Marriott International : MAR Q1 2025 Press Release FINAL with schedules

Published: 2025-06-02 09:30:07 ET MAR

Published on 06/02/2025 at 09:30

Marriott International Reports First Quarter 2025 Results

For a summary of quarterly highlights, please visit: https://news.marriott.com/static-assets/ component-resources/newscenter/earnings/2025/2025-q1-earnings-infographic.pdf

BETHESDA, MD - May 6, 2025 - Marriott International, Inc. (Nasdaq: MAR) today reported first quarter 2025 results.

Anthony Capuano, President and Chief Executive Officer, said, "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. Despite heightened macro-economic uncertainty, global RevPAR rose over 4 percent, primarily driven by higher ADR, and our development momentum remained positive. Our international markets experienced particularly robust growth, with RevPAR increasing nearly 6 percent, led by double-digit gains in APEC. RevPAR in the U.S. & Canada rose over 3 percent in the first quarter, although we did see slower growth in March.

1All occupancy, Average Daily Rate (ADR) and Revenue Per Available Room (RevPAR) statistics and estimates are systemwide constant dollar. Unless otherwise stated, all changes refer to year-over-year changes for the comparable period. Occupancy, ADR and RevPAR comparisons between 2025 and 2024 reflect properties that are comparable in both years.

"The strong momentum in our development activity continued, with record first quarter signings of over 34,000 rooms, of which two-thirds were in international markets. Conversions remained a key driver of growth, representing around a third of our room signings and openings.

"We are committed to growing our global portfolio and enhancing offerings for our guests, Marriott Bonvoy members and hotel owners. Last week, we announced that we have reached an agreement to acquire the citizenM brand, an innovative lifestyle lodging offering in the select-service segment. We are excited about the global growth prospects for this brand, given the unique and differentiated nature of the offering and our successful track record with other acquired brands like AC Hotels. Our net rooms growth outlook remains strong, and we now expect our full year 2025 net rooms growth to approach 5 percent, assuming the purchase closes before year end.

"We remain focused on expanding our industry-leading Marriott Bonvoy travel platform and loyalty program membership and on deepening engagement through numerous unique experiences and collaborations. By the end of March, our loyalty program membership base had grown to nearly 237 million members worldwide.

"Despite uncertainty about the macro-economic outlook, we are confident that the power of our industry-leading global portfolio, the strength of our Marriott Bonvoy travel platform and loyalty program, our dedicated associates, and resilient asset-light business model, position us very well for sustainable, long-term growth."

First Quarter 2025 Results

Base management and franchise fees totaled $1,071 million in the 2025 first quarter, a 7 percent increase compared to base management and franchise fees of $1,001 million in the year-ago quarter. The increase is primarily attributable to RevPAR increases and unit growth, as well as higher residential and co-branded credit card fees.

Incentive management fees totaled $204 million in the 2025 first quarter, compared to $209 million in the 2024 first quarter. Managed hotels in international markets contributed nearly two-thirds of the incentive fees earned in the quarter.

Owned, leased, and other revenue, net of direct expenses, totaled $65 million in the 2025 first quarter, compared to $71 million in the 2024 first quarter. The decrease was primarily driven by lower termination fees.

General, administrative, and other expenses for the 2025 first quarter totaled $245 million, compared to $261 million in the year-ago quarter. The year-over-year decline largely reflects lower compensation costs primarily resulting from our enterprise-wide initiative to enhance effectiveness and efficiency across the company.

Interest expense, net, totaled $183 million in the 2025 first quarter, compared to $153 million in the year-ago quarter. The increase was largely due to higher interest expense associated with higher debt balances.

In the 2025 first quarter, the provision for income taxes totaled $99 million compared to $163 million in the 2024 first quarter. The year-over-year change primarily reflects an $86 million favorable impact from the release of certain tax reserves.

Marriott's reported operating income totaled $948 million in the 2025 first quarter, compared to 2024 first quarter reported operating income of $876 million. Reported net income totaled $665 million in the 2025 first quarter, an 18 percent increase compared to 2024 first quarter reported net income of

$564 million. Reported diluted earnings per share (EPS) totaled $2.39 in the quarter, compared to reported diluted EPS of $1.93 in the year-ago quarter.

Adjusted operating income in the 2025 first quarter totaled $1,016 million, compared to 2024 first quarter adjusted operating income of $952 million. First quarter 2025 adjusted net income totaled

$645 million, compared to 2024 first quarter adjusted net income of $620 million. Adjusted diluted EPS in the 2025 first quarter totaled $2.32, compared to adjusted diluted EPS of $2.13 in the year-ago quarter. The 2025 first quarter adjusted results excluded the benefit of an income tax special item of

$71 million ($0.25 per share).

Adjusted results also excluded cost reimbursement revenue, reimbursed expenses, and restructuring and merger-related charges. See the press release schedules for the calculation of adjusted results and the manner in which the adjusted measures are determined in this press release.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $1,217 million in the 2025 first quarter, a 7 percent increase compared to first quarter 2024 adjusted EBITDA of $1,142 million. See the press release schedules for the adjusted EBITDA calculation.

Selected Performance Information

The company added roughly 12,200 net rooms during the quarter, including more than 7,300 net rooms in international markets. At the end of the quarter, Marriott's global system totaled nearly 9,500 properties, with approximately 1,719,000 rooms.

At the end of the quarter, the company's worldwide development pipeline totaled 3,808 properties with more than 587,000 rooms, including 171 properties with over 27,000 rooms approved for development, but not yet subject to signed contracts. The quarter-end pipeline included 1,447 properties with nearly 244,000 rooms under construction, including hotels that are in the process of

converting to our system. Over half of the rooms in the quarter-end pipeline are in international markets. We also expect additional properties to join our system upon closing of our planned acquisition of the citizenM brand. The citizenM portfolio currently includes 36 open hotels with 8,544 rooms and 3 pipeline hotels with over 600 rooms.

In the 2025 first quarter, worldwide RevPAR increased 4.1 percent (a 2.7 percent increase using actual dollars) compared to the 2024 first quarter. RevPAR in the U.S. & Canada increased 3.3 percent (a 3.0 percent increase using actual dollars), and RevPAR in international markets increased 5.9 percent (a 2.2 percent increase using actual dollars).

Balance Sheet & Common Stock

At the end of the quarter, Marriott's total debt was $15.1 billion and cash and equivalents totaled $0.5 billion, compared to $14.4 billion in debt and $0.4 billion of cash and equivalents at year-end 2024.

The company repurchased 2.8 million shares of common stock in the 2025 first quarter for $0.8 billion. Year to date through April 29, the company has repurchased 3.9 million shares for $1.0 billion.

Company Outlook

The Company's updated outlook generally assumes the continuation of current booking trends. Compared to prior expectations, it incorporates somewhat softer expectations in the U.S. & Canada region.

Second Quarter 2025

Full Year 2025

vs. Second Quarter 2024 vs. Full Year 2024

Comparable systemwide constant $ RevPAR growth

Worldwide

1.5% to 2.5%

1.5% to 3.5%

Year-End 2025

vs. Year-End 2024

Net rooms growth

Approaching 5%

($ in millions, except EPS)

Second Quarter 2025

Full Year 2025

Gross fee revenues

$1,380 to $1,395

$5,365 to $5,475

Owned, leased, and other revenue, net of direct

Approx. $100

$345 to $355

expenses

General, administrative, and other expenses

$245 to $240

$985 to $965

Adjusted EBITDA1,2

$1,370 to $1,390

$5,285 to $5,425

Adjusted EPS - diluted2,3

$2.57 to $2.62

$9.82 to $10.19

Effective tax rate

Approx. 27%

Approx. 26%

Investment spending (including $355 million for citizenM)4

$1,355 to $1,455

Capital return to shareholders5

Approx. $4,000

1See the press release schedules for the adjusted EBITDA calculations.

2Adjusted EBITDA and Adjusted EPS - diluted for second quarter and full year 2025 do not include cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges, income tax special items or any potential asset sales or property or brand acquisitions that may occur during the year (other than our planned acquisition of the citizenM brand, which we assume to occur in the second half of 2025), each of which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant. Adjusted EPS - diluted for full year 2025 excludes the benefit of an income tax special item of $71 million.

3Assumes the level of capital return to shareholders noted above.

4This outlook assumes funding of $355 million to complete the citizenM acquisition in the second half of 2025. Investment spending includes capital and technology expenditures, loan advances, contract acquisition costs, and other investing activities, but excludes any other potential property or brand acquisitions, which we cannot forecast with sufficient accuracy and which may be significant.

5Assumes the level and types of investment spending noted above and that no asset sales or property or brand acquisitions occur during the year (other than our planned acquisition of the citizenM brand, which we assume to occur in the second half of 2025).

Marriott International, Inc. (Nasdaq: MAR) will conduct its quarterly earnings review for the investment community and news media on Tuesday, May 6, 2025, at 8:30 a.m. Eastern Time (ET). The conference call will be webcast simultaneously via Marriott's investor relations website at https://http://www.marriott.com/investor, click on "Events & Presentations" and click on the quarterly conference call link. A replay will be available at that same website until May 6, 2026.

The telephone dial-in number for the conference call is US Toll Free: 800-274-8461, or Global:

+1 203-518-9814. The conference ID is MAR1Q25. A telephone replay of the conference call will be available from 1:00 p.m. ET, Tuesday, May 6, 2025, until 8:00 p.m. ET, Tuesday, May 13, 2025. To access the replay, call US Toll Free: 800-723-0520 or Global: +1 402-220-2653 using conference ID MAR1Q25.

Note on forward-looking statements: All statements in this press release and the accompanying schedules are made as of May 6, 2025. We undertake no obligation to publicly update or revise these statements, whether as a result of new information, future events or otherwise. This press release and the accompanying schedules contain "forward-looking statements" within the meaning of federal securities laws, including statements related to our RevPAR, rooms growth and other financial metric estimates, outlook and assumptions; cash generation and shareholder returns; our growth prospects; our development pipeline; our expectations regarding acquisition of the citizenM brand and the brand's growth prospects; our Marriott Bonvoy travel platform and loyalty program; our expectations regarding new offerings; and similar statements concerning anticipated future events and expectations that are not historical facts. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including failure to satisfy the conditions to the consummation of the citizenM transaction; uncertainty resulting from economic, political or other global, national, and regional conditions and events, including related to tariffs, trade, travel and other policies; and the risk factors that we describe in our U.S. Securities and Exchange Commission filings, including our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release.

Marriott International, Inc. (Nasdaq: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of nearly 9,500 properties across more than 30 leading brands in 144 countries and territories. Marriott operates, franchises, and licenses hotel, residential, timeshare, and other lodging properties all around the world. The company offers Marriott Bonvoy®, its highly awarded travel platform. For more information, please visit our website at https://www.marriott.com, and for the latest company news, visit https://www.marriottnewscenter.com. In addition, connect with us on Facebook and @MarriottIntl on X and Instagram.

Marriott encourages investors, the media, and others interested in the company to review and subscribe to the information Marriott posts on its investor relations website at https://www.marriott.com/ investor or Marriott's news center website at https://www.marriottnewscenter.com, which may be material. The contents of these websites are not incorporated by reference into this press release or any report or document Marriott files with the U.S. Securities and Exchange Commission, and any references to the websites are intended to be inactive textual references only.

MEDIA & INVESTOR RELATIONS CONTACTS:

Melissa Froehlich Flood

Senior Vice President, Global Corporate Communications & Public Policy Marriott International

[email protected]

Jackie Burka McConagha

Senior Vice President, Investor Relations Marriott International [email protected]

Pilar Fernandez

Senior Director, Investor Relations Marriott International [email protected]

IRPR#1

Tables follow

Consolidated Statements of Income - As Reported

A-2

Non-GAAP Financial Measures

A-3

Total Lodging Products by Ownership Type

A-4

Total Lodging Products by Tier

A-6

Key Lodging Statistics

A-7

Adjusted EBITDA

A-9

Adjusted EBITDA Forecast - Second Quarter 2025

A-10

Adjusted EBITDA Forecast - Full Year 2025

A-11

Explanation of Non-GAAP Financial and Performance Measures

A-12

($ in millions except per share amounts, unaudited)

As Reported

Three Months Ended

As Reported

Three Months Ended

Percent

Better/(Worse)

March 31, 2025

March 31, 2024

Reported 2025 vs. 2024

REVENUES

Base management fees

325

313

Franchise fees1

746

688

Incentive management fees

204

209

(2)

Gross fee revenues

1,275

1,210

Contract investment amortization2

(28)

(23)

(22)

Net fee revenues

1,247

1,187

Owned, leased, and other revenue3

361

357

Cost reimbursement revenue4

4,655

4,433

6,263

5,977

OPERATING COSTS AND EXPENSES

Owned, leased, and other - direct5

296

286

(3)

Depreciation, amortization, and other6

(13)

General, administrative, and other7

245

261

Restructuring and merger-related charges

Reimbursed expenses4

4,722

4,501

(5)

5,315

5,101

(4)

OPERATING INCOME

948

876

(Losses) gains and other income, net8

(2)

(150)

Interest expense

(192)

(163)

(18)

Interest income

(10)

Equity in earnings9

INCOME BEFORE INCOME TAXES

764

727

Provision for income taxes

(99)

(163)

NET INCOME

665

564

EARNINGS PER SHARE

Earnings per share - basic

2.40

1.94

Earnings per share - diluted

2.39

1.93

Basic shares

276.9

290.4

Diluted shares

277.7

291.6

* Calculated percentage is not meaningful.

1Franchise fees include fees from our franchise and license agreements for lodging properties (including our timeshare properties), application and relicensing fees, co-branded credit card fees, and residential branding fees.

2Contract investment amortization includes amortization of capitalized costs to obtain contracts with customers and any related impairments.

3Owned, leased, and other revenue includes revenue from the properties we own or lease, termination fees, and other revenue.

4Cost reimbursement revenue includes reimbursements from hotel owners and certain other counterparties for property-level and centralized programs and services that we operate for their benefit. Reimbursed expenses include costs incurred by Marriott for certain property-level operating expenses and centralized programs and services that we operate for the benefit of our hotel owners and certain other counterparties.

5Owned, leased, and other - direct expenses include operating expenses related to our owned or leased hotels, including lease payments and pre-opening expenses.

6Depreciation, amortization, and other expenses include depreciation for fixed assets, amortization of acquired contracts, software, and other definite-lived intangible assets, and any related impairments, accelerations, or write-offs.

7General, administrative, and other expenses include our corporate and business segments overhead costs and general expenses.

8(Losses) gains and other income, net includes gains and losses on the sale of real estate, the sale of joint venture interests and other investments, and adjustments from other equity investments.

9Equity in earnings include our equity in earnings or losses of unconsolidated equity method investments.

($ in millions except per share amounts)

The following table presents our reconciliations of Adjusted operating income, Adjusted operating income margin, Adjusted net income, and Adjusted diluted earnings per share, to the most directly comparable GAAP measure. Adjusted total revenues is used in the determination of Adjusted operating income margin.

Three Months Ended

Percent

March 31,

Better/

2025

2024

(Worse)

Total revenues, as reported

$ 6,263

$ 5,977

Less: Cost reimbursement revenue

(4,655)

(4,433)

Adjusted total revenues†

1,608

1,544

Operating income, as reported

948

876

Less: Cost reimbursement revenue

(4,655)

(4,433)

Add: Reimbursed expenses

4,722

4,501

Add: Restructuring and merger-related charges

Adjusted operating income†

1,016

952

Operating income margin

15 %

Adjusted operating income margin†

63 %

62 %

Net income, as reported

665

564

Less: Cost reimbursement revenue

(4,655)

(4,433)

Add: Reimbursed expenses

4,722

4,501

Add: Restructuring and merger-related charges

Income tax effect of above adjustments

(17)

(20)

Less: Income tax special items

(71)

Adjusted net income†

$ 645

$ 620

Diluted earnings per share, as reported

$ 2.39

$ 1.93

Adjusted diluted earnings per share†

$ 2.32

$ 2.13

†Denotes non-GAAP financial measures. Please see Explanation of Non-GAAP Financial and Performance Measures in these Press Release Schedules for information about our reasons for providing these alternative financial measures and the limitations on their use.

‌US & Canada‌

Properties Rooms

Total International1

Properties Rooms

Total Worldwide

Properties Rooms

Managed

615

212,277

1,366

355,619

1,981

567,896

Marriott Hotels

100

56,505

192

60,300

292

116,805

Sheraton

19,642

180

57,875

205

77,517

Courtyard by Marriott

156

25,372

127

27,760

283

53,132

Westin

22,486

23,732

119

46,218

JW Marriott

13,191

27,038

40,229

The Ritz-Carlton

12,798

18,407

121

31,205

Four Points by Sheraton

134

25,853

25,987

Renaissance Hotels

9,065

16,299

25,364

Le Méridien

19,336

W Hotels

5,515

12,132

17,647

St. Regis

2,669

11,180

13,849

Residence Inn by Marriott

12,002

1,116

13,118

Delta Hotels by Marriott

6,770

4,925

11,695

The Luxury Collection

2,296

7,979

10,275

Gaylord Hotels

10,220

Fairfield by Marriott

1,431

8,122

9,553

Aloft Hotels

505

8,949

9,454

Autograph Collection

3,015

2,964

5,979

Marriott Executive Apartments

5,489

EDITION

1,379

2,844

4,223

AC Hotels by Marriott

1,512

2,681

4,193

Element Hotels

810

2,964

3,774

SpringHill Suites by Marriott

3,755

Moxy Hotels

380

2,876

3,256

Protea Hotels by Marriott

2,737

Tribute Portfolio

1,415

TownePlace Suites by Marriott

825

Bvlgari

646

Owned/Leased

5,539

8,773

14,312

Sheraton

1,218

1,830

3,048

Marriott Hotels

1,304

1,631

2,935

Courtyard by Marriott

987

894

1,881

W Hotels

765

665

1,430

Westin

1,073

Protea Hotels by Marriott

912

The Ritz-Carlton

548

Renaissance Hotels

505

JW Marriott

496

The Luxury Collection

383

Autograph Collection

360

Residence Inn by Marriott

192

140

332

Tribute Portfolio

249

St. Regis

160

US & Canada

Properties Rooms

Total International1

Properties Rooms

Total Worldwide

Properties Rooms

Franchised, Licensed, and Other

5,651

841,467

1,642

279,167

7,293

1,120,634

Courtyard by Marriott

916

122,880

135

24,993

1,051

147,873

Fairfield by Marriott

1,175

110,719

110

15,542

1,285

126,261

Residence Inn by Marriott

807

95,985

4,766

845

100,751

Marriott Hotels

232

73,593

20,066

302

93,659

Sheraton

140

43,391

23,289

222

66,680

Autograph Collection

153

34,542

154

30,942

307

65,484

SpringHill Suites by Marriott

547

63,622

547

63,622

TownePlace Suites by Marriott

530

53,336

530

53,336

Westin

31,764

9,761

126

41,525

Four Points by Sheraton

146

21,674

17,683

243

39,357

AC Hotels by Marriott

121

20,165

106

15,615

227

35,780

Aloft Hotels

166

23,748

5,610

195

29,358

Renaissance Hotels

19,545

8,830

105

28,375

Moxy Hotels

7,558

106

19,901

150

27,459

MGM Collection with Marriott Bonvoy**

26,210

Tribute Portfolio

17,646

7,636

147

25,282

Timeshare*

18,839

3,911

22,750

The Luxury Collection

7,703

13,504

21,207

Delta Hotels by Marriott

15,047

4,627

19,674

City Express by Marriott

152

17,694

153

17,777

Design Hotels*

2,273

149

10,625

170

12,898

Element Hotels

11,848

827

12,675

Le Méridien

5,262

6,183

11,445

JW Marriott

6,080

3,273

9,353

Sonder by Marriott Bonvoy

100

6,155

2,659

158

8,814

Four Points Flex by Sheraton

6,443

Protea Hotels by Marriott

3,283

W Hotels

1,117

226

1,343

Marriott Executive Apartments

509

Apartments by Marriott Bonvoy

253

231

484

The Ritz-Carlton

429

The Ritz-Carlton Yacht Collection*

377

Bvlgari

161

Residences

7,667

8,033

138

15,700

The Ritz-Carlton Residences

4,757

1,854

6,611

St. Regis Residences

1,267

1,947

3,214

W Residences

1,092

768

1,860

Marriott Residences

1,145

JW Marriott Residences

767

Westin Residences

266

353

619

Bvlgari Residences

526

Sheraton Residences

472

The Luxury Collection Residences

115

206

Renaissance Residences

112

EDITION Residences

Le Méridien Residences

Autograph Collection Residences

Grand Total

6,352

1,066,950

3,111

651,592

9,463

1,718,542

1"International" refers to: (i) Europe, Middle East & Africa, (ii) Greater China, (iii) Asia Pacific excluding China, and (iv) Caribbean & Latin America.

* Timeshare, Design Hotels, and The Ritz-Carlton Yacht Collection counts are included in this table by geographical location. For external reporting purposes, these offerings are captured within "Unallocated corporate and other."

** Excludes five MGM Collection with Marriott Bonvoy properties (two Autograph Collection, one Tribute Portfolio, one The Luxury Collection and one W Hotels) which are presented in "Franchised, Licensed and Other" within their respective brands.

Property and room counts presented by brand in the above table include certain hotels in our system that are not yet operating under such brand, but are expected to operate under such brand following the completion of planned renovations.

‌Total Systemwide‌

US & Canada

Properties Rooms

Total International1

Properties Rooms

Total Worldwide

Properties Rooms

Luxury

207

61,231

459

106,006

666

167,237

JW Marriott

19,271

30,807

127

50,078

JW Marriott Residences

767

The Ritz-Carlton

13,227

18,955

124

32,182

The Ritz-Carlton Residences

4,757

1,854

6,611

The Ritz-Carlton Yacht Collection*

377

The Luxury Collection

9,999

106

21,866

126

31,865

The Luxury Collection Residences

115

206

W Hotels

7,397

13,023

20,420

W Residences

1,092

768

1,860

St. Regis

2,669

11,340

14,009

St. Regis Residences

1,267

1,947

3,214

EDITION

1,379

2,844

4,223

EDITION Residences

Bvlgari

807

Bvlgari Residences

526

Premium

1,245

407,357

1,374

324,314

2,619

731,671

Marriott Hotels

334

131,402

267

81,997

601

213,399

Marriott Residences

1,145

Sheraton

166

64,251

266

82,994

432

147,245

Sheraton Residences

472

Westin

136

55,323

110

33,493

246

88,816

Westin Residences

266

353

619

Autograph Collection

163

37,557

174

34,266

337

71,823

Autograph Collection Residences

Renaissance Hotels

28,610

25,634

180

54,244

Renaissance Residences

112

Delta Hotels by Marriott

21,817

9,552

139

31,369

Le Méridien

5,262

25,519

116

30,781

Le Méridien Residences

Tribute Portfolio

17,646

9,300

160

26,946

MGM Collection with Marriott Bonvoy**

26,210

Design Hotels*

2,273

149

10,625

170

12,898

Gaylord Hotels

10,220

Sonder by Marriott Bonvoy

100

6,155

2,659

158

8,814

Marriott Executive Apartments

5,998

Apartments by Marriott Bonvoy

253

231

484

Select

4,827

579,440

1,065

193,224

5,892

772,664

Courtyard by Marriott

1,079

149,239

266

53,647

1,345

202,886

Fairfield by Marriott

1,181

112,150

163

23,664

1,344

135,814

Residence Inn by Marriott

881

108,179

6,022

929

114,201

SpringHill Suites by Marriott

569

67,377

569

67,377

Four Points by Sheraton

147

21,808

194

43,536

341

65,344

TownePlace Suites by Marriott

536

54,161

536

54,161

AC Hotels by Marriott

129

21,677

120

18,296

249

39,973

Aloft Hotels

168

24,253

14,559

238

38,812

Moxy Hotels

7,938

119

22,777

164

30,715

Element Hotels

12,658

3,791

113

16,449

Protea Hotels by Marriott

6,932

Midscale

192

24,137

193

24,220

City Express by Marriott

152

17,694

153

17,777

Four Points Flex by Sheraton

6,443

Timeshare*

18,839

3,911

22,750

Grand Total

6,352

1,066,950

3,111

651,592

9,463

1,718,542

1"International" refers to: (i) Europe, Middle East & Africa, (ii) Greater China, (iii) Asia Pacific excluding China, and (iv) Caribbean & Latin America.

‌Comparable Company-Operated US & Canada Properties‌

Three Months Ended March 31, 2025 and March 31, 2024

RevPAR Occupancy Average Daily Rate

Brand

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

JW Marriott

$ 267.85

5.5%

73.0 %

2.2%

pts.

$ 366.97

2.3%

The Ritz-Carlton

$ 412.33

8.0%

69.0 %

2.7%

pts.

$ 597.40

3.9%

W Hotels

$ 264.10

4.8%

65.9 %

2.5%

pts.

$ 401.05

0.8%

Composite US & Canada Luxury1

$ 349.69

5.7%

70.6 %

2.1%

pts.

$ 495.55

2.6%

Marriott Hotels

$ 164.53

5.6%

67.0 %

0.7%

pts.

$ 245.74

4.5%

Sheraton

$ 156.89

2.7%

65.6 %

-0.8%

pts.

$ 239.24

4.0%

Westin

$ 158.98

4.9%

64.8 %

1.2%

pts.

$ 245.45

2.9%

Composite US & Canada Premium2

$ 161.23

5.4%

66.3 %

0.9%

pts.

$ 243.03

4.0%

US & Canada Full-Service3

$ 202.25

5.5%

67.3 %

1.2%

pts.

$ 300.68

3.7%

Courtyard by Marriott

$ 103.93

3.3%

62.8 %

1.1%

pts.

$ 165.53

1.4%

Residence Inn by Marriott

$ 147.30

2.9%

73.7 %

1.0%

pts.

$ 199.80

1.5%

Composite US & Canada Select4

$ 119.93

3.1%

67.0 %

1.3%

pts.

$ 179.05

1.0%

US & Canada - All5

$ 181.75

5.1%

67.2 %

1.2%

pts.

$ 270.49

3.2%

Comparable Systemwide US & Canada Properties

Three Months Ended March 31, 2025 and March 31, 2024

RevPAR Occupancy Average Daily Rate

Brand

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

JW Marriott

$ 255.36

5.0%

72.7 %

1.7%

pts.

$ 351.43

2.4%

The Ritz-Carlton

$ 402.56

8.2%

68.8 %

2.7%

pts.

$ 585.50

3.9%

W Hotels

$ 264.10

4.8%

65.9 %

2.5%

pts.

$ 401.05

0.8%

Composite US & Canada Luxury1

$ 319.08

5.6%

70.4 %

2.0%

pts.

$ 453.15

2.7%

Marriott Hotels

$ 134.95

5.4%

64.4 %

1.1%

pts.

$ 209.62

3.6%

Sheraton

$ 115.40

3.1%

61.9 %

0.4%

pts.

$ 186.42

2.4%

Westin

$ 154.66

5.2%

66.7 %

1.3%

pts.

$ 231.71

3.1%

Composite US & Canada Premium2

$ 137.21

5.2%

64.5 %

1.2%

pts.

$ 212.68

3.3%

US & Canada Full-Service3

$ 157.43

5.3%

65.2 %

1.2%

pts.

$ 241.57

3.3%

Courtyard by Marriott

$ 98.81

0.5%

63.1 %

-0.5%

pts.

$ 156.47

1.4%

Residence Inn by Marriott

$ 119.59

1.1%

72.2 %

0.2%

pts.

$ 165.60

0.8%

Fairfield by Marriott

$ 80.42

0.9%

62.5 %

-0.4%

pts.

$ 128.76

1.5%

Composite US & Canada Select4

$ 100.59

1.2%

66.3 %

-0.2%

pts.

$ 151.66

1.5%

US & Canada - All5

$ 123.40

3.3%

65.9 %

0.4%

pts.

$ 187.37

2.7%

1Includes JW Marriott, The Ritz-Carlton, W Hotels, The Luxury Collection, St. Regis, and EDITION.

2Includes Marriott Hotels, Sheraton, Westin, Renaissance Hotels, Autograph Collection, Delta Hotels by Marriott, and Gaylord Hotels. Systemwide also includes Le Méridien and Tribute Portfolio.

3Includes Composite US & Canada Luxury and Composite US & Canada Premium.

4Includes Courtyard by Marriott, Residence Inn by Marriott, Fairfield by Marriott, SpringHill Suites by Marriott, TownePlace Suites by Marriott, Four Points by Sheraton, Aloft Hotels, Element Hotels, AC Hotels by Marriott, and Moxy Hotels.

5Includes US & Canada Full-Service and Composite US & Canada Select.

‌Comparable Company-Operated International Properties

Three Months Ended March 31, 2025 and March 31, 2024

RevPAR Occupancy Average Daily Rate

Region

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

Europe

$ 143.27

5.1%

62.5 %

2.6% pts.

$ 229.10

0.8%

Middle East & Africa

$ 146.94

4.5%

70.1 %

0.3% pts.

$ 209.62

4.1%

Greater China

$ 77.23

-2.1%

64.3 %

0.6% pts.

$ 120.13

-3.1%

Asia Pacific excluding China

$ 133.23

10.6%

71.3 %

1.7% pts.

$ 186.86

8.0%

Caribbean & Latin America

$ 244.14

10.8%

70.0 %

2.0% pts.

$ 348.58

7.6%

International - All1

$ 121.49

5.2%

67.4 %

1.1% pts.

$ 180.32

3.5%

Worldwide2

$ 146.49

5.2%

67.3 %

1.2% pts.

$ 217.67

3.4%

Comparable Systemwide International Properties

Three Months Ended March 31, 2025 and March 31, 2024

RevPAR Occupancy Average Daily Rate

Region

2025

vs. 2024

2025

vs. 2024

2025

vs. 2024

Europe

$ 102.28

6.2%

60.5 %

2.9% pts.

$ 169.09

1.1%

Middle East & Africa

$ 134.86

5.4%

68.9 %

0.6% pts.

$ 195.76

4.5%

Greater China

$ 71.20

-1.6%

63.2 %

0.8% pts.

$ 112.70

-2.7%

Asia Pacific excluding China

$ 132.36

10.9%

71.5 %

2.0% pts.

$ 185.08

7.7%

Caribbean & Latin America

$ 150.67

7.2%

64.8 %

-0.2% pts.

$ 232.62

7.5%

International - All1

$ 111.39

5.9%

65.4 %

1.4% pts.

$ 170.44

3.7%

Worldwide2

$ 119.38

4.1%

65.7 %

0.7% pts.

$ 181.73

2.9%

1Includes Europe, Middle East & Africa, Greater China, Asia Pacific excluding China, and Caribbean & Latin America.

2Includes US & Canada - All and International - All.

($ in millions)

Fiscal Year 2025

First Quarter

Net income, as reported $ 665

Cost reimbursement revenue (4,655)

Reimbursed expenses 4,722

Interest expense 192

Interest expense from unconsolidated joint ventures 1

Provision for income taxes 99

Depreciation and amortization 51

Contract investment amortization 28

Depreciation and amortization classified in reimbursed expenses 57

Depreciation, amortization, and impairments from unconsolidated joint ventures 4

Stock-based compensation 52

Restructuring and merger-related charges 1

Adjusted EBITDA† $ 1,217

Change from 2024 Adjusted EBITDA† 7%

Fiscal Year 2024

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Total

Net income, as reported

$ 564

$ 772

$ 584

$ 455

$ 2,375

Cost reimbursement revenue

(4,433)

(4,728)

(4,617)

(4,704)

(18,482)

Reimbursed expenses

4,501

4,645

4,681

4,972

18,799

Interest expense

163

173

179

180

695

Interest expense from unconsolidated joint ventures

Provision for income taxes

163

268

202

143

776

Depreciation and amortization

183

Contract investment amortization

103

Depreciation and amortization classified in reimbursed expenses

206

Depreciation, amortization, and impairments from unconsolidated joint ventures

Stock-based compensation

237

Restructuring and merger-related charges

Gain on asset dispositions

(11)

Adjusted EBITDA† $ 1,142 $ 1,324 $ 1,229 $ 1,286 $ 4,981

Net income excluding certain items1

$ 706

$ 721

Interest expense

200

Interest expense from unconsolidated joint ventures

Provision for income taxes

264

269

Depreciation and amortization

Contract investment amortization

Depreciation and amortization classified in reimbursed expenses

Depreciation, amortization, and impairments from unconsolidated joint ventures

Stock-based compensation

1Guidance excludes cost reimbursement revenue, reimbursed expenses, and restructuring and merger-related charges, each of which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant, except for depreciation and amortization classified in reimbursed expenses, which is included in the caption "Depreciation and amortization classified in reimbursed expenses" above. Guidance does not reflect any potential asset sales or property or brand acquisitions that may occur during the year (other than our planned acquisition of the citizenM brand, which we assume to occur in the second half of 2025), each of which the company cannot forecast with sufficient accuracy and without unreasonable efforts, and which may be significant.

Net income excluding certain items1

$ 2,757

$ 2,860

Interest expense

816

Interest expense from unconsolidated joint ventures

Provision for income taxes

885

922

Depreciation and amortization

200

Contract investment amortization

117

Depreciation and amortization classified in reimbursed expenses

265

Depreciation, amortization, and impairments from unconsolidated joint ventures

Stock-based compensation

220

‌In our press release and schedules, on the related conference call, and in the infographic made available in connection with our press release, we report certain financial measures that are not required by, or presented in accordance with, United States generally accepted accounting principles ("GAAP"). These non-GAAP financial measures are labeled as "adjusted" and/or identified with the symbol "†". We discuss the manner in which the non-GAAP measures reported in this press release, schedules, and infographic are determined and management's reasons for reporting these non-GAAP measures below, and the press release schedules reconcile each to the most directly comparable GAAP measures (with respect to the forward-looking non-GAAP measures, to the extent available without unreasonable efforts). Although management evaluates and presents these non-GAAP measures for the reasons described below, please be aware that these non-GAAP measures have limitations and should not be considered in isolation or as a substitute for revenue, operating income, net income, earnings per share, or any other comparable operating measure prescribed by GAAP. In addition, we may calculate and/or present these non-GAAP financial measures differently than measures with the same or similar names that other companies report, and as a result, the non-GAAP measures we report may not be comparable to those reported by others.‌

Adjusted Operating Income and Adjusted Operating Income Margin. Adjusted operating income and Adjusted operating income margin exclude cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges, and certain non-cash impairment charges (when applicable). Adjusted operating income margin reflects Adjusted operating income divided by Adjusted total revenues. We believe that these are meaningful metrics because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.

Adjusted Net Income and Adjusted Diluted Earnings Per Share. Adjusted net income and Adjusted diluted earnings per share reflect our net income and diluted earnings per share excluding the impact of cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges, certain non-cash impairment charges (when applicable), and gains and losses on asset dispositions made by us or by our joint venture investees (when applicable and if above a specified threshold). Additionally, Adjusted net income and Adjusted diluted earnings per share exclude the income tax effect of the above adjustments (calculated using an estimated tax rate applicable to each adjustment) and income tax special items, which in 2025 primarily related to the release of tax reserves. We believe that these measures are meaningful indicators of our performance because they allow for period-over-period comparisons of our ongoing operations before these items and for the reasons further described below.

Adjusted Earnings Before Interest Expense, Taxes, Depreciation and Amortization ("Adjusted EBITDA"). Adjusted EBITDA reflects net income excluding the impact of the following items: cost reimbursement revenue and reimbursed expenses, interest expense, depreciation and amortization, provision (benefit) for income taxes, restructuring and merger-related charges, and stock-based compensation expense for all periods presented. When applicable, Adjusted EBITDA also excludes certain non-cash impairment charges and gains and losses on asset dispositions made by us or by our joint venture investees (if above a specified threshold).

In our presentations of Adjusted operating income and Adjusted operating income margin, Adjusted net income and Adjusted diluted earnings per share, and Adjusted EBITDA, we exclude restructuring and merger-related charges as well as non-cash impairment charges (if above a specified threshold) related to our management and franchise contracts (if the impairment is non-routine), leases, equity investments, and other capitalized assets, which we record in the "Contract investment amortization," "Depreciation, amortization, and other," and "Equity in earnings" captions of our Consolidated Statements of Income (our "Income Statements"), to allow for period-over period comparisons of our ongoing operations before the impact of these items. We exclude cost reimbursement revenue and reimbursed expenses, which relate to property-level and centralized programs and services that we operate for the benefit of our hotel owners and certain other counterparties. We do not operate these programs and services to generate a profit over the long term, and accordingly, when we recover the costs that we incur for these programs and services from our hotel owners and certain other counterparties, we do not seek a mark-up. For property-level services, we are typically reimbursed at the same time that we incur expenses. However, for centralized programs and services, we may be reimbursed before or after we incur expenses, causing timing differences between the costs we incur and the related reimbursement from hotel owners and certain other counterparties in our operating and net income. Over the long term, these programs and services are not designed to impact our economics, either positively or negatively. Because we do not retain any such profits or losses over time, we exclude the net impact when evaluating period-over-period changes in our operating results.

We believe that Adjusted EBITDA is a meaningful indicator of our operating performance because it permits period-over-period comparisons of our ongoing operations before these items. Our use of Adjusted EBITDA also facilitates comparison with results from other lodging companies because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels, and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provisions for income taxes can vary considerably among companies. Our Adjusted EBITDA also excludes depreciation and amortization expense, which we report under "Depreciation, amortization, and other" as well as depreciation and amortization classified in "Contract investment amortization," "Reimbursed expenses," and "Equity in earnings" of our Income Statements, because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. Depreciation and amortization classified in "Reimbursed expenses" reflects depreciation and amortization of Marriott-owned assets, for which we receive cash from hotel owners and certain other counterparties to reimburse the company for its investments made for the benefit of the system. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies. We exclude stock-based compensation expense in all periods presented to address the considerable variability among companies in recording compensation expense because companies use stock-based payment awards differently, both in the type and quantity of awards granted.

RevPAR. In addition to the foregoing non-GAAP financial measures, we present Revenue per Available Room ("RevPAR") as a performance measure. We believe RevPAR, which we calculate by dividing property level room revenue by total rooms available for the period, is a meaningful indicator of our performance because it measures the period-over-period change in room revenues. RevPAR may not be comparable to similarly titled measures, such as revenues, and should not be viewed as necessarily correlating with our fee revenue. We also believe occupancy and average daily rate ("ADR"), which are components of calculating RevPAR, are meaningful indicators of our performance. Occupancy, which we calculate by dividing total rooms sold by total rooms available for the period, measures the utilization of a property's available capacity. ADR, which we calculate by dividing property level room revenue by total rooms sold, measures average room price and is useful in assessing pricing levels. Comparisons to prior periods are on a constant U.S. dollar basis, which we calculate by applying exchange rates for the current period to the prior comparable period. We believe constant dollar analysis provides valuable information regarding the performance of hotels in our system as it removes currency fluctuations from the presentation of such results.

We define our comparable properties as hotels in our system that were open and operating under one of our brands since the beginning of the last full calendar year (since January 1, 2024 for the current period) and have not, in either the current or previous year: (1) undergone significant room or public space renovations or expansions, (2) been converted between company-operated and franchised, or (3) sustained substantial property damage or business interruption. Our comparable properties also exclude MGM Collection with Marriott Bonvoy, Design Hotels, The Ritz-Carlton Yacht Collection, and timeshare properties.

We use the term "hotel owners" throughout these schedules to refer, collectively, to owners of hotels and other lodging offerings operating in our system pursuant to management agreements, franchise agreements, license agreements or similar arrangements, and we use the term "hotels in our system" to refer to hotels and other lodging offerings operating in our system pursuant to such arrangements, as well as hotels that we own or lease. The terms "hotel owners" and "hotels in our system" exclude Homes & Villas by Marriott Bonvoy® (which we also exclude from our property and room count), timeshare, residential, and The Ritz-Carlton Yacht Collection®.

Disclaimer

Marriott International Inc. published this content on June 02, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 02, 2025 at 13:29 UTC.