Core Insights - Marriott International reported a 5% year-over-year revenue increase to $6.74 billion, exceeding analyst expectations of $6.67 billion [1] - Adjusted earnings per share (EPS) were $2.65, higher than the anticipated $2.61 [1] - Revenue per available room (RevPAR) grew by 1.5%, primarily driven by the leisure market [1] Financial Outlook - The company expects full-year revenue growth of 1.5% to 2.5%, revised from a previous forecast of 1.5% to 3.5% [1] - Adjusted EPS is projected to be between $9.85 and $10.08, slightly adjusted from the prior estimate of $9.82 to $10.19 [1]

Marriott International Inc. reported second-quarter earnings that beat expectations as the company’s global footprint made up for softening US demand https://t.co/4ai0yJOdXD ...

NEWS Marriott International Reports Second Quarter 2025 Results For a summary of quarterly highlights, please visit: https://news.marriott.com/static- assets/component-resources/newscenter/earnings/2025/2025-q2-earnings-infographic.pdf BETHESDA, MD – August 5, 2025 - Marriott International, Inc. (Nasdaq: MAR) today reported second quarter 2025 results. Anthony Capuano, President and Chief Executive Officer, said, "Marriott delivered another solid quarter, highlighted by strong financial results and robust n ...

Core Insights - Marriott International reported solid financial results for Q2 2025, with a global RevPAR increase of 1.5%, driven mainly by the leisure segment, and a robust net rooms growth despite macroeconomic uncertainties [2][12]. Financial Performance - Base management and franchise fees reached $1,200 million, a nearly 5% increase from $1,148 million in Q2 2024, attributed to higher RevPAR, rooms growth, and co-branded credit card fees [6]. - Incentive management fees totaled $200 million, up from $195 million in the previous year, primarily due to strong international hotel performance [7]. - Reported operating income was $1,236 million, compared to $1,195 million in Q2 2024, while reported net income was $763 million, a 1% decrease from $772 million in the prior year [10]. - Adjusted operating income for Q2 2025 was $1,186 million, up from $1,120 million in Q2 2024, with adjusted net income at $728 million compared to $716 million [11]. Room Growth and Development - The company added approximately 17,300 net rooms during the quarter, with a total net rooms growth of 4.7% year-over-year [12][15]. - The development pipeline reached a record of over 590,000 rooms, with 70% of new signings in international markets [3][16]. Brand Expansion - Marriott launched Series by Marriott™, targeting midscale and upscale segments, and completed the acquisition of the lifestyle brand citizenM, enhancing its global brand portfolio [4]. - Membership in the Marriott Bonvoy travel platform reached nearly 248 million, with increased engagement through unique experiences [5]. Shareholder Returns - The company returned approximately $2.1 billion to shareholders through share repurchases and dividends year-to-date, with plans to return about $4 billion for the full year 2025 [6][12]. Outlook - The company expects full-year net rooms growth to approach 5% and anticipates continued RevPAR growth in the upcoming quarters [3][20].

Group 1 - Marriott International is set to release its Q2 earnings results on August 5, with expected earnings of $2.62 per share, an increase from $2.50 per share year-over-year [1] - The company is projected to report quarterly revenue of $6.66 billion, up from $6.44 billion in the same quarter last year [1] - On July 23, Marriott completed the acquisition of the lifestyle brand citizenM [2] Group 2 - Marriott International shares increased by 1.5%, closing at $259.13 [3] - Analysts have varying ratings on Marriott stock, with JP Morgan initiating coverage with a Neutral rating and a price target of $284 [8] - Truist Securities maintained a Hold rating and reduced the price target from $300 to $273 [8] - UBS and Mizuho analysts also maintained Neutral ratings, with price targets adjusted to $299 and $285 respectively [8] - Barclays maintained an Equal-Weight rating, cutting the price target from $283 to $236 [8]

Group 1: Earnings Reports Overview - Palantir has secured a $10 billion Army contract and is expected to report strong quarterly results, with predictions of a "total blowout" due to strong business performance [2] - Berkshire Hathaway's upcoming earnings report is anticipated to be different under Greg Abel's leadership, with expectations of a potential stock price increase if results are favorable [1] - DuPont's breakup is on track, with expectations that the individual parts will be valued higher than the whole [3] Group 2: Sector Insights - Caterpillar is expected to post strong results, benefiting from domestic infrastructure and reshoring trends [3] - Eli Lilly's performance will be closely watched, especially in light of competitor Novo Nordisk's disappointing quarter, raising questions about market share dynamics in the GLP-1 drug sector [5] - Disney's shares have been climbing, with positive remarks on its streaming, theme park, and cruise line segments [4] Group 3: Other Companies to Watch - McDonald's is viewed as a buy due to recent improvements and new offerings [4] - Warner Bros Discovery is undergoing reorganization and debt reduction, with anticipation around its earnings report [6] - Pinterest is expected to deliver solid results, being recognized as a family-friendly advertising platform [6]

Core Insights - Marriott International, Inc. (MAR) is set to report its second-quarter 2025 results on August 5, with earnings expected to be $2.64 per share, reflecting a 5.6% increase from the previous year [1][2][10] Earnings Estimates - The Zacks Consensus Estimate for second-quarter earnings per share (EPS) is $2.64, indicating a growth of 5.6% from $2.50 reported in the same quarter last year [2] - Revenue is projected at nearly $6.7 billion, suggesting a rise of 3.5% from the year-ago quarter [2] Performance Drivers - The second-quarter performance is likely to benefit from strong group bookings, international RevPAR momentum, and growth in fee-based income [3] - Global demand, particularly in the APAC, EMEA, and CALA regions, is expected to bolster RevPAR, with notable growth in markets like India and Japan [4] - Marriott anticipates gross fee revenues to rise 3%-4% year over year, supported by steady RevPAR trends and increased co-branded credit card fees [5] Strategic Focus - The company's asset-light expansion strategy and conversions are expected to aid performance, with a focus on global signings and contributions from the citizenM acquisition [6] - The group travel segment is projected to be a key driver, with bookings increasing by 6% for 2025 and 7% for 2026 [6] Financial Projections - Adjusted EBITDA is projected to rise 3%-5% year over year, supported by international strength and disciplined cost control [7] - Total expenses are expected to increase by 5.4% year over year to $5.5 billion [11] Challenges - Persistent softness in the U.S. and Canada, particularly related to government travel and select-service demand, may negatively impact domestic RevPAR trends [8] - Renovation activities at select properties may exert pressure on incentive management fees, with a predicted decline of 60% year over year in residential branding fees [9] - Cost inflation and foreign exchange volatility may pose additional challenges [9]

Core Viewpoint - The upcoming earnings report from Marriott International is anticipated to show a quarterly earnings per share of $2.64, reflecting a 5.6% increase year-over-year, with revenues expected to reach $6.67 billion, a 3.5% increase compared to the previous year [1]. Earnings Projections - There has been a downward revision of 0.4% in the consensus EPS estimate over the last 30 days, indicating a collective reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts estimate 'Gross fee revenues' to be $1.39 billion, a 3.5% increase from the prior year [5]. - 'Net fee revenues' are projected to reach $1.36 billion, also indicating a 3.5% year-over-year change [5]. - 'Owned, leased, and other revenue' is expected to be $411.32 million, reflecting a 4.1% increase from the previous year [5]. - 'Franchise fees' are forecasted to reach $858.35 million, showing a year-over-year change of 4.9% [6]. Key Metrics - 'Comparable Systemwide International Properties - Worldwide - REVPAR' is expected to be 138, up from 136 in the same quarter last year [6]. - The 'REVPAR Growth Rate' is anticipated to be 1.8%, down from 4.9% in the previous year [7]. - The consensus estimate for 'Rooms - Franchised' stands at 1,127,367, compared to 1,062,749 in the same quarter last year [7]. - 'Rooms - Managed - US & Canada' is projected to be 217,370, up from 213,712 year-over-year [8]. - 'Rooms - Total' is expected to reach 1,749,668, compared to 1,658,659 in the same quarter last year [9]. Stock Performance - Marriott shares have decreased by 2.7% over the past month, contrasting with the Zacks S&P 500 composite's increase of 2.7%, indicating an expected underperformance in the near term [11].

Core Insights - The Shanghai Expo Thompson Hotel is set to open in Q4 2025, marking the debut of the Thompson brand in the Asia-Pacific region and a significant move by Hyatt Group in the lifestyle sector [1][2] - International hotel brands are increasingly choosing China for their first stores, with a notable surge in new brand entries into the domestic market [1][12] - The Chinese hotel market is experiencing a "first store" boom, with multiple international hotel groups expanding their presence [1][12] Hyatt Group - The Shanghai Expo Thompson Hotel is part of Hyatt's lifestyle strategy and represents the brand's first entry into the Asia-Pacific region [2] - Hyatt has also announced the introduction of its Destination by Hyatt brand in China, with two hotels planned in Sichuan and Dalian [2] Hilton Group - The Qingdao Zhanqiao Hilton Motto Hotel is scheduled to open in June 2026, marking the brand's first signing in mainland China [3] - Hilton is also launching the LXR brand in Xi'an, with plans for a hotel and resort to open in 2027 [11] Accor Group - The soft brand Emblems Collection is expected to open its first store in Hangzhou in Q4 2025, although it was initially planned for a 2022 opening [4] - Accor has previously signed a cooperation agreement for a luxury hotel in Guiyang, which has faced delays [4] Wyndham Group - The Xi'an Registry Collection Hotels is set to be the brand's first store in China, with an opening planned for December 2025 [5] Langham Group - The Ying'nFlo brand has officially entered the mainland market, with its first store opening in Hangzhou in July [6] Kempinski Group - The first Bistrôt Hotel in China is expected to open in 2025, developed in collaboration with a local tourism group [7] Market Dynamics - The Chinese hotel market is highly competitive, yet international hotel groups continue to invest due to the country's large population and economic potential [12][13] - By 2030, it is predicted that 58% of Chinese households will belong to the "mass affluent" or higher, driving significant consumer spending growth [13] - Domestic tourism is expected to see a substantial increase, with 56.2 billion trips projected for 2024, reflecting a 14.8% growth from 2023 [15] Strategic Considerations - International hotel brands must adapt to the increasingly discerning Chinese consumers by focusing on localization and cultural integration [17] - The competition for market share in the existing hotel inventory is intensifying, with brands leveraging soft brands to capture market segments [20] - Digital transformation is essential for enhancing operational efficiency and customer experience in the hotel industry [20] - Successful integration with local ecosystems and tourism experiences is crucial for international brands to thrive in China [21]

Core Viewpoint - The market anticipates that Choice Hotels (CHH) will report a year-over-year increase in earnings despite a decline in revenues when it releases its quarterly results for June 2025 [1][3]. Earnings Expectations - The upcoming earnings report is expected to show earnings of $1.90 per share, reflecting a +3.3% change year-over-year, while revenues are projected to be $427.08 million, down 1.9% from the previous year [3]. - The earnings report is scheduled for release on August 6, and better-than-expected results could lead to a stock price increase, whereas disappointing results may cause a decline [2]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 0.38%, indicating a reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for Choice Hotels is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -1.32% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with a strong predictive power for positive readings [9][10]. - Choice Hotels currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [12]. Historical Performance - In the last reported quarter, Choice Hotels was expected to post earnings of $1.38 per share but delivered only $1.34, resulting in a surprise of -2.90% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [14]. Industry Comparison - Marriott International (MAR), another player in the hotel industry, is expected to report earnings of $2.64 per share for the same quarter, indicating a +5.6% year-over-year change, with revenues projected at $6.67 billion, up 3.5% [18][19].