Quarter highlights and guidance
Marriott said Monday that adjusted earnings per share hit $3.02, outpacing the average analyst estimate of $2.85. The company also boosted its full-year adjusted EPS projection to $12.07 to $12.14, up from a prior range of $11.64 to $11.81, while keeping its outlook for net unit growth unchanged.
Bookings accelerated across the company's U.S. hotels in the quarter, helping power the beat versus expectations.
Where demand moved
Revenue per available room - RevPAR, or sales per room available - increased 6.5% worldwide in the quarter, including a 7.4% gain in the U.S. and Canada. After coming in at $84.30 in the three months ended June, quarterly RevPAR at Marriott-operated properties in the Middle East and Africa rose to $91.43, indicating strengthening lodging demand in a region affected by war.
Markets and strategy
Marriott is vying with Hilton and Hyatt to roll out AI-powered tools aimed at pulling more guests to book directly and leaning less on online travel agencies such as Expedia and Booking Holdings. In early trading, the stock rose 2.7% premarket. Shares are up 29% this year through the Oct. 30 close, even as the S&P 500 Hotels Restaurants & Leisure Index has fallen.
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What this means for your portfolio
Earnings ahead of forecasts, higher guidance, and firm RevPAR trends supported the early stock move. The AI push to shift more volume away from third-party agencies could also help margins over time, if it scales.
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