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Marriott’s flat U.S. performance highlights demand shift

  • Automatic
  • 7 August 2025
  • 2 minute read
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This article was written by Hospitality Today. Click here to read the original article

Macroeconomic uncertainty and weaker government travel weigh on Q2 results

Aug 7, 2025

Marriott International reported flat year-over-year revenue per available room (RevPAR) in the U.S. for Q2 2025, with global growth propped up by stronger international markets. CEO Anthony Capuano attributed the stagnant domestic performance to reduced government and group travel, especially within the select service segment, while reaffirming growth in development despite broader economic headwinds.

Key takeaways

  • Flat U.S. RevPAR: Marriott’s RevPAR remained unchanged in the U.S. and Canada, despite 1.5% global growth driven by international markets.
  • Weaker demand in select service: Declines in government and transient business travel led to underperformance in the select service and extended stay segments.
  • Group bookings decline: Near-term group bookings and high attrition rates caused softer-than-expected group RevPAR in the U.S. and Canada.
  • Outlook revised downward: Full-year 2025 RevPAR growth is now expected at the low end of the previous 1.5%–3.5% forecast range.
  • Development remains strong: Marriott added 17,300 rooms in Q2, reaching a record pipeline of over 590,000 rooms, and expects strong net rooms growth going forward.
  • New brands driving expansion: Growth will be supported by Series by Marriott and newly acquired CitizenM, helping strengthen brand appeal despite financing challenges.
  • Macroeconomic pressure persists: Uncertainty from trade policies and high construction costs continue to impact investment sentiment, although recent legislation (One Big Beautiful Bill Act) has reduced some market anxiety.
  • Government travel slump: Government room nights fell 16% year-over-year, with two-thirds of that revenue historically coming from the select service segment.
  • Luxury segment outperforms: RevPAR growth was strongest in the luxury tier, weakening down the chain scale.
  • Future group demand rebounding: Group bookings for 2026 in the U.S. and Canada are pacing 8% ahead of last year, indicating potential recovery.

Get the full story at Hotel Dive

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