American Marriott International, operator of the world's largest hotel chain, increased revenue by 5% in the second quarter and slightly grew net profit, while adjusted earnings beat market expectations but revenue fell short.
According to the company's press release, net profit in April-June was $766 million ($2.9 per share) compared to $763 million ($2.78 per share) in the same period last year. Adjusted earnings were $3.19 per share. Revenue rose 5% to $7.07 billion.
Analysts polled by FactSet on average forecast adjusted earnings of $3.08 per share on revenue of $7.19 billion.
Revenue per available room (RevPAR) increased 3.4% on a comparable basis excluding currency fluctuations. In the US and Canada, the metric rose 5%, while in other countries it declined 0.5%.
The number of rooms in the company's hotels grew by approximately 17,900 during the three months.
Marriott bought back about 3 million of its shares for $1.1 billion in the past quarter. From the beginning of the year to July 29, the company returned approximately $2.6 billion to shareholders through dividends and buybacks.
The company estimates its adjusted earnings in the third quarter will be $2.74-2.82 per share, with RevPAR rising 3.5-4%.
The company improved its annual forecast and now expects adjusted earnings of $11.64-11.81 per share for 2026 (previous estimate: $11.38-11.63). RevPAR growth is expected in the range of 3% to 3.5% (previously 2-3%).
Since the beginning of the year, the company's market capitalization has increased by 20.2% to $98.31 billion.
Marriott International operates more than 10,000 hotels in 148 countries and territories under more than 30 brands. The company's most well-known hotel chains include Marriott, Sheraton, Four Points, Ritz Carlton, Renaissance, St. Regis, Le Meridien, Courtyard, and Residence Inn.