International drives Marriott’s Q4 RevPAR gains

BETHESDA, Maryland — Marriott International saw overall RevPAR grow 1.9% in Q4, powered by international growth despite stagnant growth in the U.S. and Canada..

RevPAR in Q4 grew 6% internationally and dropped 0.1% in the U.S. and Canada. For full-year 2025, Marriott saw 2% RevPAR growth, with 5.1% growth internationally and a 0.7% increase in the U.S. and Canada.

Net unit growth was 4.3% year-over-year for the full year 2025, with approximately 1,200 development deals and about 163,000 rooms signed globally, of which over 30% were conversions.

Marriott also issued full-year 2026 guidance, including worldwide RevPAR growth of 1.5-2.5% and net unit growth of 4.5-5%. The guidance also included 2026 gross fee revenue growth of $5.895-5.955 billion and adjusted EBITDA growth of 8-10%.

R.W. Baird analyst Michael Bellisario said Marriott’s earnings were incrementally positive on the better than expected international performance.

“All the focus will be on Marriott's 2026 guidance, in our view, which is well above Baird/Street expectations, particularly gross fee revenues and adjusted EBITDA (both +3% versus estimates). The upside variance is due to better co-branded credit card fees from higher assumed spending and a higher royalty rate earned (not from incremental economics due to a renewal, negotiations for which remain ongoing, according to Marriott).”

Analyst Patrick Scholes of Truist Securities said his company sees upside in Marriott’s earnings primarily from the announcement of its 35% YOY growth in co-branded credit card fees.

“[This is] a material acceleration from what we believe was a high-single digit growth rate of the past two years and this without an announced new credit card deal,” he said. 

Marriott President and CEO Anthony Capuano said domestic RevPAR was stagnant in Q4 primarily because of the extended government shutdown’s effect on the business transient segment, while international RevPAR benefited primarily from overperformance in luxury and solid leisure transient and cross-border travel in EMEA and Asia Pacific.

“During the fourth quarter, we completed the integration of the citizenM portfolio, adding 37 hotels and nearly 8,800 rooms to our system,” he said. “We marked the opening of the first 37 Series by Marriott hotels in India and expanded the brand into the U.S. and Canada, with its first two properties opening just months after the brand’s regional debut.”

Other Q4 results

• 2025 net unit growth of 4.3% included roughly 73,600 net rooms added during the year, including approximately 51,600 net rooms in international markets. At the end of 2025, Marriott’s global system totaled over 9,800 properties, with nearly 1,780,000 rooms.
• At the end of 2025, Marriott’s development pipeline totaled 4,056 properties with nearly 610,000 rooms, including 234 properties with over 35,000 rooms approved for development, but not yet subject to signed contracts. The pipeline included 1,648 properties with nearly 265,000 rooms under construction, including hotels in the process of converting to Marriott.
• Franchise and base management fees totaled $1.186 million in Q4, a 5% increase YOY, which was primarily driven by rooms growth, RevPAR increases and higher co-branded credit card fees.
• Incentive management fees totaled $239 million in Q4, compared to $206 million in the 4Q24, driven by significant YOY increases in the U.S. & Canada. Managed hotels in international markets contributed roughly two-thirds of the incentive fees earned in the quarter.
• Owned, leased, and other revenue, net of owned, leased, and other expenses, totaled $41 million in Q4, compared to $72 million in 4Q24, including $23 million of expenses related to the termination of Marriott’s licensing agreement with Sonder Holdings Inc.
• General and administrative expenses in Q4 totaled $241 million, compared to $261 million in 4Q24, primarily driven by lower compensation costs and litigation expenses.