Marriott Fees Rise 14% as Owners Press for a Bigger Share of Loyalty Income

Marriott had a strong third quarter, and the people paying the fees are asking for a bigger share of it. For hotel owners weighing brand fees against OTA commissions, the dispute shows how much money now flows through loyalty programmes.

Skift reports that Marriott's gross fees rose 14% to $1.52 billion, helped by a larger hotel network and co-branded credit card fees. Net income climbed 17% to $790 million. Worldwide RevPAR grew 6.5%, well above the 3.5% to 4% the company guided to in August. Marriott raised its full-year RevPAR outlook to 4.5% to 5%, up from 1.5% to 2.5% in February, and gave an early view of 3.5% to 4.5% growth in 2027. Limited-service hotels saw RevPAR rise more than 6%, their third straight quarter of gains. Incentive management fees rose 22% to $181 million.

Growth in the network was 4.6% net room growth. Conversions made up more than a third of signings and over 40% of openings. CEO Anthony Capuano called key money, the cash developers get for signing, the "weapon of choice" for winning deals. Marriott expects to spend between $1.25 billion and $1.35 billion on investment this year.

The friction is with owners. A group wrote to management earlier this year asking for a bigger share of loyalty income, pointing to co-branded card fees. CFO Jen Mason said card fees are "expected to rise in the high 30% range" for the full year. Capuano described talks as "constructive" but said owners should not expect a "big reveal" on fee relief.

Marriott has already made some concessions. These include a lower owner contribution rate on loyalty spending, better reimbursement for redemption stays on high-demand nights, relaxed operating and renovation rules, and a rebate for some well-reviewed hotels. Capuano did not rule out more. A week before earnings he also told staff that some corporate roles would be cut while others are created, a point that did not come up on the call.

For independent operators, the lesson is about what loyalty actually costs. Brand-affiliated owners are fighting over card income while independents argue about OTA commission. Both groups are asking the same question: who captures the value of a repeat guest.