BETHESDA, Maryland—Marriott Worldwide, Inc. reported second-quarter 2025 outcomes. Highlights embrace:
- Second-quarter 2025 RevPAR elevated 1.5 p.c worldwide, with 5.3 p.c progress in worldwide markets and U.S. & Canada RevPAR consistent with 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 p.c 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 frequent inventory for $0.7 billion within the second quarter of 2025. Yr thus far by July 30, the corporate has returned roughly $2.1 billion to shareholders by dividends and share repurchases
Anthony Capuano, president and chief govt officer, mentioned, “Marriott delivered one other stable quarter, highlighted by sturdy monetary outcomes and strong web rooms progress regardless of heightened macro-economic uncertainty. World RevPAR elevated 1.5 p.c within the second quarter, primarily pushed by the leisure section. Worldwide RevPAR rose over 5 p.c, with sturdy progress in APEC and EMEA. Within the U.S. & Canada, RevPAR was flat 12 months over 12 months with continued power within the luxurious section offset by a decline in choose service demand, largely reflecting decreased authorities journey and weaker enterprise transient demand. Adjusting for the Easter vacation shift, U.S. & Canada RevPAR elevated by practically 1 p.c.
“Growth exercise remained strong. We signed practically 32,000 rooms, over 70 p.c of which had 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 progress, representing roughly 30 p.c of our room signings and openings within the first half of this 12 months. We nonetheless anticipate full-year web rooms progress to strategy 5 p.c this 12 months.
“With our technique to be in all places our company need us to be, we expanded our industry-leading international 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 sturdy curiosity from house owners all over the world on this extension of our profitable mushy model mannequin. We additionally just lately accomplished the acquisition of the revolutionary life-style model citizenM, additional broadening choices for our company, Marriott Bonvoy members, and house owners. We consider each of those new manufacturers have significant international progress potential.
“We proceed to boost our highly effective Marriott Bonvoy journey platform. Membership reached practically 248 million members on the finish of June, and we’re deepening engagement by 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 thus far by July 30, we’ve returned roughly $2.1 billion to our shareholders by 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, an almost 5 p.c improve in comparison with base administration and franchise charges of $1,148 million within the year-ago quarter. Increased RevPAR, rooms progress, and co-branded bank card charges had 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 sturdy worldwide resort outcomes. Managed accommodations in worldwide markets contributed practically two-thirds of the inducement 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.
Basic, 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 because of 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 p.c 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 price reimbursement income, reimbursed bills, restructuring and merger-related fees, 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 p.c improve in comparison with second-quarter 2024 adjusted EBITDA of $1,324 million.
Chosen Efficiency Info
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 international 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 below building, together with accommodations which are 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 p.c (a 1.7 p.c improve utilizing precise {dollars}) in comparison with the second quarter of 2024. RevPAR within the U.S. & Canada was flat (a 0.1 p.c lower utilizing precise {dollars}) year-over-year, and RevPAR in worldwide markets elevated 5.3 p.c (a 6.1 p.c improve utilizing precise {dollars}) year-over-year.
