Iran War Drags Down Q2 Earnings for Big Hotel Chains

Skift Take Q2 came in better than feared across the board, thanks to resilient domestic demand. But no one’s calling it over — Q4, the Gulf’s peak season, is the real test. The Iran war is now showing up in hotel companies’ earnings — and executives say the worst may still be ahead. Marriott International’s Middle East RevPAR fell 43% in the second quarter. About 35% of Marriott’s full-year Middle East revenue is typically booked in Q4, CFO Jennifer Mason told analysts on an earnings call Monday. “We still see very strong global demand other than the Middle East,” Mason said. “But the U.S. and Canada do not benefit obviously from the World Cup in Q4, and the Middle East has a more significant impact in Q4 than it did in Q3.” Marriott's RevPAR in EMEA is expected to improve in the third quarter relative to the second quarter before moderating again in the fourth quarter, she said. The war is also slowing the pipeline. Marriott said construction delays on new Middle East hotels will push annual net room growth to the low end of its previously guided 4.5%-5% range. Marriott carries the largest Middl