BETHESDA, Maryland—Marriott International, Inc. reported its second-quarter 2025 outcomes. Highlights embrace:
- Second-quarter 2025 RevPAR elevated 1.5 % worldwide, with 5.3 % development in worldwide markets and U.S. & Canada RevPAR according to the year-ago quarter
- Second-quarter reported diluted EPS totaled $2.78, and adjusted diluted EPS totaled $2.65
- Second-quarter reported web earnings totaled $763 million, and adjusted web earnings totaled $728 million
- Second-quarter adjusted EBITDA totaled $1,415 million
- The corporate added roughly 17,300 web rooms in the course of the quarter, and web rooms grew 4.7 % from the tip of the second quarter of 2024
- On the finish of the quarter, Marriott’s worldwide improvement pipeline reached a brand new document and totaled roughly 3,900 properties and over 590,000 rooms
- The corporate repurchased 2.8 million shares of widespread inventory for $0.7 billion within the second quarter of 2025. Yr up to now by means of July 30, the corporate has returned roughly $2.1 billion to shareholders by means of dividends and share repurchases
Anthony Capuano, president and chief govt officer, mentioned, “Marriott delivered one other strong quarter, highlighted by robust monetary outcomes and sturdy web rooms development regardless of heightened macro-economic uncertainty. International RevPAR elevated 1.5 % within the second quarter, primarily pushed by the leisure section. Worldwide RevPAR rose over 5 %, with robust development in APEC and EMEA. Within the U.S. & Canada, RevPAR was flat yr over yr with continued power within the luxurious section offset by a decline in choose service demand, largely reflecting lowered authorities journey and weaker enterprise transient demand. Adjusting for the Easter vacation shift, U.S. & Canada RevPAR elevated by almost 1 %.
“Improvement exercise remained sturdy. We signed almost 32,000 rooms, over 70 % of which have been in worldwide markets, and our quarter-end pipeline stood at a document of greater than 590,000 rooms. Conversions continued to be a key driver of development, representing roughly 30 % of our room signings and openings within the first half of this yr. We nonetheless count on full-year web rooms development to method 5 % this yr.
“With our technique to be all over the place our friends need us to be, we expanded our industry-leading world model portfolio with the launch of Collection by Marriott™, a brand new regional assortment model focusing on the midscale and upscale segments. We’re enthusiastic about our founding deal to affiliate the Fern portfolio of manufacturers in India with Collection by Marriott, and by the robust curiosity from house owners world wide on this extension of our profitable mushy model mannequin. We additionally just lately accomplished the acquisition of the modern life-style model citizenM, additional broadening choices for our friends, Marriott Bonvoy members, and house owners. We consider each of those new manufacturers have significant world development potential.
“We proceed to reinforce our highly effective Marriott Bonvoy journey platform. Membership reached almost 248 million members on the finish of June, and we’re deepening engagement by means of distinctive experiences and strategic collaborations.
“Our ends in the second quarter underscore the resiliency of our cash-generating, asset-light enterprise mannequin and the power of our manufacturers. Yr up to now by means of July 30, we have now returned roughly $2.1 billion to our shareholders by means of share repurchases and dividends, and we stay on observe to return roughly $4 billion for full-year 2025.”
Second Quarter 2025 Outcomes
Base administration and franchise charges totaled $1,200 million within the second quarter of 2025, a virtually 5 % enhance in comparison with base administration and franchise charges of $1,148 million within the year-ago quarter. Greater RevPAR, rooms development, and co-branded bank card charges have been key contributors to the rise.
Incentive administration charges totaled $200 million within the second quarter of 2025, in comparison with $195 million within the second quarter of 2024, pushed by robust worldwide lodge outcomes. Managed accommodations in worldwide markets contributed almost two-thirds of the motivation charges earned within the quarter.
Owned, leased, and different income, web of direct bills, totaled $113 million within the second quarter of 2025, in comparison with $99 million within the second quarter of 2024. The rise was primarily pushed by the addition of the Sheraton Grand Chicago to the corporate’s portfolio of owned accommodations.
Common, administrative, and different bills for the second quarter of 2025 totaled $245 million, in comparison with $248 million within the year-ago quarter. The year-over-year change largely displays decrease compensation prices.
Curiosity expense, web, totaled $191 million within the second quarter of 2025, in comparison with $164 million within the year-ago quarter. The rise was largely resulting from increased curiosity expense related to increased debt balances.
Within the second quarter of 2025, the supply for earnings taxes totaled $291 million in comparison with $268 million within the second quarter of 2024.
Marriott’s reported working earnings totaled $1,236 million within the second quarter of 2025, in comparison with the second quarter of 2024 reported working earnings of $1,195 million. Reported web earnings totaled $763 million within the second quarter of 2025, a 1 % lower in comparison with the second quarter of 2024 reported web earnings of $772 million. Reported diluted earnings per share (EPS) totaled $2.78 within the quarter, in comparison with reported diluted EPS of $2.69 within the year-ago quarter.
Adjusted working earnings within the second quarter of 2025 totaled $1,186 million, in comparison with the second quarter of 2024 adjusted working earnings of $1,120 million. The second quarter of 2025 adjusted web earnings totaled $728 million, in comparison with the second quarter of 2024 adjusted web earnings of $716 million. Adjusted diluted EPS within the second quarter of 2025 totaled $2.65, in comparison with adjusted diluted EPS of $2.50 within the year-ago quarter.
Adjusted outcomes excluded value reimbursement income, reimbursed bills, restructuring and merger-related costs, and, for the second quarter of 2025, earnings tax particular gadgets.
Adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) totaled $1,415 million within the second quarter of 2025, a 7 % enhance in comparison with second-quarter 2024 adjusted EBITDA of $1,324 million.
Chosen Efficiency Data
The corporate added roughly 17,300 web rooms in the course of the quarter, together with greater than 8,500 web rooms in worldwide markets. On the finish of the quarter, Marriott’s world system totaled over 9,600 properties, with roughly 1,736,000 rooms.
On the finish of the quarter, the corporate’s worldwide improvement pipeline totaled 3,858 properties with greater than 590,000 rooms, together with 234 properties with over 37,000 rooms authorised for improvement, however not but topic to signed contracts. The quarter-end pipeline included 1,447 properties with over 238,000 rooms beneath building, together with accommodations which might be within the means of changing to the corporate’s system. Over half of the rooms within the quarter-end pipeline are in worldwide markets. The quarter-end pipeline doesn’t replicate any rooms from the corporate’s acquisition of the citizenM model or from the launch of Collection by Marriott.
Within the second quarter of 2025, worldwide RevPAR elevated 1.5 % (a 1.7 % enhance utilizing precise {dollars}) in comparison with the second quarter of 2024. RevPAR within the U.S. & Canada was flat (a 0.1 % lower utilizing precise {dollars}) year-over-year, and RevPAR in worldwide markets elevated 5.3 % (a 6.1 % enhance utilizing precise {dollars}) year-over-year.
