Yahoo Finance

Global hospitality company Marriott (NASDAQ:MAR) reported revenue ahead of Wall Street’s expectations in Q1 CY2025, with sales up 4.8% year on year to $6.26 billion. Its non-GAAP profit of $2.32 per share was 3.1% above analysts’ consensus estimates.

Is now the time to buy MAR? Find out in our full research report (it’s free).

Marriott (MAR) Q1 CY2025 Highlights:

• Revenue: $6.26 billion vs analyst estimates of $6.21 billion (4.8% year-on-year growth, 0.8% beat)

• Adjusted EPS: $2.32 vs analyst estimates of $2.25 (3.1% beat)

• Adjusted EBITDA: $1.22 billion vs analyst estimates of $1.18 billion (19.4% margin, 2.9% beat)

• Management reiterated its full-year Adjusted EPS guidance of $10.00 at the midpoint

• EBITDA guidance for the full year is $5.36 billion at the midpoint, in line with analyst expectations

• Operating Margin: 15.1%, in line with the same quarter last year

• Free Cash Flow Margin: 8.2%, down from 11.2% in the same quarter last year

• RevPAR: $119.38 at quarter end, up 1.1% year on year

• Market Capitalization: $74.84 billion

StockStory’s Take

Marriott’s first quarter results reflected revenue and adjusted earnings per share ahead of Wall Street estimates, with management crediting continued global demand, robust group bookings, and international strength for the outperformance. CEO Anthony Capuano noted that premium and luxury segments outpaced select service hotels, while international regions such as Asia-Pacific, EMEA, and CALA saw strong RevPAR (revenue per available room) growth. However, the U.S. and Canada experienced softer trends late in the quarter, especially in select service and government-related business.

Looking forward, management reiterated its full-year profit outlook but acknowledged reduced visibility in the back half of the year, particularly in the U.S. and Canada. CFO Leeny Oberg attributed the modest reduction in RevPAR growth guidance to persistent weakness in U.S. government demand and the uncertain macroeconomic environment. The company expects international markets to remain a relative bright spot. Capuano emphasized that Marriott’s focus remains on executing its long-term growth strategy, expanding its brand portfolio, and advancing its digital transformation initiatives.

Key Insights from Management’s Remarks

Marriott’s leadership highlighted several operational trends and strategic developments that influenced the quarter’s results and will shape performance in upcoming periods.

• International RevPAR Strength: International regions—especially Asia-Pacific and EMEA—contributed to overall RevPAR momentum, with APAC markets like India and Japan delivering double-digit growth, offsetting weaker results in Greater China.

• Premium and Luxury Outperformance: The luxury and full-service segments outperformed select service hotels, with Capuano noting sustained demand from both group and transient guests, and little evidence of customers trading down to lower-priced offerings.

• Group Segment Resilience: Group bookings remained a leading growth segment, with Group RevPAR up 8% globally and in the U.S. Management indicated forward bookings into next year are pacing above current levels, supporting future revenue visibility.

• Development and Conversions: Marriott recorded record first-quarter global signings, with conversions (hotels switching brands) representing about one-third of all openings and signings. The pending citizenM acquisition is expected to add a distinctive lifestyle brand to Marriott’s portfolio.

• Digital and Technology Transformation: Ongoing upgrades to Marriott’s reservations and property management systems are progressing, with rollouts scheduled to begin in the back half of the year. Management expects these changes to enhance operational efficiency, customer experience, and ancillary revenue opportunities.