Marriott International Inc MAR shares are down after reporting a second-quarter sales miss.

Adjusted earnings came in at $1.56, in-line with consensus estimates. Sales came in at $5.305 billion, missing estimates by $195 million. The company narrowed third-quarter earnings guidance.

"Worldwide RevPAR increased 1.2 percent in the second quarter with higher leisure transient demand in Europe, the Caribbean and South America, and the Asia Pacific regions. Showing great momentum, our worldwide RevPAR index increased 110 basis points in the quarter, the strongest single quarter performance since our acquisition of Starwood in late 2016," said Arne M. Sorenson, president, and CEO.

"Our owners and franchisees continue to sign new hotel deals at a rapid pace. Our development pipeline increased 3 percent in the second quarter, reaching a record 487,000 rooms, including roughly 213,000 rooms under construction. Today, our pipeline includes five new all-inclusive resorts to be built over the next several years, which will be part of our newly-launched all-inclusive platform".

Highlights

• Net income decreased 65%
• Adjusted EBITDA increased 1% year-over-year
• 112 new properties added

Marriott shares traded lower by 2.9% to $126.49 in Monday's after-hours session. The stock closed down 4.1% at $130.34.