10-QPeriod: Q3 FY2025

MARRIOTT INTERNATIONAL INC /MD/ Quarterly Report for Q3 Ended Sep 30, 2025

Filed November 4, 2025For Securities:MAR

Summary

Marriott International Inc. (MAR) reported solid financial results for the third quarter and the first nine months of fiscal year 2025, demonstrating continued revenue growth and increased profitability. Net income rose significantly year-over-year for both periods, driven by increases in net fee revenues and strong performance in owned, leased, and other revenue segments. The company's strategic acquisitions, such as citizenM, are contributing to system growth and expanding its market presence, although integration costs and potential earn-out payments will require ongoing monitoring. Despite a slight decrease in RevPAR in the U.S. & Canada region due to softer business transient demand, overall worldwide RevPAR showed modest growth. International markets, particularly APEC and EMEA, continue to exhibit strong RevPAR growth. Marriott also demonstrated effective capital allocation through substantial share repurchases and continued dividend payments, reinforcing its commitment to shareholder returns. The company maintains a strong liquidity position and a robust development pipeline, indicating a positive outlook for future expansion and sustained financial performance.

Financial Highlights

43 data points
Beta

Revenue

$6.49B

Net Income

$728.00M

11.2% Net Margin

EPS (Diluted)

$2.67

Total Assets

$27.83B

Cash & Equivalents

$678.00M

Free Cash Flow

$951.00M

Financial Statements
Beta
Revenue$6.49B
Operating Expenses$5.31B
Operating Income$1.18B
Net Income$728.00M
EPS (Basic)$2.68
EPS (Diluted)$2.67
Shares Outstanding (Basic)271.80M
Shares Outstanding (Diluted)272.50M

Key Highlights

  • 1Net income increased significantly to $728 million for Q3 2025 and $2,156 million for the first nine months of 2025, compared to $584 million and $1,920 million in the prior year periods, respectively.
  • 2Net fee revenues grew by 4% for both the three and nine-month periods ended September 30, 2025, driven by increases in franchise fees and base management fees.
  • 3Worldwide RevPAR saw a modest increase of 0.5% for Q3 2025 and 2.0% for the first nine months, with international markets showing stronger growth than the U.S. & Canada.
  • 4The company completed the acquisition of the citizenM brand, adding 37 hotels to its portfolio and contributing to system growth.
  • 5Marriott returned substantial capital to shareholders, repurchasing $2.3 billion of common stock in the first nine months and paying $539 million in dividends.
  • 6Long-term debt increased, but the company maintained a strong liquidity position with $694 million in cash, cash equivalents, and restricted cash as of September 30, 2025.
  • 7System-wide properties increased by 7% and rooms by 5% year-over-year, reaching 9,721 properties and 1,753,722 rooms.

Frequently Asked Questions

Marriott's revenue growth was primarily driven by increases in franchise fees, which rose due to higher room growth and increased co-branded credit card and other brand-related fees. Base management fees also contributed positively, reflecting higher RevPAR and room growth.

The acquisition of citizenM, completed in the third quarter of 2025, added 37 open hotels to Marriott's portfolio. While not fully reflected in the financial results for this period, it contributes to system growth and expands Marriott's brand offerings. Potential future earn-out payments related to this acquisition will be a point to monitor.

Marriott reported a slight increase in worldwide RevPAR, driven by ADR growth. However, performance varies by region. The U.S. & Canada experienced a slight RevPAR decrease due to softer business transient and group demand, while international regions, especially APEC and EMEA, showed stronger RevPAR growth. Greater China's RevPAR was flat to slightly down, reflecting macroeconomic conditions.

Marriott has increased its long-term debt through Senior Notes issuances, leading to higher interest expenses. However, the company maintains a strong liquidity position, with $694 million in cash, cash equivalents, and restricted cash. It also has a $4.5 billion revolving credit facility and adequate access to capital markets to meet its liquidity needs.