Marriott International Reports Strong First Quarter 2025 Results

Anthony Capuano, President and CEO of Marriott International, stated, "The combination of continued travel demand, the strength of our brands and our fee-driven business model drove strong financial results in the first quarter." The company reported a global Revenue Per Available Room (RevPAR) increase of 4.1%, primarily fueled by higher Average Daily Rates (ADR). Notably, international markets saw RevPAR growth nearing 6%, particularly in the Asia-Pacific (APEC) region, which recorded double-digit gains. Meanwhile, the U.S. and Canada markets experienced a RevPAR increase of 3.3%, although growth slowed in March.

Marriott's development pipeline appears robust, with over 34,000 room signings in the first quarter, marking a record for the company. Approximately two-thirds of these signings were in international markets, and conversions accounted for about a third of the new room signings. Capuano expressed enthusiasm about the recent agreement to acquire the citizenM brand, a lifestyle lodging offering in the select-service segment, predicting strong global growth potential for the brand.

Marriott revised its net rooms growth outlook to approach 5% for the full year of 2025, contingent upon the successful closing of the citizenM acquisition before year-end.

The press release detailed the following key financial results for the first quarter of 2025:

Marriott's operating income for the quarter totaled $948 million, up from $876 million a year earlier. The net income reported was $665 million, representing an 18% increase from $564 million in the prior year. Additionally, diluted earnings per share (EPS) rose to $2.39, compared to $1.93 in Q1 2024.

Adjusted operating income for the quarter amounted to $1,016 million, an increase from $952 million in the previous year. Adjusted net income stood at $645 million, up from $620 million, with adjusted diluted EPS at $2.32, compared to $2.13 a year earlier.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $1,217 million, representing a 7% increase from the prior year.

By the end of the first quarter, Marriott's global system included nearly 9,500 properties with approximately 1.72 million rooms. The worldwide development pipeline numbered 3,808 properties with more than 587,000 rooms. Notably, over half of these properties are located in international markets.

Marriott's updated outlook reflects the continuation of current booking trends, with expectations for RevPAR growth in the second quarter of 2025 projected between 1.5% and 2.5%, and for the full year between 1.5% and 3.5%.

For the full year 2025, Marriott anticipates gross fee revenues ranging from $5.365 billion to $5.475 billion and adjusted EBITDA between $5.285 billion and $5.425 billion. The company plans to return approximately $4 billion to shareholders through capital returns.

Marriott International's first quarter results reflect strong financial performance amid ongoing macroeconomic uncertainty. The company's strategic initiatives, including the acquisition of citizenM and a robust development pipeline, position it well for sustainable growth in the hospitality sector. With a solid loyalty program and a commitment to enhancing guest experiences, Marriott remains a formidable player in the global hotel industry.