BETHESDA, Maryland—Marriott International, Inc. reported second-quarter 2025 results. Highlights include:
- Second-quarter 2025 RevPAR increased 1.5 percent worldwide, with 5.3 percent growth in international markets and U.S. & Canada RevPAR in line with the year-ago quarter
- Second-quarter reported diluted EPS totaled $2.78, and adjusted diluted EPS totaled $2.65
- Second-quarter reported net income totaled $763 million, and adjusted net income totaled $728 million
- Second-quarter adjusted EBITDA totaled $1,415 million
- The company added roughly 17,300 net rooms during the quarter, and net rooms grew 4.7 percent from the end of the second quarter of 2024
- At the end of the quarter, Marriott’s worldwide development pipeline reached a new record and totaled approximately 3,900 properties and over 590,000 rooms
- The company repurchased 2.8 million shares of common stock for $0.7 billion in the second quarter of 2025. Year to date through July 30, the company has returned approximately $2.1 billion to shareholders through dividends and share repurchases
Anthony Capuano, president and chief executive officer, said, “Marriott delivered another solid quarter, highlighted by strong financial results and robust net rooms growth despite heightened macro-economic uncertainty. Global RevPAR increased 1.5 percent in the second quarter, primarily driven by the leisure segment. International RevPAR rose over 5 percent, with strong growth in APEC and EMEA. In the U.S. & Canada, RevPAR was flat year over year with continued strength in the luxury segment offset by a decline in select service demand, largely reflecting reduced government travel and weaker business transient demand. Adjusting for the Easter holiday shift, U.S. & Canada RevPAR increased by nearly 1 percent.
“Development activity remained robust. We signed nearly 32,000 rooms, over 70 percent of which were in international markets, and our quarter-end pipeline stood at a record of more than 590,000 rooms. Conversions continued to be a key driver of growth, representing approximately 30 percent of our room signings and openings in the first half of this year. We still expect full-year net rooms growth to approach 5 percent this year.
“With our strategy to be everywhere our guests want us to be, we expanded our industry-leading global brand portfolio with the launch of Series by Marriott™, a new regional collection brand targeting the midscale and upscale segments. We are excited about our founding deal to affiliate the Fern portfolio of brands in India with Series by Marriott, and by the strong interest from owners around the world in this extension of our successful soft brand model. We also recently completed the acquisition of the innovative lifestyle brand citizenM, further broadening offerings for our guests, Marriott Bonvoy members, and owners. We believe both of these new brands have meaningful global growth potential.
“We continue to enhance our powerful Marriott Bonvoy travel platform. Membership reached nearly 248 million members at the end of June, and we are deepening engagement through unique experiences and strategic collaborations.
“Our results in the second quarter underscore the resiliency of our cash-generating, asset-light business model and the strength of our brands. Year to date through July 30, we have returned approximately $2.1 billion to our shareholders through share repurchases and dividends, and we remain on track to return approximately $4 billion for full-year 2025.”
Second Quarter 2025 Results
Base management and franchise fees totaled $1,200 million in the second quarter of 2025, a nearly 5 percent increase compared to base management and franchise fees of $1,148 million in the year-ago quarter. Higher RevPAR, rooms growth, and co-branded credit card fees were key contributors to the increase.
Incentive management fees totaled $200 million in the second quarter of 2025, compared to $195 million in the second quarter of 2024, driven by strong international hotel results. 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 $113 million in the second quarter of 2025, compared to $99 million in the second quarter of 2024. The increase was mainly driven by the addition of the Sheraton Grand Chicago to the company’s portfolio of owned hotels.
General, administrative, and other expenses for the second quarter of 2025 totaled $245 million, compared to $248 million in the year-ago quarter. The year-over-year change largely reflects lower compensation costs.
Interest expense, net, totaled $191 million in the second quarter of 2025, compared to $164 million in the year-ago quarter. The increase was largely due to higher interest expense associated with higher debt balances.
In the second quarter of 2025, the provision for income taxes totaled $291 million compared to $268 million in the second quarter of 2024.
Marriott’s reported operating income totaled $1,236 million in the second quarter of 2025, compared to the second quarter of 2024 reported operating income of $1,195 million. Reported net income totaled $763 million in the second quarter of 2025, a 1 percent decrease compared to the second quarter of 2024 reported net income of $772 million. Reported diluted earnings per share (EPS) totaled $2.78 in the quarter, compared to reported diluted EPS of $2.69 in the year-ago quarter.
Adjusted operating income in the second quarter of 2025 totaled $1,186 million, compared to the second quarter of 2024 adjusted operating income of $1,120 million. The second quarter of 2025 adjusted net income totaled $728 million, compared to the second quarter of 2024 adjusted net income of $716 million. Adjusted diluted EPS in the second quarter of 2025 totaled $2.65, compared to adjusted diluted EPS of $2.50 in the year-ago quarter.
Adjusted results excluded cost reimbursement revenue, reimbursed expenses, restructuring and merger-related charges, and, for the second quarter of 2025, income tax special items.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $1,415 million in the second quarter of 2025, a 7 percent increase compared to second-quarter 2024 adjusted EBITDA of $1,324 million.
Selected Performance Information
The company added roughly 17,300 net rooms during the quarter, including more than 8,500 net rooms in international markets. At the end of the quarter, Marriott’s global system totaled over 9,600 properties, with approximately 1,736,000 rooms.
At the end of the quarter, the company’s worldwide development pipeline totaled 3,858 properties with more than 590,000 rooms, including 234 properties with over 37,000 rooms approved for development, but not yet subject to signed contracts. The quarter-end pipeline included 1,447 properties with over 238,000 rooms under construction, including hotels that are in the process of converting to the company’s system. Over half of the rooms in the quarter-end pipeline are in international markets. The quarter-end pipeline does not reflect any rooms from the company’s acquisition of the citizenM brand or from the launch of Series by Marriott.
In the second quarter of 2025, worldwide RevPAR increased 1.5 percent (a 1.7 percent increase using actual dollars) compared to the second quarter of 2024. RevPAR in the U.S. & Canada was flat (a 0.1 percent decrease using actual dollars) year-over-year, and RevPAR in international markets increased 5.3 percent (a 6.1 percent increase using actual dollars) year-over-year.
