BETHESDA, Maryland—Marriott International, Inc. reported its third-quarter 2025 outcomes. Highlights embody:
- Third-quarter 2025 RevPAR elevated 0.5 % worldwide, with 2.6 % development in worldwide markets and a 0.4 % decline in america and Canada.
- Third-quarter reported diluted EPS totaled $2.67, and adjusted diluted EPS totaled $2.47
- Third-quarter reported internet earnings totaled $728 million, and adjusted internet earnings totaled $674 million
- Third-quarter adjusted EBITDA totaled $1,349 million
- The corporate added roughly 17,900 internet rooms throughout the quarter, and internet rooms grew 7 % from the tip of the third quarter of 2024
- On the finish of the quarter, Marriott’s worldwide improvement pipeline reached a brand new report and totaled roughly 3,900 properties and over 596,000 rooms
- The corporate repurchased 3.0 million shares of frequent inventory for $0.8 billion within the 2025 third-quarter. 12 months-to-date by way of October 30, the corporate has returned roughly $3.1 billion to shareholders by way of dividends and share repurchases
Anthony Capuano, president and chief government officer, mentioned, “Our third quarter outcomes demonstrated continued sturdy execution of our development technique, the facility of our manufacturers, and the money circulation advantages of our asset-light enterprise mannequin. We delivered one other quarter of sturdy rooms development, strong improvement signings and revenue good points.
“International RevPAR rose 0.5 % within the third quarter, impacted by calendar shifts and ongoing macroeconomic uncertainty. Worldwide RevPAR elevated 2.6 %, led by APEC, which delivered practically 5 % development fueled by sturdy efficiency in key markets like Japan, Australia and Vietnam. In america and Canada, RevPAR declined 0.4 % as a consequence of weaker demand within the decrease chain scales, largely reflecting lowered authorities journey. Globally, our luxurious resorts continued to outperform, pushed by strong demand and powerful charge efficiency, with luxurious RevPAR rising 4 % within the quarter.
“Our various portfolio of manufacturers, that vary from midscale to luxurious, and embody conventional, prolonged keep, and distinctive lodging choices like cabins and safari lodges, continues to drive sturdy proprietor choice. Throughout the first 9 months of the 12 months, we had report year-to-date signings, and our momentum on conversions continued, comprising round one-third of our signings and openings. We nonetheless count on internet rooms development to strategy 5 % for full-year 2025 and be within the mid-single-digit vary over the following few years.
“The facility of Marriott Bonvoy has continued to develop. The platform has meaningfully advanced and expanded during the last a number of years to supply vacationers distinctive lodge stays in addition to a variety of experiences, advantages, and providers throughout their journey journeys. Throughout the third quarter, we added one other 12 million members, bringing complete international membership to almost 260 million. Member penetration remained sturdy at 75 % in america and Canada and 68 % globally, reflecting deep engagement with our increasing international member base.
“Our strong monetary efficiency and powerful money technology allowed us to return roughly $3.1 billion to our shareholders year-to-date by way of October 30 by way of share repurchases and dividends. We proceed to count on to return roughly $4.0 billion to our shareholders in 2025.”
Third-Quarter 2025 Outcomes
Base administration and franchise charges totaled $1,190 million within the third quarter of 2025, an almost 6 % enhance in comparison with base administration and franchise charges of $1,124 million within the year-ago quarter. The rise was primarily pushed by rooms development and better co-branded bank card charges.
Incentive administration charges totaled $148 million within the third quarter of, in comparison with $159 million within the 2024 third quarter, primarily reflecting declines in america and Canada. Managed resorts in worldwide markets contributed roughly three-quarters of the inducement charges earned within the quarter.
Owned, leased, and different income, internet of direct bills, totaled $94 million within the third quarter of 2025, in comparison with $81 million within the third quarter of 2024. The rise was primarily pushed by the addition of the Sheraton Grand Chicago to the corporate’s portfolio of owned resorts within the fourth quarter of 2024.
Normal, administrative, and different bills for the 2025 third quarter totaled $234 million, in comparison with $276 million within the year-ago quarter. The year-over-year change largely displays a $19 million working assure reserve for a U.S. lodge within the third quarter of 2024, in addition to decrease compensation prices.
Within the third quarter of 2025, restructuring and merger-related recoveries/prices, and different bills totaled a $40 million profit in comparison with a $9 million expense within the year-ago quarter. The year-over-year change was primarily pushed by insurance coverage recoveries associated to the 2018 Starwood visitor reservations database safety incident.
Curiosity expense, internet, totaled $194 million within the third quarter of 2025, in comparison with $168 million within the year-ago quarter. The rise was largely as a consequence of larger curiosity expense related to larger debt balances.
Within the third quarter of 2025, the supply for earnings taxes totaled $266 million in comparison with $202 million within the third quarter of 2024.
Marriott’s reported working earnings totaled $1,180 million within the third quarter of 2025, in comparison with the 2024 third-quarter reported working earnings of $944 million. Reported internet earnings totaled $728 million within the third quarter of 2025, a 25 % enhance in comparison with the 2024 third-quarter reported internet earnings of $584 million. Reported diluted earnings per share (EPS) totaled $2.67 within the quarter, in comparison with reported diluted EPS of $2.07 within the year-ago quarter.
Adjusted working earnings within the third quarter of 2025 totaled $1,119 million, in comparison with the 2024 third-quarter adjusted working earnings of $1,017 million. Third-quarter 2025 adjusted internet earnings totaled $674 million, in comparison with 2024 third-quarter adjusted internet earnings of $638 million. Adjusted diluted EPS within the third quarter of 2025 totaled $2.47, in comparison with adjusted diluted EPS of $2.26 within the year-ago quarter.
Adjusted outcomes excluded price reimbursement income, reimbursed bills, and restructuring and merger-related recoveries/prices, and different bills.
Adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) totaled $1,349 million within the third quarter of 2025, a ten % enhance in comparison with the third-quarter 2024 adjusted EBITDA of $1,229 million.
Chosen Efficiency Info
The corporate added roughly 17,900 internet rooms throughout the quarter, together with practically 13,900 internet rooms in worldwide markets. On the finish of the quarter, Marriott’s international system totaled over 9,700 properties, with roughly 1,754,000 rooms.
On the finish of the quarter, the corporate’s worldwide improvement pipeline totaled 3,923 properties with greater than 596,000 rooms, together with 229 properties with practically 36,000 rooms authorised for improvement, however not but topic to signed contracts. The quarter-end pipeline included 1,536 properties with over 250,000 rooms underneath building, together with resorts which can be within the strategy of changing to the corporate’s system. Over half of the rooms within the quarter-end pipeline are in worldwide markets. The quarter-end system dimension and pipeline don’t mirror any rooms from the acquisition of the citizenM model.
Within the third quarter of 2025, worldwide RevPAR elevated 0.5 % (a 1.3 % enhance utilizing precise {dollars}) in comparison with the third quarter of 2024. RevPAR in america and Canada declined 0.4 % (a 0.4 % lower utilizing precise {dollars}) year-over-year, and RevPAR in worldwide markets elevated 2.6 % (a 5.3 % enhance utilizing precise {dollars}) year-over-year.
Steadiness Sheet & Widespread Inventory
On the finish of the quarter, Marriott’s complete debt was $16.0 billion and money and equivalents totaled $0.7 billion, in comparison with $14.4 billion in debt and $0.4 billion of money and equivalents at year-end 2024.
The corporate repurchased 3.0 million shares of frequent inventory within the third quarter of 2025 for $0.8 billion. 12 months-to-date by way of October 30, the corporate has repurchased 9.7 million shares for $2.6 billion.
Within the third quarter of 2025, the corporate issued $400 million of Sequence TT Senior Notes due in 2027 with a 4.20 % rate of interest coupon, $500 million of Sequence UU Senior Notes due in 2031 with a 4.50 % rate of interest coupon, and $600 million of Sequence VV Senior Notes due in 2035 with a 5.25 % rate of interest coupon.
