Marriott International has raised its annual room revenue growth forecast, driven by sustained strong travel demand. The hotel giant now expects revenue per available room (RevPAR) to grow between 3% and 5% in 2026, up from its previous forecast of 2% to 4%. The revision reflects robust bookings across leisure and business travel segments, particularly in North America and Asia-Pacific regions.
Strong Performance Across Segments
Marriott's group bookings have surged, with corporate travel returning to pre-pandemic levels. The company reported a 6% increase in global RevPAR in the first quarter, exceeding analyst expectations. CEO Anthony Capuano stated, "Travel demand remains resilient, and we are seeing strength across all customer segments." The company also highlighted growth in luxury and lifestyle brands, which have outperformed mid-scale properties.
Regional Highlights
In North America, RevPAR grew 5%, driven by urban and resort properties. Asia-Pacific saw a 9% jump, led by China and India, where domestic travel continues to expand. Europe and the Middle East also posted gains, though at a slower pace due to economic uncertainties.
Outlook and Challenges
Despite the positive forecast, Marriott cautioned about potential headwinds, including inflation, labor shortages, and geopolitical tensions. However, the company remains optimistic, citing strong forward bookings and limited new supply in key markets. Marriott also announced plans to add over 100,000 rooms to its pipeline by 2027, focusing on conversion deals and franchise growth.
The revised forecast comes as the hospitality industry rebounds from the pandemic, with travelers prioritizing experiences over goods. Marriott's stock rose 2% following the announcement, reflecting investor confidence.
