01:46 PM EDT, 07/31/2024 (MT Newswires) -- Marriott International ( MAR ) on Wednesday reduced its guidance for full-year earnings and a key revenue metric after its second-quarter sales fell short of market expectations, sending the hotel giant's shares lower.

The company now expects 2024 adjusted earnings between $9.23 and $9.40 per share, down from its previously outlined range of $9.31 to $9.65. Analysts surveyed by Capital IQ expect $9.44. Global revenue per available room, or RevPAR, growth is now pegged at 3% to 4%, lowering the top end of its prior range from 5%.

Marriott ( MAR ) now expects negative RevPAR in China for the rest of the year, Chief Financial Officer Leeny Oberg said on an earnings conference call, according to a Capital IQ transcript. "We expect a continuation of current weak demand and pricing trends in the region, with the third quarter anticipated to see the most meaningful RevPAR decline, as outbound travel accelerates during summer holidays."

Marriott ( MAR ) shares were down 6% in Wednesday afternoon trade.

The company expects RevPAR growth to stay higher in the "vast majority" of its international markets than in the US and Canada, Oberg said. "Overall RevPAR trends in the US and Canada in the back half of the year are expected to remain relatively steady with the first (six) months of the year.

Adjusted EPS rose to $2.50 for the quarter through June 30 from $2.26 a year earlier, topping Wall Street's $2.48 view. Revenue increased 6% to $6.44 billion, but missed the Street's $6.47 billion estimate. Second-quarter global RevPAR rose 4.9%, led by a 17% jump in the Middle East and Africa. RevPAR fell 4.6% in China, versus a 12% rise in Asia Pacific excluding China.

RevPAR in the US and Canada rose 3.9% in the quarter, the company said. It added about 15,500 net rooms globally during the period.

The company is seeing strong signing activity worldwide, with record signings in Asia Pacific and China in the first half of the year helping it grow its pipeline to more than 559,000 rooms overall, Chief Executive Anthony Capuano said on the call. "Conversions, including multi-unit opportunities remain a significant driver of growth, as owners continue to value the depth and breadth of our brand portfolio and our powerful revenue engines."

For the ongoing three-month period, the company expects adjusted EPS of $2.27 to $2.33, versus the Street's $2.35 view. Worldwide RevPAR is projected to grow 3% to 4%.

The company's Marriott Bonvoy travel program last month announced a collaboration with coffee giant Starbucks ( SBUX ) to offer benefits to loyalty members. "The number of members who have linked their accounts is already well exceeding our expectations," Capuano said in a Wednesday statement.

Price: 224.16, Change: -14.61, Percent Change: -6.12