Marriott’s Fees Jump 14% as Hotel Owners Seek a Bigger Cut
Marriott reported a 14% rise in gross fees to $1.52 billion while owners push for a larger share of loyalty revenue.
Marriott said its discussions with hotel owners who are asking for a larger share of loyalty revenue have been constructive, noting that the improved profit growth makes the fee conversation easier.
In the third quarter, the company’s gross fees rose 14% to $1.52 billion. The increase reflects a larger hotel network and higher co‑branded credit‑card fees. Chief Financial Officer Jen Mason told analysts that those card fees are “expected to rise in the high 30% range” for the full year.
A group of owners wrote to Marriott’s management earlier this year requesting a bigger slice of loyalty income, specifically pointing to the credit‑card fees as a reason.
Marriott’s net income climbed 17% to $790 million. The company also reported that worldwide revenue per available room (RevPAR) grew 6.5% year over year, well above the 3.5%‑4% range the firm had projected in August. Mason highlighted “a solid improvement in hotel margins.”
The performance gains extended to the segment that had struggled most. Limited‑service hotels posted a third consecutive quarter of RevPAR growth, rising more than 6%.
Key figures from the quarter
Gross fees: $1.52 billion (up 14%)
Net income: $790 million (up 17%)
Worldwide RevPAR: +6.5% YoY
Limited‑service RevPAR: +6% (third quarter in a row)
Credit‑card fee outlook: high‑30% range for the year
Marriott’s stronger results may give it more leverage as it continues talks with owners over the split of loyalty‑related income.
