Marriott earned $794 million in the third quarter, up from $728 million a year ago, with revenue per available room rising 6.5%. Adjusted earnings per share climbed to $3.02, beating analyst expectations of $2.84.
The hotel chain is leaning harder on credit card revenue to fuel growth. Marriott reported $68 million in additional credit card fees compared with the same quarter last year, with more than half of the increase in franchise fees coming from cards. CEO Anthony Capuano highlighted 309 million Bonvoy members during the earnings call.
On the earnings call, Marriott explained a new elite upgrade list designed to show members their position in line for complimentary room upgrades while preserving owners' ability to sell premium rooms. Capuano told investors the feature would provide visibility "while still preserving premium room upsell opportunities for our owners." Showing a position on the list does not commit a room to a guest. Hotels can keep selling premium rooms while members wait for free upgrades.
Marriott has also attempted to appease hotel owners unhappy with program economics by offering lower Bonvoy fees, higher reimbursement on high-demand award nights, more flexible renovation requirements, and guest recommendation incentives. Fifty-one owners representing about 1,000 hotels previously demanded better compensation for award stays, citing frustration that Marriott monetizes their discounted inventory through Chase and American Express.