Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Global RevPAR growth | 6.5% | Not stated |
| Adjusted diluted EPS | $3.02 | 22% |
| Adjusted EBITDA | $1.51 billion | 12% |
| Total gross fee revenues | $1.52 billion | 14% |
| Incentive Management Fees | $181 million | 22% |
Guidance and outlook
- Full year 2026 global RevPAR growth is expected to be 4.5% to 5%.
- Fourth quarter global RevPAR is anticipated to increase 4.5% to 5%.
- Full year 2026 adjusted EBITDA is expected to rise around 13%.
- Full year 2026 adjusted diluted EPS growth is expected to be 20% to 21%.
- Preliminary 2027 global RevPAR growth is expected to be 3.5% to 4.5%.
How management sounded
Positive (+6 on our -10 to +10 scale). Management raised full year guidance and reported RevPAR above expectations, citing robust travel demand and record signings. Management sounded more upbeat than on 8% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Owner Relations
Asked: Shaun Kelley from Bank of America asked for an update on owner relations and the ITR incentive.
Answer: Tony Capuano emphasized that discussions remain transparent and constructive, with a continued focus on driving hotel level economics.
AI Impact
Asked: Stephen Grambling from Morgan Stanley asked about the impact of agentic AI on distribution and owners.
Answer: Tony Capuano stated that AI is currently reshaping travel discovery, while the impact on bookings is moving more slowly.
Capital Intensity
Asked: Trey Bowers from Wells Fargo asked about key money and investment spending trends.
Answer: Jen Mason noted that investment spending is expected to be $1.25 billion to $1.35 billion, with key money remaining a competitive tool.
Middle East Outlook
Asked: David Katz from Jefferies asked about the Middle East market performance and pipeline.
Answer: Tony Capuano noted the region represents 3% of open rooms and 6% of the pipeline, with long-term confidence from local partners.
2027 Outlook
Asked: Dan Politzer from JPMorgan asked for details on the 2027 RevPAR guidance.
Answer: Tony Capuano stated it is too early to provide specific segment breakdowns as the budget process is ongoing.
What to watch before the next call
- The performance of the Middle East region amid ongoing geopolitical tensions.
- The impact of the November midterm elections on U.S. demand in the fourth quarter.
- The progress of the technology transformation and the rollout of the new property management system.
- The evolution of conversion activity versus new build construction starts.
