Marriott International has slightly lowered its full-year earnings outlook, citing signs of softening demand in certain markets, even as the company posted strong first-quarter results for 2025.
In the first quarter of 2025, Marriott saw global revenue per available room (RevPAR)—a key industry metric—rise by 4.1% compared to the same period last year. Growth was driven by a 3.3% increase in the U.S. and Canada, and a stronger 5.9% uptick across international markets.
The company reported a net income of $665 million, with adjusted net income reaching $645 million. Diluted earnings per share stood at $2.39, while adjusted diluted EPS came in at $2.32. Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) totalled $1.22 billion for the quarter.
Despite these positive indicators, Marriott’s leadership flagged emerging pressures on global travel demand, prompting a slight revision to its full-year projections. The company now expects more modest revenue growth over the coming quarters as economic headwinds begin to weigh on leisure and corporate travel.
Development pipeline continues to expand
Marriott added approximately 12,200 net rooms in the first quarter, representing a 4.6% increase compared to the same period in 2024. The company’s global development pipeline remains strong, with around 3,800 hotels and more than 587,000 rooms in planning or under construction.
This marks a 7.4% increase in pipeline growth year-over-year, highlighting sustained interest from developers and franchisees despite market uncertainties.
The group continues to focus on strategic growth, particularly in high-demand international regions, where RevPAR growth outpaced that of North America. Executives reaffirmed confidence in the long-term fundamentals of the travel industry, even as they acknowledged near-term volatility.
Shareholder returns remain a priority
Marriott maintained its commitment to returning value to shareholders. In the first quarter alone, the company repurchased 2.8 million shares of common stock for a total of $800 million.
By the end of April, total capital returned to shareholders for the year had surpassed $1.2 billion, including both dividends and buybacks.
While macroeconomic conditions have introduced a degree of caution into the company's guidance, Marriott’s overall financial health remains strong, underpinned by a diversified global footprint and ongoing expansion plans.
Moderation, not retreat
Although Marriott has moderated its outlook, the company remains on solid ground. The first-quarter performance reflects sustained post-pandemic travel momentum, particularly in international markets.
However, the more tempered forecast suggests a recognition of changing economic dynamics and a pragmatic approach to navigating the rest of 2025.
Marriott’s detailed financial report is available on its investor relations website: Marriott Q1 2025 Results.
