Executive Summary

Q3 2025 was resilient despite macro headwinds: adjusted EPS $2.47 and adjusted EBITDA $1.35B, with worldwide RevPAR +0.5% driven by international strength and luxury outperformance; U.S. & Canada RevPAR fell 0.4% on weaker lower chain-scale demand and reduced government travel .
Results were above Wall Street EPS and EBITDA consensus; reported total revenues modestly exceeded Street revenue consensus (see Estimates Context) *.
Guidance was modestly raised for FY adjusted EPS ($9.98–$10.06) and adjusted EBITDA ($5.35–$5.38B); Q4 RevPAR expected +1–2% YoY; post-quarter update trimmed 2025 net rooms growth to ~4.5% after Sonder license termination (rest of outlook unchanged) .
Strategic highlights: record development pipeline (~596k rooms), 17.9k net rooms added, Bonvoy membership neared 260M (+12M in the quarter), and commentary on dual-issuer co-brand card renewal as a potential 2026 earnings catalyst .

What Went Well and What Went Wrong

What Went Well
- International RevPAR +2.6% led by APEC (~+5%) and EMEA; luxury RevPAR +4% globally with strong rate performance, underscoring portfolio tilt to higher-end segments .
- Fees strength and cost discipline: gross fee revenues +4% YoY to $1.34B; G&A down 15% YoY to $234M; adjusted EBITDA +10% YoY to $1.35B .
- CEO quote: “Our third quarter results demonstrated continued strong execution of our growth strategy... and profit gains” and “We still expect net rooms growth to approach 5 percent for full year 2025” (later updated to ~4.5%) .
What Went Wrong
- U.S. & Canada softness: constant-$ RevPAR -0.4% on declines in select service brands and reduced government travel; group RevPAR -3% with calendar effects .
- Incentive management fees -7% YoY to $148M, reflecting U.S. & Canada declines and lapping prior-year insurance proceeds in Florida .
- Post-quarter, Sonder default removed rooms from the system, reducing 2025 net rooms growth expectation to ~4.5% (vs. prior “approaching 5%”) .

Financial Results

Metric	Q1 2025	Q2 2025	Q3 2025
Total Revenues ($USD Millions)	$6,263	$6,744	$6,489
Adjusted Total Revenues ($USD Millions)	$1,608	$1,812	$1,729
Gross Fee Revenues ($USD Millions)	$1,275	$1,400	$1,338
Incentive Management Fees ($USD Millions)	$204	$200	$148
Owned, Leased & Other Net ($USD Millions)	$65	$113	$94
General, Administrative & Other ($USD Millions)	$245	$245	$234
Operating Income ($USD Millions)	$948	$1,236	$1,180
Adjusted Operating Income ($USD Millions)	$1,016	$1,186	$1,119
Operating Income Margin (%)	15%	18%	18%
Adjusted Operating Income Margin (%)	63%	65%	65%
Reported Diluted EPS ($)	$2.39	$2.78	$2.67
Adjusted Diluted EPS ($)	$2.32	$2.65	$2.47
Adjusted EBITDA ($USD Millions)	$1,217	$1,415	$1,349

Segment/Geography KPIs (constant $):

RevPAR YoY (% change) | Region | Q1 2025 | Q2 2025 | Q3 2025 | |--------|---------|---------|---------| | Worldwide | +4.1% | +1.5% | +0.5% | | U.S. & Canada | +3.3% | 0.0% | −0.4% | | International | +5.9% | +5.3% | +2.6% |

Company KPIs:

KPI	Q1 2025	Q2 2025	Q3 2025
Net Rooms Added (000s)	~12.2	~17.3	~17.9
Pipeline Properties / Rooms	~3,808 / 587k+	~3,858 / 590k+	~3,923 / 596k+
Bonvoy Membership	~237M	~248M	~260M (+12M in Q3)
Total Debt / Cash	$15.1B / $0.5B	$15.7B / $0.7B	$16.0B / $0.7B
Share Repurchases	2.8M; $0.8B	2.8M; $0.7B	3.0M; $0.8B; YTD $2.6B

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Comparable Systemwide RevPAR (constant $)	Q4 2025 vs Q4 2024	—	+1% to +2%	New
Comparable Systemwide RevPAR (constant $)	FY 2025 vs FY 2024	+1.5% to +2.5%	+1.5% to +2.5%	Maintained
Net Rooms Growth	YE 2025 vs YE 2024	Approaching 5%	Approaching 5% (updated post-Q3 to ~4.5%)	Lowered to ~4.5% post 11/9
Gross Fee Revenues ($MM)	Q4 2025	—	$1,382–$1,402	New
Gross Fee Revenues ($MM)	FY 2025	$5,365–$5,420	$5,395–$5,415	Slightly raised/narrowed
Owned, Leased & Other Net ($MM)	Q4 2025	—	~$98	New
Owned, Leased & Other Net ($MM)	FY 2025	$360–$370	~$370	Upper end
G&A ($MM)	Q4 2025	—	$261–$251	New
G&A ($MM)	FY 2025	$985–$965	$985–$975	Narrowed
Adjusted EBITDA ($MM)	Q4 2025	—	$1,371–$1,401	New
Adjusted EBITDA ($MM)	FY 2025	$5,310–$5,395	$5,352–$5,382	Raised midpoint
Adjusted EPS – diluted ($)	Q4 2025	—	$2.54–$2.62	New
Adjusted EPS – diluted ($)	FY 2025	$9.85–$10.08	$9.98–$10.06	Raised low end
Investment Spending ($MM)	FY 2025	$1,355–$1,455 (incl. citizenM)	~$1,450 (incl. $349M citizenM)	In-line
Capital Return to Shareholders ($MM)	FY 2025	~$4,000	~$4,000	Maintained

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2, Q1)	Current Period (Q3)	Trend
Co-brand credit cards renewal	Noted fees growth; citizenM and Series brand expansion	Active dual-issuer negotiations; strong growth in card spend and fee contributions; optimism on 2026 outcome	Positive catalyst building
Technology / AI	Launches and brand additions in Q2/Q1; less tech detail	Multi-year cloud transformation; deploying new systems; leveraging AI for content, BI, processes; exploring AI as distribution channel	Increasing emphasis
Macro/RevPAR mix	Q2: Intl +5.3%, US flat; Q1: broad strength	Intl +2.6%; US & Canada −0.4%; luxury +4% outperformed	High-end resilient; lower chains soft
Development / Conversions	Record pipeline; conversions ~30% of signings/openings	Conversions ~30% continue; under-construction pipeline improved; financing still constrains new builds	Steady growth, conversions strong
Events / 2026 outlook	Q2 outlook raised; Q1 robust start	2026 global RevPAR prelim. similar to 2025; World Cup adds ~30–35bps to global RevPAR, mainly US/Canada	Stable, event tailwinds

Management Commentary

CEO: “Global RevPAR rose 0.5 percent… International RevPAR increased 2.6 percent… luxury RevPAR rising 4 percent in the quarter” and “We still expect net rooms growth to approach 5 percent for full year 2025” (subsequently ~4.5%) .
CEO: “During the third quarter, we added another 12 million [Bonvoy] members, bringing total global membership to nearly 260 million” .
CFO: “Gross fee revenues increased 4%… co-branded credit card fees rose 13%... G&A declined 15%… adjusted EBITDA increasing 10% to $1.35B” .
CEO on tech: “Deploying new cloud-based systems… increasingly leveraging AI across our business” .
CFO on development: “Conversions accounted for around 30% of both signings and openings… pipeline under construction picked up, though financing still constrains new builds” .

Q&A Highlights

Co-brand credit cards: Dual-issuer strategy (Amex & Chase) provides complementary bases and higher program funding; negotiations ongoing with optimism for new deals next year; 2024 branding fees $660M, +~9% expected in 2025 .
Business transient: Global BT flat in Q3 (improved from Q2); ex-government +1% YoY; government transient −15% YoY; SMEs softer than large corporates, impacting select service .
2026 RevPAR and event tailwinds: Expect similar global RevPAR growth to 2025; World Cup adds ~30–35bps globally, mostly US/Canada; US group pace +8% for 2026 .
Development momentum: Conversions ~30% of openings; under-construction share leadership in U.S.; small pickup in starts, but rates/labor/construction costs still constrain new builds .
AI distribution and seasonality: Optimizing content for gen-AI platforms as emerging distribution; noted elongated peak season in Europe with stronger fall demand .

Estimates Context

Metric (Q3 2025)	Actual	Wall St. Consensus	Comparison
Adjusted Diluted EPS ($)	$2.47	2.38733*	Beat
Reported Total Revenues ($)	$6.489B	6.45895B*	Slight beat
Adjusted EBITDA ($)	$1.349B	1.30765B*	Beat

Values retrieved from S&P Global.*
Note: Street “revenue” definitions can differ for asset-light models; we compare consensus to reported total revenues for consistency with SPGI figures. Company also reports Adjusted Total Revenues of $1.729B .

Key Takeaways for Investors

Mix matters: Continued luxury/premium strength offsets lower chain-scale and government travel softness; portfolio skew to upper chain scales is a structural advantage .
Fee-driven model resilience: Gross fees +4% YoY, G&A −15% YoY, adjusted EBITDA +10% YoY; margin discipline supports EPS beats in low-growth demand environments .
International pipeline and conversions underpin multi-year rooms growth; near-term net rooms outlook trimmed to ~4.5% after Sonder default but longer-term mid-single-digit growth remains intact .
Co-brand card renewal is a 2026 catalyst; dual-issuer approach and Bonvoy scale (~260M members) should support stronger fee economics .
2026 RevPAR outlook broadly stable vs 2025; World Cup provides incremental US/Canada demand tailwind; watch SMEs and government transient for U.S. select-service recovery timing .
FY guidance modestly raised for adjusted EPS and EBITDA; Q4 set up implies sequential RevPAR acceleration (+1–2% YoY) and continued cash returns (~$4B in 2025) .
Tactical: Accretive buybacks continue (3.0M shares; $0.8B in Q3); balance sheet capacity preserved (debt $16.0B; cash $0.7B), with staggered notes issuance supporting liquidity .

References: 
Press release and schedules: **[1048286_20251104PH14117:0]** **[1048286_20251104PH14117:1]** **[1048286_20251104PH14117:2]** **[1048286_20251104PH14117:3]** **[1048286_20251104PH14117:5]** **[1048286_20251104PH14117:7]** **[1048286_20251104PH14117:15]** **[1048286_20251104PH14117:16]** 
Form 8-K 2.02 and exhibits: **[1048286_0001048286-25-000011_mar-2025q3xex99earningsrel.htm:1]** **[1048286_0001048286-25-000011_mar-2025q3xex99earningsrel.htm:2]** **[1048286_0001048286-25-000011_mar-2025q3xex99earningsrel.htm:3]** **[1048286_0001048286-25-000011_mar-2025q3xex99earningsrel.htm:7]** **[1048286_0001048286-25-000011_mar-2025q3xex99earningsrel.htm:9]** **[1048286_0001048286-25-000011_mar-2025q3xex99earningsrel.htm:18]** **[1048286_0001048286-25-000011_mar-2025q3xex99earningsrel.htm:24]** **[1048286_0001048286-25-000011_mar-2025q3xex99earningsrel.htm:25]** 
Earnings call transcript: **[0001048286_2231231_1]** **[0001048286_2231231_2]** **[0001048286_2231231_3]** **[0001048286_2231231_4]** **[0001048286_2231231_5]** **[0001048286_2231231_6]** **[0001048286_2231231_8]** **[0001048286_2231231_9]** **[0001048286_2231231_10]** **[0001048286_2231231_11]** **[0001048286_2231231_12]** 
Q2 2025 press release: **[1048286_20250805PH43664:0]** **[1048286_20250805PH43664:1]** **[1048286_20250805PH43664:2]** **[1048286_20250805PH43664:5]** **[1048286_20250805PH43664:7]** **[1048286_20250805PH43664:15]** 
Q1 2025 press release: **[1048286_20250506PH79844:0]** **[1048286_20250506PH79844:1]** **[1048286_20250506PH79844:2]** **[1048286_20250506PH79844:5]** **[1048286_20250506PH79844:6]** **[1048286_20250506PH79844:14]** 
Post-quarter Sonder update: **[1048286_20251109PH19711:0]** 
Dividend declaration: **[1048286_20251106PH18195:0]**

MARRIOTT INTERNATIONAL INC /MD/ (MAR)·Q3 2025 Earnings Summary