Marriott’s Core Fees Jump 13% to $1.341 Billion Despite Revenue Shortfall
Key Facts
Marriott International raised core franchise and management fees 13% year over year to $1.341 billion in the third quarter of 2026, while revenue fell short of analysts’ expectations. Revenue was $7.01 billion, compared with estimates of $7.04 billion, according to an Associated Press report published by The Hour, citing Zacks data. Results released via PR Newswire showed reported net income rose 9% to $794 million from $728 million a year earlier. Reported diluted earnings per share were also $3.04, compared with $2.67 in the third quarter of 2025. Fee and profit growth accompanied an increase in revenue per available room, while regional performance remained mixed.
Marriott said core franchise and management fees totaled $1.341 billion, up from $1.190 billion in the corresponding quarter of 2025. The company attributed the increase to co-branded credit card fees, higher revenue per available room and room growth. Incentive management fees also rose 22% to $181 million from $148 million a year earlier. Those fees grew year over year in all regions, with a “notable” increase in the U.S. and Canada, according to the company’s statement. The results show that fee growth covered core franchise and management fees as well as incentive fees.
Global revenue per available room, a measure combining the effects of rates and occupancy, rose 6.5% in the third quarter, according to Marriott’s results. The U.S. and Canada posted growth of 7.4%, compared with 4.4% in international markets. Chief Executive Anthony Capuano linked the global increase to higher average daily rates and occupancy. In Asia Pacific excluding China, the metric grew by more than 9%, supported by international inbound demand that Capuano described as strong. This Asian performance was part of growth in international markets, but the pace was not repeated in every region.
In the Middle East and Africa, the ongoing conflict continued to affect regional results, Marriott said. The company said Middle East trends improved clearly compared with the second quarter, while the conflict’s impact on results continued. That improvement in trends sits alongside an annual decline in the metric; it does not represent realized regional growth. The contrast with growth in the U.S. and Canada and international markets overall highlights the disparity in performance.
Marriott raised its forecast for global revenue per available room growth in 2026 to a range of 4.5%–5%. The company said the decision reflects strong third-quarter performance and its expectation that healthy demand will continue. The annual forecast follows global growth of 6.5% in the third quarter, but does not change the regional disparities shown in the results. The company also forecast adjusted earnings per share of between $3.14 and $3.21 in the fourth quarter, and between $12.07 and $12.14 for the full year. It repurchased 3.5 million shares for $1.3 billion during the quarter, and returned about $4 billion to shareholders through dividends and buybacks from the start of the year through October 28.
In separate economic news, U.S. real gross domestic product grew at an annual rate of 3.4% in the third quarter, after 2.2% in the second quarter, according to the Bureau of Economic Analysis’ advance estimate released on October 29. The bureau attributed the increase to growth in investment and consumer and government spending, partly offset by a decline in exports. This estimate does not establish that economic growth caused Marriott’s results. The second estimate of third-quarter GDP is scheduled for release on November 25. In trading, Marriott shares closed at $399.30 on October 30, compared with a close of $399.65 the previous day.