Marriott sees jump in co-branded card fees on ‘insatiable’ luxury travel demand

By Anshuman Tripathy

Feb 10 (Reuters) – Marriott International projected a 35% jump in fees it collects from co-branded credit cards, as affluent travelers splurge on luxury vacations, sending the hotel operator’s shares to a record high on Tuesday.

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 tighten budgets amid economic uncertainty, creating what they called a K-shaped economy.

Room revenue at the company’s luxury segment in the U.S. grew 4.9% during the fourth quarter, countering a 1.8% fall in the region’s select-service segment, which caters to budget-conscious travelers.

Globally, luxury room revenue, which includes stays at the iconic Ritz-Carlton, rose over 6%.

“Internationally, there is an almost insatiable demand for luxury,” CEO Anthony Capuano said.

The Bethesda, Maryland-based company expects full-year gross fee revenue in the range of $5.9 billion to $5.96 billion, higher than the $5.44 billion reported in 2025.

Gross fee revenue typically includes fees hotel operators earn from managing and franchising properties, besides co-branded products such as credit cards.

“Notably positive is the higher than expected fee revenue expectations which include 35% growth in co-branded credit card fees, excluding ongoing renegotiation, which had been a key focus issue into the print,” said Jefferies analyst David Katz.

Marriott’s shares rose as much as 9.8% to a record high of $363.54.

It expects 2026 revenue per available room, a key metric in the lodging industry, to grow 1.5% to 2.5%, below the average of analysts’ estimates of 2.3% rise, according to data compiled by LSEG.

Marriott expects the FIFA World Cup co-hosted by the U.S., Canada and Mexico this year to contribute around 30 to 35 basis points of global RevPAR growth.

Its annual adjusted earnings forecast of $11.32 to $11.57 was in line with estimates.

Fourth-quarter adjusted profit of $2.58 per share missed estimates of $2.61 per share, while total revenue of $6.69 billion slightly beat expectations of $6.67 billion.

(Reporting by Anshuman Tripathy in Bengaluru; Editing by Leroy Leo)