Marriott International(MAR) - 2025 Q2 - Quarterly Results

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]