Marriott International (MAR) delivered a strong start to 2025, with Q1 results reflecting solid growth and continued operational momentum amid sustained global travel demand. Total revenues rose 5% year-over-year to $6.26 billion, underpinned by the strength of Marriott’s asset-light, fee-driven business model. Operating income climbed 8% to $948 million, while net income surged 18% to $665 million, reflecting improved margins and favorable tax impacts. On an adjusted basis, net income grew 4% to $645 million, and adjusted diluted EPS rose 9% to $2.32, reinforcing the company’s profitability trajectory. Adjusted EBITDA reached $1.22 billion, up 7% year-over-year, with margins remaining robust at 63%.

Global RevPAR advanced 4.1% in constant currency, driven primarily by higher average daily rates. Performance was strongest in international markets, where RevPAR increased 5.9%, led by Asia Pacific excluding China, while the U.S. and Canada saw a more moderate 3.3% rise. Fee revenues remained solid, with base management and franchise fees up 7% to $1.07 billion, supported by higher RevPAR, new unit growth, and growing credit card partnerships. While incentive management fees declined slightly to $204 million, the majority originated from international managed properties. Cost efficiencies helped contain expenses, as G&A costs declined to $245 million, down from $261 million a year ago.

Profitability was further buoyed by a favorable tax environment, with income tax provisions dropping to $99 million, largely due to an $86 million reserve release, offsetting higher interest expenses of $183 million stemming from increased debt. On the balance sheet, total debt rose to $15.1 billion, while cash and equivalents stood at $0.5 billion. The company remained active in capital returns, repurchasing 2.8 million shares for $0.8 billion in Q1, and a total of 3.9 million shares for $1.0 billion through late April, contributing to over $1.2 billion returned to shareholders year-to-date.

Marriott’s global footprint continued to expand, with 12,200 net rooms added in the quarter—more than 7,300 of which were international—driving 4.6% net rooms growth year-over-year. The company’s development pipeline reached 3,808 properties and over 587,000 rooms, marking a 7.4% increase, with over half of these rooms located outside the U.S. Notably, Marriott achieved record signings of over 34,000 rooms, with conversions accounting for a third of both signings and openings, signaling rising owner interest in the brand’s flexibility and reach.

Looking ahead, Marriott plans to invest $1.355 to $1.455 billion in 2025, including $355 million allocated for the acquisition of the lifestyle brand citizenM, expected to close later this year. The company anticipates returning approximately $4 billion to shareholders in 2025, underscoring its continued focus on balanced capital allocation. CEO Anthony Capuano emphasized the resilience of Marriott’s operating model, highlighting strong international momentum, particularly in the APEC region, and the growing scale of the Marriott Bonvoy loyalty program, which reached nearly 237 million members by quarter-end.

With a robust pipeline, strategic acquisition plans, and an enterprise-wide efficiency initiative expected to yield $80–90 million in annual cost savings, Marriott is well-positioned for sustained performance. The company reaffirmed its full-year 2025 outlook, projecting net rooms growth nearing 5%, RevPAR growth between 1.5% and 3.5%, adjusted EBITDA of $5.29–$5.43 billion, and adjusted EPS of $9.82–$10.19. As international expansion and conversion activity accelerate, Marriott continues to execute effectively on its strategy to drive long-term growth and shareholder value.