10-QPeriod: Q1 FY2025

MARRIOTT INTERNATIONAL INC /MD/ Quarterly Report for Q1 Ended Mar 31, 2025

Filed May 6, 2025For Securities:MAR

Summary

Marriott International, Inc. (MAR) reported a strong first quarter for 2025, demonstrating robust revenue growth and improved profitability. Net income rose to $665 million from $564 million in the prior year's first quarter, translating to a significant increase in diluted earnings per share from $1.93 to $2.39. This performance was primarily driven by higher fee revenues, which grew 5% to $1,247 million, fueled by strong base management fees and franchise fees reflecting increased RevPAR and unit growth across its global portfolio. The company also highlighted positive system-wide RevPAR growth of 4.1%, with notable strength in international markets, particularly in the Asia Pacific excluding China region. Marriott continues to expand its footprint, adding approximately 12,200 net rooms in the quarter, and maintains a substantial development pipeline. The company also announced an agreement to acquire the citizenM brand, signaling continued strategic growth initiatives.

Financial Highlights

43 data points
Beta

Revenue

$6.26B

Net Income

$665.00M

10.6% Net Margin

EPS (Diluted)

$2.39

Total Assets

$26.65B

Cash & Equivalents

$523.00M

Free Cash Flow

$512.00M

Financial Statements
Beta
Revenue$6.26B
Operating Expenses$5.32B
Operating Income$948.00M
Net Income$665.00M
EPS (Basic)$2.40
EPS (Diluted)$2.39
Shares Outstanding (Basic)276.90M
Shares Outstanding (Diluted)277.70M

Key Highlights

  • 1Net income increased to $665 million in Q1 2025, up from $564 million in Q1 2024.
  • 2Diluted earnings per share grew to $2.39 from $1.93 year-over-year.
  • 3Gross fee revenues increased by 5% to $1,275 million, driven by higher base management and franchise fees.
  • 4Worldwide RevPAR increased by 4.1%, with international regions showing strong performance, especially Asia Pacific excluding China (+10.9%).
  • 5Marriott added approximately 12,200 net rooms in the first quarter, expanding its global system to 9,463 properties.
  • 6The company announced an agreement to acquire the citizenM brand for $355 million, plus potential earn-outs, indicating strategic expansion.
  • 7Marriott continued to return capital to shareholders through dividends ($174 million) and share repurchases ($751 million) in the quarter.

Frequently Asked Questions

Marriott International reported a 5% increase in net fee revenues to $1,247 million for the first quarter of 2025, compared to $1,187 million in the same period of 2024. This growth was primarily driven by higher base management fees (up 4%) and franchise fees (up 8%), reflecting strong RevPAR performance and unit growth across its global system.

The company reported a solid 4.1% increase in worldwide RevPAR for comparable systemwide properties. This was a result of a 2.9% increase in Average Daily Rate (ADR) and a 0.7 percentage point increase in occupancy. International regions showed particularly strong RevPAR growth, with Asia Pacific excluding China leading at 10.9%.

Marriott continues to expand its global footprint, adding approximately 12,200 net rooms in the first quarter of 2025, bringing its total system to 9,463 properties. A significant strategic move announced is the agreement to acquire the citizenM brand and related intellectual property for $355 million, which is expected to close later in 2025. The company also maintains a substantial development pipeline of approximately 3,800 properties and over 587,000 rooms.

Marriott has a $4.5 billion multicurrency revolving credit facility set to expire in December 2027, which supports its commercial paper program and general corporate needs. The company's long-term debt has a weighted average interest rate of 4.6% and an average maturity of approximately 5.8 years. They believe their credit facility, access to capital markets, and operational cash flow are adequate to meet their liquidity requirements for the foreseeable future. The company also engaged in significant debt issuance, raising approximately $1.96 billion in net proceeds from Series RR and SS Notes to support general corporate purposes.