Marriott raises room revenue growth outlook on stronger travel demand
Travel demand remains firm across leisure, luxury and business segments, supporting stronger booking trends for major hotel operators. Marriott International now expects faster annual room revenue growth, while its shares rise 3.4% in premarket trading.
Highlights
- Marriott raises its 2026 revPAR growth forecast to 4.5%–5%, up from a previous 3%–3.5% increase, citing resilient travel demand.
- Marriott's luxury segment, including Ritz-Carlton and St. Regis, posts an 8.3% revPAR rise in the U.S. and Canada amid robust higher-income consumer spending.
- Improvement in mid-scale and budget hotel demand signals broad-based customer strength, backing Marriott's higher annual growth outlook.
Updated revPAR outlook for 2026
As reported by Reuters, Marriott says it now expects 2026 revenue per available room, or revPAR, to grow between 4.5% and 5%, up from its previous forecast for a 3% to 3.5% increase. RevPAR is a key lodging metric that tracks average daily rate and occupancy across hotel properties.The Bethesda, Maryland-based company is lifting its annual forecast as resilient travel demand continues to support bookings. Leisure travel holds up despite still-high inflation and geopolitical uncertainty, while business travel also remains robust.
Luxury and broader hotel demand stay resilient
Higher-income consumers continue to spend on luxury experiences, helping demand at the upper end of the market. Marriott's upscale segment, which includes brands such as Ritz-Carlton and St. Regis, reports an 8.3% rise in revPAR in the U.S. and Canada.Demand for mid-scale and budget hotels also improves during the quarter, pointing to broad-based strength across customer segments. The forecast increase suggests Marriott sees current travel patterns continuing to support revenue growth across its portfolio.
Our earlier article on India’s alternative accommodation market highlighted how rising tourism demand is straining traditional hotel room supply, accelerating growth in homestays, villas, and holiday homes. It noted rapid expansion in digital listings and sustained traveler interest, with demand spreading to new destinations and booking behavior becoming more spontaneous—factors that can reshape lodging competition and pricing power.
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