Feb 10 (Reuters) - Hotel operator Marriott International forecast 2026 room revenue growth below Wall Street estimates on Tuesday, reflecting weak travel spending by low- and middle-income households in the U.S. amid economic uncertainty.
U.S. consumer spending increased solidly in November and October, according to government data released last month. But economists have said this is supported by higher-income households, while low- and middle-income households face a limited ability to substitute
purchases, creating what they called a K-shaped economy.
Room revenue at the company's select-service segment in the U.S., which caters to budget-conscious travelers, fell 1.8% during the fourth quarter, compared with a 4.9% rise in its luxury segment in the region.
Globally, luxury room revenue, which includes stays at Marriott's iconic Ritz-Carlton, rose over 6% in the fourth quarter.
Marriott said RevPAR was roughly flat in the U.S. and Canada in the fourth quarter, reflecting the impact of the extended government shutdown primarily on the business transient segment.
The Bethesda, Maryland-based hotel operator expects 2026 RevPAR to grow 1.5% to 2.5%, below the average of analysts' estimates of a 2.3% rise, according to data compiled by LSEG.
Adjusted profit for the quarter came in at $695 million, or $2.58 per share, compared with $686 million, or $2.45 per share, a year earlier. Analysts on average expected $2.61 per share, according to data compiled by LSEG.
Total revenue came in at $6.69 billion, compared with $6.43 billion a year ago. Analysts on average expected $6.67 billion.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Leroy Leo)
