Marriott International(US:MAR)2025-11-04 18:16Revenue Performance - In Q3 2025, worldwide RevPAR increased by 0.5%, driven by ADR growth of 0.9%[61] - In the U.S. & Canada, RevPAR decreased by 0.4% in Q3 2025, while it increased by 0.9% in the first three quarters of 2025[62] - In international regions, RevPAR grew by 2.6% in Q3 2025 and 4.6% in the first three quarters of 2025, with strong demand in APEC, EMEA, and CALA[63] - RevPAR for U.S. & Canada increased by 2.3% to $184.92, while occupancy decreased by 0.2 percentage points to 70.0% in 2025 compared to 2024[72] - The company reported a 4.6% increase in international RevPAR to $123.77, with a 1.1 percentage point increase in occupancy to 69.2%[72] Property and Room Growth - As of September 30, 2025, the company had 9,721 properties and 1,753,722 rooms, representing a 7% increase in properties and a 5% increase in rooms year-over-year[69] - The development pipeline included approximately 3,900 properties and over 596,000 rooms, with over 250,000 rooms (42%) under construction or in conversion[66] - The company expects full year 2025 net rooms growth to approach 5%, including rooms from the citizenM brand acquisition[67] - The company added roughly 47,400 net rooms in the first three quarters of 2025[65] Financial Performance - Franchise fees rose by 8% to $876 million in Q3 2025, driven by rooms growth and higher brand-related fees[74][75] - Owned, leased, and other revenue increased by 10% to $420 million in Q3 2025, primarily due to the acquisition of the Sheraton Grand Chicago hotel[77] - Cost reimbursement revenue grew by 3% to $4.76 billion in Q3 2025, with net cost reimbursements increasing by 133% to $21 million[78] - General, administrative, and other expenses decreased by 15% to $234 million in Q3 2025, attributed to lower guarantee reserves and compensation costs[80] - Interest expense increased by 15% to $206 million in Q3 2025, primarily due to higher debt balances from Senior Notes issuances[82] - Provision for income taxes rose by 32% to $266 million in Q3 2025, driven by higher pre-tax income[83] - Net fee revenues for the first three quarters of 2025 increased by 4% to $3.93 billion compared to the same period in 2024[74] - The overall gross fee revenues for the first three quarters of 2025 were $4.01 billion, reflecting a 5% increase from 2024[74] Segment Performance - In Q3 2025, U.S. & Canada segment net fee revenues were $721 million, a decrease of 1% compared to $728 million in Q3 2024, while segment profit increased by 10% to $680 million from $617 million[86] - EMEA segment net fee revenues grew by 11% to $167 million in Q3 2025, up from $150 million in Q3 2024, with segment profit increasing by 4% to $158 million[86] - Greater China segment net fee revenues increased by 2% to $63 million in Q3 2025, while segment profit decreased by 4% to $44 million[86] - APEC segment net fee revenues rose by 6% to $85 million in Q3 2025, with segment profit declining by 5% to $63 million[86] Cash and Capital Management - Cash, cash equivalents, and restricted cash totaled $694 million at September 30, 2025, an increase of $269 million from year-end 2024[94] - Capital expenditures for the first three quarters of 2025 were $432 million, with an expected total of approximately $1,450 million for the full year[97] - The company repurchased 3.0 million shares for $0.8 billion in Q3 2025, totaling 9.7 million shares repurchased for $2.6 billion year-to-date[98] - The company declared quarterly cash dividends of $0.63, $0.67, and $0.67 per share in 2025[99] - The company expects to continue returning cash to stockholders through share repurchases and cash dividends[100] Data Security Incident - The company reported a data security incident related to the Starwood reservations database but does not expect it to impact long-term financial health[64]