Aug 3 (Reuters) – Hotel operator Marriott International forecast third-quarter profit below Wall Street expectations on Monday, as loss of revenue due to the U.S.-Israeli war on Iran overshadowed gains from the soccer World Cup and summer travel demand.
Marriott’s shares were down 3.5% in premarket trading.
The outlook for the travel industry remains uncertain for the rest of the year, as trade volatility and a drawn-out war in the Middle East risk driving up costs for consumers and curbing global leisure spending.
“In EMEA, RevPAR declined over 5%, with an increase in Europe outweighed by a 43% decline in the Middle East,” said CEO Anthony Capuano.
RevPAR is a key lodging metric that tracks average daily rate and occupancy.
Marriott expects adjusted earnings per share for the current quarter to be in the range of $2.74 to $2.82, below analysts’ estimates of $2.87, according to data compiled by LSEG.
The U.S.-Israeli war on Iran has continued to dent room revenue for hotel operators, despite a boom in occupancy from strong summer travel demand and higher prices during the recently concluded FIFA World Cup.
The Bethesda, Maryland-based Marriott now expects 2026 revenue per available room (RevPAR) to grow between 3% and 3.5%, compared with its prior forecast of a 2% to 3% increase.
Last week, peers Hilton and Hyatt also raised 2026 room revenue forecasts, while also flagging a hit from Middle East regions.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Sahal Muhammed)
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