Core Viewpoint - Marriott International has released its financial and operational guidance for 2026, projecting a global RevPAR growth of 1.5% to 2.5%, a net room growth of 4.5% to 5%, and an adjusted EBITDA growth of 8% to 10%, with plans to return over $4.3 billion to shareholders [1] Group 1 - Marriott anticipates global RevPAR growth between 1.5% and 2.5% for 2026 [1] - The company expects a net increase in room count of 4.5% to 5% [1] - Adjusted EBITDA is projected to grow by 8% to 10% [1] - Marriott plans to return more than $4.3 billion in capital to shareholders [1] Group 2 - There are market rumors regarding Marriott's potential acquisition of the Luxury Collection Hotels, referred to as the "Pegasus Plan," which requires submission of approval documents to the U.S. Federal Trade Commission and Department of Justice by February 28, 2026 [1] - Marriott has not commented on the acquisition rumors, but industry insiders believe that if the deal goes through, it could lead to a reshuffling of its brand portfolio [1]

Financial Data and Key Metrics Changes - Global RevPAR grew by 0.1% in Q3, consistent with Q2 performance, driven by strong trading in EMEA-A and improvement in Greater China [4] - Year-to-date global RevPAR increased by 1.4% [21] - In the Americas, RevPAR decreased by 0.9% in Q3, with the U.S. down 1.6% due to slower trading conditions [5] - EMEA-A saw RevPAR growth of 2.8% in Q3, with year-to-date growth at 3.8% [5] - The company opened 14,500 rooms across 99 hotels globally in Q3, marking a 17% year-on-year increase [8] Business Line Data and Key Metrics Changes - Rooms revenue for business days was up 4% globally, while leisure and groups were down by 2% and 4% respectively [7] - In the Americas, gross system growth was 3.6% year-on-year, with 2,700 rooms opened in Q3 [9] - EMEA-A gross system growth was 10.4% year-on-year, with 4,200 rooms opened in Q3 [10] - Greater China gross system growth reached 12.8% year-on-year, with 7,600 rooms opened in Q3 [12] Market Data and Key Metrics Changes - In EMEA-A, occupancy increased by 1.6 percentage points to 75.3%, while rate was up 0.6% [5] - Greater China experienced a 1.8% decline in RevPAR in Q3, but occupancy improved by 0.6 percentage points to 64.4% [6] - The Middle East saw a strong 9.5% growth in RevPAR, driven by the UAE [6] Company Strategy and Development Direction - The company plans to launch a new collection brand focused on the premium segment, initially targeting the EMEA-A region [18] - The new brand aims to complement existing brands like Voco and Vignette Collection, which have seen success in conversions [19] - The company is optimistic about long-term demand drivers, with a focus on expanding its portfolio of world-class brands [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth in the U.S. as economic uncertainty subsides [5] - The company remains on track to meet full-year profit and earnings expectations, with consensus for operating profits at $1.259 billion, implying a 12% growth [15] - Management highlighted strong fundamentals in the U.S. economy, including low unemployment and resilient consumer spending [31] Other Important Information - The company is 78% through its $900 million share buyback program, reducing share count by 3.9% [12] - IHG intends to change the currency of its ordinary shares traded on the London Stock Exchange from British pounds to U.S. dollars starting January 2026 [13][14] Q&A Session Summary Question: What is the outlook for net system growth in 2026? - Management feels confident about the trajectory of net system growth, with consensus for 2025 at 4.5% excluding the Venetian [24] Question: What are the expectations for RevPAR in the U.S.? - Management indicated that they are comfortable with the consensus for RevPAR, which is around 1.3% for the full year [28] Question: Can you elaborate on the increase in credit card fees? - Management confirmed an increase of about $40 million in 2025, with a gradual increase over the next three years [35] Question: Why is the new brand launching in EMEA and not the U.S.? - The EMEA market has a larger proportion of independent hotels, making it a more attractive area for conversion and collection brands [39] Question: What factors are contributing to the weakness in leisure demand in the U.S.? - Management noted several factors, including lower international inbound travel and the impact of tariffs, but remains optimistic about long-term strength [45]