Marriott International’s Bonvoy loyalty program surpassed 295 million members during the second quarter of 2026 as new credit card agreements and the company’s expanding hotel system supported double-digit growth in franchise revenue.
Marriott recently signed new long-term U.S. co-branded credit card agreements with JPMorgan Chase and American Express.
The company said the agreements are expected to create incremental value for hotel owners, cardholders, loyalty members, and shareholders.
Franchise fees increased 19% to approximately $1.02 billion from $860 million during the prior-year quarter.
The category includes fees from franchised and licensed lodging properties, application and relicensing fees, co-branded credit card fees, residential branding fees, and other brand-related revenue.
Combined franchise and base management fees increased 14% to $1.37 billion from $1.2 billion.
Marriott attributed the increase primarily to higher co-branded credit card fees, growth in the number of rooms across its system, and higher revenue per available room.
Base management fees increased by a more modest 1% to $343 million.
The difference between the growth rates shows that franchise fees, including credit card-related revenue, were the primary driver of Marriott’s recurring fee growth during the quarter.
Incentive management fees increased 6% to $212 million from $200 million.
Strong performance in the U.S. and Canada was partly offset by weaker results across Europe, the Middle East, and Africa. International managed hotels still contributed more than half of Marriott’s incentive fees.
Bonvoy’s membership base gives Marriott a large global platform for driving reservations, customer engagement, hotel-owner demand, and financial-services partnerships.
The program connects travelers with Marriott’s hotel, residential, timeshare, yacht, outdoor lodging, and credit card offerings.
Marriott’s operating system included more than 10,000 properties and nearly 1.814 million rooms at the end of June.
The company added approximately 17,900 net rooms during the quarter, including roughly 11,000 rooms in international markets.
Net room growth reached 4.5% from the end of the second quarter of 2025.
The worldwide development pipeline reached a record 4,186 properties and approximately 629,000 rooms.
The pipeline grew nearly 7% from the prior-year quarter and represented approximately 35% of Marriott’s existing room system.
That percentage is an inference based on the company’s disclosed pipeline and operating-room totals.
Approximately 279,000 pipeline rooms were under construction, representing 44% of the total.
More than half of the pipeline was located in international markets.
Conversions remained an important source of expansion.
Converted hotels represented more than one-third of Marriott’s first-half signings and 40% of openings.
Conversions can allow the company to add properties more quickly than ground-up developments because an existing hotel is moved into Marriott’s system and rebranded or affiliated with one of its brands.
Marriott’s fee growth also benefited from improving hotel performance.
Worldwide revenue per available room increased 3.4% on a constant-dollar basis.
RevPAR increased 5% in the U.S. and Canada but declined 0.5% across international markets.
International results varied significantly by region.
RevPAR across Europe, the Middle East, and Africa declined more than 5% as growth in Europe was outweighed by a 43% drop in the Middle East associated with regional conflict.
Asia Pacific excluding China generated RevPAR growth of more than 5%, supported by leisure demand and intra-regional travel.
Greater China RevPAR increased more than 3%, with strength across luxury properties and markets including Hong Kong, Taiwan, and Hainan.
Marriott raised its full-year worldwide RevPAR outlook to growth of between 3% and 3.5%.
Third-quarter RevPAR is expected to increase between 3.5% and 4%.
The company expects year-end net room growth near the low end of its previous 4.5% to 5% range.
Gross fee revenue increased 13% to $1.58 billion.
After contract-investment amortization, net fee revenue reached approximately $1.55 billion, increasing 13% from $1.37 billion.
Marriott reported $7.07 billion in total revenue, including more than $5 billion of cost-reimbursement revenue associated with hotel-owner programs and services.
Reported operating income was nearly flat at $1.23 billion, compared with $1.24 billion a year earlier.
Reported net income reached $766 million, compared with $763 million.
Diluted earnings per share increased 4% to $2.90 from $2.78 because Marriott’s average diluted share count declined to 264.5 million from 274.7 million.
Adjusted results showed stronger growth.
Adjusted operating income increased 12% to $1.33 billion, while adjusted net income increased 16% to $844 million.
Adjusted diluted earnings per share increased 20% to $3.19 from $2.65.
Adjusted EBITDA increased 13% to approximately $1.59 billion from $1.42 billion.
The adjusted figures excluded a $68 million impairment connected with the sale of a hotel in the U.S. and Canada.
Marriott also recorded a $27 million property-related litigation accrual, which reduced after-tax earnings by approximately $20 million, or $0.08 per share.
The company continued returning substantial capital to shareholders.
Marriott repurchased three million shares for $1.1 billion during the second quarter.
Through July 29, the company had repurchased 6.2 million shares for $2.2 billion and returned approximately $2.6 billion through dividends and buybacks.
Marriott expects to return more than $4.5 billion to shareholders during 2026.
The company ended the quarter with $16.9 billion in debt and approximately $500 million in cash, compared with $16.2 billion of debt and $400 million in cash at the end of 2025.
The Bonvoy membership milestone illustrates how Marriott is using its loyalty ecosystem to generate revenue beyond traditional hotel-management fees.
A larger membership base can support direct bookings, repeat stays, co-branded credit card spending, and stronger relationships with hotel owners.
Those benefits, combined with room growth and higher RevPAR, helped franchise revenue increase substantially faster than base management fees during the quarter.
KEY QUOTES:
“The Marriott Bonvoy loyalty program, which grew to more than 295 million members at quarter-end, continues to drive demand, deepen member engagement and create value across our global portfolio.”
“We recently executed new long-term agreements for our co-branded credit card program in the U.S. with JPMorgan Chase and American Express.”
Anthony Capuano, President And Chief Executive Officer Of Marriott International
