- FY Adjusted EBITDA Forecast: Marriott’s adjusted EBITDA is now projected to be between $5.31 billion and $5.40 billion, a slight narrowing from the previous forecast of $5.29 billion to $5.43 billion, with an estimate of $5.34 billion.
- Gross Fee Revenues: The forecast for gross fee revenues is adjusted to $5.37 billion to $5.42 billion, down from an earlier range of $5.37 billion to $5.48 billion.
- Third Quarter Projections: Expected adjusted EBITDA is between $1.29 billion and $1.32 billion, slightly below the $1.34 billion estimate. Gross fee revenues projected between $1.31 billion and $1.33 billion.
- Second Quarter Achievements:
- Adjusted EPS reached $2.65, higher than last year’s $2.50 and above the estimated $2.61.
- EPS rose to $2.78 compared to $2.69 year-on-year.
- Revenue increased by 4.7% to $6.74 billion, surpassing the $6.68 billion estimate.
- Adjusted EBITDA increased by 6.9% to $1.42 billion, topping the $1.38 billion estimate.
- Adjusted operating income grew by 5.9% to $1.19 billion, exceeding the $1.17 billion estimate.
- Adjusted operating margin remained constant at 65%, aligning closely with the 64.7% estimate.
- Total locations grew 7% year-on-year to 9,601, surpassing an estimate of 9,459.
- Total rooms at the period’s end were 1.74 million, a 4.7% increase, matching estimates.
- Shareholder Returns: Around $2.1 billion has been returned to shareholders so far in 2025, with expectations to return a total of approximately $4 billion by the year-end through share repurchases and dividends.
- CEO’s Comments: Anthony Capuano highlighted a strong quarter with solid financial outcomes and robust net room growth despite macro-economic challenges, emphasizing the company’s asset-light business model and brand strength.
- Regional RevPAR Insights:
- In the U.S. & Canada, year-over-year RevPAR remained flat; continued strength in the luxury segment countered a decline in select-service demand, attributed to reduced government travel and weaker business transient demand.
- Globally, RevPAR increased by 1.5% in the second quarter, driven primarily by the leisure segment.
- Analyst Recommendations: There are 10 buy recommendations, 18 holds, and 1 sell recommendation for Marriott shares.
Marriott International on Smartkarma
Analyst coverage of Marriott International on Smartkarma has been positive, with Baptista Research providing valuable insights into the company’s performance. In their report titled “Marriott International: Is Its Focus on Fee Structure & Non-RevPAR Growth Paying Off?”, the analysts highlight Marriott International‘s solid performance in the first quarter of 2025. Despite a challenging macroeconomic environment, the company reported strong development activity, record global signings, and a 4.6% net rooms growth. Global RevPAR increased by 4.1%, driven by a 3% rise in average daily rate (ADR) and an increase in occupancy.
Furthermore, in another report titled “Marriott International: How It’s Monetizing Loyalty & Direct Bookings!”, Baptista Research discusses Marriott International‘s strong performance in the fourth quarter of 2024. The company achieved a worldwide RevPAR increase of 5% for the quarter, with key metrics like ADR growing by 3% and occupancy improving by over 1 percentage point. Strategic partnerships and conversions have contributed significantly to Marriott International‘s success, reflected in a significant net rooms growth of 6.8% for the year.
A look at Marriott International Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
The Smartkarma Smart Scores for Marriott International paint a positive long-term outlook for the company. With strong ratings in Growth, Resilience, and Momentum, Marriott is positioned well for future success. The company’s ability to expand, withstand challenges, and maintain positive market sentiment bode well for its continued growth in the hospitality industry.
Marriott International Inc., a global leader in the hotel industry, continues to thrive based on its operational excellence and brand reputation. As a franchisor of various lodging facilities and vacation resorts worldwide, Marriott’s solid scores in Growth, Resilience, and Momentum indicate a promising trajectory for the company to capitalize on its established presence and further expand its market share in the hospitality sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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