Marriott raises annual room revenue growth forecast amid strong travel demand

Signage is displayed on the exterior of the Marriott Marquis San Diego Marina Hotel in San Diego, Calif.

Hotel operator Marriott International raised its full year forecast for room revenue growth on Wednesday, betting that strong travel demand in the U.S. would drive bookings across its properties.

After a challenging year in which inflation and growth worries pinched customer budgets, U.S. travel is regaining momentum, a shift echoed in airlines’ latest results.

U.S. hotels are optimistic about international tourism, expecting an influx of visitors ahead of the FIFA World Cup, set to take place in June and July this year.

• Latest updates on company news here

The Bethesda, Maryland-based company expects 2026 revenue per available room (revPAR) available room — a key lodging metric that acts as a proxy for pricing power — to grow between two per cent and compared with its prior forecast of a 1.5 per cent to 2.5 per cent increase. Its shares gained 1.6 per cent in premarket trading.

RevPAR in its U.S. and Canada luxury properties increased 6.8 per cent for the first quarter, buoyed by continued spending from affluent travelers. Its budget segment, which includes brands such as Courtyard and Fairfield, also reported a 3.5 per cent rise in room revenue.

Still, outlook for the rest of the year remains uncertain as stubborn inflation and a drawn-out war in the Middle East risk driving up costs for consumers and curbing global travel spending. Peer Hilton and online travel agency Booking Holdings have already flagged an impact from the conflict.

• Latest updates on international news here

Marriott said its outlook assumes continued impact from the Middle East conflict and travel disruption, primarily impacting the region through the end of the year.

Its first-quarter room revenue in Middle East and Africa fell 1.9% over the year earlier, while occupancy was down 5.4 per cent.

The company posted a quarterly adjusted profit of US$2.72 per share, beating analysts’ average estimate of $2.55, according to data compiled by LSEG.

(Reporting by Anshuman Tripathy in Bengaluru; Editing by Shilpi Majumdar)