Marriott International has reported a 25% increase in net income to $728m (£558m) for the third quarter ended 30 September, supported by continued expansion in room numbers and resilient performance in its luxury hotel portfolio.
Reported operating income grew to $1.18bn (£910m) from $944m (£724m). Adjusted EBITDA increased 10% to $1.35bn (£1.04bn).
Global RevPAR rose 0.5% year-on-year, with international markets recording a rise of 2.6% and the US and Canada a fall of 0.4%. Luxury hotels continued to outperform, with RevPAR in that segment rising 4% over the third quarter.
The group added around 17,900 net rooms in the quarter, including nearly 13,900 in international markets, bringing its global portfolio to more than 9,700 properties and 1.75 million rooms.
Its development pipeline at the end of the quarter stood at 3,923 properties, comprising over 596,000 rooms, with more than half of those located outside the US and Canada. The pipeline does not yet include the citizenM brand, which Marriott plans to integrate in the fourth quarter.
However, base management and franchise fees increased nearly 6% to $1.19bn (£910m) as a result of new openings and higher co-branded credit card income. Incentive management fees also fell to $148m (£113.5m) from $159m (£122m), reflecting weaker results in the US and Canada.
Owned, leased and other revenue, net of direct expenses, rose to $94m (£72m) from $81m (£62m), mainly due to the addition of the Sheraton Grand Chicago in late 2024. General and administrative expenses fell to $234m (£179.5m) from $276m (£211.7m), reflecting lower compensation and the absence of a prior-year guarantee reserve.
Anthony Capuano, president and chief executive of Marriott, said: “Our third quarter results demonstrated continued strong execution of our growth strategy, the power of our brands, and the cash flow benefits of our asset-light business model. We delivered another quarter of strong room growth, robust development signings and profit gains.
“The power of Marriott Bonvoy has continued to grow. The platform has meaningfully evolved and expanded over the last several years to offer travelers exceptional hotel stays as well as a wide range of experiences, benefits, and services across their travel journeys.”
