Marriott holds RevPAR growth guidance

BETHESDA, Maryland – Marriott International reported a 0.5% global RevPAR gain during the third quarter with U.S. and Canada declining 0.4% due to weaker demand in the lower chain scales, largely reflecting reduced government travel.

International RevPAR increased 2.6%, led by APEC, which delivered nearly 5% growth fueled by strong performance in key markets like Japan, Australia and Vietnam.

Globally, Marriott luxury hotels continued to outperform, driven by robust demand and strong rate performance, with luxury RevPAR rising 4% in the quarter.

Full-year RevPAR growth guidance is unchanged at 1.5%-2.5%, and Marriott is forecasting 1.0%-2.0% growth in 4Q25 with strength in international markets and higher-end chain scale performance. Full-year Adjusted EBITDA guidance is increasing to reflect the $46 million beat in 3Q25 and a $31.5 million decrease in 4Q25, according to R.W. Baird analyst Michael Bellisario.

President and CEO Anthony Capuano said that during the first nine months of the year, Marriott had record year-to-date signings with momentum on conversions continuing, comprising around one-third of their signings and openings. “We still expect net rooms growth to approach 5% for full year 2025 and be in the mid-single-digit range over the next few years,” he said.

The company added roughly 17,900 net rooms during the quarter, including nearly 13,900 net rooms in international markets. At the end of the quarter, Marriott’s global system totaled over 9,700 properties, with approximately 1,754,000 rooms.

At the end of the quarter, the worldwide development pipeline totaled 3,923 properties with more than 596,000 rooms, including 229 properties with nearly 36,000 rooms approved for development, but not yet subject to signed contracts. The quarter-end pipeline included 1,536 properties with over 250,000 rooms under construction, including hotels that are in the process of converting to the Marriott system. Over half of the rooms in the quarter-end pipeline are in international markets.

Base management and franchise fees totaled $1.190 billion in the 2025 third quarter, a nearly 6% year-over-year increase. The increase was primarily driven by rooms growth and higher co-branded credit card fees.

Incentive management fees totaled $148 million in the third quarter, compared to $159 million a year ago, primarily reflecting declines in the U.S. and Canada. Managed hotels in international markets.

Gross fee revenues were +$13 million versus the high-end of guidance, according to Bellisario.

Marriott’s reported operating income totaled $1.180 billion in the third quarter, compared to $944 million a year ago. Reported net income totaled $728 million in the third quarter, a 25% year-over-year increase. Reported diluted earnings per share (EPS) totaled $2.67 in the quarter, compared to $2.07 a year ago.

Adjusted operating income in the 2025 third quarter totaled $1.119 million, compared to $1.017 billion a year ago. Third quarter 2025 adjusted net income totaled $674 million $638 million last year. Adjusted diluted EPS in the 2025 third quarter totaled $2.47, compared to $2.26 in the year-ago quarter.

Adjusted EBITDA totaled $1.349 million in the 2025 third quarter, a 10% increase compared to third quarter a year ago.