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Marriott Stock Up as Q2 Earnings Beat Estimates, RevPAR Rises Y/Y
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Key Takeaways
{\"0\":\" MAR\'s Q2 EPS of $2.65 and revenues of $6.74B both beat estimates and rose year over year.\",\"1\":\"Global RevPAR rose 1.5%, driven by leisure travel and international market strength.\",\"2\":\"Q3 EPS is predicted at $2.31-$2.39, with RevPAR growth expected to be flat to up 1%.\"}
Marriott International, Inc. (MAR - Free Report) reported second-quarter 2025 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. Its earnings beat the estimate for the third straight quarter. Both metrics increased on a year-over-year basis.
Following the results, the stock surged 6.1% in today’s pre-market trading session.
Despite macroeconomic uncertainty, the company delivered steady performance with strong financial results and continued net rooms growth. Global revenue per available room (RevPAR) moved up, mainly supported by strength in the leisure segment. Base management and franchise fees rose, driven by room additions, higher RevPAR and increased credit card contributions. The company completed the acquisition of citizenM, which is expected to support global growth.
MAR continued to see strong momentum in its development pipeline, with nearly 32,000 rooms signed during the quarter. More than 70% of these were in international markets. The quarter ended with a record pipeline of more than 590,000 rooms. Conversions remained an important growth lever, accounting for around 30% of room signings and openings in the first half of the year. For the full year, the company still expects net rooms growth to approach 5%.
MAR’s Q2 Earnings & Revenue Discussion
Marriott’s adjusted earnings per share (EPS) of $2.65 beat the Zacks Consensus Estimate of $2.64. It reported adjusted earnings of $2.50 per share in the prior-year quarter.
Quarterly revenues of $6,744 million beat the consensus mark of $6,666 million. The top line moved up 5% on a year-over-year basis.
Marriott International, Inc. Price, Consensus and EPS Surprise
Revenues from Base management and Franchise fees were $340 million and $860 million, respectively, up 3% and 5% year over year. We estimated the metrics to be $337.9 million and $847 million, respectively.
Incentive management fees were $200 million, reflecting an increase of 3% from $195 million reported in the prior-year quarter. We expected the metric to be $190.2 million.
MAR’s RevPAR & Margins
RevPAR for worldwide comparable system-wide properties rose 1.5% (in constant dollars) year over year. This upside was backed by a 1.9% increase in average daily rate (“ADR”), offset by a 0.3% fall in occupancy year over year.
Comparable system-wide RevPAR in the Asia Pacific (excluding China) increased 8.8% (in constant dollars) year over year. Occupancy moved up 1.1% year over year, while ADR rose 7%. Comparable system-wide RevPAR in Greater China declined 0.5% year over year.
On a constant-dollar basis, international comparable system-wide RevPAR increased 5.3% year over year. Occupancy and ADR gained 0.9% and 3.9%, respectively, year over year. Comparable system-wide RevPAR in Europe gained 3.8% year over year. RevPAR in the Caribbean & Latin America and the Middle East & Africa rose 3% and 14%, respectively, year over year.
Total expenses increased 5% year over year to $5.51 billion, owing to a decline in reimbursed expenses. Our estimate was pegged at $5.52 billion.
Adjusted EBITDA amounted to $1.42 billion compared with $1.32 billion reported in the prior-year quarter. We predicted the metric to be $1.37 billion.
Balance Sheet of MAR
At the second-quarter end, Marriott's total debt was $15.7 billion compared with $15.1 billion reported in the prior quarter. Cash and cash equivalents, as of June 30, 2025, were $0.7 billion compared with $0.4 billion as of 2024-end.
Year to date (through July 30, 2025), the company repurchased 6.4 million shares worth $1.7 billion.
MAR’s Unit Developments
At the end of the second quarter, Marriott's worldwide development pipeline totaled 3,858 hotels. As of the quarter's end, about 1,447 properties with more than 238,000 rooms were under construction.
Marriott’s Q3 & 2025 Outlook
For the third quarter, management anticipates gross fee revenues in the range of $1.310-$1.325 billion. Adjusted EBITDA is expected to be between $1.288 billion and $1.318 billion. MAR estimates third-quarter EPS to be between $2.31 and $2.39. The company predicts worldwide system-wide RevPAR year-over-year growth to be flat to 1% in the third quarter.
The company expects worldwide system-wide RevPAR to increase 1.5-2.5% year over year in 2025, compared with the prior estimate of 1.5-3.5% growth.
For 2025, Marriott now expects its gross fee revenues to be $5.365-$5.420 billion compared with the prior expected range of $5.365-$5.475 billion. General and administrative expenses are anticipated in the range of $965-$985 million.
Adjusted EBITDA is expected to be between $5.310 billion and $5.395 billion compared with the previous expectation of $5.285-$5.425 billion. The company now envisions 2025 EPS in the band of $9.85-$10.09 compared with the prior expectation of $9.82-$10.19.
MAR’s Zacks Rank & Key Picks
Marriott currently carries a Zacks Rank #4 (Sell).
Carnival delivered a trailing four-quarter earnings surprise of 169.9%, on average. The stock has gained 20.9% in the year-to-date period. The Zacks Consensus Estimate for Carnival’s 2025 sales and EPS implies growth of 5.9% and 40.9%, respectively, from the year-ago levels.
Monarch Casino presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 11.1%, on average. The stock has rallied 28.5% in the year-to-date period.
The Zacks Consensus Estimate for Monarch Casino’s 2025 sales and EPS indicates an increase of 4.5% and 9.9%, respectively, from the year-ago levels.
Planet Fitness currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 6.9%, on average. The stock has gained 11.6% in the year-to-date period.
The Zacks Consensus Estimate for Planet Fitness’ 2025 sales and EPS indicates growth of 10.5% and 12.4%, respectively, from the year-ago period’s levels.
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Marriott Stock Up as Q2 Earnings Beat Estimates, RevPAR Rises Y/Y
Key Takeaways
Marriott International, Inc. (MAR - Free Report) reported second-quarter 2025 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. Its earnings beat the estimate for the third straight quarter. Both metrics increased on a year-over-year basis.
Following the results, the stock surged 6.1% in today’s pre-market trading session.
Despite macroeconomic uncertainty, the company delivered steady performance with strong financial results and continued net rooms growth. Global revenue per available room (RevPAR) moved up, mainly supported by strength in the leisure segment. Base management and franchise fees rose, driven by room additions, higher RevPAR and increased credit card contributions. The company completed the acquisition of citizenM, which is expected to support global growth.
MAR continued to see strong momentum in its development pipeline, with nearly 32,000 rooms signed during the quarter. More than 70% of these were in international markets. The quarter ended with a record pipeline of more than 590,000 rooms. Conversions remained an important growth lever, accounting for around 30% of room signings and openings in the first half of the year. For the full year, the company still expects net rooms growth to approach 5%.
MAR’s Q2 Earnings & Revenue Discussion
Marriott’s adjusted earnings per share (EPS) of $2.65 beat the Zacks Consensus Estimate of $2.64. It reported adjusted earnings of $2.50 per share in the prior-year quarter.
Quarterly revenues of $6,744 million beat the consensus mark of $6,666 million. The top line moved up 5% on a year-over-year basis.
Marriott International, Inc. Price, Consensus and EPS Surprise
Marriott International, Inc. price-consensus-eps-surprise-chart | Marriott International, Inc. Quote
Revenues from Base management and Franchise fees were $340 million and $860 million, respectively, up 3% and 5% year over year. We estimated the metrics to be $337.9 million and $847 million, respectively.
Incentive management fees were $200 million, reflecting an increase of 3% from $195 million reported in the prior-year quarter. We expected the metric to be $190.2 million.
MAR’s RevPAR & Margins
RevPAR for worldwide comparable system-wide properties rose 1.5% (in constant dollars) year over year. This upside was backed by a 1.9% increase in average daily rate (“ADR”), offset by a 0.3% fall in occupancy year over year.
Comparable system-wide RevPAR in the Asia Pacific (excluding China) increased 8.8% (in constant dollars) year over year. Occupancy moved up 1.1% year over year, while ADR rose 7%. Comparable system-wide RevPAR in Greater China declined 0.5% year over year.
On a constant-dollar basis, international comparable system-wide RevPAR increased 5.3% year over year. Occupancy and ADR gained 0.9% and 3.9%, respectively, year over year. Comparable system-wide RevPAR in Europe gained 3.8% year over year. RevPAR in the Caribbean & Latin America and the Middle East & Africa rose 3% and 14%, respectively, year over year.
Total expenses increased 5% year over year to $5.51 billion, owing to a decline in reimbursed expenses. Our estimate was pegged at $5.52 billion.
Adjusted EBITDA amounted to $1.42 billion compared with $1.32 billion reported in the prior-year quarter. We predicted the metric to be $1.37 billion.
Balance Sheet of MAR
At the second-quarter end, Marriott's total debt was $15.7 billion compared with $15.1 billion reported in the prior quarter. Cash and cash equivalents, as of June 30, 2025, were $0.7 billion compared with $0.4 billion as of 2024-end.
Year to date (through July 30, 2025), the company repurchased 6.4 million shares worth $1.7 billion.
MAR’s Unit Developments
At the end of the second quarter, Marriott's worldwide development pipeline totaled 3,858 hotels. As of the quarter's end, about 1,447 properties with more than 238,000 rooms were under construction.
Marriott’s Q3 & 2025 Outlook
For the third quarter, management anticipates gross fee revenues in the range of $1.310-$1.325 billion. Adjusted EBITDA is expected to be between $1.288 billion and $1.318 billion. MAR estimates third-quarter EPS to be between $2.31 and $2.39. The company predicts worldwide system-wide RevPAR year-over-year growth to be flat to 1% in the third quarter.
The company expects worldwide system-wide RevPAR to increase 1.5-2.5% year over year in 2025, compared with the prior estimate of 1.5-3.5% growth.
For 2025, Marriott now expects its gross fee revenues to be $5.365-$5.420 billion compared with the prior expected range of $5.365-$5.475 billion. General and administrative expenses are anticipated in the range of $965-$985 million.
Adjusted EBITDA is expected to be between $5.310 billion and $5.395 billion compared with the previous expectation of $5.285-$5.425 billion. The company now envisions 2025 EPS in the band of $9.85-$10.09 compared with the prior expectation of $9.82-$10.19.
MAR’s Zacks Rank & Key Picks
Marriott currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Carnival Corporation & plc (CCL - Free Report) , Monarch Casino & Resort, Inc. (MCRI - Free Report) and Planet Fitness, Inc. (PLNT - Free Report) .
Carnival presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Carnival delivered a trailing four-quarter earnings surprise of 169.9%, on average. The stock has gained 20.9% in the year-to-date period. The Zacks Consensus Estimate for Carnival’s 2025 sales and EPS implies growth of 5.9% and 40.9%, respectively, from the year-ago levels.
Monarch Casino presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 11.1%, on average. The stock has rallied 28.5% in the year-to-date period.
The Zacks Consensus Estimate for Monarch Casino’s 2025 sales and EPS indicates an increase of 4.5% and 9.9%, respectively, from the year-ago levels.
Planet Fitness currently carries a Zacks Rank #2 (Buy). The company delivered a trailing four-quarter earnings surprise of 6.9%, on average. The stock has gained 11.6% in the year-to-date period.
The Zacks Consensus Estimate for Planet Fitness’ 2025 sales and EPS indicates growth of 10.5% and 12.4%, respectively, from the year-ago period’s levels.