BETHESDA, Maryland—Marriott International, Inc. reported its third-quarter 2025 results. Highlights include:
- Third-quarter 2025 RevPAR increased 0.5 percent worldwide, with 2.6 percent growth in international markets and a 0.4 percent decline in the United States and Canada.
- Third-quarter reported diluted EPS totaled $2.67, and adjusted diluted EPS totaled $2.47
- Third-quarter reported net income totaled $728 million, and adjusted net income totaled $674 million
- Third-quarter adjusted EBITDA totaled $1,349 million
- The company added roughly 17,900 net rooms during the quarter, and net rooms grew 7 percent from the end of the third 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 596,000 rooms
- The company repurchased 3.0 million shares of common stock for $0.8 billion in the 2025 third-quarter. Year-to-date through October 30, the company has returned approximately $3.1 billion to shareholders through dividends and share repurchases
Anthony Capuano, president and chief executive officer, 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 rooms growth, robust development signings and profit gains.
“Global RevPAR rose 0.5 percent in the third quarter, impacted by calendar shifts and ongoing macroeconomic uncertainty. International RevPAR increased 2.6 percent, led by APEC, which delivered nearly 5 percent growth fueled by strong performance in key markets like Japan, Australia and Vietnam. In the United States and Canada, RevPAR declined 0.4 percent due to weaker demand in the lower chain scales, largely reflecting reduced government travel. Globally, our luxury hotels continued to outperform, driven by robust demand and strong rate performance, with luxury RevPAR rising 4 percent in the quarter.
“Our diverse portfolio of brands, that range from midscale to luxury, and include traditional, extended stay, and unique lodging options like cabins and safari lodges, continues to drive strong owner preference. During the first nine months of the year, we had record year-to-date signings, and our momentum on conversions continued, comprising around one-third of our signings and openings. We still expect net rooms growth to approach 5 percent for full-year 2025 and be in the mid-single-digit range over the next few years.
“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. During the third quarter, we added another 12 million members, bringing total global membership to nearly 260 million. Member penetration remained strong at 75 percent in the United States and Canada and 68 percent globally, reflecting deep engagement with our expanding global member base.
“Our solid financial performance and strong cash generation allowed us to return approximately $3.1 billion to our shareholders year-to-date through October 30 through share repurchases and dividends. We continue to expect to return approximately $4.0 billion to our shareholders in 2025.”
Third-Quarter 2025 Results
Base management and franchise fees totaled $1,190 million in the third quarter of 2025, a nearly 6 percent increase compared to base management and franchise fees of $1,124 million in the year-ago quarter. The increase was primarily driven by rooms growth and higher co-branded credit card fees.
Incentive management fees totaled $148 million in the third quarter of, compared to $159 million in the 2024 third quarter, primarily reflecting declines in the United States and Canada. Managed hotels in international markets contributed roughly three-quarters of the incentive fees earned in the quarter.
Owned, leased, and other revenue, net of direct expenses, totaled $94 million in the third quarter of 2025, compared to $81 million in the third quarter of 2024. The increase was mainly driven by the addition of the Sheraton Grand Chicago to the company’s portfolio of owned hotels in the fourth quarter of 2024.
General, administrative, and other expenses for the 2025 third quarter totaled $234 million, compared to $276 million in the year-ago quarter. The year-over-year change largely reflects a $19 million operating guarantee reserve for a U.S. hotel in the third quarter of 2024, as well as lower compensation costs.
In the third quarter of 2025, restructuring and merger-related recoveries/charges, and other expenses totaled a $40 million benefit compared to a $9 million expense in the year-ago quarter. The year-over-year change was primarily driven by insurance recoveries related to the 2018 Starwood guest reservations database security incident.
Interest expense, net, totaled $194 million in the third quarter of 2025, compared to $168 million in the year-ago quarter. The increase was largely due to higher interest expense associated with higher debt balances.
In the third quarter of 2025, the provision for income taxes totaled $266 million compared to $202 million in the third quarter of 2024.
Marriott’s reported operating income totaled $1,180 million in the third quarter of 2025, compared to the 2024 third-quarter reported operating income of $944 million. Reported net income totaled $728 million in the third quarter of 2025, a 25 percent increase compared to the 2024 third-quarter reported net income of $584 million. Reported diluted earnings per share (EPS) totaled $2.67 in the quarter, compared to reported diluted EPS of $2.07 in the year-ago quarter.
Adjusted operating income in the third quarter of 2025 totaled $1,119 million, compared to the 2024 third-quarter adjusted operating income of $1,017 million. Third-quarter 2025 adjusted net income totaled $674 million, compared to 2024 third-quarter adjusted net income of $638 million. Adjusted diluted EPS in the third quarter of 2025 totaled $2.47, compared to adjusted diluted EPS of $2.26 in the year-ago quarter.
Adjusted results excluded cost reimbursement revenue, reimbursed expenses, and restructuring and merger-related recoveries/charges, and other expenses.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $1,349 million in the third quarter of 2025, a 10 percent increase compared to the third-quarter 2024 adjusted EBITDA of $1,229 million.
Selected Performance Information
The company added roughly 17,900 net rooms during the quarter, including nearly 13,900 net rooms in international markets. At the end of the quarter, Marriott’s global system totaled over 9,700 properties, with approximately 1,754,000 rooms.
At the end of the quarter, the company’s worldwide development pipeline totaled 3,923 properties with more than 596,000 rooms, including 229 properties with nearly 36,000 rooms approved for development, but not yet subject to signed contracts. The quarter-end pipeline included 1,536 properties with over 250,000 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 system size and pipeline do not reflect any rooms from the acquisition of the citizenM brand.
In the third quarter of 2025, worldwide RevPAR increased 0.5 percent (a 1.3 percent increase using actual dollars) compared to the third quarter of 2024. RevPAR in the United States and Canada declined 0.4 percent (a 0.4 percent decrease using actual dollars) year-over-year, and RevPAR in international markets increased 2.6 percent (a 5.3 percent increase using actual dollars) year-over-year.
Balance Sheet & Common Stock
At the end of the quarter, Marriott’s total debt was $16.0 billion and cash and equivalents totaled $0.7 billion, compared to $14.4 billion in debt and $0.4 billion of cash and equivalents at year-end 2024.
The company repurchased 3.0 million shares of common stock in the third quarter of 2025 for $0.8 billion. Year-to-date through October 30, the company has repurchased 9.7 million shares for $2.6 billion.
In the third quarter of 2025, the company issued $400 million of Series TT Senior Notes due in 2027 with a 4.20 percent interest rate coupon, $500 million of Series UU Senior Notes due in 2031 with a 4.50 percent interest rate coupon, and $600 million of Series VV Senior Notes due in 2035 with a 5.25 percent interest rate coupon.
