Marriott International said the conflict in Iran put a significant damper on second-quarter sales, according to the company’s earnings call.

The statement was made during a briefing with analysts, where the hotel chain noted a decline in revenue compared to the prior quarter. While exact figures were not disclosed, executives highlighted the broader impact of regional instability on travel demand.

Industry observers point out that disruptions in the Middle East have tightened travel plans for both leisure and business visitors, affecting occupancy rates across major markets. The slowdown was felt most acutely in regions with direct exposure to the crisis.

Despite the setback, Marriott International emphasized its focus on strengthening operations in stable economies. The company is expanding its portfolio in North America and Europe, aiming to offset losses from the Middle East.

Analysts expect the hotel group to adjust its strategy, investing in digital solutions and flexible booking options to maintain customer confidence amid ongoing geopolitical uncertainties.