Financial Data and Key Metrics Changes - Marriott reported strong second quarter financial results, with global RevPAR increasing by 1.5% and net rooms growing by 4.7% year over year [5][10] - Total gross fee revenue rose by 4% year over year to $1.4 billion, driven by rooms growth and higher RevPAR [18] - Adjusted EBITDA increased by 7% to $1.42 billion [19] Business Line Data and Key Metrics Changes - International RevPAR rose over 5%, with APAC experiencing a 9% increase and EMEA a 7% increase [6][7] - RevPAR in the US and Canada was flat year over year, with select service and extended stay RevPAR declining around 1.5% [9] - Luxury RevPAR grew by 4%, while RevPAR in Greater China declined by 0.5% due to a weaker macro environment [8][10] Market Data and Key Metrics Changes - RevPAR in the Middle East rose over 10%, while Europe saw a 4% increase [7] - Government room nights in the US and Canada were down 16% year over year, impacting overall demand [21] - Group revenues for 2026 are pacing up 8% in the US and Canada, indicating a positive outlook for future periods [21] Company Strategy and Development Direction - The company aims to enhance its technology infrastructure through a multi-year transformation project, focusing on loyalty, reservations, and property management systems [33][34] - Marriott is expanding its luxury portfolio and has launched new brands like Series by Marriott to attract value-conscious travelers [12][13] - The company is committed to maintaining its investment-grade rating while returning excess capital to shareholders through dividends and share repurchases [27] Management's Comments on Operating Environment and Future Outlook - Management expects full-year RevPAR growth to be in the lower end of the prior range, between 1.5% to 2.5% [10][20] - The luxury and full-service segments are anticipated to outperform lower-end chain scales, with a positive outlook for the fourth quarter due to holiday shifts and major events [20] - Economic uncertainty remains a concern, but management is optimistic about the long-term growth potential driven by strong demand in luxury and midscale segments [21][22] Other Important Information - The company announced the retirement of CFO Leeny Oberg, with a transition plan in place for her successors [15][16] - Marriott Media Network was introduced to connect brands with guests, leveraging insights into traveler behavior [14][58] Q&A Session Summary Question: Technology transformation project status and expected changes - The company is in the midst of a multi-year transformation of its main systems, with a focus on enhancing guest and owner experiences through new technology [33][34] Question: Implications of recent legislation on development and renovations - The passing of the legislation has reduced uncertainty, potentially driving renovation capital and development optimism among owners [42][43] Question: Group business outlook and lead volumes - Group revenues for 2026 are tracking positively, with no significant cancellations noted, indicating a stable outlook [48][49] Question: Marriott Media Network potential - Early interest from advertisers in the Marriott Media Network has exceeded expectations, indicating a promising future for this initiative [56][58] Question: Residential branding fees volatility - The company remains committed to its residential business, which is a smaller part of the overall fee stream but has high return potential [62][64] Question: Business transient trends and outlook - Business transient RevPAR was down 1% globally, excluding government demand, but corporates are returning to normal travel patterns [68][70]

Financial Data and Key Metrics Changes - Marriott reported a second quarter global RevPAR increase of 1.5%, driven by nearly 2% ADR growth, despite a 30 basis point decline in occupancy [16][5] - Total gross fee revenue increased by 4% year over year to $1.4 billion, reflecting rooms growth and higher RevPAR [16][17] - Adjusted EBITDA rose by 7% to $1.42 billion [17][23] Business Line Data and Key Metrics Changes - RevPAR in the luxury segment increased by 4%, while select service and extended stay RevPAR in the US and Canada declined by approximately 1.5% year over year [7][8] - International RevPAR rose over 5%, with APAC seeing a 9% increase and EMEA a 7% increase [6][5] - Owned, leased, and other revenue, net of expenses, rose by 14% compared to the prior year, driven by improved performance at various hotels [17][16] Market Data and Key Metrics Changes - RevPAR in Greater China declined by 0.5% year over year due to a weaker macro environment, while the US and Canada region's RevPAR was flat year over year [7][6] - Government room nights in the US and Canada were down 16% year over year in the second quarter [19][66] - Group revenues for 2026 are pacing up 8% in the US and Canada, indicating a positive outlook for future periods [19][45] Company Strategy and Development Direction - The company is focused on enhancing its technology transformation, including a multi-year project on loyalty, reservations, and PMS systems [30][31] - Marriott is expanding its luxury portfolio and has plans to open an additional 27 luxury properties this year [12][11] - The introduction of the Marriott Media Network aims to connect brands with audiences throughout the guest journey, leveraging insights into traveler behavior [13][55] Management's Comments on Operating Environment and Future Outlook - Management expects full year RevPAR growth to be in the lower end of the prior range, between 1.5% to 2.5% over last year, with stronger growth anticipated internationally [9][17] - The company anticipates a flat to 1% increase in global RevPAR for the third quarter, with a more optimistic outlook for the fourth quarter due to holiday shifts and major events [18][19] - Management expressed confidence in the resilience of the group segment, despite macroeconomic uncertainties [86][85] Other Important Information - The company announced the retirement of CFO Leeny Oberg, with a transition plan in place [14][15] - The pipeline reached a record of over 590,000 rooms, with 40% under construction [9][10] - The company is committed to maintaining its investment-grade rating while returning excess capital to shareholders [25][24] Q&A Session Summary Question: Technology transformation project status and expected changes - Management is in the midst of a multi-year transformation of key systems, with a focus on enhancing guest and owner experiences through new technology [30][31] Question: Implications of recent legislation on development and renovations - The passage of the legislation has reduced uncertainty, potentially driving more renovation capital and development optimism among owners [39][40] Question: Group business trends and future bookings - Group revenues for 2026 are tracking positively, with no significant cancellations noted, indicating a stable outlook [45][46] Question: Marriott Media Network potential - Early interest from prospective advertisers has exceeded expectations, indicating a promising future for the network [51][54] Question: Commitment to residential branding despite volatility - Management remains excited about the residential business, emphasizing its long-term value despite short-term fluctuations [58][60] Question: Business transient trends and outlook - Business transient RevPAR was down 1% excluding government demand, but overall corporate travel is returning to normal levels [64][67]