Marriott International Inc - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.55%.
Did MAR Beat Earnings? Q3 2025 Results
Marriott International delivered a solid third-quarter beat on both the top and bottom lines, posting adjusted diluted EPS of $2.47 against a consensus of $2.39, a 3.46% beat, while revenue climbed 3.7% year-over-year to $6.49 billion, edging past the $6.46 billion estimate. The headline driver was a 10% jump in adjusted EBITDA to $1.35 billion, fueled by nearly 6% growth in base management and franchise fees to $1.19 billion, supported by continued rooms expansion and rising co-branded credit card fees. Worldwide RevPAR growth remained modest at 0.5% in constant dollars, as softness in U.S. and Canada, where government travel retreated and lower chain scales underperformed, was largely offset by a 2.6% international gain, with Asia-Pacific leading at nearly 5%. On the development front, Marriott's pipeline reached a record of roughly 596,000 rooms. Looking ahead, the company guided for full-year adjusted diluted EPS of $9.98 to $10.06, with worldwide RevPAR growth of 1.5% to 2.5% and capital returns to shareholders of approximately $4.00 billion.
- Rooms growth and higher co-branded credit card fees drove 6% increase in base management and franchise fees
- International RevPAR grew 2.6%, led by APEC with nearly 5% growth (Japan, Australia, Vietnam)
- Luxury hotels globally outperformed with RevPAR rising 4%
- U.S. & Canada RevPAR declined 0.4% due to weaker demand in lower chain scales from reduced government travel
- Conversions comprised approximately one-third of signings and openings
- Insurance recoveries related to 2018 Starwood data breach contributed $40 million benefit
- Lower G&A expenses reflecting absence of prior-year operating guarantee reserve and lower compensation costs
“Our third quarter results demonstrated continued strong execution of our growth strategy, the power of our brands, and the cash flow benefits of our asset-light business model. We delivered another quarter of strong rooms growth, robust development signings and profit gains.”
Marriott International CEO, on the earnings call
Forward Guidance & Outlook
Marriott's updated outlook assumes continuation of the current macroeconomic environment. For Q4 2025, the company expects worldwide RevPAR growth of 1.0%-2.0%, gross fee revenues of $1,382M-$1,402M, adjusted EBITDA of $1,371M-$1,401M, and adjusted diluted EPS of $2.54-$2.62. For full year 2025, worldwide RevPAR growth is expected at 1.5%-2.5%, gross fee revenues of $5,395M-$5,415M, adjusted EBITDA of $5,352M-$5,382M, and adjusted diluted EPS of $9.98-$10.06. Net rooms growth is expected to approach 5% for full year 2025. Capital return to shareholders is expected at approximately $4.0 billion for the year. Investment spending is approximately $1,450M including $349M for the citizenM acquisition.
MAR YoY Financials
MAR Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.