Marriott International, Inc. (MAR Quick QuoteMAR - Free Report) reported first-quarter 2025 results, with adjusted earnings beating the Zacks Consensus Estimate but revenues missing the same. Earnings surpassed the estimate for the second straight quarter. Both metrics increased year over year.

Marriott’s president and CEO, Anthony Capuano, attributed the strong first-quarter performance to resilient travel demand, the power of its brand portfolio and a fee-based business model.

MAR continued to see strong momentum in its development pipeline, achieving a record for first-quarter signings with more than 34,000 rooms added, nearly two-thirds of which were in international markets. Conversions played a significant role in this growth, accounting for approximately one-third of both new room signings and openings.

MAR’s Q1 Earnings & Revenue Discussion

Marriott’s adjusted earnings per share (EPS) of $2.32 beat the Zacks Consensus Estimate of $2.27. It reported adjusted earnings of $2.13 per share in the prior-year quarter. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

Quarterly revenues of $6,263 million marginally missed the consensus mark of $6,275 million. However, the top line moved up 5% on a year-over-year basis.

Revenues from Base management and Franchise fees were $325 million and $746 million, respectively, up 4% and 8% year over year. We estimated the metrics to be $322.1 million and $721.9 million, respectively.

Incentive management fees were $204 million, reflecting a fall of 2% from $209 million reported in the prior-year quarter. We projected the metric to be $210.1 million.

MAR’s RevPAR & Margins

RevPAR for worldwide comparable system-wide properties rose 5.2% (in constant dollars) year over year. This upside was backed by a 3.4% increase in average daily rate (“ADR”) and a 1.2% rise in occupancy year over year.

Comparable system-wide RevPAR in the Asia Pacific (excluding China) increased 10.6% (in constant dollars) year over year. Occupancy moved up 1.7% year over year, while ADR rose 8%. Comparable system-wide RevPAR in Greater China declined 2.1% year over year.

On a constant-dollar basis, international comparable system-wide RevPAR increased 5.2% year over year. Occupancy and ADR gained 1.1% and 3.5%, respectively, year over year. Comparable system-wide RevPAR in Europe gained 5.1% year over year. RevPAR in the Caribbean & Latin America and Middle East & Africa rose 10.8% and 4.5%, respectively, year over year.

Total expenses decreased 4% year over year to $5.31 billion, owing to a decline in reimbursed expenses. Our estimate was pegged at $5.32 billion.

Adjusted EBITDA amounted to $1.21 billion compared with $1.14 billion reported in the prior-year quarter. We predicted the metric to be $1.19 billion.

Balance Sheet of MAR

At the first-quarter end, Marriott's total debt was $15.1 billion compared with $14.4 billion reported in the prior quarter. Cash and cash equivalents, as of March 31, 2025, were $0.5 billion compared with $0.4 billion as of 2024-end.

Year to date (through April 29, 2025), the company repurchased 2.8 million shares worth $0.8 billion.

MAR’s Unit Developments

At the end of the first quarter, Marriott's worldwide development pipeline totaled 3,808 hotels. As of the quarter's end, about 1,447 properties with more than 244,000 rooms were under construction.

Marriott’s Q2 & 2025 Outlook

For the second quarter, management anticipates gross fee revenues in the range of $1.38-$1.39 billion. Adjusted EBITDA is expected to be between $1.37 billion and $1.39 billion. MAR estimates second-quarter EPS to be between $2.57 and $2.62.
The company projects worldwide system-wide RevPAR to increase 1.5-3.5% year over year in 2025, compared with the prior estimate of 2-4% growth.

For 2025, Marriott continues to expect its gross fee revenues to be $5.37-$5.48 billion. General and administrative expenses are projected in the range of $965-$985 million.

Adjusted EBITDA is expected to be between $5.3 billion and $5.4 billion. The company continues to envision 2025 EPS in the band of $9.82-$10.19.

MAR’s Zacks Rank

Marriott currently carries a Zacks Rank #3 (Hold).

Key Picks

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