1) Strong Q1 Performance and RevPAR Growth
- Global RevPAR increased by 4.2% year-over-year, exceeding guidance.
- U.S. and Canada RevPAR rose 4%, with luxury hotels leading at nearly 7% growth.
- International RevPAR grew 4.6%, with APAC showing strong demand, particularly from Chinese guests.
- Select service RevPAR improved significantly, up 3.5% compared to a decline in Q4.
- Despite challenges from Middle East conflicts, overall RevPAR growth remains robust.

2) Development and Expansion Initiatives
- Record first quarter global signings with a 9% year-over-year increase.
- Global pipeline reached nearly 618,000 rooms, with 43% under construction.
- Conversions accounted for over 35% of signings and more than 40% of openings.
- New luxury wellness brand Lefay expected to join the portfolio later this year.
- Continued focus on expanding the Marriott Bonvoy loyalty program, now with nearly 283 million members.

3) Financial Highlights and Guidance
- Total gross fee revenues rose 12% YoY to $1.43 billion, driven by higher RevPAR and fees.
- Adjusted EBITDA increased 15% to $1.4 billion, with adjusted diluted EPS up 17% to $2.72.
- Full-year global RevPAR guidance raised to 2% to 3%, reflecting strong first quarter performance.
- Anticipated investment spending for 2026 increased to $1.05 billion to $1.15 billion, primarily for Lefay.
- Expected return of over $4.4 billion to shareholders in 2026 through share repurchases and dividends.

4) Challenges and Market Dynamics
- Ongoing conflict in the Middle East expected to impact RevPAR, particularly in Q2 with a projected 50% decline in the region.
- Business transient room nights showed slight declines, particularly in government segments.
- APAC markets facing softer long-haul demand due to connectivity issues.
- Potential headwinds in CALA due to challenges in the Mexican luxury resort segment.

5) AI and Technology Integration
- Marriott is advancing its technology transformation, with a focus on AI to enhance customer engagement and operational efficiency.
- New AI initiatives include customer engagement tools and a conversational search feature on marriott.com.
- The company is optimistic about AI's potential to strengthen direct booking channels and improve owner returns.
- Future investment in AI is expected to be integrated into existing budgets rather than requiring significant incremental spending.

Bottom line: Marriott's strong Q1 performance, marked by robust RevPAR growth and a solid development pipeline, positions the company well despite ongoing challenges in the Middle East. The integration of AI and technology enhancements further supports long-term growth and shareholder value.