Marriott International Inc - Class A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.07%.
Did MAR Beat Earnings? Q2 2025 Results
Marriott International kicked off the summer travel season with a solid beat on both the top and bottom lines, reporting second-quarter 2025 earnings per share of $2.65 against a consensus estimate of $2.62, a 0.97% beat, while revenue of $6.74 billion edged past the $6.66 billion estimate by 1.19% and grew 4.7% year over year. The clearest driver behind the results was international momentum, with RevPAR surging 5.3% in markets outside the U.S. and Canada, led by strength across APEC and EMEA, which more than offset essentially flat domestic performance weighed down by softer government and business transient travel. Base management and franchise fees rose nearly 5% to $1.20 billion, and adjusted EBITDA climbed 7% to $1.42 billion, even as higher debt balances pushed interest expense to $191.00 million. The broader lodging sector has faced uneven demand signals, a theme echoed across hotel owners this quarter. Looking ahead, Marriott guided full-year 2025 adjusted diluted EPS to $9.85 to $10.08, with adjusted EBITDA of $5.31 billion to $5.39 billion and worldwide RevPAR growth of 1.5% to 2.5%.
- International RevPAR growth of 5.3% driven by strong APEC and EMEA performance
- Leisure segment primarily drove global RevPAR increase
- Higher co-branded credit card fees contributed to base management and franchise fee growth
- Addition of Sheraton Grand Chicago boosted owned/leased revenue
- Luxury segment continued strength in U.S. & Canada
- Conversions represented approximately 30% of room signings and openings in first half
“Marriott delivered another solid quarter, highlighted by strong financial results and robust net rooms growth despite heightened macro-economic uncertainty. Global RevPAR increased 1.5 percent in the second quarter primarily driven by the leisure segment. International RevPAR rose over 5 percent, with strong growth in APEC and EMEA. In the U.S. & Canada, RevPAR was flat year over year with continued strength in the luxury segment offset by a decline in select service demand, largely reflecting reduced government travel and weaker business transient demand.”
Marriott International CEO, on the earnings call
Forward Guidance & Outlook
Marriott's updated outlook assumes continuation of the current macro-economic environment. For Q3 2025, the company expects worldwide RevPAR growth of flat to 1.0%, gross fee revenues of $1,310M–$1,325M, adjusted EBITDA of $1,288M–$1,318M (5%–7% increase over Q3 2024), and adjusted diluted EPS of $2.31–$2.39. For full year 2025, the company expects worldwide RevPAR growth of 1.5%–2.5%, net rooms growth approaching 5%, gross fee revenues of $5,365M–$5,420M, adjusted EBITDA of $5,310M–$5,395M (7%–8% increase over 2024), adjusted diluted EPS of $9.85–$10.08, investment spending of $1,355M–$1,455M (including $355M for citizenM acquisition), and capital returns to shareholders of approximately $4 billion.
MAR YoY Financials
MAR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.