Marriott International (MAR) shares plummeted 5.10% during intraday trading on Monday, extending premarket losses after the hotel operator reported second-quarter results and issued a weaker-than-expected third-quarter profit outlook.

The company forecast adjusted earnings per share for the third quarter in the range of $2.74 to $2.82, the midpoint of which fell below analysts' consensus estimate of $2.87 per share. The disappointing guidance overshadowed a second-quarter performance that saw adjusted earnings of $3.19 per share beat estimates, as revenue of $7.07 billion missed expectations.

Management attributed the cautious outlook primarily to the ongoing conflict in the Middle East, which has significantly dampened hotel room revenue in the region. Revenue per available room (RevPAR) in the Europe, Middle East and Africa (EMEA) region fell over 5% in the second quarter, with a 43% plunge in the Middle East offsetting gains in Europe. While domestic demand remained resilient—boosted by the FIFA World Cup and summer travel—the international headwinds weighed heavily on investor sentiment and the forward guidance.