Marriott International Reports Strong Q1 2025 Financial Performance with $6.263 Billion in Revenue

Marriott International, Inc. reported a strong financial performance for the first quarter of 2025, with total revenues reaching $6.263 billion, a 4.8% increase from $5.977 billion in the same period of 2024. The company’s net income also rose to $665 million, up from $564 million year-over-year, resulting in earnings per share of $2.39, compared to $1.93 in the prior year. The increase in revenue was primarily driven by higher base management and franchise fees, which grew to $325 million and $746 million, respectively, reflecting a solid demand recovery across its global portfolio.

In comparison to the previous fiscal period, Marriott's gross fee revenues increased by 5.4% to $1.275 billion, while net fee revenues rose to $1.247 billion, up from $1.187 billion. The company also reported a notable improvement in operating income, which increased to $948 million from $876 million. The effective tax rate decreased significantly to 13.0% from 22.4%, primarily due to the release of tax reserves. This combination of factors contributed to a comprehensive income of $766 million, compared to $417 million in the first quarter of 2024.

Strategically, Marriott announced an agreement to acquire the citizenM brand for $355 million, with potential earn-out payments of up to $110 million based on future growth. This acquisition is expected to enhance Marriott's portfolio, adding 36 select-service hotels with 8,544 rooms worldwide. The transaction is anticipated to close later in 2025, subject to regulatory approvals. Additionally, Marriott's development pipeline remains robust, with approximately 3,800 properties and over 587,000 rooms in various stages of development, indicating a continued focus on geographic expansion.

Operationally, Marriott's system included 9,463 properties and 1,718,542 rooms as of March 31, 2025, reflecting a year-over-year increase of 602 properties and 75,370 rooms. The company reported a worldwide Revenue per Available Room (RevPAR) growth of 4.1%, driven by a 2.9% increase in Average Daily Rate (ADR) and a 0.7 percentage point improvement in occupancy. Notably, the U.S. & Canada segment saw a RevPAR increase of 3.3%, while the Asia Pacific region experienced a significant 10.9% growth.

Looking ahead, Marriott expects net room growth for the full year 2025 to approach 5%, bolstered by the upcoming citizenM acquisition. The company remains optimistic about its ability to navigate macroeconomic challenges and is committed to returning cash to shareholders through dividends and share repurchases. As of the end of the first quarter, Marriott had $546 million in cash and equivalents, positioning it well to meet its liquidity needs and support ongoing investments in its business.