MAR Q2 2025 Earnings

Call Details

• Call Title: Marriott International Q2 2025 Earnings Call
• Date: August 5, 2025 at 12:30 PM UTC
• Management Team:
  • Jackie Burka (Senior Vice President, Investor Relations)
  • Tony Capuano (President and Chief Executive Officer)
  • Leeny Oberg (Chief Financial Officer and Executive Vice President Development)
  • Pilar Fernandez (Senior Director of Investor Relations)

Call Summary

Financial Performance

• Second quarter global RevPAR rose 1.5%.
• Second quarter total gross fee revenues increased 4% year over year to $1.4B.
• Intensive management fees rose 3% to $200M in the second quarter with roughly two-thirds earned by international hotels.
• Owned, lease and other revenue net of expenses rose 14% year over year driven by Sheridan Grand Chicago and favorable currency impacts.
• Adjusted EBITDA rose 7% year over year to $1.42B in the second quarter.
• G&A declined 1% year over year in the second quarter driven primarily by lower compensation costs.

Guidance

• Third quarter global RevPAR is expected to be flat to up 1%.
• Full-year 2025 RevPAR is expected to be around a 0.5% increase versus last year after reducing the upper end of the prior range.
• Third quarter adjusted EBITDA is expected to increase 5% to 7% and full-year adjusted EBITDA is expected to increase 7% to 8% to $5.3B to $5.4B.
• Full-year gross fees are expected to be $5.37B to $5.42B, representing about 4% to 5% growth year over year.
• IMFs are expected to decline around 15% in the third quarter, to be flattish to slightly down for the full year, and fourth quarter IMFs are expected to increase mid- to high-single digits.
• Full-year adjusted diluted EPS is expected to be $9.85 to $10.08 and the adjusted effective tax rate is expected to be roughly one percentage point higher than a year ago.
• Full-year residential and co-branding fees are now anticipated to decline around 30% due to timing shifts in expected property sales.