Marriott International

    MAR ·NASDAQ ·Hotels & Motels ·Inc. in DE
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    Item 1.    Business.
    Overview
    We are a worldwide franchisor, operator, and licensor of hotel, residential, timeshare, and other lodging properties under a portfolio of compelling brands at different price and service points. Consistent with our focus on franchising, management, and licensing, we own or lease very few of our lodging properties (less than one percent of our system). As of year-end 2025, our system included 9,805 properties (1,779,936 rooms) in 145 countries and territories, and we also had approximately 4,100 properties (nearly 610,000 rooms) in our development pipeline.
    We discuss our operations in the following reportable business segments: (1) U.S. & Canada, (2) Europe, Middle East & Africa (“EMEA”), (3) Greater China, and (4) Asia Pacific excluding China (“APEC”). Our Caribbean & Latin America (“CALA”) operating segment does not meet the applicable accounting criteria for separate disclosure as a reportable business segment, and as such, we include its results in “Unallocated corporate and other.” See Note 14 for more information.
    Brand Portfolio
    We believe that our brand portfolio offers the most compelling range of brands, lodging properties, and other offerings in hospitality. Our brands are categorized by style of offering - Classic and Distinctive. Our Classic brands offer time-honored hospitality for the modern traveler, and our Distinctive brands offer memorable experiences with a unique perspective - each of which we group into four quality tiers: Luxury, Premium, Select, and Midscale. Luxury offers bespoke and superb amenities and services. Premium offers sophisticated and thoughtful amenities and services. Select offers smart and easy amenities and services. Midscale offers limited services and essential amenities at a more affordable price point. Longer stay brands, which are classified under multiple quality tiers, offer amenities suggestive of the comforts of home. The following table shows the portfolio of brands owned, operated, and/or licensed by Marriott for properties open at year-end 2025.
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    Table of Contents                                        
    The following table shows the geographic distribution of properties operating under the brands in our portfolio at year-end 2025:
    U.S. & Canada
    		EuropeMiddle East & Africa
    Asia Pacific excluding China
    Greater China
    		Caribbean & Latin AmericaTotal
    Luxury
    JW Marriott®
    		Properties361012322317130
    Rooms19,5182,9694,58210,2339,0934,49650,891
    The Ritz-Carlton®
    		Properties431217241911126
    Rooms13,2302,6204,0594,8215,3482,20132,279
    The Luxury Collection®
    		Properties21451432713132
    Rooms10,1086,6142,6807,5124,0401,77032,724
    W Hotels®
    		Properties231361111872
    Rooms7,2822,5362,1752,7543,8931,59320,233
    St. Regis®
    		Properties137151015666
    Rooms2,6698873,6832,0673,94898714,241
    EDITION®
    		Properties5

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    Financial statements

    data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .

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    From 10-Q filed 2026-05-06 (period ending 2026-03-31).

    Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
    Cautionary Statement
    All statements in this report are made as of the date this Form 10-Q is filed with the U.S. Securities and Exchange Commission (the “SEC”). We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. We make forward-looking statements in Management’s Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in this report based on the beliefs and assumptions of our management and on information available to us through the date this Form 10-Q is filed with the SEC. Forward-looking statements include information related to our development pipeline; our expectations regarding rooms growth; our expectations regarding our ability to meet our liquidity requirements; our capital expenditures and other investment spending and reimbursement expectations; our expectations regarding future dividends and share repurchases; our expectations regarding certain claims, legal proceedings, settlements or resolutions; our planned hotel sale; our anticipated investment in Lefay; our expectations about the conflict in the Middle East; and other statements that are preceded by, followed by, or include the words “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “foresees,” or similar expressions; and similar statements concerning anticipated future events and expectations that are not historical facts.
    We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including the risks and uncertainties we describe in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (“2025 Form 10-K”); Part II, Item 1A of this report; and other factors we describe from time to time in our periodic filings with the SEC.
    BUSINESS AND OVERVIEW
    Overview
    We are a worldwide franchisor, operator, and licensor of hotel, residential, timeshare, and other lodging properties under a broad portfolio of compelling brands at different price and service points. We discuss our operations in the following reportable business segments: (1) U.S. & Canada, (2) Europe, Middle East & Africa (“EMEA”), (3) Greater China, and (4) Asia Pacific excluding China (“APEC”). Our Caribbean & Latin America (“CALA”) operating segment does not meet the applicable accounting criteria for separate disclosure as a reportable business segment, and as such, we include its results in “Unallocated corporate and other.”
    Under our asset-light business model and consistent with our focus on franchising, management, and licensing, we own or lease very few of our lodging properties. Under our hotel franchising arrangements, we generally receive an initial application fee and continuing royalty fees, which are typically based on a percentage of room revenues, plus for certain brands, a percentage of food and beverage revenues. Terms of our management agreements vary, but we earn a management fee that is typically composed of a base management fee, which is a percentage of the revenues of the hotel, and an incentive management fee, which is based on the profits of the hotel. In many cases (particularly in our U.S. & Canada, Europe, and CALA regions), incentive management fees are subject to a specified owner return. We also have license and other agreements with third parties for certain offerings, such as for our timeshare properties, MGM Collection with Marriott Bonvoy, Design Hotels, and The Ritz-Carlton Yacht Collection, under which we receive royalty and certain other fees. Additionally, we earn fees for other uses of our intellectual property, including primarily co-branded credit card fees, as well as residential branding fees and certain other licensing fees.
    Performance Measures
    We believe Revenue per Available Room (“RevPAR”), which we calculate by dividing property level room revenue by total rooms available for the period, is a meaningful indicator of our performance because it measures the period-over-period change in room revenues. RevPAR may not be comparable to similarly titled measures, such as revenues, and should not be viewed as necessarily correlating with our fee revenue. We also believe occupancy and average daily rate (“ADR”), which are components of calculating RevPAR, are meaningful indicators of our
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    performance. Occupancy, which we calculate by dividing total rooms sold by total rooms available for the period, measures the utilization of a property’s available capacity. ADR, which we calculate by dividing property level room revenue by total rooms sold, measures average room price and is useful in assessing pricing levels. Unless otherwise stated, RevPAR, occupancy, and ADR statistics are on a systemwide basis for comparable properties, and all changes refer to year-over-year changes for the comparable period. Comparisons to prior periods are on a constant U.S. dollar basis, which we calculate by applying exchange rates for the current period to the prior comparable period. We believe constant dollar analysis provides valuable information regarding the performance of hotels in our system as it removes currency fluctuations from the presentation of such results.
    We define our comparable properties as hotels in our system that were open and operating under one of our brands since the beginning of the last full calendar year (since January 1, 2025 for the current period) and have not, in either the current or previous year: (1) undergone significant room or public space renovations or expansions, (2) been converted between company-operated and franchised, or (3) sustained substantial property damage or business interruption. Our comparable properties also exclude MGM Collection with Marriott Bonvoy, Design Hotels, The Ritz-Carlton Yacht Collection, residences, timeshare, and all-inclusive properties.
    Business Trends
    In the 2026 first quarter, worldwide RevPAR increased 4.2 percent, driven by ADR growth of 3.1 percent and occupancy improvement of 0.7 percentage points.
    In the U.S. & Canada, RevPAR increased 4.0 percent in the 2026 first quarter, reflecting strong demand across all brand tiers, led by luxury.
    In our International regions, RevPAR increased 4.6 percent in the 2026 first quarter, reflecting higher demand in most countries across our APEC, Europe, Greater China, and CALA regions. Beginning in March 2026, and continuing into the 2026 second quarter, conflict in the Middle East resulted in a sharp decline in RevPAR in our Middle East & Africa region and negatively impacted demand in certain countries in our APEC region. The continued operational and financial impact on our business depends on the duration and extent of travel disruption resulting from the conflict.
    Starwood Data Security Incident
    On November 30, 2018, we announced a data security incident involving unauthorized access to the Starwood reservations database (the “Data Security Incident”). We are currently unable to reasonably estimate the range of total possible financial impact to the Company from the Data Security Incident in excess of the expenses already recorded; however, we do not believe this incident will impact our long-term financial health. See Note 5 for additional information related to legal proceedings and investigations related to the Data Security Incident.
    System Growth and Pipeline
    At the end of the 2026 first quarter, our system had 9,926 properties (1,795,808 rooms), compared to 9,805 properties (1,779,936 rooms) at year-end 2025 and 9,463 properties (1,718,542 rooms) at the end of the 2025 first quarter. In the 2026 first quarter, we added roughly 15,900 net rooms.
    At the end of the 2026 first quarter, we had over 4,100 properties and nearly 618,000 rooms in our development pipeline, which included nearly 34,000 rooms approved for development but not yet under signed contracts. At the end of the 2026 first quarter, our development pipeline included over 268,000 rooms, or 43 percent, that were under construction, including hotels that are in the process of converting to our system. Over half of the rooms in our quarter-end development pipeline were located outside U.S. & Canada.
    We currently expect full year 2026 net rooms growth of approximately 4.5 to 5.0 percent.
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    Properties and Rooms
    The following table shows our properties and rooms by ownership type.
    PropertiesRooms
    March 31, 2026March 31, 2025vs. March 31, 2025March 31, 2026March 31, 2025vs. March 31, 2025
    Franchised/Licensed/Other (1)
    		7,781 7,293 488 7 %1,204,223 1,120,634 83,589 7 %
    Managed
    		1,948 1,981 (33)(2)%560,658 567,896 (7,238)(1)%
    Owned/Leased
    		51 51 — — %14,406 14,312 94 1 %
    Residential
    		146 138 8 6 %16,521 15,700 821 5 %
    Total
    		9,926 9,463 463 5 %1,795,808 1,718,542 77,266 4 %
    (1)Licensed and other properties include our timeshare properties, MGM Collection with Marriott Bonvoy, Design Hotels, and The Ritz-Carlton Yacht Collection.
    Lodging Statistics
    The following table presents RevPAR, occupancy, and ADR statistics for comparable properties. Systemwide statistics include data from our franchised properties, in addition to our company-operated properties.
    Three Months Ended March 31, 2026 and Change vs. Three Months Ended March 31, 2025
    RevPAROccupancyAverage Daily Rate
    2026vs. 20252026vs. 20252026vs. 2025
    Comparable Company-Operated Properties
    U.S. & Canada$197.07 4.6 %67.6 %0.4 %pts.$291.48 3.9 %
    Europe$174.01 7.0 %61.2 %(0.6)%pts.$284.35 8.0 %
    Middle East & Africa$138.45 (2.3)%62.3 %(6.3)%pts.$222.36 7.5 %
    Greater China$79.23 6.1 %65.1 %1.2 %pts.$121.63 4.1 %
    Asia Pacific excluding China$136.26 7.6 %71.3 %2.5 %pts.$191.17 3.8 %
    Caribbean & Latin America$255.61 (0.7)%69.0 %(0.1)%pts.$370.60 (0.5)%
    International - All (1)
    		$126.47 4.1 %66.3 %0.1 %pts.$190.69 4.1 %
    Worldwide (2)
    		$155.02 4.4 %66.8 %0.2 %pts.$231.93 4.0 %
    Comparable Systemwide Properties
    U.S. & Canada$128.80 4.0 %66.3 %0.7 %pts.$194.15 3.0 %
    Europe$118.31 6.6 %61.2 %1.5 %pts.$193.41 4.0 %
    Middle East & Africa$128.54 (1.9)%61.6 %(5.4)%pts.$208.78 6.7 %
    Greater China$70.68 5.7 %63.1 %1.1 %pts.$111.99 3.9 %
    Asia Pacific excluding China$130.93 7.3 %70.2 %2.2 %pts.$186.60 3.9 %
    Caribbean & Latin America$139.29 2.0 %63.0 %1.4 %pts.$221.24 (0.3)%
    International - All (1)
    		$112.01 4.6 %64.1 %0.7 %pts.$174.73 3.5 %
    Worldwide (2)
    		$123.09 4.2 %65.6 %0.7 %pts.$187.70 3.1 %
    (1)Includes Europe, Middle East & Africa, Greater China, Asia Pacific excluding China, and Caribbean & Latin America.
    (2)Includes U.S. & Canada and International - All.
    CONSOLIDATED RESULTS
    The discussion below presents an analysis of our consolidated results of operations for the 2026 first quarter compared to the 2025 first quarter. Also see the “Business Trends” section above for further discussion.
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    Fee Revenues
    Three Months Ended
    ($ in millions)
    		March 31, 2026March 31, 2025Change 2026 vs. 2025
    Franchise fees$872 $746 $126 17 %
    Base management fees339 325 14 4 %
    Incentive management fees222 204 18 9 %
    Gross fee revenues1,433 1,275 158 12 %
    Contract investment amortization(35)(28)(7)(25)%
    Net fee revenues$1,398 $1,247 $151 12 %
    The increase in franchise fees in the 2026 first quarter primarily reflected higher co-branded credit card fees ($60 million) as well as higher revenue related to our franchised properties due to higher RevPAR, rooms growth ($23 million), and other items.
    Owned, Leased, and Other
    Three Months Ended
    ($ in millions)
    		March 31, 2026March 31, 2025Change 2026 vs. 2025
    Owned, leased, and other revenue$412 $361 $51 14 %
    Owned, leased, and other expense
    		377 332 45 14 %
    Owned, leased, and other revenue, net of owned, leased, and other expense
    		$35 $29 $6 21 %
    Cost Reimbursements
    Three Months Ended
    ($ in millions)
    		March 31, 2026March 31, 2025Change 2026 vs. 2025
    Cost reimbursement revenue$4,844 $4,655 $189 4 %
    Reimbursed expenses4,936 4,722 214 5 %
    Cost reimbursements, net$(92)$(67)$(25)(37)%
    Cost reimbursements, net (cost reimbursement revenue, net of reimbursed expenses) varies due to timing differences between the costs we incur for centralized programs and services and the related reimbursements we receive from hotel owners and certain other counterparties. Over the long term, our centralized programs and services are not designed to impact our economics, either positively or negatively.
    The decrease in cost reimbursements, net in the 2026 first quarter primarily reflected higher expenses, net of revenues for many of our centralized programs and services, partially offset by lower Loyalty Program expenses.
    Other Operating Expenses
    Three Months Ended
    ($ in millions)
    		March 31, 2026March 31, 2025Change 2026 vs. 2025
    Depreciation, amortization, and other$54 $51 $3 6 %
    General and administrative
    		219 209 10 5 %
    Restructuring and merger-related charges, and other
    		4 1 3 300 %
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    Non-Operating Income (Expense)
    Three Months Ended
    ($ in millions)
    		March 31, 2026March 31, 2025Change 2026 vs. 2025
    Gains (losses) and other income, net$3 $(2)$5 250 %
    Interest expense(214)(192)(22)(11)%
    Interest income10 9 1 11 %
    Equity in (losses) earnings
    		(5)1 (6)(600)%
    Interest expense increased in the 2026 first quarter primarily due to higher debt balances driven by Senior Notes issuances, net of maturities ($28 million).
    Income Taxes
    Three Months Ended
    ($ in millions)
    		March 31, 2026March 31, 2025Change 2026 vs. 2025
    Provision for income taxes$(210)$(99)$(111)(112)%
    Provision for income taxes increased in the 2026 first quarter primarily due to the prior year release of tax reserves ($86 million) and higher pre-tax income ($26 million).
    BUSINESS SEGMENTS
    The following discussion presents an analysis of the operating results of our reportable business segments for the 2026 first quarter compared to the 2025 first quarter. Also see the “Business Trends” section above for further discussion.
    Three Months Ended
    ($ in millions)
    		March 31, 2026March 31, 2025Change 2026 vs. 2025
    U.S. & Canada
    Segment net fee revenues
    		$752 $689 $63 9 %
    Segment profit646 644 2 — %
    EMEA
    Segment net fee revenues

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    Held by

    holders ( registered funds via N-PORT, institutional investors via 13F). Showing top by dollar value.

    Holder Type ETF MF Position ($) % of holder Δ % of holder Holder AUM

    Recent insider activity

    Last 90 days. Open-market trades (purchases & sales) by directors, officers, and 10%+ owners. 2 transactions across 2 insiders. Net: -7,816 shares, -$2,759,300.

    Date Insider Role Action Shares Price Value
    2026-05-18 Roe Peggy EVP & Chf. Customer Officer Sell -3,000 $361.56 -$1,084,680
    2026-05-13 Mao Yibing Pres. Greater China Sell -4,816 $347.72 -$1,674,620

    Source: SEC Form 4 filings.

    Next expected filings

    • ~2026-08-05 10-Q expected by 2026-08-12 (in 51 days)
    • ~2026-11-04 10-Q expected by 2026-11-11 (in 142 days)
    • ~2027-02-09 10-K expected by 2027-02-25 (in 239 days)
    • ~2027-05-06 10-Q expected by 2027-05-13 (in 325 days)

    Predicted from historical filing cadence; not an SEC commitment.

    Recent SEC filings

    • 2026-05-06 8-K Earnings Release; Financial Statements and Exhibits
    • 2026-05-06 10-Q Quarterly Report
    • 2026-02-20 8-K Other Events; Financial Statements and Exhibits
    • 2026-02-10 10-K Annual Report
    • 2026-02-10 8-K Earnings Release; Financial Statements and Exhibits
    • 2026-02-06 8-K Officer/Director Change
    • 2026-01-09 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
    • 2025-11-04 10-Q Quarterly Report
    • 2025-11-04 8-K Earnings Release; Financial Statements and Exhibits
    • 2025-08-20 8-K Other Events; Financial Statements and Exhibits
    • 2025-08-05 10-Q Quarterly Report
    • 2025-08-05 8-K Earnings Release; Financial Statements and Exhibits
    • 2025-07-14 8-K Officer/Director Change; Regulation FD Disclosure; Financial Statements and Exhibits
    • 2025-05-13 8-K/A Officer/Director Change
    • 2025-05-06 10-Q Quarterly Report