Marriott International NASDAQ:MAR, a global hotel operator managing and franchising lodging brands, plunged approximately 7.5% in Monday's regular-session trading as of 12:15 p.m. ET after issuing weaker-than-expected third-quarter earnings guidance. Marriott expects adjusted earnings between $2.74 and $2.82 per share, below the $2.87 analyst estimate. The outlook reflected substantial pressure on hotel demand across the Middle East.
Revenue per available room declined 43% in the Middle East as the U.S.-Israeli war with Iran disrupted travel. The decline pushed revenue per available room across Europe, the Middle East and Africa down more than 5%. Marriott reduced its anticipated net room growth to the lower end of its 4.5%5% range because of construction delays in the Middle East. However, domestic U.S. room revenue increased 5%, supported by summer travel and the FIFA World Cup, while luxury-room revenue rose 9.1%.
Marriott raised its 2026 global room-revenue-growth forecast to between 3% and 3.5% from its previous 2%3% range. Second-quarter adjusted earnings reached $3.19 per share, exceeding expectations, although revenue of $7.07 billion fell below estimates. The midpoint of the annual room-revenue forecast increased by 0.75 percentage point, but the stock reaction suggests investors focused more heavily on the immediate regional decline and weaker third-quarter profit outlook. Investors may now assess whether Middle Eastern travel begins recovering and whether U.S. demand remains resilient after the World Cup.