BETHESDA, Maryland—Marriott Worldwide, Inc. reported first-quarter 2025 outcomes. Highlights embrace:
- First-quarter 2025 RevPAR elevated 4.1 p.c worldwide, with 3.3 p.c progress in the US and Canada and 5.9 p.c progress in worldwide markets
- First-quarter reported diluted EPS totaled $2.39, and adjusted diluted EPS totaled $2.32
- First-quarter reported internet revenue totaled $665 million,n and adjusted internet revenue totaled $645 million
- First-quarter adjusted EBITDA totaled $1,217 million
- The corporate added roughly 12,200 internet rooms through the quarter, and internet rooms grew 4.6 p.c from the top of the primary quarter of 2024
- On the finish of the quarter, Marriott’s worldwide improvement pipeline totaled roughly 3,800 properties and over 587,000 rooms, up 7.4 p.c year-over-year
- The corporate repurchased 2.8 million shares of widespread inventory for $0.8 billion within the 2025 first quarter. Yr to this point by way of April 29, the corporate has returned over $1.2 billion to shareholders by way of dividends and share repurchases
Anthony Capuano, president and chief govt officer, mentioned, “The mixture of continued journey demand, the energy of our manufacturers, and our fee-driven enterprise mannequin drove sturdy monetary ends in the primary quarter. Regardless of heightened macroeconomic uncertainty, international RevPAR rose over 4 p.c, primarily pushed by increased ADR, and our improvement momentum remained optimistic. Our worldwide markets skilled significantly strong progress, with RevPAR rising almost 6 p.c, led by double-digit good points in APEC. RevPAR within the U.S. & Canada rose over 3 p.c within the first quarter, though we did see slower progress in March.
“The sturdy momentum in our improvement exercise continued, with report first quarter signings of over 34,000 rooms, of which two-thirds had been in worldwide markets. Conversions remained a key driver of progress, representing round a 3rd of our room signings and openings.
“We’re dedicated to rising our international portfolio and enhancing choices for our friends, Marriott Bonvoy members, and lodge homeowners. Final week, we introduced that we’ve reached an settlement to accumulate the citizenM model, an modern life-style lodging providing within the select-service phase. We’re excited in regards to the international progress prospects for this model, given the distinctive and differentiated nature of the providing and our profitable observe report with different acquired manufacturers like AC Inns. Our internet rooms progress outlook stays sturdy, and we now anticipate our full yr 2025 internet rooms progress to method 5 p.c, assuming the acquisition closes earlier than year-end.
“We stay centered on increasing our industry-leading Marriott Bonvoy journey platform and loyalty program membership and on deepening engagement by way of quite a few distinctive experiences and collaborations. By the top of March, our loyalty program membership base had grown to almost 237 million members worldwide.
“Regardless of uncertainty in regards to the macro-economic outlook, we’re assured that the ability of our industry-leading international portfolio, the energy of our Marriott Bonvoy journey platform and loyalty program, our devoted associates, and resilient asset-light enterprise mannequin, place us very properly for sustainable, long-term progress.”
First Quarter 2025 Outcomes
Base administration and franchise charges totaled $1,071 million within the 2025 first quarter, a 7 p.c enhance in comparison with base administration and franchise charges of $1,001 million within the year-ago quarter. The rise is primarily attributable to RevPAR will increase and unit progress, in addition to increased residential and co-branded bank card charges.
Incentive administration charges totaled $204 million within the 2025 first quarter, in comparison with $209 million within the 2024 first quarter. Managed motels in worldwide markets contributed almost two-thirds of the motivation charges earned within the quarter.
Owned, leased, and different income, internet of direct bills, totaled $65 million within the 2025 first quarter, in comparison with $71 million within the 2024 first quarter. The lower was primarily pushed by decrease termination charges.
Basic, administrative, and different bills for the 2025 first quarter totaled $245 million, in comparison with $261 million within the year-ago quarter. The year-over-year decline largely displays decrease compensation prices primarily ensuing from the corporate’s enterprise-wide initiative to reinforce effectiveness and effectivity throughout the corporate.
Curiosity expense, internet, totaled $183 million within the 2025 first quarter, in comparison with $153 million within the year-ago quarter. The rise was largely on account of increased curiosity expense related to increased debt balances.
Within the 2025 first quarter, the supply for revenue taxes totaled $99 million in comparison with $163 million within the 2024 first quarter. The year-over-year change primarily displays an $86 million favorable influence from the discharge of sure tax reserves.
Marriott’s reported working revenue totaled $948 million within the 2025 first quarter, in comparison with the 2024 first quarter reported working revenue of $876 million. Reported internet revenue totaled $665 million within the 2025 first quarter, an 18 p.c enhance in comparison with the 2024 first quarter reported internet revenue of $564 million. Reported diluted earnings per share (EPS) totaled $2.39 within the quarter, in comparison with reported diluted EPS of $1.93 within the year-ago quarter.
Adjusted working revenue within the 2025 first quarter totaled $1,016 million, in comparison with 2024 first quarter adjusted working revenue of $952 million. First quarter 2025 adjusted internet revenue totaled $645 million, in comparison with 2024 first quarter adjusted internet revenue of $620 million. Adjusted diluted EPS within the 2025 first quarter totaled $2.32, in comparison with adjusted diluted EPS of $2.13 within the year-ago quarter. The 2025 first quarter adjusted outcomes excluded the good thing about an revenue tax particular merchandise of $71 million ($0.25 per share).
Adjusted outcomes additionally excluded price reimbursement income, reimbursed bills, and restructuring and merger-related prices. See the press launch schedules for the calculation of adjusted outcomes and the way wherein the adjusted measures are decided on this press launch.
Adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) totaled $1,217 million within the 2025 first quarter, a 7 p.c enhance in comparison with first quarter 2024 adjusted EBITDA of $1,142 million. See the press launch schedules for the adjusted EBITDA calculation.
Chosen Efficiency Data
The corporate added roughly 12,200 internet rooms through the quarter, together with greater than 7,300 internet rooms in worldwide markets. On the finish of the quarter, Marriott’s international system totaled almost 9,500 properties, with roughly 1,719,000 rooms.
On the finish of the quarter, the corporate’s worldwide improvement pipeline totaled 3,808 properties with greater than 587,000 rooms, together with 171 properties with over 27,000 rooms accepted for improvement, however not but topic to signed contracts. The quarter-end pipeline included 1,447 properties with almost 244,000 rooms beneath development, together with motels which can be within the means of changing to its system. Over half of the rooms within the quarter-end pipeline are in worldwide markets. The corporate additionally expects further properties to affix its system upon the closing of its deliberate acquisition of the citizenM model. The citizenM portfolio presently contains 36 open motels with 8,544 rooms and three pipeline motels with over 600 rooms.
Within the 2025 first quarter, worldwide RevPAR elevated 4.1 p.c (a 2.7 p.c enhance utilizing precise {dollars}) in comparison with the 2024 first quarter. RevPAR within the U.S. & Canada elevated 3.3 p.c (a 3.0 p.c enhance utilizing precise {dollars}), and RevPAR in worldwide markets elevated 5.9 p.c (a 2.2 p.c enhance utilizing precise {dollars}).
Steadiness Sheet & Widespread Inventory
On the finish of the quarter, Marriott’s complete debt was $15.1 billion, and money and equivalents totaled $0.5 billion, in comparison with $14.4 billion in debt and $0.4 billion of money and equivalents at year-end 2024.
The corporate repurchased 2.8 million shares of widespread inventory within the 2025 first quarter for $0.8 billion. Yr to this point by way of April 29, the corporate has repurchased 3.9 million shares for $1.0 billion.
Firm Outlook
The Firm’s up to date outlook usually assumes the continuation of present reserving developments. In comparison with prior expectations, it incorporates considerably softer expectations within the U.S. & Canada area.