Marriott’s Q2 Earnings Show Where Luxury Demand Is Growing Next
A closer look at the brand’s Q2 performance reveals where high-end demand is holding strong—and how to capture it.
Photo: Courtesy of Marriott International
Think earnings calls are just for Wall Street? Think again. Marriott’s latest quarterly report came packed with signals luxury advisors can act on right now—if you know where to look.
As CEO Anthony Capuano put it, “[Revenue per available room] growth was again strongest at the high end with luxury RevPAR up 4%,” a performance bolstered by food-and-beverage spend that, in the luxury tier, jumped 7% in the U.S. and Canada and as much as 10% for meetings and events.
Pair that with a record pipeline (more than 590,000 rooms in development, with more than 70% outside the U.S.) and robust double-digit growth in destinations like Japan, Australia, and the Middle East, and you’ve got a clear roadmap for where demand is headed, and how to position your clients to capture it.
Here’s what you need to know—and act on:
Luxury Holds Steady While Other Segments Slip
In the U.S. and Canada, select-service and extended-stay hotels took a small revenue hit, largely due to a 16% drop in government travel nights. By contrast, the group’s luxury hotels posted a 4% RevPAR lift and a 7% increase in food-and-beverage spend.
This mirrors global industry data showing luxury travel demand remains robust even in uncertain economies, thanks to affluent travelers with high discretionary budgets. It’s a reminder for advisors to lean into premium upsells—from chef’s table dinners to spa packages—that drive revenue beyond the room rate.
International Markets Are the Real Growth Story
International RevPAR rose more than 5%, with Asia Pacific (excluding China) up 9% and EMEA up 7%. Markets like Japan, Australia, and the Middle East saw double-digit gains. These destinations align with broader luxury travel trends showing a rise in long-haul, high-spend itineraries, especially among U.S. travelers looking for unique cultural and wellness experiences.
Pipeline Growth Is Creating Fresh Inventory
Marriott’s development pipeline reached a record 590,000 rooms, over half outside the U.S., with 40% already under construction. Luxury now accounts for nearly 168,000 rooms—40% more than Marriott’s nearest competitor—and 27 more high-end openings are slated for this year, like the newly-opened W Punta Cana. These openings mean more premium options to refresh repeat clients’ itineraries or introduce them to new destinations.
Group Travel Needs Earlier Commitments
Globally, group RevPAR rose 2%, but growth in the U.S. and Canada slowed due to fewer near-term bookings and higher attrition. If your book includes corporate retreats, incentive trips, or large family groups, lock in premium venues early. With luxury inventory tightening in peak seasons, late planners may face higher rates and fewer perks.
