Marriott International Inc., for the second quarter, reported a global development piplijne of approximately 3,900 properties and more than 590,000 rooms, an all-time high for the company. RevPAR increased 1.5% worldwide, with 5.3% growth in international markets and U.S. & Canada RevPAR in line with the year-ago quarter
“Marriott delivered another solid quarter, highlighted by strong financial results and robust net rooms growth despite heightened macro-economic uncertainty,” said Anthony Capuano, president/CEO. “Global RevPAR increased 1.5% in the second quarter, primarily driven by the leisure segment. International RevPAR rose more than 5%, 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%.”
He added, “Development activity remained robust. We signed nearly 32,000 rooms, more than 70% 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% of our room signings and openings in the first half of this year. We still expect full year net rooms growth to approach 5% this year.”
Second-quarter highlights:
- Diluted EPS totaled $2.78 and adjusted diluted EPS totaled $2.65
- Net income totaled $763 million and adjusted net income totaled $728 million
- Adjusted EBITDA totaled $1.415 billion
- The company added roughly 17,300 net rooms during the quarter and net rooms grew 4.7% 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 more than 590,000 rooms
“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,” said Capuano. “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.”
He added, “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.
Second-quarter results
Base management and franchise fees totaled $1.200 billion in the quarter, a nearly 5% increase compared to base management and franchise fees of $1.148 billion 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 quarter, compared to $195 million in the 2024 second quarter, 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 quarter, compared to $99 million in the 2024 second quarter. The increase was mainly driven by the addition of the Sheraton Grand Chicago Riverwalk to the portfolio of owned hotels.
General, administrative and other expenses for the quarter 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 quarter, compared to $164 million in the year-ago quarter. The increase was largely due to higher interest expense associated with higher debt balances.
Marriott’s reported operating income totaled $1.236 billion in the quarter, compared to 2024 second-quarter reported operating income of $1,195 million. Reported net income totaled $763 million in the quarter, a 1% decrease compared to 2024 second-quarter 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 quarter totaled $1.186 billion, compared to 2024 second quarter adjusted operating income of $1.120 billion. Adjusted net income totaled $728 million, compared to 2024 second-quarter adjusted net income of $716 million. Adjusted diluted EPS totaled $2.65, compared to adjusted diluted EPS of $2.50 in the year-ago quarter.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $1.415 billion in the quarter, a 7% increase compared to second-quarter 2024 adjusted EBITDA of $.,324 billion.
Select 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 more than 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 more than 37,000 rooms approved for development, but not yet subject to signed contracts. The quarter-end pipeline included 1,447 properties with more than 238,000 rooms under construction, including hotels that are in the process of converting to the system. More than half of the rooms in the quarter-end pipeline are in international markets. The quarter-end pipeline does not reflect any rooms from the acquisition of the citizenM brand or from the launch of Series by Marriott.
Company outlook
The company’s updated outlook generally assumes the continuation of the current macro-economic environment.
- Comparable systemwide constant-dollar RevPAR growth of flat to 1% for Q3 2025 and 1.5% to 2.5% for full-year 2025
- Full-year 2025 net rooms growth approaching 5%
- Gross fee revenues of $1.310 billion to $1.325 billion in Q3 2025 and $5.365 billion to $5.420 billion in full-year 2025
- Adjusted EBITDA between $1.288 billion and $1.318 billion for Q3 2025 and $5.310 billion and $5.395 for full-year 2025
