Marriott International Inc - Class A
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +7.22%.
Did MAR Beat Earnings? Q1 2025 Results
Marriott International kicked off 2025 with a solid first quarter, beating Wall Street expectations on both the top and bottom lines as global travel demand remained resilient. The hotel giant posted adjusted diluted EPS of $2.32, ahead of the $2.25 consensus estimate by 2.96%, while revenue climbed 4.8% year-over-year to $6.26 billion, edging past the $6.18 billion forecast. The primary engine behind the results was worldwide RevPAR growth of 4.1% in constant dollars, with international markets particularly strong; Asia Pacific excluding China surged 10.9% systemwide, helping offset a modest deceleration in U.S. and Canada demand late in the quarter amid broader macroeconomic uncertainty. Adjusted EBITDA rose 7% to $1.22 billion, supported by a 7% increase in base management and franchise fees. Looking ahead, Marriott guided full-year adjusted diluted EPS of $9.82 to $10.19, with RevPAR growth of 1.5% to 3.5%, and raised its net rooms growth outlook to nearly 5% following the announced acquisition of the citizenM lifestyle brand.
- Worldwide RevPAR increased 4.1% in constant dollars, primarily driven by higher ADR
- International RevPAR grew 5.9% with double-digit gains in Asia Pacific excluding China (10.9%)
- Base management and franchise fees up 7% driven by RevPAR increases, unit growth, and higher credit card fees
- Lower G&A expenses from enterprise-wide efficiency initiative
- Favorable $71 million income tax reserve release (excluded from adjusted results)
- Conversions represented approximately one-third of room signings and openings
- Marriott Bonvoy loyalty program grew to nearly 237 million members
“The combination of continued travel demand, the strength of our brands and our fee driven business model drove strong financial results in the first quarter. Despite heightened macro-economic uncertainty, global RevPAR rose over 4 percent, primarily driven by higher ADR, and our development momentum remained positive. Our international markets experienced particularly robust growth, with RevPAR increasing nearly 6 percent, led by double-digit gains in APEC. RevPAR in the U.S. & Canada rose over 3 percent in the first quarter, although we did see slower growth in March.”
Marriott International CEO, on the earnings call
Forward Guidance & Outlook
Marriott's updated outlook assumes continuation of current booking trends with somewhat softer expectations for U.S. & Canada. Q2 2025 worldwide RevPAR growth is expected at 1.5%–2.5%, with full year 2025 RevPAR growth of 1.5%–3.5%. Full year net rooms growth is expected to approach 5% (assuming citizenM closes before year end). Q2 adjusted EBITDA is guided at $1,370–$1,390 million, and full year adjusted EBITDA at $5,285–$5,425 million. Q2 adjusted diluted EPS is expected at $2.57–$2.62, and full year adjusted diluted EPS at $9.82–$10.19. Full year investment spending (including $355 million for citizenM) is expected at $1,355–$1,455 million. Capital return to shareholders is expected to be approximately $4.0 billion for the full year.
MAR YoY Financials
MAR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.