Core Insights - Marriott International, Inc. reported first-quarter 2025 results with adjusted earnings exceeding estimates while revenues fell short, indicating a mixed performance despite year-over-year growth [1][3]. Financial Performance - Adjusted earnings per share (EPS) for Q1 2025 were $2.32, surpassing the Zacks Consensus Estimate of $2.27, and up from $2.13 in the prior-year quarter [3]. - Quarterly revenues reached $6,263 million, slightly below the consensus mark of $6,275 million, but represented a 5% increase year-over-year [3]. - Base management and franchise fees were $325 million and $746 million, respectively, reflecting year-over-year increases of 4% and 8% [4]. - Incentive management fees decreased by 2% to $204 million compared to $209 million in the prior-year quarter [4]. Operational Metrics - RevPAR for worldwide comparable system-wide properties increased by 5.2% year-over-year, supported by a 3.4% rise in average daily rate (ADR) and a 1.2% increase in occupancy [5]. - Comparable system-wide RevPAR in the Asia Pacific (excluding China) rose by 10.6% year-over-year, while Greater China experienced a decline of 2.1% [5][6]. - Total expenses decreased by 4% year-over-year to $5.31 billion, attributed to a decline in reimbursed expenses [6]. Development and Growth - The company achieved a record of over 34,000 room signings in Q1 2025, with nearly two-thirds in international markets, and conversions accounted for about one-third of new signings and openings [2]. - As of the end of Q1, Marriott's development pipeline included 3,808 hotels, with 1,447 properties and over 244,000 rooms under construction [9]. Future Outlook - For Q2 2025, management anticipates gross fee revenues between $1.38 billion and $1.39 billion, with adjusted EBITDA expected to range from $1.37 billion to $1.39 billion [10]. - The company projects worldwide system-wide RevPAR growth of 1.5-3.5% year-over-year for 2025, a revision from the previous estimate of 2-4% [10]. - For the full year 2025, gross fee revenues are expected to be between $5.37 billion and $5.48 billion, with adjusted EBITDA projected between $5.3 billion and $5.4 billion [11].

Core Insights - Marriott International reported $6.26 billion in revenue for Q1 2025, a year-over-year increase of 4.8% [1] - The EPS for the same period was $2.32, compared to $2.13 a year ago, with a surprise of +2.20% against the consensus estimate of $2.27 [1] Financial Performance Metrics - Revenue from owned/leased rooms was 14,312, slightly above the average estimate of 14,214 [4] - Managed rooms totaled 567,896, below the estimated 587,915 [4] - Franchised rooms reached 1,120,634, exceeding the estimate of 1,102,261 [4] - REVPAR growth rate was 4.1%, surpassing the average estimate of 2.7% [4] - Gross fee revenues were $1.28 billion, above the estimate of $1.25 billion, reflecting a +5.4% change year-over-year [4] - Net fee revenues were $1.25 billion, compared to the average estimate of $1.23 billion, marking a +5.1% year-over-year change [4] - Franchise fees amounted to $746 million, exceeding the estimate of $727.37 million, with an +8.4% year-over-year change [4] - Base management fees were $325 million, slightly above the average estimate of $319.23 million, representing a +3.8% change year-over-year [4] Stock Performance - Marriott shares returned +15.9% over the past month, outperforming the Zacks S&P 500 composite's +11.5% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market [3]

Core Insights - Marriott International reported quarterly earnings of $2.32 per share, exceeding the Zacks Consensus Estimate of $2.27 per share, and showing an increase from $2.13 per share a year ago, representing an earnings surprise of 2.20% [1] - The company posted revenues of $6.26 billion for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.18%, but up from $5.98 billion year-over-year [2] - The stock has underperformed the market, losing about 11.4% since the beginning of the year compared to the S&P 500's decline of 3.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.72 on revenues of $6.75 billion, and for the current fiscal year, it is $10.12 on revenues of $26.42 billion [7] - The estimate revisions trend for Marriott is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Hotels and Motels industry is currently ranked in the top 37% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Choice Hotels, a competitor in the same industry, is expected to report quarterly earnings of $1.38 per share, reflecting a year-over-year increase of 7.8% [9]

Financial Data and Key Metrics Changes - The company reported a 4.1% increase in global RevPAR for Q1 2025, exceeding the guidance range of 3% to 4% [5][10] - Average Daily Rate (ADR) increased by 3%, while occupancy rose by 1 percentage point [5][10] - Total gross fee revenues increased by 5% year over year to $1.28 billion [17] - Adjusted EBITDA totaled $1.22 billion, reflecting a 7% increase [18] Business Line Data and Key Metrics Changes - Group RevPAR rose by 8% globally, while business transient and leisure transient each grew by 2% globally [7][21] - The select service segment in the U.S. and Canada experienced softer growth, particularly in March [9][16] - International RevPAR increased nearly 6%, with APAC leading at an 11% rise [6][21] Market Data and Key Metrics Changes - RevPAR in the U.S. and Canada rose over 3%, with luxury and full-service hotels outperforming select service properties [5][6] - In EMEA, RevPAR rose by 6% due to strong transient demand [7] - Greater China saw a 2% decline in RevPAR, primarily due to a weaker macro environment [7][21] Company Strategy and Development Direction - The company is lowering its full-year RevPAR growth guidance by 50 basis points due to a cautious outlook in the U.S. and Canada [10][20] - Development activity remains robust, with a record 35% increase in signings year over year, totaling over 587,000 rooms in the pipeline [11][12] - The company is focused on enhancing efficiency and productivity, which contributed to a 6% decline in G&A expenses [18][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's agility and resilience amid heightened macroeconomic uncertainty [9][10] - The outlook for the second quarter anticipates a global RevPAR increase of 1.5% to 2.5% [20] - Management noted that demand trends internationally remain strong, except for Greater China, which is expected to be flat [21][22] Other Important Information - The company is expanding its portfolio with the addition of the CitizenM brand, which is expected to enhance growth opportunities [12][13] - The Marriott Bonvoy loyalty program reached nearly 237 million members, with member penetration at a record 68% of room nights globally [13][14] - Full-year adjusted diluted EPS is anticipated to be between $9.82 and $10.19, with an effective tax rate around 26% [26][27] Q&A Session Summary Question: Can you elaborate on the weaker select service performance? - Management noted that March saw softness in the U.S. and Canada, attributed to macroeconomic factors and the impact of government layoffs [32][34] Question: What is the owner's commitment to the CitizenM brand? - Management indicated strong enthusiasm from owners regarding the brand's positioning and growth potential [38] Question: How are developers reacting to current market conditions? - Developers remain optimistic about long-term opportunities despite short-term turbulence, with signings up significantly [42][44] Question: What is the outlook for inbound international travel to the U.S.? - The company reported a higher international mix in Q1 compared to the previous year, with strong demand from various countries [70][71] Question: How is the group booking pace trending into 2026? - Forward bookings for 2026 are tracking up about 7%, indicating positive momentum [77]

Financial Data and Key Metrics Changes - The company reported a global RevPAR increase of 4.1% year-over-year, exceeding the guidance range of 3% to 4% [6][19] - Average Daily Rate (ADR) increased by 3%, while occupancy rose by 1% [6] - Total gross fee revenues increased by 5% year-over-year to $1.28 billion [19] - Adjusted EBITDA totaled $1.22 billion, reflecting a 7% increase [20] Business Line Data and Key Metrics Changes - Group RevPAR rose by 8% globally, while business transient and leisure transient each grew by 2% globally [9] - The U.S. and Canada region saw a RevPAR increase of 2% year-over-year, impacted by a decline in government-related demand [18][19] - International RevPAR increased nearly 6%, with APAC leading at an 11% growth [7][9] Market Data and Key Metrics Changes - RevPAR in Greater China declined by 2% due to a weaker macro environment, although it was better than expected [9] - EMEA region experienced a 6% increase in RevPAR, driven by strong transient demand [9] - The U.S. government segment contributed to a 10% year-over-year decline in RevPAR for the U.S. and Canada region [18] Company Strategy and Development Direction - The company is lowering its full-year RevPAR growth guidance by 50 basis points due to a cautious outlook in the U.S. and Canada [11] - Development activity remains strong, with a record 35% increase in signings year-over-year, totaling over 587,000 rooms in the pipeline [12][13] - The company is focused on enhancing efficiency and productivity, which is expected to yield cost savings for owners and franchisees [20][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience despite macroeconomic uncertainties, noting solid demand across group and transient guests [6][10] - The outlook for the second quarter anticipates a global RevPAR increase of 1.5% to 2.5%, with full-year growth expected to be 1.5% to 3.5% [22][23] - Management highlighted the importance of the Marriott Bonvoy loyalty program, which had nearly 237 million members, contributing to strong customer engagement [14] Other Important Information - The company is undergoing a multi-year digital and technology transformation to enhance operational efficiency and customer experience [15] - The CitizenM transaction is expected to close in the latter half of the year, contributing to net rooms growth [20][29] Q&A Session Summary Question: Can you elaborate on the weaker select service performance? - Management noted that March saw softness in the U.S. and Canada, but preliminary April results showed improvement, excluding the impact of Easter [34][36] Question: What is the owner's commitment to the CitizenM brand? - Management indicated strong enthusiasm from owners regarding the CitizenM partnership, leveraging Marriott's extensive developer network for growth [40] Question: How are conversations with developers in the U.S. regarding full-service hotels? - Management reported that signings were up significantly, indicating long-term confidence among owners despite short-term uncertainties [44][46] Question: What is the outlook for inbound international travel to the U.S.? - Management highlighted a positive trend in international room nights, with a mix higher than the previous year, despite a decline from Canada [76][78] Question: How is the group booking pace trending into 2026? - Management reported a 7% increase in forward bookings for 2026, indicating strong demand [84] Question: What are the expectations for conversions in the current economic environment? - Management expressed optimism about conversion volumes remaining steady, supported by low new supply growth and strong demand for conversions [104][108]

Financial Performance - Reported diluted EPS for Q1 2025 was $2.39, an increase from $1.93 in Q1 2024, while adjusted diluted EPS was $2.32 compared to $2.13 in the prior year[12][13] - Net income for Q1 2025 totaled $665 million, an 18% increase from $564 million in Q1 2024[12] - Total revenues for the three months ended March 31, 2025, were $6,263 million, an increase of 5% compared to $5,977 million for the same period in 2024[32] - Basic earnings per share increased by 24% to $2.40 for the three months ended March 31, 2025, compared to $1.94 for the same period in 2024[32] - Adjusted net income for the three months ended March 31, 2025, was $645 million, a 4% increase from $620 million in the same period of 2024[35] - Operating income for the three months ended March 31, 2025, was $948 million, an 8% increase from $876 million in the same period of 2024[32] - Adjusted EBITDA for Q1 2025 was $1,217 million, a 7% increase from $1,142 million in Q1 2024[15] - Estimated net income excluding certain items for Q2 2025 is projected to be between $706 million and $721 million, compared to $721 million in Q2 2024[57] - Adjusted EBITDA for Q2 2025 is estimated to be between $1,370 million and $1,390 million, reflecting a 3% increase over Q2 2024[57] - Estimated net income excluding certain items for the full year 2025 is projected to be between $2,757 million and $2,860 million, compared to $2,860 million in 2024[59] - Adjusted EBITDA for the full year 2025 is estimated to be between $5,285 million and $5,425 million, representing a 6% increase over 2024[59] Room Growth and Development - The company added approximately 12,200 net rooms in Q1 2025, representing a 4.6% growth year-over-year[4] - Marriott's worldwide development pipeline at the end of Q1 2025 included approximately 3,808 properties and over 587,000 rooms, a 7.4% increase year-over-year[4][17] - The company expects full-year 2025 net rooms growth to approach 5%, assuming the acquisition of citizenM closes before year-end[6] - As of March 31, 2025, Marriott International has a total of 9,463 properties and 1,718,542 rooms worldwide[38] - The company reported a total of 1,981 managed properties worldwide, with a total of 567,896 rooms as of March 31, 2025[37] Shareholder Returns - The company repurchased 2.8 million shares for $0.8 billion in Q1 2025, returning over $1.2 billion to shareholders year-to-date through April 29[4][20] Loyalty Program - The loyalty program membership grew to nearly 237 million members by the end of March 2025[7] Revenue and Fees - Franchise fees increased by 8% to $746 million for the three months ended March 31, 2025, compared to $688 million in the same period of 2024[32] - Cost reimbursement revenue increased by 5% to $4,655 million for the three months ended March 31, 2025, compared to $4,433 million in the same period of 2024[32] Regional Performance - In Q1 2025, worldwide RevPAR increased by 4.1%, with U.S. & Canada growing by 3.3% and international markets by 5.9%[4] - RevPAR for JW Marriott increased by 5.5% to $267.85, with occupancy rising 2.2 percentage points to 73.0%[46] - The Ritz-Carlton's RevPAR grew by 8.0% to $412.33, and occupancy improved by 2.7 percentage points to 69.0%[46] - Average Daily Rate (ADR) for the Caribbean & Latin America region rose by 7.6% to $348.58, with RevPAR increasing by 10.8% to $244.14[50] - The Greater China region experienced a RevPAR decline of 2.1% to $77.23, with ADR decreasing by 3.1% to $120.13[50] - Occupancy rates in Asia Pacific excluding China improved by 1.7 percentage points to 71.3%, with RevPAR increasing by 10.6% to $133.23[50] - Marriott's overall RevPAR for the US & Canada increased by 5.1% to $181.75, with occupancy rising by 1.2 percentage points to 67.2%[46] - The average daily rate for the Composite US & Canada Luxury segment increased by 2.6% to $495.55, with RevPAR up by 5.7% to $349.69[46] - Marriott's occupancy rate for the Worldwide segment improved by 1.2 percentage points to 67.3%, with a RevPAR increase of 5.2% to $146.49[50] Future Outlook - The updated outlook for Q2 2025 anticipates RevPAR growth of 1.5% to 2.5% and full-year growth of 1.5% to 3.5%[22] - The company plans to acquire the citizenM brand, expected to occur in the second half of 2025[57] Expenses and Projections - Interest expense for the full year 2025 is expected to remain at $816 million, consistent with 2024[59] - Provision for income taxes for Q2 2025 is estimated at $264 million, compared to $269 million in Q2 2024[57] - Stock-based compensation for the full year 2025 is projected to be $220 million, consistent with previous periods[59] - Depreciation and amortization for the full year 2025 is expected to be $200 million, unchanged from 2024[59] Performance Metrics - The company emphasizes the importance of Adjusted EBITDA as a meaningful indicator of operating performance, allowing for period-over-period comparisons[65]

Core Insights - The article identifies the worst-performing stocks in May, highlighting the importance for traders to avoid potential downfalls [1] Group 1: Underperforming Stocks - Marriott International Inc (NASDAQ:MAR) has historically averaged a 2.6% loss in May, with only one gain in the last decade [2][3] - Walgreens Boots Alliance Inc (NASDAQ:WBA) has an average loss of 3.9% for May, with only two positive months out of ten [2][3] - The list includes 25 S&P 500 stocks that have underperformed in May over the past ten years [1] Group 2: Performance Data - MAR's average return in May is -1.62% with a median return of -2.57%, and it has a 10% chance of a positive return [3] - WBA's average return is -3.99% with a median return of -2.37%, showing a 20% chance of a positive return [3] - Other notable underperformers include APA (average return -4.98%), TSN (average return -3.59%), and DIS (average return -3.07%) [3] Group 3: Recent Stock Performance - MAR is currently trading at $248.70, down 0.3%, and has seen a 10.9% decline year-to-date [5] - WBA is trading flat at $10.97, with a significant year-over-year decline of 38.4% [6] - Both companies have shown disappointing post-earnings reactions, with MAR finishing lower in six of the last eight sessions following earnings reports [5]

Marriott International, Inc. (MAR) is scheduled to release first-quarter 2025 results on May 6, before the opening bell. In the previous quarter, the company’s earnings beat the Zacks Consensus Estimate by 2.9%.MAR’s Trend in Estimate RevisionThe Zacks Consensus Estimate for first-quarter bottom line is pegged at $2.27, indicating growth of 6.6% from $2.13 reported in the year-ago quarter. In the past 30 days, earnings estimates have witnessed downward revisions of 0.4%. (See the Zacks Earnings Calendar to ...

Core Viewpoint - Analysts forecast that Marriott International (MAR) will report quarterly earnings of $2.27 per share, reflecting a year-over-year increase of 6.6%, with anticipated revenues of $6.27 billion, marking a 5% increase compared to the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised 0.7% lower over the last 30 days, indicating a reevaluation of initial estimates by analysts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3]. Revenue Projections - Analysts estimate 'Revenues- Gross fee revenues' will reach $1.25 billion, a 3.6% increase from the year-ago quarter [5]. - 'Revenues- Net fee revenues' are projected at $1.23 billion, indicating a 3.4% increase from the prior-year quarter [5]. - 'Revenues- Owned, leased, and other revenue' is expected to be $363.16 million, reflecting a 1.7% increase from the previous year [6]. - 'Revenues- Franchise fees' are forecasted at $727.37 million, showing a 5.7% increase from the prior-year quarter [6]. Room Metrics - 'Rooms - Owned/Leased' is projected to reach 14,214, up from 13,111 in the same quarter last year [6]. - 'Rooms - Managed' is expected to be 587,915, compared to 566,944 a year ago [7]. - 'Rooms - Franchised' is estimated at 1,102,261, an increase from 1,049,173 in the previous year [7]. - 'Rooms - Total' is projected to reach 1,723,831, compared to 1,643,172 a year ago [8]. - 'Rooms - Franchised - Total International' is estimated at 270,179, up from 236,467 in the previous year [9]. Market Performance - Over the past month, Marriott shares have recorded returns of -1.6%, compared to the Zacks S&P 500 composite's -0.7% change [9].

Core Insights - Marriott International has surpassed its volunteerism goal of 15 million hours served globally, achieving this milestone one year ahead of schedule, with a total of 15.6 million volunteer hours completed from 2016 to the end of 2024 [1][3] Group 1: Volunteerism and Community Engagement - The company emphasizes its commitment to community service through its sustainability and social impact platform, Serve 360, which focuses on four priority areas: Nurture Our World, Sustain Responsible Operations, Empower through Opportunity, and Welcome All and Advance Human Rights [3][7] - Marriott associates have actively participated in disaster relief efforts, contributing over 1,700 hours of disaster relief work following Hurricanes Helene and Milton in 2024, and over 15,000 volunteer hours for wildfire relief in Maui, Hawaii in 2023 [4] - The "Check Out for Children" program has supported UNICEF since 1995, benefiting over 4.5 million children worldwide through donations from participating hotels [5] Group 2: Regional Initiatives - In the Asia Pacific region, Marriott hotels have rescued over 440,000 lbs. of surplus food, resulting in over 800,000 meals donated to communities in need [6] - In the Caribbean and Latin America, properties have engaged in sea turtle nesting and release programs, supporting the release of over 445,000 sea turtles since 2018 [6] - In the U.S. and Canada, local hotels have raised over $46 million for Children's Miracle Network Hospitals from 2016 through the end of 2024, with associates contributing nearly 25,000 volunteer hours in 2024 alone [6]