Marriott International said the conflict in Iran put a significant damper on second-quarter sales.

The hotel company said Monday that revenue rose 5% to $7.07 billion during the quarter, missing analysts' consensus estimate of $7.19 billion.

Revenue per available room, a key industry metric, fell 0.5% in Marriott's international markets. The decline was primarily due to the conflict in the Middle East, where RevPAR sank 43%, Marriott said.

Shares declined 3.4% to $360.00 in pre-market trading.

Total RevPAR increased 3.4% during the quarter. The growth was driven by a 5% bump in the U.S. and Canada, thanks to broad-based increases across chain scales and customer segments, Marriott said.

Profit was $766 million, or $2.90 a share, compared with $763 million, or $2.78 a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were $3.19, ahead of the $3.08 anticipated by analysts, according to FactSet.

The Bethesda, Md., company added 17,900 net rooms during the quarter. Conversions are continuing to drive room growth, as the hotel chain favors acquiring existing hotels rather than building new ones.

Marriott raised its outlook for the full year. It now expects RevPAR growth of 3% to 3.5%, up from 2% to 3%. Adjusted earnings per share are projected to be $11.64 to $11.81, compared with the prior range of $11.38 to $11.63.

For the current third quarter, Marriott forecasts adjusted earnings of $2.74 a share to $2.82 a share, which would be below analysts' estimate of $2.86 a share.