Core Insights - Marriott International, Inc. (MAR) reported strong second-quarter 2025 results, with adjusted earnings and revenues exceeding the Zacks Consensus Estimate for the third consecutive quarter, leading to a 6.1% surge in stock price during pre-market trading [1][4]. Financial Performance - Adjusted earnings per share (EPS) for Q2 were $2.65, surpassing the consensus estimate of $2.64, and up from $2.50 in the prior-year quarter [4]. - Quarterly revenues reached $6,744 million, exceeding the consensus mark of $6,666 million, reflecting a 5% year-over-year increase [4]. - Base management and franchise fees were $340 million and $860 million, respectively, marking increases of 3% and 5% year over year [5]. - Incentive management fees rose to $200 million, a 3% increase from $195 million in the prior-year quarter [5]. Revenue Metrics - Global revenue per available room (RevPAR) increased by 1.5% year over year, supported by a 1.9% rise in average daily rate (ADR), despite a 0.3% decline in occupancy [6]. - International comparable system-wide RevPAR grew by 5.3% year over year, with occupancy and ADR increasing by 0.9% and 3.9%, respectively [7]. Development and Growth - The company signed nearly 32,000 rooms during the quarter, with over 70% in international markets, ending the quarter with a record pipeline of over 590,000 rooms [3]. - Conversions accounted for approximately 30% of room signings and openings in the first half of the year, with net rooms growth expected to approach 5% for the full year [3]. Future Outlook - For Q3, management anticipates gross fee revenues between $1.310 billion and $1.325 billion, with adjusted EBITDA expected to range from $1.288 billion to $1.318 billion [12]. - The company projects worldwide system-wide RevPAR growth to be flat to 1% in Q3, and for 2025, it expects RevPAR to increase by 1.5-2.5% year over year [13]. - Adjusted EBITDA for 2025 is anticipated to be between $5.310 billion and $5.395 billion, with EPS expected in the range of $9.85-$10.09 [14].

Core Insights - Marriott International reported $6.74 billion in revenue for Q2 2025, a year-over-year increase of 4.7% and an EPS of $2.65 compared to $2.50 a year ago, exceeding the Zacks Consensus Estimate of $6.67 billion by 1.17% and delivering an EPS surprise of 0.38% [1] Financial Performance Metrics - Comparable Systemwide International Properties - Worldwide - REVPAR was reported at 136, slightly below the estimated 138 [4] - Comparable Systemwide International Properties - Worldwide - REVPAR Growth Rate was 1.5%, compared to the estimated 1.8% [4] - Franchised Rooms totaled 1,138,838, exceeding the average estimate of 1,127,367 [4] - Managed Rooms in the US & Canada were 213,382, below the average estimate of 217,370 [4] - Gross fee revenues reached $1.4 billion, surpassing the $1.39 billion estimate, reflecting a 4.2% year-over-year change [4] - Net fee revenues were $1.37 billion, slightly above the estimated $1.36 billion, also showing a 4.2% increase year-over-year [4] - Owned, leased, and other revenue was $441 million, exceeding the estimated $411.32 million, marking an 11.7% year-over-year increase [4] - Franchise fees amounted to $860 million, slightly above the estimated $858.35 million, with a 5.1% year-over-year increase [4] - Incentive management fees were reported at $200 million, exceeding the estimate of $190.56 million, reflecting a 2.6% year-over-year change [4] - Cost reimbursements totaled $4.93 billion, surpassing the estimated $4.89 billion, indicating a 4.3% year-over-year increase [4] - Base management fees were $340 million, slightly below the estimated $341.65 million, with a 3% year-over-year increase [4] Stock Performance - Marriott's shares have returned -6.9% over the past month, contrasting with the Zacks S&P 500 composite's +1% change, and the stock currently holds a Zacks Rank 4 (Sell) [3]

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) This section provides Marriott's unaudited condensed consolidated financial statements and management's discussion for the period ended June 30, 2025 [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents Marriott's unaudited condensed consolidated financial statements for the period ended June 30, 2025 [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) For Q2 2025, total revenues increased to $6.74 billion, while net income slightly decreased to $763 million Q2 & H1 2025 vs 2024 Income Statement Highlights (in millions, except EPS) | Metric | Q2 2025 | Q2 2024 | YoY Change | H1 2025 | H1 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenues** | $6,744 | $6,439 | +4.7% | $13,007 | $12,416 | +4.8% | | **Gross Fee Revenues** | $1,400 | $1,343 | +4.2% | $2,675 | $2,553 | +4.8% | | **Operating Income** | $1,236 | $1,195 | +3.4% | $2,184 | $2,071 | +5.5% | | **Net Income** | $763 | $772 | -1.2% | $1,428 | $1,336 | +6.9% | | **Diluted EPS** | $2.78 | $2.69 | +3.3% | $5.17 | $4.62 | +11.9% | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $27.34 billion, driven by accounts receivable and intangible assets Balance Sheet Summary (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and equivalents | $671 | $396 | | Total Assets | $27,342 | $26,182 | | Long-term debt | $14,546 | $13,138 | | Liability for guest loyalty program | $7,775 | $7,519 | | Total Liabilities | $28,342 | $27,829 | | Stockholders' deficit | $(2,964) | $(2,992) | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to $1.29 billion for the first six months of 2025 Six Months Ended June 30 Cash Flow Summary (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,290 | $1,551 | | Net cash used in investing activities | $(286) | $(225) | | Net cash used in financing activities | $(737) | $(1,322) | | **Increase in Cash** | **$267** | **$4** | - Major uses of cash in financing activities for H1 2025 included **$1.5 billion** for treasury stock purchases and **$357 million** for dividend payments[19](index=19&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail significant accounting policies, including the citizenM brand acquisition and debt issuance - In Q2 2025, Marriott agreed to acquire the citizenM brand and related intellectual property for **$355 million**, with potential earn-out payments up to **$110 million**[23](index=23&type=chunk) - Regarding the Starwood Data Security Incident, the U.S. Court of Appeals reversed a class certification, holding a class-action waiver enforceable[32](index=32&type=chunk)[33](index=33&type=chunk) - In February 2025, the company issued **$500 million** of Series RR Notes and **$1.5 billion** of Series SS Notes, with net proceeds of approximately **$1.96 billion** used for general corporate purposes[41](index=41&type=chunk) Segment Profit (in millions) | Segment | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | U.S. & Canada | $786 | $787 | $1,430 | $1,412 | | EMEA | $157 | $153 | $231 | $234 | | Greater China | $53 | $47 | $98 | $98 | | APEC | $76 | $62 | $156 | $134 | | **Total Reportable Segment Profit** | **$1,072** | **$1,049** | **$1,915** | **$1,878** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=15&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's performance, highlighting a 1.5% increase in worldwide RevPAR for Q2 2025 [Business and Overview](index=15&type=section&id=Business%20and%20Overview) This section details Marriott's asset-light business model and key performance indicators like RevPAR Systemwide Comparable RevPAR Growth (Constant $) | Region | Q2 2025 vs Q2 2024 | H1 2025 vs H1 2024 | | :--- | :--- | :--- | | U.S. & Canada | 0.0% | +1.6% | | International | +5.3% | +5.7% | | **Worldwide** | **+1.5%** | **+2.8%** | - The development pipeline contained over **590,000 rooms** at the end of Q2 2025, with **40%** under construction or in conversion[65](index=65&type=chunk) - The company expects full-year 2025 net rooms growth to approach **5%**, including rooms from the citizenM brand acquisition[66](index=66&type=chunk) [Consolidated Results](index=18&type=section&id=Consolidated%20Results) Analysis of consolidated results shows a 4% increase in net fee revenues for Q2 2025, driven by franchise fees Fee Revenue Changes (Q2 2025 vs Q2 2024) | Fee Type | Change (in millions) | % Change | | :--- | :--- | :--- | | Base management fees | +$10 | +3% | | Franchise fees | +$42 | +5% | | Incentive management fees | +$5 | +3% | | **Net fee revenues** | **+$55** | **+4%** | - General, administrative, and other expenses decreased in Q2 and H1 2025 primarily due to lower compensation costs[78](index=78&type=chunk) - Interest expense increased by **$30 million (17%)** in Q2 2025 and **$59 million (18%)** in H1 2025, mainly due to higher debt balances[79](index=79&type=chunk) [Liquidity and Capital Resources](index=20&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with a $4.5 billion credit facility and expects to continue returning cash to shareholders - The company's long-term debt had a weighted average interest rate of **4.5%** and a weighted average maturity of approximately **5.6 years** as of Q2 2025[84](index=84&type=chunk) - Capital expenditures and other investments are expected to total approximately **$1.355 billion to $1.455 billion** for the full year 2025, including the **$355 million** citizenM brand acquisition[92](index=92&type=chunk) - In Q2 2025, the company repurchased **2.8 million shares** for **$0.7 billion**; year-to-date through July 30, 2025, **6.4 million shares** were repurchased for **$1.7 billion**[93](index=93&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=22&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that its exposure to market risk has not materially changed since the end of the fiscal year 2024 - There have been no material changes in the company's exposure to market risk since December 31, 2024[98](index=98&type=chunk) [Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of the end of the quarter - Based on an evaluation as of the end of Q2 2025, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[99](index=99&type=chunk) - No changes in internal control over financial reporting occurred during Q2 2025 that materially affected these controls[100](index=100&type=chunk) [Part II. Other Information](index=23&type=section&id=Part%20II.%20Other%20Information) This section covers legal proceedings, risk factors, equity sales, and other disclosures [Legal Proceedings](index=23&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 6 for details on the Starwood Data Security Incident litigation and discloses an EPA letter - In Q2 2025, the company received a letter from the EPA regarding alleged violations of the Clean Air Act at a managed hotel, but does not expect the matter to be material[104](index=104&type=chunk) [Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) The company reports no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K - There are no material changes to the risk factors discussed in the 2024 Form 10-K[106](index=106&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=23&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase activity for the second quarter of 2025 Q2 2025 Share Repurchases (in millions, except per share amounts) | Period | Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 2025 | 1.1 | $223.08 | | May 2025 | 0.8 | $266.95 | | June 2025 | 0.9 | $262.69 | | **Total Q2** | **2.8** | **$248.54** | [Other Information](index=23&type=section&id=Item%205.%20Other%20Information) The company reports that no director or Section 16 officer adopted or terminated any Rule 10b5-1 trading plans during Q2 2025 - No director or Section 16 officer adopted or terminated any Rule 10b5-1 plans or other trading arrangements during Q2 2025[108](index=108&type=chunk) [Exhibits](index=24&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications and various agreements

Financial Data and Key Metrics Changes - Marriott reported strong second quarter financial results, with global RevPAR increasing by 1.5% and net rooms growing by 4.7% year over year [5][10] - Total gross fee revenue rose by 4% year over year to $1.4 billion, driven by rooms growth and higher RevPAR [18] - Adjusted EBITDA increased by 7% to $1.42 billion [19] Business Line Data and Key Metrics Changes - International RevPAR rose over 5%, with APAC experiencing a 9% increase and EMEA a 7% increase [6][7] - RevPAR in the US and Canada was flat year over year, with select service and extended stay RevPAR declining around 1.5% [9] - Luxury RevPAR grew by 4%, while RevPAR in Greater China declined by 0.5% due to a weaker macro environment [8][10] Market Data and Key Metrics Changes - RevPAR in the Middle East rose over 10%, while Europe saw a 4% increase [7] - Government room nights in the US and Canada were down 16% year over year, impacting overall demand [21] - Group revenues for 2026 are pacing up 8% in the US and Canada, indicating a positive outlook for future periods [21] Company Strategy and Development Direction - The company aims to enhance its technology infrastructure through a multi-year transformation project, focusing on loyalty, reservations, and property management systems [33][34] - Marriott is expanding its luxury portfolio and has launched new brands like Series by Marriott to attract value-conscious travelers [12][13] - The company is committed to maintaining its investment-grade rating while returning excess capital to shareholders through dividends and share repurchases [27] Management's Comments on Operating Environment and Future Outlook - Management expects full-year RevPAR growth to be in the lower end of the prior range, between 1.5% to 2.5% [10][20] - The luxury and full-service segments are anticipated to outperform lower-end chain scales, with a positive outlook for the fourth quarter due to holiday shifts and major events [20] - Economic uncertainty remains a concern, but management is optimistic about the long-term growth potential driven by strong demand in luxury and midscale segments [21][22] Other Important Information - The company announced the retirement of CFO Leeny Oberg, with a transition plan in place for her successors [15][16] - Marriott Media Network was introduced to connect brands with guests, leveraging insights into traveler behavior [14][58] Q&A Session Summary Question: Technology transformation project status and expected changes - The company is in the midst of a multi-year transformation of its main systems, with a focus on enhancing guest and owner experiences through new technology [33][34] Question: Implications of recent legislation on development and renovations - The passing of the legislation has reduced uncertainty, potentially driving renovation capital and development optimism among owners [42][43] Question: Group business outlook and lead volumes - Group revenues for 2026 are tracking positively, with no significant cancellations noted, indicating a stable outlook [48][49] Question: Marriott Media Network potential - Early interest from advertisers in the Marriott Media Network has exceeded expectations, indicating a promising future for this initiative [56][58] Question: Residential branding fees volatility - The company remains committed to its residential business, which is a smaller part of the overall fee stream but has high return potential [62][64] Question: Business transient trends and outlook - Business transient RevPAR was down 1% globally, excluding government demand, but corporates are returning to normal travel patterns [68][70]

Financial Data and Key Metrics Changes - Marriott reported a second quarter global RevPAR increase of 1.5%, driven by nearly 2% ADR growth, despite a 30 basis point decline in occupancy [16][5] - Total gross fee revenue increased by 4% year over year to $1.4 billion, reflecting rooms growth and higher RevPAR [16][17] - Adjusted EBITDA rose by 7% to $1.42 billion [17][23] Business Line Data and Key Metrics Changes - RevPAR in the luxury segment increased by 4%, while select service and extended stay RevPAR in the US and Canada declined by approximately 1.5% year over year [7][8] - International RevPAR rose over 5%, with APAC seeing a 9% increase and EMEA a 7% increase [6][5] - Owned, leased, and other revenue, net of expenses, rose by 14% compared to the prior year, driven by improved performance at various hotels [17][16] Market Data and Key Metrics Changes - RevPAR in Greater China declined by 0.5% year over year due to a weaker macro environment, while the US and Canada region's RevPAR was flat year over year [7][6] - Government room nights in the US and Canada were down 16% year over year in the second quarter [19][66] - Group revenues for 2026 are pacing up 8% in the US and Canada, indicating a positive outlook for future periods [19][45] Company Strategy and Development Direction - The company is focused on enhancing its technology transformation, including a multi-year project on loyalty, reservations, and PMS systems [30][31] - Marriott is expanding its luxury portfolio and has plans to open an additional 27 luxury properties this year [12][11] - The introduction of the Marriott Media Network aims to connect brands with audiences throughout the guest journey, leveraging insights into traveler behavior [13][55] Management's Comments on Operating Environment and Future Outlook - Management expects full year RevPAR growth to be in the lower end of the prior range, between 1.5% to 2.5% over last year, with stronger growth anticipated internationally [9][17] - The company anticipates a flat to 1% increase in global RevPAR for the third quarter, with a more optimistic outlook for the fourth quarter due to holiday shifts and major events [18][19] - Management expressed confidence in the resilience of the group segment, despite macroeconomic uncertainties [86][85] Other Important Information - The company announced the retirement of CFO Leeny Oberg, with a transition plan in place [14][15] - The pipeline reached a record of over 590,000 rooms, with 40% under construction [9][10] - The company is committed to maintaining its investment-grade rating while returning excess capital to shareholders [25][24] Q&A Session Summary Question: Technology transformation project status and expected changes - Management is in the midst of a multi-year transformation of key systems, with a focus on enhancing guest and owner experiences through new technology [30][31] Question: Implications of recent legislation on development and renovations - The passage of the legislation has reduced uncertainty, potentially driving more renovation capital and development optimism among owners [39][40] Question: Group business trends and future bookings - Group revenues for 2026 are tracking positively, with no significant cancellations noted, indicating a stable outlook [45][46] Question: Marriott Media Network potential - Early interest from prospective advertisers has exceeded expectations, indicating a promising future for the network [51][54] Question: Commitment to residential branding despite volatility - Management remains excited about the residential business, emphasizing its long-term value despite short-term fluctuations [58][60] Question: Business transient trends and outlook - Business transient RevPAR was down 1% excluding government demand, but overall corporate travel is returning to normal levels [64][67]

Core Insights - Marriott International reported quarterly earnings of $2.65 per share, exceeding the Zacks Consensus Estimate of $2.64 per share, and showing an increase from $2.50 per share a year ago, resulting in an earnings surprise of +0.38% [1] - The company generated revenues of $6.74 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.17% and reflecting a year-over-year increase from $6.44 billion [2] - The stock has underperformed the market, losing about 7.1% since the beginning of the year compared to the S&P 500's gain of 7.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.49 on revenues of $6.51 billion, while for the current fiscal year, the estimate is $9.99 on revenues of $26.16 billion [7] - The trend of estimate revisions for Marriott was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Hotels and Motels industry is currently in the bottom 10% of the Zacks Industry Rank, which suggests that stocks in the top 50% of Zacks-ranked industries outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, Soho House & Co, is expected to report a quarterly loss of $0.08 per share, reflecting a year-over-year change of +52.9%, with revenues projected at $309 million, up 1.3% from the previous year [9]

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 ...

Financial Performance - Reported diluted EPS for the second quarter was $2.78, while adjusted diluted EPS was $2.65, reflecting a year-over-year increase from $2.50[4][14] - The company reported a net income of $763 million for the second quarter, a slight decrease of 1% compared to the previous year[4][13] - For the three months ended June 30, 2025, total revenues increased by 5% to $6,744 million compared to $6,439 million for the same period in 2024[32] - Net income for the three months ended June 30, 2025, was $763 million, a slight decrease of 1% compared to $772 million in the same quarter of 2024[32] - For the six months ended June 30, 2025, total revenues increased by 5% to $13,007 million compared to $12,416 million in 2024[34] - Net income for the six months ended June 30, 2025, rose by 7% to $1,428 million from $1,336 million in the prior year[34] - Reported net income for Fiscal Year 2025 totaled $1,428 million, with $665 million in Q1 and $763 million in Q2[62] - Adjusted EBITDA for Fiscal Year 2025 reached $2,632 million, reflecting a 7% increase from 2024[62] Revenue and Fees - Base management and franchise fees totaled $1,200 million, a nearly 5% increase from $1,148 million in the prior year[8] - Net fee revenues for the three months ended June 30, 2025, rose by 4% to $1,371 million from $1,316 million in the prior year[32] - Franchise fees for the six months ended June 30, 2025, increased by 7% to $1,606 million compared to $1,506 million in 2024[34] - Incentive management fees increased to $200 million, driven by strong international hotel performance[9] Development and Growth - Marriott added approximately 17,300 net rooms during the quarter, achieving a net rooms growth of 4.7% year-over-year[4][17] - The worldwide development pipeline reached a record of approximately 3,900 properties and over 590,000 rooms[4][5] - The outlook for full year 2025 includes expected net rooms growth approaching 5% and adjusted EBITDA forecasted between $5,310 million and $5,395 million[22] Shareholder Returns - The company repurchased 2.8 million shares for $0.7 billion in the second quarter, with a total of approximately $2.1 billion returned to shareholders year-to-date[4][20] Brand and Market Expansion - The company launched Series by Marriott™, targeting midscale and upscale segments, and completed the acquisition of the citizenM brand, enhancing its global brand portfolio[6] - As of June 30, 2025, Marriott International operates a total of 9,601 properties with 1,735,819 rooms worldwide, including 6,423 properties in the US & Canada and 3,178 properties internationally[40] - Marriott's international properties include 3,178 locations with 660,095 rooms, highlighting the company's global expansion strategy[40] Performance Metrics - Revenue per Available Room (RevPAR) is a key performance measure calculated by dividing property level room revenue by total rooms available for the period[73] - Occupancy is calculated by dividing total rooms sold by total rooms available for the period, indicating the utilization of a property's available capacity[73] - Average Daily Rate (ADR) is calculated by dividing property level room revenue by total rooms sold, useful for assessing pricing levels[73] Regional Performance - In the Middle East & Africa region, RevPAR increased by 13.4% to $135.25, with occupancy rising to 68.8%, an increase of 4.2 percentage points[54] - The Caribbean & Latin America region saw a RevPAR of $186.34, up 6.9%, with occupancy at 65.0%, down 2.1 percentage points[54] - The occupancy rate for the Asia Pacific excluding China region improved to 70.4%, with a RevPAR increase of 9.1% to $127.75[58] - The overall occupancy rate for comparable systemwide international properties was 69.0%, with a RevPAR increase of 5.3% to $122.49[56] Future Projections - Estimated Adjusted EBITDA for Q3 2025 is projected between $1,288 million and $1,318 million, representing a 5% increase over Q3 2024[64] - Full Year 2025 Adjusted EBITDA is forecasted to be between $5,310 million and $5,395 million, an increase of 7% to 8% compared to 2024[66] - Interest expense for Fiscal Year 2025 is expected to be $815 million, consistent with 2024[66] - Provision for income taxes for Fiscal Year 2025 is estimated at $889 million, slightly lower than the $912 million in 2024[66] - Stock-based compensation for Fiscal Year 2025 is projected at $225 million, unchanged from 2024[66]

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].