Marriott International Inc. reported record signings year to date and an increase of 0.5% in RevPAR in the third quarter.
“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,” said Anthony Capuano, president/CEO, Marriott International. “We delivered another quarter of strong rooms growth, robust development signings and profit gains.
“Global RevPAR rose 0.5% in the third quarter, impacted by calendar shifts and ongoing macroeconomic uncertainty. International RevPAR increased 2.6%, led by APEC, which delivered nearly 5% growth fueled by strong performance in key markets like Japan, Australia and Vietnam. In the U.S. & Canada, RevPAR declined 0.4% 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% 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% 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% in the U.S. & Canada and 68% 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 Oct. 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 billion in the 2025 third quarter, a nearly 6% increase compared to base management and franchise fees of $1.124 billion 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 2025 third quarter, compared to $159 million in the 2024 third quarter, primarily reflecting declines in the U.S. & 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 2025 third quarter, compared to $81 million in the 2024 third quarter. The increase was mainly driven by the addition of the Sheraton Grand Chicago to our portfolio of owned hotels in the 2024 fourth quarter.
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 2024 third quarter, as well as lower compensation costs.
In the 2025 third quarter, 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 2025 third quarter, 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 2025 third quarter, the provision for income taxes totaled $266 million compared to $202 million in the 2024 third quarter.
Marriott’s reported operating income totaled $1.18 billion in the 2025 third quarter, compared to 2024 third quarter reported operating income of $944 million. Reported net income totaled $728 million in the 2025 third quarter, a 25% increase compared to 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 2025 third quarter totaled $1.12 billion, compared to 2024 third quarter adjusted operating income of $1.02 billion. 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 2025 third quarter 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 $1.35 billion in the 2025 third quarter, a 10% increase compared to third quarter 2024 adjusted EBITDA of $1.23 billion.
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 more than 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 more than 250,000 rooms under construction, including hotels that are in the process of converting to its system. More than 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 company’s acquisition of the citizenM brand, which it expects to integrate into its system and platforms in the 2025 fourth quarter.
In the 2025 third quarter, worldwide RevPAR increased 0.5% (a 1.3% increase using actual dollars) compared to the 2024 third quarter. RevPAR in the U.S. & Canada declined 0.4% (a 0.4% decrease using actual dollars) year-over-year, and RevPAR in international markets increased 2.6% (a 5.3% increase using actual dollars) year-over-year.
