. |
Fiscal Year 2025 | |||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | |||||
Owned, leased, and other revenue | $ 361 | $ 441 | $ 420 | $ 457 | $ 1,679 | ||||
Owned, leased, and other expense | 332 | 363 | 350 | 416 | 1,461 | ||||
Owned, leased, and other revenue, net of owned, leased, and other | $ 29 | $ 78 | $ 70 | $ 41 | $ 218 | ||||
General and administrative | $ 209 | $ 210 | $ 210 | $ 241 | $ 870 | ||||
MARRIOTT INTERNATIONAL, INC. | ||||||
TOTAL LODGING PRODUCTS BY OWNERSHIP TYPE | ||||||
As of March 31, 2026 | ||||||
US & | Total International1 | Total Worldwide | ||||
Properties | Rooms | Properties | Rooms | Properties | Rooms | |
Franchised, Licensed, and Other | 5,843 | 876,009 | 1,938 | 328,214 | 7,781 | 1,204,223 |
Courtyard by Marriott | 937 | 126,359 | 144 | 26,596 | 1,081 | 152,955 |
Fairfield by Marriott | 1,195 | 112,916 | 135 | 19,516 | 1,330 | 132,432 |
Residence Inn by Marriott | 833 | 99,477 | 41 | 5,039 | 874 | 104,516 |
Marriott Hotels | 239 | 76,223 | 86 | 23,892 | 325 | 100,115 |
Autograph Collection | 162 | 36,309 | 171 | 33,982 | 333 | 70,291 |
SpringHill Suites by Marriott | 575 | 67,563 | — | — | 575 | 67,563 |
Sheraton | 137 | 42,428 | 86 | 23,776 | 223 | 66,204 |
TownePlace Suites by Marriott | 575 | 57,774 | — | — | 575 | 57,774 |
Four Points by Sheraton | 145 | 20,857 | 159 | 28,878 | 304 | 49,735 |
Westin | 97 | 33,215 | 34 | 10,180 | 131 | 43,395 |
AC Hotels by Marriott | 136 | 22,626 | 108 | 15,889 | 244 | 38,515 |
Moxy Hotels | 49 | 8,407 | 116 | 21,909 | 165 | 30,316 |
Tribute Portfolio | 105 | 19,633 | 72 | 10,668 | 177 | 30,301 |
Aloft Hotels | 167 | 23,905 | 30 | 5,776 | 197 | 29,681 |
Renaissance Hotels | 73 | 20,153 | 34 | 8,750 | 107 | 28,903 |
MGM Collection with Marriott Bonvoy | 12 | 26,210 | — | — | 12 | 26,210 |
Delta Hotels by Marriott | 70 | 15,864 | 41 | 7,926 | 111 | 23,790 |
Timeshare* | 73 | 18,949 | 22 | 3,963 | 95 | 22,912 |
The Luxury Collection | 17 | 8,245 | 66 | 14,203 | 83 | 22,448 |
City Express by Marriott | 16 | 1,569 | 150 | 17,907 | 166 | 19,476 |
Design Hotels* | 28 | 2,845 | 206 | 13,246 | 234 | 16,091 |
Element Hotels | 102 | 13,697 | 7 | 1,043 | 109 | 14,740 |
Le Méridien | 24 | 5,299 | 29 | 8,194 | 53 | 13,493 |
JW Marriott | 13 | 6,327 | 16 | 4,279 | 29 | 10,606 |
citizenM | 16 | 4,374 | 19 | 3,938 | 35 | 8,312 |
Four Points Flex by Sheraton | — | — | 57 | 8,259 | 57 | 8,259 |
Series by Marriott | 5 | 550 | 50 | 3,555 | 55 | 4,105 |
Protea Hotels by Marriott | — | — | 38 | 3,371 | 38 | 3,371 |
Marriott Executive Apartments | — | — | 9 | 1,797 | 9 | 1,797 |
Outdoor Collection by Marriott Bonvoy | 32 | 1,532 | — | — | 32 | 1,532 |
W Hotels | 1 | 1,117 | 1 | 226 | 2 | 1,343 |
StudioRes | 6 | 744 | — | — | 6 | 744 |
The Ritz-Carlton | 1 | 429 | 2 | 262 | 3 | 691 |
Apartments by Marriott Bonvoy | 2 | 413 | 3 | 258 | 5 | 671 |
The Ritz-Carlton Yacht Collection* | — | — | 3 | 603 | 3 | 603 |
St. Regis | — | — | 1 | 172 | 1 | 172 |
Bvlgari | — | — | 2 | 161 | 2 | 161 |
Owned/Leased | 14 | 5,539 | 37 | 8,867 | 51 | 14,406 |
Sheraton | 1 | 1,218 | 3 | 1,724 | 4 | 2,942 |
Marriott Hotels | 2 | 1,304 | 5 | 1,631 | 7 | 2,935 |
Courtyard by Marriott | 7 | 987 | 4 | 894 | 11 | 1,881 |
W Hotels | 2 | 765 | 2 | 665 | 4 | 1,430 |
Westin | 1 | 1,073 | — | — | 1 | 1,073 |
Protea Hotels by Marriott | — | — | 5 | 912 | 5 | 912 |
JW Marriott | — | — | 2 | 696 | 2 | 696 |
The Ritz-Carlton | — | — | 2 | 548 | 2 | 548 |
Renaissance Hotels | — | — | 2 | 505 | 2 | 505 |
The Luxury Collection | — | — | 3 | 383 | 3 | 383 |
Autograph Collection | — | — | 5 | 360 | 5 | 360 |
Residence Inn by Marriott | 1 | 192 | 1 | 140 | 2 | 332 |
Tribute Portfolio | — | — | 2 | 249 | 2 | 249 |
St. Regis | — | — | 1 | 160 | 1 | 160 |
Managed | 564 | 203,110 | 1,384 | 357,548 | 1,948 | 560,658 |
Marriott Hotels | 97 | 55,400 | 193 | 60,956 | 290 | 116,356 |
Sheraton | 23 | 18,928 | 180 | 58,127 | 203 | 77,055 |
Courtyard by Marriott | 139 | 22,657 | 134 | 29,422 | 273 | 52,079 |
Westin | 39 | 21,281 | 80 | 24,174 | 119 | 45,455 |
JW Marriott | 23 | 13,191 | 76 | 26,398 | 99 | 39,589 |
The Ritz-Carlton | 42 | 12,799 | 80 | 18,443 | 122 | 31,242 |
Four Points by Sheraton | 1 | 134 | 97 | 25,555 | 98 | 25,689 |
Renaissance Hotels | 20 | 8,657 | 53 | 16,533 | 73 | 25,190 |
Le Méridien | — | — | 70 | 18,646 | 70 | 18,646 |
W Hotels | 20 | 5,400 | 46 | 12,060 | 66 | 17,460 |
St. Regis | 13 | 2,608 | 51 | 11,236 | 64 | 13,844 |
Residence Inn by Marriott | 64 | 10,748 | 9 | 1,102 | 73 | 11,850 |
Gaylord Hotels | 7 | 11,820 | — | — | 7 | 11,820 |
The Luxury Collection | 6 | 2,316 | 43 | 8,436 | 49 | 10,752 |
Aloft Hotels | 2 | 505 | 42 | 9,342 | 44 | 9,847 |
Fairfield by Marriott | 3 | 698 | 57 | 8,750 | 60 | 9,448 |
Delta Hotels by Marriott | 24 | 6,622 | 5 | 1,179 | 29 | 7,801 |
Autograph Collection | 11 | 3,269 | 18 | 3,344 | 29 | 6,613 |
Marriott Executive Apartments | — | — | 41 | 5,932 | 41 | 5,932 |
AC Hotels by Marriott | 8 | 1,512 | 18 | 3,328 | 26 | 4,840 |
EDITION | 5 | 1,379 | 17 | 3,238 | 22 | 4,617 |
Element Hotels | 3 | 810 | 14 | 2,712 | 17 | 3,522 |
Moxy Hotels | 1 | 380 | 15 | 3,099 | 16 | 3,479 |
Protea Hotels by Marriott | — | — | 22 | 2,738 | 22 | 2,738 |
Tribute Portfolio | — | — | 13 | 1,595 | 13 | 1,595 |
SpringHill Suites by Marriott | 9 | 1,381 | — | — | 9 | 1,381 |
Bvlgari | — | — | 7 | 646 | 7 | 646 |
TownePlace Suites by Marriott | 4 | 615 | — | — | 4 | 615 |
citizenM | — | — | 2 | 477 | 2 | 477 |
Apartments by Marriott Bonvoy | — | — | 1 | 80 | 1 | 80 |
Residences | 74 | 7,821 | 72 | 8,700 | 146 | 16,521 |
The Ritz-Carlton Residences | 45 | 5,031 | 23 | 1,928 | 68 | 6,959 |
St. Regis Residences | 11 | 1,279 | 14 | 1,916 | 25 | 3,195 |
W Residences | 9 | 869 | 8 | 768 | 17 | 1,637 |
Marriott Residences | — | — | 5 | 1,283 | 5 | 1,283 |
JW Marriott Residences | 1 | 91 | 4 | 1,055 | 5 | 1,146 |
Westin Residences | 3 | 266 | 3 | 413 | 6 | 679 |
Bvlgari Residences | — | — | 5 | 526 | 5 | 526 |
Sheraton Residences | — | — | 3 | 472 | 3 | 472 |
The Luxury Collection Residences | 1 | 91 | 2 | 85 | 3 | 176 |
Tribute Portfolio Residences | — | — | 1 | 137 | 1 | 137 |
Renaissance Residences | 1 | 112 | — | — | 1 | 112 |
EDITION Residences | 3 | 82 | 1 | 10 | 4 | 92 |
Le Méridien Residences | — | — | 1 | 62 | 1 | 62 |
Autograph Collection Residences | — | — | 2 | 45 | 2 | 45 |
Grand Total | 6,495 | 1,092,479 | 3,431 | 703,329 | 9,926 | 1,795,808 |
1 "International" refers to: (i) | ||||||
* Timeshare, Design Hotels, and The Ritz-Carlton Yacht Collection counts are included in this table by geographical location. For external reporting purposes, these offerings are captured within "Unallocated corporate and other." | ||||||
Property and room counts presented by brand in the above table include certain hotels in our system that are not yet operating under such brand, but are expected to operate under such brand following the completion of planned renovations. |
MARRIOTT INTERNATIONAL, INC. | ||||||
TOTAL LODGING PRODUCTS BY TIER | ||||||
As of March 31, 2026 | ||||||
US & | Total International1 | Total Worldwide | ||||
Total Systemwide | Properties | Rooms | Properties | Rooms | Properties | Rooms |
Luxury | 213 | 62,019 | 478 | 109,103 | 691 | 171,122 |
JW Marriott | 36 | 19,518 | 94 | 31,373 | 130 | 50,891 |
JW Marriott Residences | 1 | 91 | 4 | 1,055 | 5 | 1,146 |
The Luxury Collection | 23 | 10,561 | 112 | 23,022 | 135 | 33,583 |
The Luxury Collection Residences | 1 | 91 | 2 | 85 | 3 | 176 |
The Ritz-Carlton | 43 | 13,228 | 84 | 19,253 | 127 | 32,481 |
The Ritz-Carlton Residences | 45 | 5,031 | 23 | 1,928 | 68 | 6,959 |
The Ritz-Carlton Yacht Collection* | — | — | 3 | 603 | 3 | 603 |
W Hotels | 23 | 7,282 | 49 | 12,951 | 72 | 20,233 |
W Residences | 9 | 869 | 8 | 768 | 17 | 1,637 |
St. Regis | 13 | 2,608 | 53 | 11,568 | 66 | 14,176 |
St. Regis Residences | 11 | 1,279 | 14 | 1,916 | 25 | 3,195 |
EDITION | 5 | 1,379 | 17 | 3,238 | 22 | 4,617 |
EDITION Residences | 3 | 82 | 1 | 10 | 4 | 92 |
Bvlgari | — | — | 9 | 807 | 9 | 807 |
Bvlgari Residences | — | — | 5 | 526 | 5 | 526 |
Premium | 1,210 | 410,074 | 1,457 | 340,116 | 2,667 | 750,190 |
Marriott Hotels | 338 | 132,927 | 284 | 86,479 | 622 | 219,406 |
Marriott Residences | — | — | 5 | 1,283 | 5 | 1,283 |
Sheraton | 161 | 62,574 | 269 | 83,627 | 430 | 146,201 |
Sheraton Residences | — | — | 3 | 472 | 3 | 472 |
Westin | 137 | 55,569 | 114 | 34,354 | 251 | 89,923 |
Westin Residences | 3 | 266 | 3 | 413 | 6 | 679 |
Autograph Collection | 173 | 39,578 | 194 | 37,686 | 367 | 77,264 |
Autograph Collection Residences | — | — | 2 | 45 | 2 | 45 |
Renaissance Hotels | 93 | 28,810 | 89 | 25,788 | 182 | 54,598 |
Renaissance Residences | 1 | 112 | — | — | 1 | 112 |
Tribute Portfolio | 105 | 19,633 | 87 | 12,512 | 192 | 32,145 |
Tribute Portfolio Residences | — | — | 1 | 137 | 1 | 137 |
Le Méridien | 24 | 5,299 | 99 | 26,840 | 123 | 32,139 |
Le Méridien Residences | — | — | 1 | 62 | 1 | 62 |
Delta Hotels by Marriott | 94 | 22,486 | 46 | 9,105 | 140 | 31,591 |
MGM Collection with Marriott Bonvoy | 12 | 26,210 | — | — | 12 | 26,210 |
Design Hotels* | 28 | 2,845 | 206 | 13,246 | 234 | 16,091 |
Gaylord Hotels | 7 | 11,820 | — | — | 7 | 11,820 |
Marriott Executive Apartments | — | — | 50 | 7,729 | 50 | 7,729 |
Outdoor Collection by Marriott Bonvoy ** | 32 | 1,532 | — | — | 32 | 1,532 |
Apartments by Marriott Bonvoy | 2 | 413 | 4 | 338 | 6 | 751 |
Select | 4,972 | 598,574 | 1,217 | 220,426 | 6,189 | 819,000 |
Courtyard by Marriott | 1,083 | 150,003 | 282 | 56,912 | 1,365 | 206,915 |
Fairfield by Marriott | 1,198 | 113,614 | 192 | 28,266 | 1,390 | 141,880 |
Residence Inn by Marriott | 898 | 110,417 | 51 | 6,281 | 949 | 116,698 |
Four Points by Sheraton | 146 | 20,991 | 256 | 54,433 | 402 | 75,424 |
SpringHill Suites by Marriott | 584 | 68,944 | — | — | 584 | 68,944 |
TownePlace Suites by Marriott | 579 | 58,389 | — | — | 579 | 58,389 |
AC Hotels by Marriott | 144 | 24,138 | 126 | 19,217 | 270 | 43,355 |
Aloft Hotels | 169 | 24,410 | 72 | 15,118 | 241 | 39,528 |
Moxy Hotels | 50 | 8,787 | 131 | 25,008 | 181 | 33,795 |
Element Hotels | 105 | 14,507 | 21 | 3,755 | 126 | 18,262 |
citizenM | 16 | 4,374 | 21 | 4,415 | 37 | 8,789 |
Protea Hotels by Marriott | — | — | 65 | 7,021 | 65 | 7,021 |
Midscale | 27 | 2,863 | 257 | 29,721 | 284 | 32,584 |
City Express by Marriott | 16 | 1,569 | 150 | 17,907 | 166 | 19,476 |
Four Points Flex by Sheraton | — | — | 57 | 8,259 | 57 | 8,259 |
Series by Marriott ** | 5 | 550 | 50 | 3,555 | 55 | 4,105 |
StudioRes | 6 | 744 | — | — | 6 | 744 |
Timeshare* | 73 | 18,949 | 22 | 3,963 | 95 | 22,912 |
Grand Total | 6,495 | 1,092,479 | 3,431 | 703,329 | 9,926 | 1,795,808 |
1 "International" refers to: (i) | ||||||
* Timeshare, Design Hotels, and The Ritz-Carlton Yacht Collection counts are included in this table by geographical location. For external reporting purposes, these offerings are captured within "Unallocated corporate and other." | ||||||
** The Outdoor Collection by Marriott Bonvoy includes properties under both the Premium and Select quality tiers. Series by Marriott includes properties under both the Select and Midscale quality tiers. | ||||||
Property and room counts presented by brand in the above table include certain hotels in our system that are not yet operating under such brand, but are expected to operate under such brand following the completion of planned renovations. |
MARRIOTT INTERNATIONAL, INC. | |||||||||||||
KEY LODGING STATISTICS | |||||||||||||
In Constant $ | |||||||||||||
Comparable Company-Operated US & Canada Properties | |||||||||||||
Three Months Ended March 31, 2026 and March 31, 2025 | |||||||||||||
RevPAR | Occupancy | Average Daily Rate | |||||||||||
Brand | 2026 | vs. 2025 | 2026 | vs. 2025 | 2026 | vs. 2025 | |||||||
JW Marriott | $ 287.03 | 5.1 % | 74.2 % | 0.7 % | pts. | $ 387.02 | 4.1 % | ||||||
The Ritz-Carlton | $ 430.10 | 5.9 % | 67.6 % | 1.2 % | pts. | $ 636.08 | 4.1 % | ||||||
W Hotels | $ 291.01 | 12.9 % | 67.1 % | 3.1 % | pts. | $ 433.87 | 7.7 % | ||||||
Composite US & Canada Luxury1 | $ 374.47 | 7.4 % | 70.4 % | 1.2 % | pts. | $ 531.95 | 5.5 % | ||||||
Marriott Hotels | $ 178.74 | 4.2 % | 67.5 % | 0.3 % | pts. | $ 264.64 | 3.8 % | ||||||
Sheraton | $ 163.09 | 0.9 % | 66.2 % | 0.1 % | pts. | $ 246.51 | 0.8 % | ||||||
Westin | $ 175.99 | 4.6 % | 67.1 % | 1.3 % | pts. | $ 262.37 | 2.7 % | ||||||
Composite US & Canada Premium2 | $ 173.70 | 3.4 % | 67.1 % | 0.2 % | pts. | $ 259.01 | 3.1 % | ||||||
US & Canada Full-Service3 | $ 217.42 | 4.9 % | 67.8 % | 0.4 % | pts. | $ 320.73 | 4.2 % | ||||||
Courtyard by Marriott | $ 108.02 | 2.4 % | 63.0 % | 0.1 % | pts. | $ 171.52 | 2.2 % | ||||||
Residence Inn by Marriott | $ 151.23 | 1.9 % | 73.5 % | 0.4 % | pts. | $ 205.73 | 1.4 % | ||||||
Composite US & Canada Select4 | $ 126.09 | 2.7 % | 67.0 % | 0.5 % | pts. | $ 188.25 | 2.0 % | ||||||
US & | $ 197.07 | 4.6 % | 67.6 % | 0.4 % | pts. | $ 291.48 | 3.9 % | ||||||
Comparable Systemwide US & Canada Properties | |||||||||||||
Three Months Ended March 31, 2026 and March 31, 2025 | |||||||||||||
RevPAR | Occupancy | Average Daily Rate | |||||||||||
Brand | 2026 | vs. 2025 | 2026 | vs. 2025 | 2026 | vs. 2025 | |||||||
JW Marriott | $ 270.16 | 4.7 % | 73.5 % | 0.5 % | pts. | $ 367.66 | 4.0 % | ||||||
The Ritz-Carlton | $ 420.93 | 5.8 % | 67.4 % | 1.0 % | pts. | $ 624.96 | 4.2 % | ||||||
W Hotels | $ 291.01 | 12.9 % | 67.1 % | 3.1 % | pts. | $ 433.87 | 7.7 % | ||||||
Composite US & Canada Luxury1 | $ 339.42 | 6.8 % | 70.3 % | 0.9 % | pts. | $ 482.70 | 5.4 % | ||||||
Marriott Hotels | $ 142.93 | 4.0 % | 65.0 % | 0.6 % | pts. | $ 219.73 | 3.0 % | ||||||
Sheraton | $ 124.14 | 2.7 % | 63.8 % | 0.8 % | pts. | $ 194.47 | 1.4 % | ||||||
Westin | $ 162.66 | 3.0 % | 67.3 % | 0.2 % | pts. | $ 241.66 | 2.7 % | ||||||
Composite US & Canada Premium2 | $ 144.83 | 3.8 % | 65.2 % | 0.5 % | pts. | $ 222.26 | 2.9 % | ||||||
US & Canada Full-Service3 | $ 166.06 | 4.5 % | 65.7 % | 0.6 % | pts. | $ 252.67 | 3.5 % | ||||||
Courtyard by Marriott | $ 102.08 | 3.6 % | 63.5 % | 0.5 % | pts. | $ 160.83 | 2.8 % | ||||||
Residence Inn by Marriott | $ 122.16 | 2.6 % | 72.6 % | 0.7 % | pts. | $ 168.16 | 1.5 % | ||||||
$ 82.96 | 3.1 % | 62.6 % | 0.3 % | pts. | $ 132.47 | 2.6 % | |||||||
Composite US & Canada Select4 | $ 103.87 | 3.5 % | 66.8 % | 0.7 % | pts. | $ 155.60 | 2.4 % | ||||||
US & | $ 128.80 | 4.0 % | 66.3 % | 0.7 % | pts. | $ 194.15 | 3.0 % | ||||||
1 Includes JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, and EDITION. | |||||||||||||
2 Includes Marriott Hotels, Sheraton, Westin, Renaissance Hotels, Autograph Collection, Delta Hotels by Marriott, and Gaylord Hotels. Systemwide also includes Le Méridien and Tribute Portfolio. | |||||||||||||
3 Includes Composite US & Canada Luxury and Composite US & Canada Premium. | |||||||||||||
4 Includes Courtyard by Marriott, Residence Inn by Marriott, | |||||||||||||
5 Includes US & Canada Full-Service and Composite US & Canada Select. Systemwide also includes US & Canada Midscale. |
MARRIOTT INTERNATIONAL, INC. | |||||||||||||
KEY LODGING STATISTICS | |||||||||||||
In Constant $ | |||||||||||||
Comparable Company-Operated International Properties | |||||||||||||
Three Months Ended March 31, 2026 and March 31, 2025 | |||||||||||||
RevPAR | Occupancy | Average Daily Rate | |||||||||||
Region | 2026 | vs. 2025 | 2026 | vs. 2025 | 2026 | vs. 2025 | |||||||
$ 174.01 | 7.0 % | 61.2 % | -0.6 % | pts. | $ 284.35 | 8.0 % | |||||||
$ 138.45 | -2.3 % | 62.3 % | -6.3 % | pts. | $ 222.36 | 7.5 % | |||||||
$ 79.23 | 6.1 % | 65.1 % | 1.2 % | pts. | $ 121.63 | 4.1 % | |||||||
$ 136.26 | 7.6 % | 71.3 % | 2.5 % | pts. | $ 191.17 | 3.8 % | |||||||
$ 255.61 | -0.7 % | 69.0 % | -0.1 % | pts. | $ 370.60 | -0.5 % | |||||||
International - All1 | $ 126.47 | 4.1 % | 66.3 % | 0.1 % | pts. | $ 190.69 | 4.1 % | ||||||
Worldwide2 | $ 155.02 | 4.4 % | 66.8 % | 0.2 % | pts. | $ 231.93 | 4.0 % | ||||||
Comparable Systemwide International Properties | |||||||||||||
Three Months Ended March 31, 2026 and March 31, 2025 | |||||||||||||
RevPAR | Occupancy | Average Daily Rate | |||||||||||
Region | 2026 | vs. 2025 | 2026 | vs. 2025 | 2026 | vs. 2025 | |||||||
$ 118.31 | 6.6 % | 61.2 % | 1.5 % | pts. | $ 193.41 | 4.0 % | |||||||
$ 128.54 | -1.9 % | 61.6 % | -5.4 % | pts. | $ 208.78 | 6.7 % | |||||||
$ 70.68 | 5.7 % | 63.1 % | 1.1 % | pts. | $ 111.99 | 3.9 % | |||||||
$ 130.93 | 7.3 % | 70.2 % | 2.2 % | pts. | $ 186.60 | 3.9 % | |||||||
$ 139.29 | 2.0 % | 63.0 % | 1.4 % | pts. | $ 221.24 | -0.3 % | |||||||
International - All1 | $ 112.01 | 4.6 % | 64.1 % | 0.7 % | pts. | $ 174.73 | 3.5 % | ||||||
Worldwide2 | $ 123.09 | 4.2 % | 65.6 % | 0.7 % | pts. | $ 187.70 | 3.1 % | ||||||
1 Includes | |||||||||||||
2 Includes US & | |||||||||||||
MARRIOTT INTERNATIONAL, INC. NON-GAAP FINANCIAL MEASURES ADJUSTED EBITDA ($ in millions) | |
Fiscal | |
First Quarter | |
Net income, as reported | $ 648 |
Cost reimbursement revenue | (4,844) |
Reimbursed expenses | 4,936 |
Interest expense | 214 |
Interest expense from unconsolidated joint ventures | 2 |
Provision for income taxes | 210 |
Depreciation and amortization | 54 |
Contract investment amortization | 35 |
Depreciation and amortization classified in reimbursed expenses | 73 |
Depreciation, amortization, and impairments from unconsolidated joint ventures | 3 |
Stock-based compensation | 57 |
Restructuring and merger-related charges, and other | 4 |
Adjustments related to Sonder Termination | (2) |
Adjustment to gain on investee's asset disposition | 8 |
Adjusted EBITDA† | $ 1,398 |
Change from 2025 Adjusted EBITDA† | 15 % |
Fiscal Year 2025 | |||||||||
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Total | |||||
Net income, as reported | $ 665 | $ 763 | $ 728 | $ 445 | $ 2,601 | ||||
Cost reimbursement revenue | (4,655) | (4,932) | (4,760) | (4,857) | (19,204) | ||||
Reimbursed expenses | 4,722 | 4,874 | 4,739 | 5,168 | 19,503 | ||||
Interest expense | 192 | 203 | 206 | 208 | 809 | ||||
Interest expense from unconsolidated joint ventures | 1 | 3 | 2 | 1 | 7 | ||||
Provision for income taxes | 99 | 291 | 266 | 137 | 793 | ||||
Depreciation and amortization | 51 | 53 | 50 | 59 | 213 | ||||
Contract investment amortization | 28 | 29 | 29 | 49 | 135 | ||||
Depreciation and amortization classified in reimbursed expenses | 57 | 61 | 64 | 69 | 251 | ||||
Depreciation, amortization, and impairments from unconsolidated joint ventures | 4 | 4 | 4 | 6 | 18 | ||||
Stock-based compensation | 52 | 58 | 61 | 65 | 236 | ||||
Restructuring and merger-related charges (recoveries), and other | 1 | 8 | (40) | 29 | (2) | ||||
Expenses related to Sonder Termination | — | — | — | 23 | 23 | ||||
Adjusted EBITDA† | $ 1,217 | $ 1,415 | $ 1,349 | $ 1,402 | $ 5,383 | ||||
† Denotes non-GAAP financial measures. Please see the Explanation of Non-GAAP Financial and Performance Measures section in these press release schedules for information about our reasons for providing these alternative financial measures and the limitations on their use. |
MARRIOTT INTERNATIONAL, INC. | |||||
NON-GAAP FINANCIAL MEASURES | |||||
ADJUSTED EBITDA FORECAST | |||||
SECOND QUARTER 2026 | |||||
($ in millions) | |||||
Range | |||||
Estimated | Second Quarter | ||||
Net income excluding certain items1, 2 | $ 744 | $ 762 | |||
Interest expense | 223 | 223 | |||
Interest expense from unconsolidated joint ventures | 1 | 1 | |||
Provision for income taxes | 267 | 274 | |||
Depreciation and amortization2 | 117 | 117 | |||
Contract investment amortization | 32 | 32 | |||
Depreciation and amortization classified in reimbursed expenses | 75 | 75 | |||
Depreciation, amortization, and impairments from unconsolidated joint ventures | 5 | 5 | |||
Stock-based compensation | 61 | 61 | |||
Adjusted EBITDA† | $ 1,525 | $ 1,550 | $ 1,415 | ||
Increase over 2025 Adjusted EBITDA† | 8 % | 10 % | |||
† Denotes non-GAAP financial measures. Please see the Explanation of Non-GAAP Financial and Performance Measures section in these press release schedules for information about our reasons for providing these alternative financial measures and the limitations on their use. | |||||
1 Forecast excludes cost reimbursement revenue, reimbursed expenses, and restructuring and merger-related charges, and other expenses, each of which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant, except for depreciation and amortization classified in reimbursed expenses, which is included in the caption "Depreciation and amortization classified in reimbursed expenses" above. Forecast includes the impact of our planned sale of a | |||||
2 Includes the midpoint of the range of our expected 2026 second quarter impairment charge of approximately | |||||
MARRIOTT INTERNATIONAL, INC. | |||||
NON-GAAP FINANCIAL MEASURES | |||||
ADJUSTED EBITDA FORECAST | |||||
FULL YEAR 2026 | |||||
($ in millions) | |||||
Range | |||||
Estimated | Full Year 2025 | ||||
Net income excluding certain items1, 2 | $ 2,942 | $ 3,008 | |||
Interest expense | 901 | 901 | |||
Interest expense from unconsolidated joint ventures | 7 | 7 | |||
Provision for income taxes | 1,036 | 1,060 | |||
Depreciation and amortization2 | 277 | 277 | |||
Contract investment amortization | 138 | 138 | |||
Depreciation and amortization classified in reimbursed expenses | 305 | 305 | |||
Depreciation, amortization, and impairments from unconsolidated joint ventures | 18 | 18 | |||
Stock-based compensation | 250 | 250 | |||
Adjustments related to Sonder Termination | (2) | (2) | |||
Adjustment to gain on investee's asset disposition | 8 | 8 | |||
Adjusted EBITDA† | $ 5,880 | $ 5,970 | $ 5,383 | ||
Increase over 2025 Adjusted EBITDA† | 9 % | 11 % | |||
† Denotes non-GAAP financial measures. Please see the Explanation of Non-GAAP Financial and Performance Measures section in these press release schedules for information about our reasons for providing these alternative financial measures and the limitations on their use. | |||||
1 Forecast excludes cost reimbursement revenue, reimbursed expenses, and restructuring and merger-related charges, and other expenses, each of which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant, except for depreciation and amortization classified in reimbursed expenses, which is included in the caption "Depreciation and amortization classified in reimbursed expenses" above. Forecast includes the impact of our planned sale of a | |||||
2 Includes the midpoint of the range of our expected 2026 second quarter impairment charge of approximately | |||||
MARRIOTT INTERNATIONAL, INC.
EXPLANATION OF NON-GAAP FINANCIAL AND PERFORMANCE MEASURES
In our press release and schedules, on the related conference call, and in the infographic made available in connection with our press release, we report certain financial measures that are not required by, or presented in accordance with,
Adjusted Operating Income and Adjusted Operating Income Margin. Adjusted operating income excludes cost reimbursement revenue, reimbursed expenses, and restructuring and merger-related charges, and other expenses. When applicable, Adjusted operating income also excludes certain non-cash impairment charges as well as impairment charges and expenses/adjustments related to the Sonder Termination. Adjusted total revenues excludes cost reimbursement revenue as well as, when applicable, certain non-cash impairment charges and impairment charges related to the Sonder Termination. Adjusted operating income margin reflects Adjusted operating income divided by Adjusted total revenues. We believe that these are meaningful metrics because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.
Adjusted Net Income, Adjusted Diluted Earnings Per Share, and Adjusted Effective Tax Rate. Adjusted net income, Adjusted diluted earnings per share, and Adjusted effective tax rate reflect our net income, diluted earnings per share, and effective tax rate, respectively, excluding the impact of cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges, and other expenses, as well as, when applicable, certain non-cash impairment charges, gains and losses on asset dispositions made by us or by our joint venture investees (if above a specified threshold), and impairment charges and expenses/adjustments related to the Sonder Termination. Additionally, Adjusted net income, Adjusted diluted earnings per share, and Adjusted effective tax rate exclude the income tax effect of the above items (calculated using an estimated tax rate applicable to each item) and income tax special items, which in 2025 primarily related to the release of tax reserves. We believe that these measures are meaningful indicators of our performance because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.
Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("Adjusted EBITDA"). Adjusted EBITDA reflects net income excluding the impact of the following items: cost reimbursement revenue and reimbursed expenses, interest expense, depreciation and amortization (including non-cash impairment charges), provision for income taxes, restructuring and merger-related recoveries/charges, and other expenses, and stock-based compensation expense for all periods presented. When applicable, Adjusted EBITDA also excludes gains and losses on asset dispositions made by us or by our joint venture investees (if above a specified threshold). In addition, Adjusted EBITDA excludes impairment charges and expenses/adjustments related to the Sonder Termination.
In our presentations of Adjusted operating income and Adjusted operating income margin, Adjusted net income and Adjusted diluted earnings per share, Adjusted effective tax rate, and Adjusted EBITDA, we exclude restructuring and merger-related recoveries/charges as well as charges related to legal proceedings that are outside of the ordinary course of our business, both of which we record in the "Restructuring and merger-related charges, and other" caption of our Consolidated Statements of Income (our "Income Statements"). We also exclude 2025 fourth quarter impairment charges and expenses as well as subsequent adjustments related to the Sonder Termination, which we record in the "Contract investment amortization" and "Owned, leased, and other expense" captions of our Income Statements, as they are related to the cessation of operations of an entire brand, which is a nonrecurring event. In addition, we exclude non-cash impairment charges (if above a specified threshold) related to our franchise and management contracts (if the impairment is non-routine), leases, equity investments, and other capitalized assets, which we record in the "Contract investment amortization," "Depreciation, amortization, and other," and "Equity in (losses) earnings" captions of our Income Statements. These adjustments allow for period-over-period comparisons of our ongoing operations before the impact of these items. We exclude cost reimbursement revenue and reimbursed expenses, which relate to property-level and centralized programs and services that we operate for the benefit of our hotel owners and certain other counterparties, and for which we receive reimbursement under our agreements with hotel owners and certain other counterparties with no added mark-up. We do not operate these property-level and centralized programs and services to generate a profit over the long term, and accordingly, when we recover the costs that we incur for these programs and services from our hotel owners and certain other counterparties, we do not seek a mark-up. For property-level services, we recognize cost reimbursement revenue at the same time that we incur expenses, and property-level services have no net impact on our Income Statements in the reporting period. However, for centralized programs and services, we may be reimbursed before or after we incur expenses, causing timing differences between the costs we incur and the related reimbursement from hotel owners and certain other counterparties in our operating and net income. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively. Because we do not retain any such profits or losses over time, we exclude the net impact when evaluating period-over-period changes in our operating results.
We believe that Adjusted EBITDA is a meaningful indicator of our operating performance because it permits period-over-period comparisons of our ongoing operations before these items. Our use of Adjusted EBITDA also facilitates comparison with results from other lodging companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. Our Adjusted EBITDA also excludes depreciation and amortization expense, which we report under "Depreciation, amortization, and other" as well as depreciation and amortization classified in "Contract investment amortization," "Reimbursed expenses," and "Equity in earnings" of our Income Statements, because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. Depreciation and amortization classified in "Reimbursed expenses" reflects depreciation and amortization of Marriott-owned assets, for which we receive cash from hotel owners and certain other counterparties to reimburse the company for its investments made for the benefit of the system. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We exclude stock-based compensation expense in all periods presented to address the considerable variability among companies in recording compensation expense because companies use stock-based payment awards differently, both in the type and quantity of awards granted.
RevPAR. In addition to the foregoing non-GAAP financial measures, we present Revenue per Available Room ("RevPAR") as a performance measure. We believe RevPAR, which we calculate by dividing property level room revenue by total rooms available for the period, is a meaningful indicator of our performance because it measures the period-over-period change in room revenues. RevPAR may not be comparable to similarly titled measures, such as revenues, and should not be viewed as necessarily correlating with our fee revenue. We also believe occupancy and average daily rate ("ADR"), which are components of calculating RevPAR, are meaningful indicators of our performance. Occupancy, which we calculate by dividing total rooms sold by total rooms available for the period, measures the utilization of a property's available capacity. ADR, which we calculate by dividing property level room revenue by total rooms sold, measures average room price and is useful in assessing pricing levels. Comparisons to prior periods are on a constant
We define our comparable properties as hotels in our system that were open and operating under one of our brands since the beginning of the last full calendar year (since January 1, 2025 for the current period) and have not, in either the current or previous year: (1) undergone significant room or public space renovations or expansions, (2) been converted between company-operated and franchised, or (3) sustained substantial property damage or business interruption. Our comparable properties also exclude MGM Collection with Marriott Bonvoy, Design Hotels, The Ritz-Carlton Yacht Collection, residences, timeshare, and all-inclusive properties.
We use the term "hotel owners" throughout these schedules to refer, collectively, to owners of hotels and other lodging offerings operating in our system pursuant to franchise agreements, management agreements, license agreements, or similar arrangements, and we use the term "hotels in our system" to refer to hotels and other lodging offerings operating in our system pursuant to such arrangements, as well as hotels that we own or lease. The terms "hotel owners" and "hotels in our system" exclude Homes & Villas by Marriott BonvoySM (which we also exclude from our property and room count), timeshare, residential, and The Ritz-Carlton Yacht Collection®.
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SOURCE Marriott International, Inc.