Marriott International, Inc. is a leading global hospitality firm responsible for managing, franchising, and licensing a wide range of accommodation options, including ...
Marriott International, Inc. (NASDAQ: MAR) is a global powerhouse in the hospitality industry, headquartered in Bethesda, Maryland. Founded in 1927 by J. Willard and Alice Marriott as a nine-stool A&W root beer stand in Washington, D.C., the company has evolved into the world's largest lodging company. Today, Marriott operates, franchises, ...Marriott International, Inc. (NASDAQ: MAR) is a global powerhouse in the hospitality industry, headquartered in Bethesda, Maryland. Founded in 1927 by J. Willard and Alice Marriott as a nine-stool A&W root beer stand in Washington, D.C., the company has evolved into the world's largest lodging company. Today, Marriott operates, franchises, and licenses a portfolio of more than 30 renowned brands, including JW Marriott, The Ritz-Carlton, W Hotels, Sheraton, Westin, Courtyard, and Moxy, among others. With nearly 9,000 properties in over 140 countries and territories, Marriott serves millions of guests annually, offering accommodations ranging from luxury full-service hotels to select-service and timeshare properties. The company's business model is asset-light, focusing on management and franchising rather than direct ownership, which contributes to its strong financial performance and resilience. Financially, Marriott generates substantial revenue from management fees, franchise fees, and incentive fees, with a market capitalization around $92 billion and an enterprise value of ~$110 billion. In fiscal 2024, the company reported record revenues, driven by robust demand in leisure and business travel. Marriott employs over 415,000 people worldwide, making it one of the largest employers in the hospitality sector. Its commitment to diversity, equity, and inclusion, as well as sustainability initiatives, underscores its corporate responsibility. Under the leadership of CEO Anthony Capuano, who took the helm in 2021, Marriott continues to expand its footprint, innovate with digital platforms like the Marriott Bonvoy loyalty program, and adapt to changing traveler preferences. With a rich heritage rooted in the values of putting people first, pursuing excellence, and embracing change, Marriott remains a symbol of hospitality excellence and global connectivity.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$26.2B
+4.3%
+6.3%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$2.6B
+9.5%
+18.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+21.3%
+5.0%
+9.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+15.8%
+5.4%
+8.7%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+9.9%
+5.0%
+11.2%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$2.6B
+30.5%
+9.3%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+10.0%
+25.1%
+2.9%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
-453.0%
+11.1%
+7.7%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.43x
+5.9%
+16.3%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator : Hello, and welcome, everyone, joining today's Marriott International Q2 2026 Earnings Call. [Operator Instructions] Please note, this call is being recorded. We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to Jackie Burka McConagha. Please go ahead.
Jackie McConagha : Good morning, everyone, and welcome to Marriott's Second Quarter 2026 Earnings Call. On the call with me today are Tony Capuano, our President and Chief Executive Officer; Jen Mason, our Executive Vice President and Chief Financial Officer; and Pilar Fernandez, Senior Director of Investor Relations. Before we begin, I would like to remind everyone that many of our comments today are not historical facts and are considered forward-looking statements under federal securities laws. These statements are subject to numerous risks and uncertainties as described in our SEC filings, which could cause future results to differ materially from those expressed in or implied by our comments. Unless otherwise stated, our RevPAR, occupancy, average daily rate and property-level revenues comments reflect system-wide constant currency results for comparable hotels and all changes refer to year-over-year changes for the comparable period. Statements in our comments and the press release we issued earlier today are effective only today and will not be updated as actual events unfold. You can find our earnings release and reconciliations of all non-GAAP financial measures referred to in our remarks today on our Investor Relations website. And now I will turn the call over to Tony.
Anthony Capuano : Thanks, Jackie, and good morning, everyone. We reported a very strong second quarter this morning with RevPAR and financial results above our prior expectations. We grew net rooms by 4.5% over the 12 months ending June 30, further expanding our industry-leading global portfolio to over 1.8 million rooms across more than 10,000 properties. Second quarter global RevPAR rose 3.4%. RevPAR in the U.S. and Canada region rose 5%, the highest quarterly increase in 13 quarters, with strength in World Cup and non-World Cup markets. Excluding the World Cup, second quarter RevPAR rose 4%. Luxury and resort hotels continued to lead in the region in the quarter with luxury RevPAR up over 9%. Importantly, strength was pervasive across chain scales with select service RevPAR increasing over 4%. With the conflict in the Middle East weighing on results, second quarter international RevPAR declined slightly year-over-year. RevPAR in EMEA declined just over 5% as solid performance in Europe was offset by a meaningful decline in the Middle East. RevPAR in Europe rose over 4% in the second quarter, driven by strength in leisure, particularly in the Mediterranean countries, including Italy, Spain and Greece. Middle East RevPAR declined 43% in the quarter, a bit better than prior expectations on better-than-expected domestic leisure demand. Second quarter RevPAR in …