Nov 2 (Reuters) - Hotel operator Marriott International raised its full-year room revenue growth forecast on Monday, betting on strong travel demand to drive bookings across its properties.
Shares of the company were up 3.4% in premarket trading.
Wealthier consumers splurged on luxury experiences and business travel remained robust, while demand for mid-scale and budget hotels improved during the quarter as leisure travel held up despite still-high inflation and geopolitical uncertainty.
"While the
ongoing conflict in the Middle East continued to impact results in that region, trends improved meaningfully from the second quarter," CEO Anthony Capuano said.
Room revenue from the Middle East and Africa region for the reported quarter was down 5.3%, while that for the US and Canada rose 7.4%.
The US-Israeli war on Iran, which has dented Middle East room revenues for hotel operators, had showed signs of easing in July despite causing project delays and persisting risks.
Last week, peer Hilton warned of the Middle East conflict weighing on its fourth-quarter results, even though revenue loss from the region had eased compared with its prior quarter.
The Bethesda, Maryland-based company expects 2026 revenue per available room (revPAR) - a key lodging metric that tracks average daily rate and occupancy - to grow between 4.5% and 5%, compared with its prior forecast of a 3% to 3.5% increase.
Marriott's up-scale segment, which houses brands such as Ritz-Carlton and St. Regis, reported an 11.9% rise in revPAR in the US and Canada.
It posted an adjusted profit per share of $3.02 for the quarter ended September 30, compared with $2.47 per share a year earlier. Analysts on average expected $2.84, according to data compiled by LSEG.
Total revenue for the third quarter came in at about $7 billion, compared with Wall Street expectations of $6.92 billion.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Devika Syamnath)
