Marriott International (MAR)

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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The following table shows the geographic distribution of properties operating under the brands in our portfolio at year-end 2025:

		U.S. & Canada	Europe	Middle East & Africa	Asia Pacific excluding China	Greater China	Caribbean & Latin America	Total
Luxury
JW Marriott®	Properties	36	10	12	32	23	17	130
	Rooms	19,518	2,969	4,582	10,233	9,093	4,496	50,891
The Ritz-Carlton®	Properties	43	12	17	24	19	11	126
	Rooms	13,230	2,620	4,059	4,821	5,348	2,201	32,279
The Luxury Collection®	Properties	21	45	14	32	7	13	132
	Rooms	10,108	6,614	2,680	7,512	4,040	1,770	32,724
W Hotels®	Properties	23	13	6	11	11	8	72
	Rooms	7,282	2,536	2,175	2,754	3,893	1,593	20,233
St. Regis®	Properties	13	7	15	10	15	6	66
	Rooms	2,669	887	3,683	2,067	3,948	987	14,241
EDITION®	Properties	5

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Financial statements

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

From 10-Q filed 2026-08-03 (period ending 2026-06-30).

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

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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 expectations about the conflict in the Middle East; our expectations about our co-branded credit card program; 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 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.

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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 second quarter, worldwide RevPAR increased 3.4 percent, primarily driven by ADR growth of 3.5 percent. In the 2026 first half, worldwide RevPAR increased 3.8 percent, primarily driven by ADR growth of 3.3 percent. RevPAR growth was strong across all of our regions, except for Middle East & Africa.

In the U.S. & Canada, RevPAR increased 5.0 percent in the 2026 second quarter and 4.6 percent in the 2026 first half, reflecting strong demand across all brand tiers and customer segments, as well as demand from the World Cup in June 2026.

In our International regions, RevPAR decreased 0.5 percent in the 2026 second quarter and grew 2.0 percent in the 2026 first half. Performance was negatively impacted by the conflict in the Middle East, which resulted in a sharp decline in RevPAR in our Middle East & Africa region beginning in March 2026, with the impact from the conflict continuing into the third quarter. The continued operational and financial impact on our business depends on the duration and extent of travel disruption resulting from the conflict.

During 2026, we executed new multi-year agreements in the U.S. with JPMorgan Chase and American Express in connection with our co-branded credit card program. We expect the agreements to have a favorable impact on our total revenues in future periods, primarily in the “Cost reimbursement revenue” caption, followed by the “Franchise fees” caption, of our Income Statements.

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 second quarter, our system had 10,082 properties (1,813,698 rooms), compared to 9,805 properties (1,779,936 rooms) at year-end 2025 and 9,601 properties (1,735,819 rooms) at the end of the 2025 second quarter. In the 2026 first half, we added roughly 33,800 net rooms.

At the end of the 2026 second quarter, we had nearly 4,200 properties and approximately 629,000 rooms in our development pipeline, which included over 34,000 rooms approved for development but not yet under signed contracts. At the end of the 2026 second quarter, our development pipeline included over 279,000 rooms, or 44 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 to be toward the low end of our 4.5 to 5.0 percent range.

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Properties and Rooms

The following table shows our properties and rooms by ownership type.

	Properties					Rooms
	June 30, 2026	June 30, 2025	vs. June 30, 2025			June 30, 2026	June 30, 2025	vs. June 30, 2025
Franchised/Licensed/Other (1)	7,939	7,439	500	7	%	1,223,350	1,138,838	84,512	7	%
Managed	1,947	1,972	(25)	(1)	%	560,449	566,838	(6,389)	(1)	%
Owned/Leased	50	50	—	—	%	13,333	14,206	(873)	(6)	%
Residential	146	140	6	4	%	16,566	15,937	629	4	%
Total	10,082	9,601	481	5	%	1,813,698	1,735,819	77,879	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 tables present 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 June 30, 2026 and Change vs. Three Months Ended June 30, 2025
	RevPAR				Occupancy					Average Daily Rate
	2026		vs. 2025		2026		vs. 2025			2026		vs. 2025
Comparable Company-Operated Properties
U.S. & Canada	$	214.20	6.7	%	73.5	%	0.5	%	pts.	$	291.43	6.0	%
Europe	$	285.72	5.1	%	76.6	%	0.2	%	pts.	$	373.06	4.8	%
Middle East & Africa	$	84.30	(35.1)	%	49.5	%	(17.3)	%	pts.	$	170.21	(12.4)	%
Greater China	$	81.07	2.6	%	68.8	%	0.1	%	pts.	$	117.83	2.6	%
Asia Pacific excluding China	$	118.70	5.2	%	70.0	%	2.2	%	pts.	$	169.60	1.8	%
Caribbean & Latin America	$	193.39	0.9	%	63.7	%	0.4	%	pts.	$	303.69	0.2	%
International - All (1)	$	120.46	(2.9)	%	66.4	%	(2.1)	%	pts.	$	181.36	0.3	%
Worldwide (2)	$	158.08	2.1	%	69.3	%	(1.1)	%	pts.	$	228.23	3.7	%
Comparable Systemwide Properties
U.S. & Canada	$	150.10	5.0	%	74.0	%	0.2	%	pts.	$	202.82	4.7	%
Europe	$	185.95	4.2	%	75.6	%	1.2	%	pts.	$	245.98	2.6	%
Middle East & Africa	$	80.48	(33.1)	%	50.5	%	(15.8)	%	pts.	$	159.44	(12.1)	%
Greater China	$	72.95	3.2	%	67.3	%	0.7	%	pts.	$	108.44	2.1	%
Asia Pacific excluding China	$	119.46	5.3	%	70.4	%	2.3	%	pts.	$	169.76	1.8	%
Caribbean & Latin America	$	111.99	3.0	%	60.3	%	1.3	%	pts.	$	185.85	0.7	%
International - All (1)	$	116.76	(0.5)	%	67.1	%	(0.7)	%	pts.	$	174.10	0.6	%
Worldwide (2)	$	138.74	3.4	%	71.6	%	(0.1)	%	pts.	$	193.66	3.5	%

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	Six Months Ended June 30, 2026 and Change vs. Six Months Ended June 30, 2025
	RevPAR				Occupancy					Average Daily Rate
	2026		vs. 2025		2026		vs. 2025			2026		vs. 2025
Comparable Company-Operated Properties
U.S. & Canada	$	206.31	5.7	%	70.6	%	0.5	%	pts.	$	292.16	5.0	%
Europe	$	231.59	6.0	%	68.9	%	(0.1)	%	pts.	$	335.92	6.1	%
Middle East & Africa	$	111.59	(18.1)	%	55.8	%	(11.9)	%	pts.	$	199.84	(0.6)	%
Greater China	$	80.62	4.4	%	67.1	%	0.6	%	pts.	$	120.10	3.4	%
Asia Pacific excluding China	$	127.45	6.4	%	70.7	%	2.4	%	pts.	$	180.21	2.9	%
Caribbean & Latin America	$	224.33	—	%	66.3	%	0.2	%	pts.	$	338.30	(0.2)	%
International - All (1)	$	123.69	0.6	%	66.5	%	(1.0)	%	pts.	$	186.11	2.2	%
Worldwide (2)	$	156.88	3.2	%	68.1	%	(0.4)	%	pts.	$	230.27	3.9	%
Comparable Systemwide Properties
U.S. & Canada	$	139.67	4.6	%	70.3	%	0.5	%	pts.	$	198.79	3.9	%
Europe	$	152.76	5.2	%	68.5	%	1.4	%	pts.	$	223.15	3.1	%
Middle East & Africa	$	104.76	(16.9)	%	56.0	%	(10.7)	%	pts.	$	187.00	(1.0)	%
Greater China	$	72.15	4.5	%	65.3	%	0.9	%	pts.	$	110.47	3.0	%
Asia Pacific excluding China	$	125.43	6.5	%	70.4	%	2.4	%	pts.	$	178.12	2.9	%
Caribbean & Latin America	$	125.50	2.4	%	61.6	%	1.4	%	pts.	$	203.79	0.2	%
International - All (1)	$	114.56	2.0	%	65.7	%	—	%	pts.	$	174.48	2.0	%
Worldwide (2)	$	131.14	3.8	%	68.7	%	0.3	%	pts.	$	190.89	3.3	%

(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 second quarter compared to the 2025 second quarter and for the 2026 first half compared to the 2025 first half. Also see the “Business Trends” section above for further discussion.

Fee Revenues

	Three Months Ended								Six Months Ended
($ in millions)	June 30, 2026		June 30, 2025		Change 2026 vs. 2025				June 30, 2026		June 30, 2025		Change 2026 vs. 2025
Franchise fees	$	1,023	$	860	$	163	19	%	$	1,895	$	1,606	$	289	18	%
Base management fees	343		340		3		1	%	682		665		17		3	%
Incentive management fees	212		200		12

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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

Next expected filings

~2026-11-04 10-Q expected by 2026-11-10 (in 52 days)
~2027-02-09 10-K expected by 2027-02-25 (in 149 days)
~2027-05-06 10-Q expected by 2027-05-12 (in 235 days)
~2027-08-03 10-Q expected by 2027-08-09 (in 324 days)

Predicted from historical filing cadence; not an SEC commitment.

Recent SEC filings

2026-08-13 8-K Other Events; Financial Statements and Exhibits
2026-08-12 424B5 Prospectus Supplement
2026-08-03 8-K Earnings Release; Financial Statements and Exhibits
2026-08-03 10-Q Quarterly Report
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

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